Issue link: https://fhpublishing.uberflip.com/i/961476
U li es regula on is designed to create stability and consistency, for the benefi t of consumers and investors alike. Changes to u li es' regulatory regimes are therefore disrup ve by nature, forcing companies to adapt work processes and repor ng prac ces – o en for myriad business ac vi es – and update investor understanding of any implica ons for their returns. Meanwhile, regulators must ensure there is public confi dence that changes to regula on will always maintain or improve the outcomes they receive from u li es services, without crea ng any counterproduc ve unintended consequences. To ease the sector's transi on into an uncertain future, regulators across energy and water are tes ng the eff ec veness of principles or risk-based approaches to regula on, which are more fl exible alongside shi ing consumer and policy expecta ons, as opposed to hard and fast rules that are eyed suspiciously for their ability to create cultures of compliance, rather than actually problem solving. Elsewhere, economic regula on for monopoly u li es is increasingly incorpora ng measures to drive innova on, proof of customer value and long-term thinking. It is seeking new ways to emulate compe ve market condi ons and ensure that u li es plan today for a world which may be radically diff erent in a decade's me. But some commentators are unconvinced that these new approaches to regula on are suffi cient to answer the volume and importance of changes impac ng the sector – from climate change through to digi sa on. Labour's call for rena onalisa on, along with the fundamental systemic and ins tu onal overhauls to u li es market structures put forward by the likes of Dieter Helm, mean there are op ons on the table for a complete redesign of u lity regula on, and with it, the ways in which companies understand their roles, responsibili es and opportuni es for profi tability. To understand the outlook of u li es professionals on these ongoing and poten al infl uences over their regulatory regimes, U lity Week Live put the opinions and sen ments of its audience, and those of its sister brands U lity Week, WWT, WET News and Network, in the spotlight. In a survey that asked about the disrup ve impact sector changes are having on u lity businesses, we found that within the next 15 years, respondents expect disrup on on a signifi cant scale, ra ng it at seven out of a possible 10. And disrup on arising from regulatory uncertainty is high in that mix. Commen ng on the fi ndings, John Parsons, networks por olio manager at industry trade body Beama says: "What is very clear, and shown in the survey, is this is a me for government and the regulators to be very transparent about which path they are taking and create the levels of confi dence the industry needs. It is not a me for kicking the can further down the road. Be er to take a li le longer over a good decision now than to fudge the situa on." NETWORK / 33 / APRIL 2018 P R E S E N T S I N A S S O C I A T I O N W I T H As we approach U lity Week Live 2018, we look at the trends, technologies and factors that are set to disrupt u lity business models in the years to come. In this issue: Regula on. D I S R U - P T I O N