Utility Week

UTILITY WEEK | 15TH - 21ST JUNE 2018 | 3 This week 4 | Seven days 6 Policy & Regulation 6 | News Post-Brexit nuclear protections are ready 7 | Chief executive's view Lawrence Slade, Energy UK 9 | Analysis Ofgem steps up action on smaller energy suppliers 10 | Analysis A look back at Michael Gove's first year as environment secretary 12 | Market view Water consumption in the UK could be a lot lower 13 Finance & Investment 13 | News Bulb announces 5.1% price increase 14 Operations & Assets 14 | High viz Scottish Water runs a water main under a railway line 15 | Expert view Sahar Shamsi, principal, Oxera 18 | Opinion Kevin Stickney, managing director, Erda 19 Customers 19 | News Thames pays £120m for leakage failure 20 | Analysis The competitive water market is beginning to deliver 24| Analysis Why regulation is failing to help those in need 28 | Market view Why automation is the future of debt recovery 30 Community 31 | Disconnector GAS 24| Analysis Why regulation is failing to help those in need 28 | Market view Why automation is the future of debt recovery WATER 13 | News Offences cost UU over £250,000 14 | High viz Scottish Water runs a water main under a railway line 12 | Market view Water consumption in the UK could be a lot lower 20 | Analysis The competitive water market is beginning to deliver ELECTRICITY 6 | News Island windfarms can bid for CfD aid 6 | News Jones tries to save Swansea tidal plan ENERGY 7 | Chief executive's view Lawrence Slade, Energy UK 9 | Analysis Ofgem steps up action on smaller energy suppliers 13 | News Ofgem urged to cut networks' profits 18 | Opinion Kevin Stickney, managing director, Erda 15 | Expert view Sahar Shamsi, Principal, Oxera A good year for Gove? A week may be a long time in politics, but 12 months at Envi- ronment have passed relatively smoothly for Michael Gove. Any flak during his watch at Defra has largely headed in the opposite direction for Westminster's great survivor, although the utilities – water in particular – have not escaped so easily. So how might some of those water company bosses rate the min- ister's end of year report scores? Well, if for Gove we read Defra, then until recently they are likely to have viewed his term quite positively, certainly with the traction he has achieved on some key green issues affecting their industry, such as wet wipes. Even his blasting of chief executives at Water UK's conference was accepted by many there as the wake-up call the sector needed. Few were caught off guard by his warnings to those businesses using "opaque" offshore arrangements, either – with most of these "toxic" entities already in the process of being wound down. More recently, though, the mood-music has been shiing – particularly with his backing for Ofwat's follow-up plans for reform. There is fear that the move could hit investor returns at some highly-geared companies, and concern too that companies will be asked to justify those returns. So perhaps the first report question should ask whether water bosses want him to stay. Yes, appears the general view, especially as any replacement is unlikely to rip up current agreements with the regulator. And those scores? When it comes to his shaping the agenda and shiing the parameters of the sector, then you would have to give him a 9 out of 10, one industry source said. Whether that will lead to an overall positive outcome for water companies is harder to call. Balancing the financial impact he's had so far on their busi- nesses, against some of the welcome focus he's brought to the environment, would probably land him a solid 7. Next year's impacts are tougher to predict, as is whether he will even stick around at the department to see all the changes through (given his track record at the Department for Eduction, for example). But if he does, then water companies should brace themselves to hear his appraisal of their progress. At a guess it will be: "Must try harder". 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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