Utility Week

UTILITY Week 21st October 2016

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UTILITY WEEK | 21ST - 27TH OCTOBER 2016 | 3 Leader Jane Gray This week 4 | Seven days 6 | Interview Martin Baggs, former chief executive of Thames Water 11 Policy & Regulation 8 | News Progress on heating has 'stalled', says CCC 12 | Lobby Brexit and the SNP 14 Finance & Investment 14 | News SSE sells stake in SGN for £621 million 15 | Analysis Has privatisation been a success for UK power companies? 16 | Market view The drivers behind the sale of gas distribution networks 17 Operations & Assets 17 | Market view Utilities ideally placed to benefit from the smart home revolution 18 | High viz SSE's Bhlaraidh windfarm 20 | Market view Flexibility is the future, and that means demand-side response 21 | Market view Making DNOs smarter 24 Customers 24 | News Only 8 per cent aware of water market opening 25 | Market view Switching needs to be seamless and simple for customers 27 | Market view Smart meters are a game-changer Markets & Trading 28 | Analysis The decline of coal 30 Community 31 | Disconnector Big issues highlighted at Utility Congress As Utility Week goes to press, the Utility Week Congress 2016 is in full swing. Our annual flagship conference set out to increase the confidence of business leaders in the utilities sector as they face up to some unprecedented shared challenges, with regards to changing competitive markets, new directions in regulation and shiing investment priorities. Early insights from speakers spanning utility subsectors included: •  News that a new charter for the National Infrastructure Commis- sion (NIC) has given the body greater weight and independence in  its mission to bring confidence and clarity to long-term UK infra- structure needs. The charter will allow the NIC to "hold govern- ment to account" on its progress in delivering key infrastructure renewal and innovation ambitions – including those associated with smart power and resilient water systems. Taking a "system  of systems approach", chief executive Phil Graham said the NIC  could act as an "infrastructure architect" – although he empha- sised that this does not reflect a desire to conduct detailed central planning. Graham also urged industry to engage in the NIC's  forthcoming National Infrastructure Assessment  consultation. •  More work is "urgently" needed to improve understanding of the  resilience requirements of wastewater networks, according to Sarah Hendry, director of water and flood risk management at the Department for Environment, Food and Rural Affairs. While there is relatively mature thinking around a resilience strategy for water supply, Hendry said wastewater has been allowed to become the "ugly sister" in the water industry. Privately, leaders from water  companies attending Congress agreed, saying the investment cycles associated with wastewater infrastructure need rethinking. •  Customers and investors will shape the direction of travel for utili- ties – not government or the regulator. This was the conclusion of Chris Loughlin, chief executive of Pennon Group, as he delivered one of a series of presentations exploring the challenges for utili- ties of all stripes in delivering market reforms. Loughlin observed that community and customer-driven changes to utility business models are forging ahead outside of the industry's regulatory  policy frameworks. Other insights touched on the future approach of the Competition and Markets Authority to mergers and acquisitions and the invest- ment priorities for distribution network operators as they attempt the distribution system operator metamorphosis. A full review of Utility Week Congress 2016 will appear in the next issue. Jane Gray, Acting Editor, janegray@fav-house.com GAS 8 | News Progress on heating has 'stalled', says CCC 14 | News SSE sells stake in SGN for £621 million 16 | Market view The drivers behind the sale of GDNs WATER 6 | Interview Martin Baggs, former chief executive of Thames Water 24 | News Only 8 per cent aware of market opening ELECTRICITY 15 | Analysis Has privatisation been a success for UK power companies? 18 | High viz SSE's Bhlaraidh windfarm 20 | Market view Flexibility is the future, and that means DSR 21 | Market view Making DNOs smarter 28 | Analysis The decline of coal ENERGY 12 | Lobby Brexit and the SNP 17 | Market view Utilities ideally placed to benefit from the smart home revolution 25 | Market view Switching needs to be seamless 27 | Market view Smart meters are a game-changer 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

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