Utility Week

UTILITY WEEK | 1ST - 7TH JUNE 2018 | 5 ENERGY New gender diversity initiative launched An initiative has been launched to increase the number of women at senior levels and middle manage- ment across the energy sector. The Energy Leaders' Coalition to improve gender diversity in the sector was launched last week (22 May) in the House of Lords by the business secretary Greg Clark as new figures show half of all energy companies have no women on their boards. The figures, released on the eve of the POWERful Women's Annual Conference in London, also show that women occupy only 13 per cent of board seats in the sector, and only 6 per cent of executive board seats. Speaking before the launch, Clark said if companies fail to have diversity at the top of their business then "they are missing out on the full talent available to them". "Foresighted initiatives like this new coalition will break down barri- ers and help ensure women are not held back," he said. 2030 Theresa May has pledged that the energy usage of new buildings will be halved by 2030. Severn Trent's thermal hydrolysis plant at its biggest sewage treatment works, in Minworth, near Birmingham, is coming online. The £60 million scheme will process 100 tonnes of sludge a day when it is fully operational and is expected to increase the amount of clean energy generated by the company by almost a third. "The UK energy market has an innovative approach to achieve benefits for end consumers through smart meters and connected technologies" Phil Galati, chief executive of software company ESG, speaking on the acquistion of smart meter specialists Aprose Solutions. Moody's: outlook for four water negative Ratings agency Moody's has changed its outlook on Affinity Water, Anglian Water, Thames Water and Wessex Water following proposals published last month by Ofwat to give the regulator greater influence over the firm's capital structure and dividends. Moody's said the regulator's proposed changes could "penal- ise highly-leveraged firms" and curb their earnings in an "already tough regulatory environment". The ratings agency warned the companies will also need to demonstrate "stronger financial metrics" in order to maintain credit quality. The graph shows Moody's estimates of the average annual cost over AMP7 for companies that it expects to report gearing above 65 per cent. Among the highly geared water and sewerage companies, Thames Water will see the largest adjustment, given its relatively low cost of debt, closely followed by Anglian Water which is in a position roughly equivalent to Moody's hypothetical 80 per cent geared company. Anglian Northumbrian Southern Thames Yorkshire Affinity South East Bristol Portsmouth SES Water Annual average adjustment to Wacc from high gearing outperformance Gearing forecast 2019/20 80% Impact of proposed reforms for likely affected companies 0.20% 0.18% 0.16% 0.14% 0.12% 0.10% 0.08% 0.06% 0.04% 0.03% 0.0% 82% 80% 78% 76% 74% 72% 70% 68% 66% 64% 62% 60% 70% 70% 78% 79% 68% 71% 80% 80% 68%

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