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UTILITY WEEK | 11TH - 17TH NOVEMBER 2016 | 3 Leader Jane Gray This week 4 | Seven days 6 | Interview John Pettigrew, chief executive, National Grid 11 Policy & Regulation 11 | News Ofgem drops probe into SSE connections 12 | Market view Targeting non-switchers won't work 13 | Market view New-style energy bills will leave business customers bamboozled 14 | Market view Brexit allows the UK to tackle pressing energy problems 15 Finance & Investment 15 | News Dong to quit oil and gas for renewables 17 | Analysis Is nuclear power too expensive? 20 Operations & Assets 20 | High Viz Scottish Power windfarms 22 | Analysis Price is not the only driver in water sector procurement 23 | Market view Changes to the Working Time Directive 24 | Market view How incumbents should harness the smart home 25 Customers 25 | News Smart meter campaign unaffected by delays 26 | Market view Price comparison websites 27 | Analysis Service is more than a SIM score 28 | Market view Leveraging big data 30 Community 31 | Disconnector DNOs need clarity about their role in a smart world On Thursday, 10 November, the government and energy regulator Ofgem will finally publish their call for evidence on smart systems. Consultations can seem ten a penny in the utilities sector, but this one is significant because, among other things, it will begin to put flesh on the bones of the key question occupying distribution network operators: what is their role in the future of a decentralised, diverse and dynamic energy system? There has been an evolving assumption among DNOs that decar- bonisation and decentralisation trends lead inexorably towards a reinvention of their businesses as distribution system opera- tors (DSOs), with responsibility for local balancing, operation of demand-side contracts and more. However, the true shape of what a DSO might look like, how it would be regulated and how it would interact with new or existing power transmission arrangements is far from defined. Indeed, it is not even certain that the DSO model is the best answer to decen- tralisation. Other possibilities that have been mooted by BEIS and Ofgem include making the system operator responsible for all levels of the system, but arming it with more advanced intelligence. Or might there be an opportunity to ditch all system incumbents and let market-driven third parties administer local system operation? This summer, Ofgem associate partner Andy Burgess suggested this could have benefits and at least ensure that "you don't get the regulated monopolies doing everything". Whichever route is taken, Ofgem has been clear that it anticipates a "blurring of the lines" between transmission and distribution and has called on National Grid to lead closer working between the two levels. The smart systems consultation will set nothing in stone. But it will make a significant start on resolving some of the uncertain- ties about energy market structures and responsibilities that must achieve clarity before the next price controls for transmission and distribution in the early 2020s. Failure to do so will frustrate the march of technological progress and customer demand – which are already outstripping the pace of regulated industry. It is also likely to end in stranded assets and misaligned investor expectations. Jane Gray, Acting Editor, janegray@fav-house.com GAS 13 | Market view New-style energy bills will leave business customers bamboozled 23 | Market view Changes to the Working Time Directive WATER 22 | Analysis Price is not the only driver in water sector procurement 27 | Analysis Service is more than a SIM score ELECTRICITY 15 | News Dong to quit oil and gas for renewables 17 | Analysis Is nuclear power too expensive? 20 | High Viz Scottish Power windfarms ENERGY 6 | Interview John Pettigrew, chief executive, National Grid 11 | News Ofgem drops probe into SSE connections 12 | Market view Converting non- switchers 14 | Market view Brexit allows the UK to tackle pressing energy problems 24 | Market view The smart home 25 | News Smart meter campaign unaffected by delays Visit the Downloads section of the website WNS: The UK Smart Meter Rollout http://bit.ly/2espIJ3 Webfleet: How SGN is set to save £1M with Webfleet http://bit.ly/2eh3HAL Certas: Balancing capacity market concerns : setting the record straight on fuel http://bit.ly/2essYnG