Utility Week

12 | 27TH OCTOBER - 2ND NOVEMBER 2017 | UTILITY WEEK Event Day Two Innovation: it's an over-used buzzword, but a critical concept for UK utilities. The indus- try leaders who took to the stage on the sec- ond day of the Utility Week Congress 2017 brought the concept of innovation to life, showing that strong leadership can harness innovation to drive genuine business change. Northumbrian Water's chief executive, Heidi Mottram, gave a rousing presentation on the company's innovation festival, held over the summer. The event saw six design sprints run simultaneously, bringing together the business's workers with the local community and other stakeholders to develop solutions that are now working towards implemen- tation. Mottram played a video of the high- lights of the event, which captured the sense of inspiration, excitement and fun that made it so special. Liv Garfield, Mottram's opposite number at Severn Trent, also demonstrated game- changing personal commitment to inno- vation. She was fresh from a tour of the country, meeting thousands of employees to urge them to think creatively about new solutions to old problems. Garfield le the audience in no doubt of her passion, com- mitment and ambition for Severn Trent as a business – sharp observers might have noticed her paying very close attention when fellow speaker, Ofwat chair Jonson Cox, spoke about what it would take for a water company to achieve exceptional status in the forthcoming price review. Cox himself was characteristically uncom- promising in his message to water compa- nies, accusing some of tarring the sector with complex, highly leveraged financial struc- tures. He warned them to take the prospect of nationalisation seriously, and in an unu- sual role reversal, heckled the audience from the stage, calling on Liv Garfield to explain what water companies were doing to pro- mote the positive impact of privatisation on the nation's water supply and infrastructure. Innovation is oen taken to mean grand, technology-led solutions. But one speaker had a very different model. Peter Haigh, managing director of Bristol Energy, spoke with great impact about how the commu- nity energy business is pioneering a different retail model. The company's community hub allows customers to pay their bills in person, speak to company representatives face to face, or just drop in for a cup of tea. While most of the day's speakers were occupied with how to maintain or restore customer legitimacy, Haigh had no such worries, with research commissioned by the company showing that its customers particu- larly appreciated its transparent financial structure and clear, community-based busi- ness objectives. It's interesting to ponder what a similar business model would look like for a monopoly utility provider such as a water company or energy network. Now, that would be really innovative. Views from the speakers: Professor John Loughhead, chief scientific adviser and director general, BEIS "Innovation will be key in reducing costs and other barriers." Heidi Mottram, chief executive, Northumbrian Water "It's unfair that people don't think of the water industry as nat- ural innovators. The industry's modesty doesn't help either. We're innovative for the environment and customers."

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