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UTILITY WEEK | 26TH MAY - 1ST JUNE 2017 | 3 This week 4 | Seven days 6 | Interview Ian McAulay, chief executive, Southern Water 11 Policy & Regulation 11 | News More competition 'welcome', says Karem 12 | Lobby Tough and tougher – the main parties line up to bash utilities 15 Finance & Investment 15 | News Profits surge by 14% at National Grid 16 Operations & Assets 16 | High viz Scottish Water's Shieldhall Tunnel in Glasgow 17 | Pipe up Nick Ellins, chief executive, Energy & Utility Skills 18 | Analysis What does the future hold for peaking plant after Ofgem's changes to triad payments? 21 | WNS sponsored report Utilities must address the trust deficit 26 Customers 26 | News Reserve 'enhanced' for performance only 27 | Q&A Paul Sheffield, chief operating officer, Haven Power 28 Markets & Trading 28 | Market view Moving key business processes to the cloud 30 Community 31 | Disconnector GAS 11 | News Settlement system to go live in June 17 | Pipe up Nick Ellins, chief executive, Energy & Utility Skills 28 | Market view Moving key business processes to the cloud WATER 6 | Interview Ian McAulay, chief executive, Southern Water 16 | High viz Scottish Water's Shieldhall Tunnel in Glasgow ELECTRICITY 18 | Analysis What does the future hold for peaking plant after Ofgem's changes to triad payments? 27 | Q&A Paul Sheffield, chief operating officer, Haven Power ENERGY 12 | Lobby Tough and tougher – the main parties line up to bash utilities 15 | News Profits surge by 14% at National Grid 15 | Stock watch RWE and Engie ponder alliance 21 | WNS sponsored report Utilities must address the trust deficit 26 | News Customers want help to find best deals CGI: Demand side flexibility in UK utilities http://bit.ly/2qOgC0R GORE: New Arc Rated Foul Weather Protection http://bit.ly/2ot3xrO Knowledge worth Keeping Visit the DownloaDs section of Utility week's website http://www.utilityweek.co.uk/ downloads Manifestos: horror or hope for utilities? The party manifestos published ahead of June's general election largely read like a horror story for utilities. Promises of re-nation- alisation for the regulated monopolies and price caps for energy retailers litter the party documents. At every turn there are cries for social justice, and the suppliers of essential services are framed as a tyrannical, self-serving oligarchy. That said, although the Conservative manifesto delivered the price regulation promise industry had been nervously anticipating, its wording offers hope that suppliers will escape the worst-case scenarios they feared might hit the market. The commitment to extend the protection offered by the prepay- ment meter cap to other vulnerable customer groups, and a nod towards maintaining competition in other parts of the market, will have soothed executive and investor fears. They broadly fall in line with the position adopted by both Citizens Advice and Energy UK, that government should prevent detriment to the needy without inhibiting the benefits competition can offer engaged consumers. The industry is not out of the woods yet though. A manifesto aside that commits the Tories to a consultation on extending energy price caps to micro-business customers was unexpected and could prove costly for suppliers. Also, the prime minister's pledge to deliver the lowest energy prices in Europe for the UK raises challenging questions for her Brexit negotiations – in which energy trading arrangements are not currently a top priority – and developers of new plant. The limbo bar for acceptable energy technology costs is likely to drop to a new low. With the Tories still the outright favourites to win this election, companies should now be gearing up for lobbying activity and con- sidering how they can best exert influence on the process of legisla- tive change that many of their manifesto commitments will require. One way will be to ensure that lobbying language aligns with the ruling party's promises to the electorate, offering to help deliver a sector that works for everyone, rather than raising endless objec- tions to suggested methodologies. Another strategy will be to target the House of Lords. If the Con- servatives win a significant majority, bills will pass quickly through the Commons and will only meet real scrutiny in the upper house. Clear communications with key peers on business critical issues should serve utilities well. (See Lobby, p12) Jane Gray, Deputy Editor, janegray@fav-house.com Leader Jane Gray