Utility Week

UTILITY WEEK | 29TH JUNE - 5TH JULY 2018 | 3 This week 4 | Seven days 6 | News focus Water firms feel Ofwat's wrath for failing against the Beast from the East 8 | Interview Mark Bygraves, chief executive, Elexon 11 Policy & Regulation 11 | News Cut to embedded benefits is upheld 13 | Analysis Tidal versus nuclear funding 14 | Market view Balancing the need for clean air and cutting carbon emissions 15 Finance & Investment 15 | News Change of ownership could hit public hard 18 Operations & Assets 18 | High viz Yorkshire Water's Knostrop works 21 | Chief executive's view Peter Simpson, Anglian Water 22 | Event Utility Week-Wipro Technology and Innovation Council: understanding blockchain 25 Customers 25 | News Iresa receives 'worst-ever' score for service 26 | Analysis Getting customers to engage is proving a hard nut to crack 28 | Market view House moves offer utilities a vital touch point 29 | Market view Progress report on the smart meter rollout 30 Community 31 | Disconnector GAS 22 | Event Utility Week-Wipro Technology and Innovation Council: understanding blockchain WATER 6 | News focus Water firms feel Ofwat's wrath for failing against the Beast from the East 15 | News Change of ownership could hit public hard 18 | High viz Yorkshire Water's Knostrop works ELECTRICITY 8 | Interview Mark Bygraves, chief executive, Elexon 11 | News Cut to embedded benefits is upheld 13 | Analysis Tidal vs nuclear funding ENERGY 14 | Market view Balancing the need for clean air and cutting carbon emissions 25 | News Iresa receives 'worst-ever' score for service 26 | Analysis Getting customers to engage is proving a hard nut to crack 28 | Market view House moves offer utilities a vital touch point 29 | Market view Progress report on the smart meter rollout Reaching the competitive edge What a difference six months makes. Last November, when plans to merge SSE's retail arm with Innogy's Npower first hit the headlines, they were greeted with abject dismay by larger consumer groups. One warned of a "dramatic impact" on competition if the deal went ahead, creating Britain's second-biggest supplier and cutting the big six down to five. Another noted that such mergers of retail giants were "rarely a good thing for customers". In March, further complexities emerged with news that Eon is set to acquire Innogy from RWE, in a far-reaching asset swap that would see it concentrate on retail and networks, while RWE focuses on renewables and other forms of generation. That SSE-Npower tie-up is now in its second phase of investiga- tion by the Competition and Markets Authority (CMA), and while the industry awaits its final decision, and the new company's chief executive designate Katie Bickerstaffe waits in the wings, sentiment from consumer champions, however, has moved on significantly. This week, one former critic came out to say they now believe a £3 billion shake-up would not, aer all, stifle market competition, nor stop people switching. It is true that with the rise of challenger brands, there is now a plethora of competitors – almost 70 energy companies at the last count. And with 13 per cent more people than this time last year switching supplier, oen from larger to smaller firms, it might be tempting to conclude it is job done. Well, sadly not. Today's bigger question is actually whether competition is really all it's cracked up to be for consumers. It seems the words of those who warned it was far too easy for new suppliers to enter the market could now be ringing true. They will have been encouraged this week by the regulator's stance on launching a review and getting tougher on supplier licensing. But some industry players will still consider it a little too late. While all eyes have been focused on the price cap, consumers – some of them vulnerable – have felt the pain of suppliers without the processes, systems or financial security to protect them. Suzanne Heneghan, acting 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/

• Cover