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UTILITY WEEK | 14TH - 20TH OCTOBER 2016 | 3 Leader Jane Gray This week 4 | Seven days 6 | People & Opinion 8 Policy & Regulation 8 | News Framework for water 'needs to change' 11 | Analysis Theresa May threatens to get tough with the energy sector 13 Finance & Investment 13 | News Ofgem urged to probe network charging 14 Operations & Assets 14 | High viz 2016 Land Art Generator Initiative 18 | Country profile How Scotland differs from the rest of the UK when it comes to energy and water 20 | Analysis Further DCC delays put the squeeze on the smart meter rollout 22 | Market view Storage is on the verge of widespread take-up 23 | Market view Water companies need to make innovation business-as-usual 24 | Market view NTVV and DNO modelling 25 Customers 25 | News Ofwat tests awareness of market opening 26 | Market view Good quality data and advanced analytics can be exploited by utilities 28 | Market view Dedicated customer service teams are needed to deal with vulnerable customers 30 Community 31 | Disconnector 'Moderate' innovation will still deliver customer value Any attempt at starting the sixth Low Carbon Networks and Innova- tion (LCNI) conference with self-congratulatory hubris about the inventive dynamism of the UK's regulated energy networks was cut short by the characteristically candid approach of Ofgem's chief executive, Dermot Nolan. Delivering an opening keynote at the popular industry event, Nolan shared insights into the energy regulator's ongoing review of network innovation funding. It was the conclusion of independent consultant Poyry, he said, that innovation culture in energy net- works has progressed from "low" to "moderate" status in response to incentives. This is hardly language for the networks to preen about and Nolan was clear that he expects the industry to keep on pushing fur- ther to consolidate the achievements made via innovation funding to date. He also hinted at forthcoming ideas from the regulator about ways in which third-party technology providers and entrepreneurial start-ups might be allowed to access regulated funds in order to spice up customer-focused innovation ambition. Despite Nolan's message that networks have a long way to go before they can lay claim to having sustainable innovation cultures, however, delegates at LCNI were relieved to hear that Ofgem's innovation funding review has broadly determined that the projects are providing value for money. Early analysis by Poyry suggests customer benefits could be calculated at anywhere between £800 million and £7.8 billion, depending on the extent to which innova- tion outputs are rolled out in the real world. As Nolan acknowledged, these are not trifling sums. It now remains for them to be realised through widespread deployment of new technologies and ways of operating the energy system. • In addition to communicating the broad findings of Ofgem's innovation funding review, Nolan assured that the smart systems consultation, which has been waiting to begin since May, will "very soon" see the light of day. David Capper of the Department for Business, Energy and Industrial Strategy added that part of the hold-up is down to the fact that the department's secretary of state, Greg Clark, is keen to launch the consultation himself, reflecting a deep personal interest in the issues involved. Jane Gray, Acting Editor janegray@fav-house.com GAS 28 | Market view Dedicated service teams are needed to deal with vulnerable customers WATER 8 | News Framework for water 'needs to change' 18 | Country profile How Scotland differs from the rest of the UK when it comes to energy and water 23 | Market view Water companies need to make innovation business-as-usual 25 | News Ofwat tests awareness of market opening ELECTRICITY 13 | News Ofgem urged to probe network charging 14 | High viz 2016 Land Art Generator Initiative 22 | Market view Storage is on the verge of widespread take- up 24 | Market view NTVV and DNO modelling ENERGY 11 | Analysis Theresa May threatens to get tough with the energy sector 20 | Analysis Further DCC delays put the squeeze on the smart meter rollout Visit the Downloads section of the website TCS: Cloud Technology and UK Utilities http://bit.ly/2cSMTMt Schneider Electric: Discover Premset, the new generation of MV switchgear http://bit.ly/2cSNttw CGI: Energy Flexibility Transforming The Power System By 2030 http://bit.ly/2bR3zXB