Utility Week

4 | 18TH - 24TH MAY 2018 | UTILITY WEEK Seven days... Oz energy firms accused of 'gouging' Allegations that electricity networks and gas companies in Australia are gouging customers hundreds of millions of dollars to pay their cor- porate tax bills will be investigated by the energy regulator. The federal energy minister, Josh Frydenberg, has announced the Australian Energy Regulator probe amid suspicion energy companies are overcharging customers by as much as $400 million a year. He said tax office analysis between 2013 and 2016 has revealed a discrepancy between the tax allowances the regulator previously set for network businesses and the amount they actually pay. The Guardian, 15 May EDP rebuffs China Three Gorges bid Energias de Portugal has rejected the price offered by China Three Gorges for a full takeover of the power utility as too low, saying its proposal of €3.26 per share "does not adequately reflect the value of EDP". In a statement to Portugal's stock market regulator on Tuesday, EDP's executive board said: "The implied premium is low considering what is customary for European utilities where the offeror has acquired control". EDP said it would issue its full opinion on the other terms of the offer in "due course". Financial Times, 15 May Solar power could save water in ME and Africa Thirsty Middle Eastern and North African countries could tap into their solar energy potential to cope with fresh water scarcity, according to resource experts. Water could be saved by switching to solar from fossil fuels, which use up water, said the World Resources Institute. The findings show moving to clean energy has benefits aside from cutting greenhouse gas emissions. Reuters, 14 May STORY BY NUMBERS National media Southern Water to cut jobs in drive for efficiency S outhern Water plans to reduce its staff members by around 150 people within management and support roles as it looks to become more efficient. The company is embarking on a consultation process and aims to complete the restructure of the business within the next four months. Frontline operational employ- ees will not be affected, and those impacted will be offered support in finding alternative employment. Ian McAulay, chief execu- tive of Southern Water, told Utility Week the company had previously been a technology laggard and was now looking to get the right mix of people and technology in a bid to increase efficiency. He said: "As you start to introduce new technologies and look at doing things in different ways then sadly we will have to reduce some of our numbers and we are consulting on that just now. "It's likely that could be up to 150 people, which is not an insignificant number. It's not something that you like doing but you recognise the need for efficiency is stark and clear. "It's not just about people, we're making substantial reduc- tions in our opex [operational expenditure] cost base as well." He added: "I would stress that the front-facing element of our business is not going to be changed, because out in the field is where we need to maintain our numbers and sometimes enhance them to make sure we are delivering the right type of performance." McAulay said he believed that "almost all companies" were going to have to make diffi- cult decisions with a tough price review looming, although he added that there are also some "exciting decisions" to be made as the water industry evolves. He said the company would look at ways of renewing skills in some areas because of an ageing workforce. Southern Water has 2,400 employees. KP Solar sets new UK record Solar's share of the generation mix surged to a new record high on Sunday 6 May as the UK was soaked in sunshine over the bank holiday weekend. 30 mins The record- breaking period was between 1.30pm and 2pm on Sunday. 28.5% Percentage of demand met by solar generation during the period. 24.8% Gas came in second as a main source of power. 11.1% Solar also set a new record for generation over a 24-hour period, meeting 11.1 per cent of GB demand. 9.28GW Peak solar output on the day, fall- ing short of the all-time high of 9.38GW recorded on 26 May 2017. "The energy system of the future will be smarter, cleaner, decentralised and diverse" Lawrence Slade, chief executive of Energy UK, speaking as the trade body published its Future of Energy vision document looking ahead to 2028.

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