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NETWORK / 8 / DECEMBER 2017 / JANUARY 2018 V attenfall's head of business area distribution says the company will draw on its experience in Sweden when starting electrical distribution network operations in Great Britain. The company was awarded an operating licence by British energy regulator Ofgem INDUSTRY INTERVIEW last month (November) with operations expected to get underway next year. The European energy group has formed a new unit to own and operate electric- ity networks in Great Britain – Vattenfall Networks Ltd. However, the UK is not a new market for Vattenfall as the company has been operat - ing in the UK since 2008, investing nearly £3 billion in its wind energy business. Annika Viklund said: "Vattenfall has extensive experience in operating electric- ity networks, including smart meters, and we are now also investing in micro grids and smart street lighting. We will use our expertise to develop the British networks business. Vattenfall will offer integrated and climate smart energy solutions to future customers in Great Britain." At the time of the announcement, Mag- nus Hall, Vattenfall's president and CEO, said: "This is another important step for Vattenfall in the UK which is an interesting market where we see good opportunities to further grow with our climate smart energy solutions. This is in line with our overall strategy to become fossil free in a genera- tion and supporting our customers in reduc- ing their carbon footprint." Obtaining the licence The company worked closely with Ofgem to ensure that it obtained the licence. Explains Viklund: "It has been a very professional process by Ofgem. They are understandably careful about making sure the companies entering the UK networks market are professional and serious, so we are really happy to have been successful." With more independent distribution network operators entering the market, the firm's head of business area distribution believes it is a good thing for customers. "Even if it is sometimes difficult to admit myself, I do believe that competition is good for regulated business," she remarked. "We should also have in mind that if you're an independent distribution network operator (IDNO) you are still connected to the distri - bution network operators (DNOs). I prefer not to refer to them as competitors, I'd rather talk about partners, as we're strictly regulated. "The intention of the British regulator Ofgem is to encourage more competition because they believe it is good for the mar - ket and for customers. In that respect we understand their position of also welcoming new entrants to the market. To be able to develop together with partners and in close relationship to customers is the way forward for the distribution operators." Vattenfall Networks Limited is aiming to grow as an IDNO. The new unit will build and operate new connections to the existing network in new residential, retail or indus - trial areas. According to Viklund, the company's experience as a distribution network opera- tor in Sweden and Germany means it is well placed to know what customers want. "The timing is right for new entrants in Drawing on experience Last month Swedish energy group Vattenfall was awarded a licence to own and operate electricity networks in Great Britain as an IDNO. Alec Peachey speaks to the company about its plans.