Utility Week

UTILITY WEEK | 18TH - 24TH MAY 2018 | 3 This week 4 | Seven days 7 Policy & Regulation 7 | News Full investigation for Npower/SSE merger 8 | Opinion Aaron Burton, Waterwise and Ben Earl, Southern Water 9 | Chief executive's view Johanna Dow, Business Stream 11 | Opinion Andrew Jamieson, Offshore Renewable Energy Catapult 12 | Market view Ignore the GDPR at your peril 15 Finance & Investment 15 | News Southern to wind up subsidiary by year end 16 Operations & Assets 16 | High viz Northern Ireland Water 18 | Market view How individuals can trade energy 19 | Utility Week Live Live hackathon will aim to help vulnerable customers 20 | Market view Balancing efficiency with operational security 21 | Opinion Paul Bircham, ENW 22 | Event Future Networks Conference report 24 Customers 24 | News Ofgem might extend safeguard tariff again 25 | Analysis Switching at an all-time high 26 | Market view Customer engagement 27 | Analysis The war on wet wipes 30 Community 31 | Disconnector GAS 7 | News IMechE: 'step up' hydrogen support WATER 8 | Opinion Aaron Burton, Waterwise and Ben Earl, Southern Water 9 | Chief executive's view Johanna Dow, Business Stream 15 | News Southern to wind up subsidiary by year end 16 | High viz Northern Ireland Water 21 | Opinion Paul Bircham, ENW 27 | Analysis The war on wet wipes ELECTRICITY 11 | Opinion Andrew Jamieson, Offshore Renewable Energy Catapult 18 | Market view How individuals can trade energy 22 | Event Future Networks Conference report ENERGY 7 | News Full investigation for Npower/ SSE merger 20 | Market view Balancing efficiency with operational security 24 | News Ofgem might extend safeguard tariff again 25 | Analysis Switching at an all-time high The tide is turning for water companies It seems the burgeoning stream of regulatory, political and public pressure is finally catching up with water companies. But don't just take my word for it. Anyone still in any doubt that the industry may have failed to heed the barrage of warnings fired its way over the past year need look no further than our recent exclusive story that Southern Water is planning to cut jobs as part of a wide-ranging efficiency drive. Given the current climate it should really have come as no surprise. Yet somehow it still did. Because while Southern Water may not be renowned as one of the sector's most efficient companies, the move signals an impor- tant, unmistakable shi for a once largely inconspicuous sector now undergoing a rapid and very public evolution. While the culling of 150 staff from a 2,400-strong workforce through voluntary redundancy may not seem a huge statement of transformation, it feels significant that these are all management and support roles. No-one it seems is in for an easy time. Certainly, the nuance wasn't lost when Southern's chief executive predicted that "almost all companies" in the water industry will now have to start making similar difficult decisions. It's hard not to imagine others following suit. All chief executives will be anxious to get their frameworks leaner and fitter for purpose in this new, emerging water world. They will have to, if they are to meet the challenges of PR19 and the record low cost of capital, not to mention changing customer expectations and Ofwat's government-backed regulatory reform agenda. And while some needed no reminding that their financial affairs of "dizzying complexity" were proving highly unpopular with the public – although it made good headlines, twice, for an irked envi- ronment secretary soon about to celebrate a year in the job – several will shortly complete the complex process of divesting themselves of their now toxic offshore subsidiaries. However, no-one in the sector will be feeling even slightly safer in the water just yet. This week's news that MPs have launched an inquiry into water regulation and how the industry serves consumers and the environ- ment is likely to usher in a whole new wave of scrutiny that they will all need to be prepared for. Suzanne Heneghan, associate editor, suzanneheneghan@fav-house.com Leader Suzanne Heneghan Knowledge worth keeping Subscribers to Utility Week can access premium content and exclusive research, available to read online or as downloadable documents. http://www.utilityweek.co.uk/

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