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UTILITY Week 19th May 2017

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UTILITY WEEK | 19TH - 25TH MAY 2017 | 17 Utility Week Live 2017 All these changes are liable to make investors jumpy – particularly as the stabil- ity and asset-intensive, heavily regulated nature of the networks business has made it so attractive to date. Scarsella, who is close to UKPN's parent company CKI, which also owns Northern Gas Networks, Wales & West Utilities and Northumbrian Water, acknowledges the point with a smile, and issues a careful response: "To a degree the risk profile might change, I say might because it depends on the regulatory regime that evolves… but in some ways even as DNO we are now incentivised to reduce the cost of the networks because under the current regime we share in the benefits [of doing so]. That sort of sharing of the benefits looks set to continue." Transformation is already supposed to be underway in one area of the energy market, with the rollout of smart meters – voted one of the top ten transformative technologies by the audience of Utility Week Live (see box). Of course, the rollout is supplier-led rather than managed by DNOs as in other coun- tries, giving UKPN and its peers a role lim- ited to intervening when called upon. Does Scarsella consider the technology trans- formative? He pauses and chooses his words carefully: "Let me say this, smart meters are essential to move to smart networks, I think it is pointless talking about smart grids and networks if you haven't got smart meters, now whether the technology that's going to be rolled out is the latest or not I'm not sure, but if functionally it does what is being pro- posed it's going to do then it's essential that the rollout goes ahead as planned." And will the 2020 deadline for the rollout be achieved? "That's not for me to say, but whether its 2020 or 2021, my view is it doesn't matter too much. What matters is that it goes smoothly." A diplomatic response. As the interview draws to a close, Utility Week asks Scarsella what makes a transformational leader. His response is modest and he won't be drawn on personal qualities: "The first thing you need to have is a good team." It's an answer that would have been equally applicable in Scarsella's other life as a football pro, chairman of Soccer Australia and executive member of Fifa. Back to utilities, does he have any words of advice for fellow leaders hoping to achieve transformation? "Be clear as to what is it you are trying to achieve. Set very clear targets all the way down to the front line, empower employees to get on with things, monitor progress and report regularly." If Scarsella's track record is any measure, it's good advice. Scarsella is speaking in the Keynote Theatre at Utility Week Live at 9:40 on 23 May. For more information, visit: www.utilityweeklive.co.uk Smart metering: consumer experience Utility Week research shows… of 1000 UK customers had been offered a smart meter by their supplier had this meter installed in the past six months 13% of customers with smart meters said installation required more than one visit – Government has projected rollout costs on a 95% first-time install scenario across the programme's lifetime 97% This research was conducted in partnership with Harris Interactive said installation was straightforward 60% of all consumers were not aware that the rollout is being funded via their bills 76% said they were happy with the technical and service skills of their installer Smart metering: Smart meters are an enabling device which could open the door to wider transformation, and for that reason were voted into Utility Week Live's top ten transformative technologies. Smart meters will be discussed at 2.15pm on 23 May in the Customer Solutions Theatre at Utility Week Live. For more informa- tion, visit: utility weeklive.co.uk

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