Network

Network Sept 2016

Issue link: https://fhpublishing.uberflip.com/i/721278

Contents of this Issue

Navigation

Page 13 of 39

NETWORK / 14 / SEPTEMBER 2016 INTERVIEW are doing a lot of great work and it's being shared effectively with industry, but how do we get the real credit for that?" This seems to indicate that Emery would like to see reforms that allow DNOs to make returns on their innovation investments. "I think it is something that we need to explore," he confirms, "because the more successful you are… you want to do more of it." But, he adds, "I am not a charity." Such a move would more than likely mean that fund- ing for innovation would have to come from company cash rather than customer bills. Is that something Emery would be happy to contemplate? "That's quite possible," he agrees. "We are starting to have these conversations internally about what is the best way to fund these things. I think that government funding is working well and I think it is moving the industry forward quickly and we are very keen participants in that. But there might be other ways to bring more funding to bear and to increase the pace of innovation." It's a challenging concept for the DNO community, and Emery says he has no idea whether other network chief executives are thinking in the same vein. But, he observes, "with my background – you'd expect me to be asking those questions I would think". Emery's not the only one with pro-market inclinations, however. In May, Ofgem's chief executive, Dermot Nolan, told his audience at an industry exhi- bition and conference, Utility Week Live, that he would like to see more competition come into the UK energy network land- scape. He even suggested that regional monopolies might have disappeared 20 years hence. Meanwhile, Ofgem's Smart Systems investigation, which among other things explores possible pathways for endowing DNOs with more system opera- tion responsibilities, is raising questions about the potential for putting more system balanc- ing operations out to markets. L i v i n g w i t h o u t e L e c t r i c i t y ENW is still absorbing lessons from last winter's storms but foremost among them is an awareness that getting lights back on after a power failure is just the tip of the iceberg. In December 2015, Storm Desmond hit the UK with disastrous effect. Nowhere were these felt more acutely than in the North West where, at 10.45pm on 5 December, electricity supplies to 61,000 properties in Lancaster alone were cut. A chaotic week ensued with power being restored only to be cut again and flooding making lives a misery and many business activities impossible. Electricity North West put on a good show in the face of this disaster and was widely praised in the aftermath for its responsiveness and attention to detail. Not only did the DNO mobilise to get supplies back up and running as soon as possible, it also went above and beyond to ensure customers had basic needs – 25,000 hot meals were served up to disconnected customers and those forced out of their homes. All of this took place well before Peter Emery joined ENW as chief executive in the spring of 2016. Nonetheless, he says his early months in the role have included many reviews of lessons learned. Quick to recognise the dedication of employees, Emery says that, rightly, "the business and the people here are very proud of what they have achieved". But he adds: "Nevertheless, there are quite a lot of issues that come out of it." These include lessons for ENW to "Storm Desmond highlighted the inadequacy of forecasting methodologies."

Articles in this issue

Archives of this issue

view archives of Network - Network Sept 2016