Utility Week

28 | 25TH - 31ST MAY 2018 | UTILITY WEEK Customers Severn Trent will bring together all its Welsh customers into a single company called Hafren Dyfrdwy from 1 July. Hafren Dyfrdwy, which means Severn Dee – the two major rivers in the area – will incorporate all the customers in Wales previously served by Severn Trent and Dee Valley. Severn Trent paid £84 million for Dee Valley in February last WATER Severn Trent creates new company to serve Welsh customers year, aer it outbid a rival offer of £78.5 million from investment fund Ancala. The move will see 35,100 homes and 3,900 businesses in Powys and Monmouthshire, who are currently Severn Trent customers, join with Dee Valley customers in Wales to be served by Hafren Dyfrdwy. The 49,700 homes who are currently Dee Valley customers in England will then move to Severn Trent. With headquarters in Wrexham the new company will be "dedicated solely to Welsh customers". It will offer current Dee Valley customers a 24/7 customer service for the first time, as well as introducing new channels such as social media and webchat. Sarah Bentley, chief customer This week Castle Water acquires Invicta Water 50,000 business customers in South East Water's service area will transfer to Castle Water Invicta Water, which trades as Water Choice in the non-domes- tic water retail market, has been purchased by Castle Water for an undisclosed sum. The deal will see 50,000 busi- ness customers in South East Water's service area transfer to Castle Water in July. Water Choice has been offer- ing water and wastewater retail services to businesses across England since market opening just over a year ago. It recently took over the business retail accounts previously managed by South East Water Choice – the retailer function of South East Water – in Kent, Sussex, Surrey, Berkshire and Hampshire. Tanya Sephton, managing director of Invicta Water, said: "Castle Water has the experience and scale to build on the foundations we have established since the water retail market opened last year. We are working closely with Castle Water to ensure a smooth transition and continuity of service for customers." Castle Water said it has already "successfully trans- ferred more than 300,000 customers in England". It took over the provision of retail services to customers of Portsmouth Water in 2016 and Thames Water in 2017. Iain McPherson, customer services director at Castle Water, said: "At Castle Water, we are committed to our customers and look forward to providing the same excel- lent service for businesses in the South East as we do elsewhere in the country." Castle Water chief executive, John Reynolds, added: "We have the resources to continuously improve systems and provide a wide range of assistance to help customers manage their water usage and minimise costs." KP ENERGY RHI 'fails to provide value for money' The Renewable Heat Incentive (RHI) has failed to provide value for money for the £23 billion it is set to cost taxpayers, the Public Accounts Committee (PAC) has concluded. The select committee's final report into the Business, Energy and Industrial Strategy (BEIS) department's renewable heat support scheme, published 16 May, found the cost-effectiveness of the RHI and the value for money of some of the instal- lations it has funded is "still uncertain". It said BEIS had "no esti- mate" of the potential cost of participants gaming the RHI, which is administered by Ofgem. "Some of the installations funded by the RHI would have been built regardless of whether the scheme was in place; that rates of fraud and non-compli- ance are too high; and that the costs of people manipulating the scheme's rules through 'gaming' are not known." The PAC also said energy efficiency measures were a better value for money way of reducing carbon emissions than the RHI, although they do not contribute to the UK's obligations under the EU's 2009 Renewable Energy Directive. The report concluded that the department's forecasts for take-up of the RHI were "wildly optimistic". The RHI is on track to install barely one-fih of the 513,000 new heating systems expected to be delivered by the scheme, according to the report. And forecasts of renewable heat production and carbon emissions reductions it delivers have been cut by 65 per cent and 44 per cent respectively. ELECTRICITY People confused over 'renewables' The phrase "renewable energy" was interpreted by 43 per cent of respondents to a recent survey to mean energy from sources that are non-polluting, sustainable or carbon neutral. The poll of more than 2,000 UK energy customers, com- missioned by Squeaky Energy, also found 87 per cent would like energy suppliers to specify the origins of their renewable energy. Only 34 per cent of respond- ents knew renewable energy includes biomass, while 85 per cent believed renewable to be sourced from solar and wind power, and 75 per cent thought that also included hydro power. When offered an explanation of what biomass fuel is, only 23 per cent of respondents agreed it could be suitably interpreted as "green" energy. Squeaky called on Ofgem to develop a clear standard label- ling system for energy products "to give customers a simple and clear way to understand energy sources and make informed decisions", said a spokesman. Sephton: 'working to ensure a smooth transition' officer at Severn Trent, said: "The change will allow us to ensure we bring the best of both companies together and also make certain we have the right local focus for our customers in each country. "Information will be going out over the coming weeks – and customers can carry on enjoying their water in the same way they always have."

• Cover