Utility Week

6 | 16TH - 22ND MARCH 2018 | UTILITY WEEK Policy & Regulation This week Ofwat begins probe into supply problems Regulator will evaluate whether water firms planned ahead sufficiently for the severe weather Ofwat has launched an investi- gation to "get to the bottom of " recent water supply interrup- tions experienced by customers following the freeze and thaw. The regulator said it will evalu- ate water firms' "preparedness" in the run-up to the severe weather conditions to determine if they "planned ahead sufficiently". Rachel Fletcher, chief executive of Ofwat, said: "To be le without a vital public service like water – in some cases for several days – is deeply distressing, particu- larly for those in vulnerable circumstances. Through this review, we are aiming to get to the bottom of why this happened and to identify what lessons can be learned. "We'll find out where companies did well by their customers and where they've fallen short, including the compensation being offered to those who were directly affected. Water companies should ensure that compen- sation adequately reflects the scale of inconvenience and distress caused to their customers. Compensation should be fair, fast and free from hassle for customers." Ofwat said it will be seeking input from a wide range of groups, including household and business customers who were directly affected by supply issues, public representa- tives, community organisations and local authorities. It will work with the Consumer Council for Water and will liaise with the Department for Environment, Food and Rural Affairs (Defra) and the Welsh government. The regulator said it will consider whether any fur- ther regulatory action is needed when it has completed the review. KP ENERGY RIIO2 five-year price control 'long enough' Five years would be a better length for the RIIO2 price control period because of the amount of uncertainty it is likely to contain, according to the outgoing finance director of UK Power Networks. Richard Roberts told Utility Week having a shorter period "takes some of the risk away from both Ofgem's and from the net- work companies' perspectives. I think five years is long enough to give a degree of certainty so that the network companies can carry on making the right decisions about what areas to invest in." Ofgem published a consulta- tion paper setting out its vision for RIIO2 on 7 March. It included a proposal that the price control period be reduced from its cur- rent eight years to five years. Roberts, who will retire at the end of March aer 18 years at the financial helm of UKPN and its legacy companies, said when it fed back in a previous consul- tation, the network company was out of line with some of the other distribution network operators, which called for the eight-year price control to be retained. ELECTRICITY Onshore windfarms embargo in force The government has enshrined the embargo on onshore wind- farms in its new national plan- ning framework. The first review in six years of the National Planning Policy Framework (NPPF), which was published for consultation on 5 March, incorporates rules on onshore wind turbines intro- duced aer the 2015 general election by then secretary of state for communities and local government, Greg Clark. These state that projects containing more than one turbine should only be permitted if they are in an area identified as suitable for wind energy development in a local or neighbourhood develop- ment plan and if they are backed by affected local communities. ENERGY Smart meter rollout to be 'turbocharged' Claire Perry has promised to "turbocharge" the smart meter rollout and target the Energy Company Obligation (Eco) scheme more closely on fuel- poor households. Speaking in a parliamen- tary debate on 8 March on the clean growth strategy (CGS), the energy and climate minister said the government would be publishing a consultation on the future of Eco "shortly". She said the scheme to tackle greenhouse gas emissions from homes, which was extended until 2028 in the CGS last year, would "pivot" to tackling fuel poverty. Fletcher: compensation should be fast and fair Political Agenda David Blackman "The statement contained no mentions of energy" Philip Hammond was anxious to lower expectations about his inaugural Spring Statement, which is designed to provide a half-yearly update on the econo- my's performance following the decision to hold the Budget in the autumn. The statement contained no mentions of energy, including the energy price cap legislation the chancellor of the exchequer failed to thwart in Cabinet. And that appears to be the case in the House of Commons, small knots of disgruntled MPs. But on this issue the opposi- tion looks set to make common cause with the government. Labour seems keen to share the credit for the price cap by urging ministers to implement it as soon as possible. There was no vote last week to prove the strength of parlia- mentary opposition to the cap, but it looks set to be one of those rare items in the government's legislative programme that will get an easy ride. too. In the run-up to the first parliamentary debate on the bill, which took place last Tuesday, there was sabre rattling in the press about a potential rebellion. Lobby journalists were briefed that Tory backbench MPs were threatening to vote against the bill on the grounds that it interferes with the market. Their case was bolstered by record electricity switching figures from Energy UK, which show 600,000 customers changed suppliers in February – a 60 per cent jump compared with the same month last year. The government's lack of a parliamentary majority means it is vulnerable to rebellions by

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