Utility Week

Utility Week 20th October 2017

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

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UTILITY WEEK | 20TH - 26TH OCTOBER 2017 | 21 Policy & Regulation 1. Regulatory cycles. The next regulatory cycles (RIIO2, AMP7) will put pressure on companies to deliver more efficiencies. 2. Direct procurement. This is one of the biggest reforms looming for the water sector as part of PR19. 3. Strategic partnerships. Utility companies should look at partnerships which work for them such as alliances or collaboration. 4. Innovation and technology. Technological advances have created a wealth of data, which should be used to make decisions. 5. Value for customers. The ultimate aim of the energy and water sectors is to deliver value for customers. Key themes Andy Clark, head of procurement and contract management, Yorkshire Water "If you don't have joint commercial incen- tivisation you tend to get less sharing of services across the contracts… Alliances can be good for sharing it all together and for stripping out the layers." Roger Waring, head of operational procurement, UK Power Networks "At the moment, the partners tend to fulfil [specific] roles within the project they are assigned. We should be looking for the best organisation for the job across the full life cycle of the project." Claire Walters, chief commercial officer, Unipart Logistics "If I analyse, over the years, who has got the most out of us as suppliers, it's generally been where we've been able to build up trust, shared outcomes and shared ownerships." Karen Beardsley, managing director, supply chain solutions, Unipart Rail "Do the alliancing models work within your organisation? Are they being driven by the operational teams feeling they do not have the skillsets to deliver that work internally within the business and you need experts externally, so a group is created for that? Or is it driven by the procurement teams, thinking it's the right approach for manag- ing the supply chain?" Chris Lane, head of strategic category management, United Utilities "You should look at the most appropriate way of buying any- thing… You wouldn't alliance for pencils, would you? It very much depends on the needs themselves." Sponsored by

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