Utility Week

Top storeis today (£) 💧 How Ofwat landed on £104bn determination https://buff.ly/3ZJeFn3 Ofwat has approved £104 billion of total expenditure by water companies in England and Wales for the five years to 2030. Utility Week looks at how the regulator’s final determinations of company business plans compared to its draft decisions and where Ofwat has conceded ground. ⚠️ PR24 has pushed us to the limit, says Ofwat https://buff.ly/4fyU7n3 The Ofwat director in charge of PR24 has said future price controls will be done “quite differently”, as he defended the approach to rates of returns and discussed the likelihood of appeals. Meanwhile, the regulator’s chief executive has insisted company concerns were heeded but admitted there would “still be some investors that are unhappy, as there no doubt are unhappy customers”. 💡 Consumer duty will allow Ofgem to clamp down on ‘irresponsible management’ https://buff.ly/4gMNoau The government has unveiled moves to impose a new financial services-style consumer duty on Ofgem as part of a wide-ranging review of the energy regulator. A call for evidence for the review of Ofgem has been issued by the Department for Energy Security and Net Zero as part of a wider stock-take of the UK’s regulatory regimes set out by prime minister Sir Keir Starmer at the government’s recent UK Investment Summit. The review seeks views on how a consumer duty could be applied to the energy sector in a bid to deter “irresponsible management practices” and reinforce customer confidence.

📣New Exhibitor! We are thrilled to announce that TMA Data Management will be exhibiting at Utility Week Live 2025 (20-21 May, NEC, Birmingham). TMA provide end-to-end data management, from reading to collection to the management of smart data using software and services, giving control, compliance and innovation. Find them at stand P8. Find out more: https://bit.ly/3ORFzUI Meet them there: https://bit.ly/49pHJVb

Dive into expertly curated insights on water, energy, heat, and generation, all while confidently knowing you’re informed about the latest industry trends. Join our members Ofgem, NationalGrid, South East Water, EDF and more… https://bit.ly/3AnaQvr #UtilityWeek #UtilityInsights

In the UK, the smart grid plays a critical role in supporting both the energy sector and its customers. It empowers consumers by providing data insights on electricity usage, allowing them to benefit from more affordable energy during off peak times. The smart grid ensures a more balanced distribution of electricity, driving cost savings for customers and enhancing the efficiency of energy consumption. In association with Expleo Group, read now: https://bit.ly/4ithNvX #Utilities #NetZero

'Exploring the role of gas in 2050 targets’ or ‘The evolving role of power’? Choose your focus on the day at the 2025 UW Future Networks Conference, 18 March https://bit.ly/3VrBYAm #FutureNetworks

Our major new report 'From promise to practice: how utilities are making digital aspirations a reality', offers insights into the digitalisation journeys of SSEN Transmission, UK Power Networks, Northumbrian Water and Severn Trent via interviews with senior digital leaders. Topics covered include: - Foundational system investments - Experience and ambitions in the use of AI - Cyber security concerns - Uses for digital twins - Transformation cultures and digital skills In association with Salesforce, read now: https://bit.ly/3VwwYLc #Utilities

Top stories today (£) 🐙 Octopus: Ofgem’s plan to wipe off £1bn of consumer debt is a ‘massive problem’ https://buff.ly/3ZFAfJm A senior figure at Octopus Energy has warned that Ofgem’s plan to wipe off £1 billion of consumer debt might create a “massive problem”. The company’s director of economics, Rachel Fletcher, told Utility Week that Ofgem’s Debt Relief Scheme risks giving customers the wrong impression that they do not have to pay their energy bills. Fletcher added that the regulator's proposal to reform standing charges could give customers more choice “in theory”, however she cautioned that the “devil here is definitely in the details”. 💧 Rival Thames Water creditors face off in court over £3bn deal https://buff.ly/4iK2bEG Rival Thames Water creditors have faced off in court over their respective offers to loan the company £3 billion in a last-ditch effort to stave off administration. Thames' legal team made the case for accepting the terms of an offer tabled by its Class A bondholders, claiming that without it the company will run out of money by March next year. However, Class B bondholders discredited the terms of the Class A deal, claiming that it was “having a chilling effect” on Thames’ ability to bring in long term investment. Following a six-hour hearing, a High Court judge sanctioned a full hearing for February which will ultimately determine the future of the company. 👨🏫 Catapulting into 2030 | Lessons from Tony Cocker’s varied career https://buff.ly/3DiOe01 Energy Systems Catapult chair Tony Cocker reflects on his vertically-integrated career in energy and what lessons it holds for the Clean Power 2030 target. He discusses the power of innovation in everything from flexibility to community benefits, warm homes and locational pricing.

Can you really measure good customer service? Find out with ICS, Citizen’s Advice, EDF, E.ON and Pennon Group at the 2025 Customer Summit, 25 February https://bit.ly/4fRv2EP #CustomerSummit

Top stories today (£) 💷 Ovo skewed Warm Home Discount figures by miscounting own customers https://buff.ly/3DkBCWl Ofgem was forced to recalculate all supplier obligations for last year’s Warm Home Discount scheme after OVO gave the wrong number of customers. The blunder is one of a record number of major incidents from energy suppliers recorded in the first half of this year. Among those retailers responsible for the worst failures between January and June 2024 were Outfox the Market, Ovo, Utility Warehouse, Octopus Energy and ScottishPower. 👨⚖️ Regulators and government broke law over sewage failings https://buff.ly/49J4mE1 Water regulators have failed their environmental duties relating to combined sewer overflows. That is the conclusion of an investigation by The Office for Environmental Protection (OEP) which has criticised the Environment Agency's approach to permitting, as well as taking aim at Ofwat and Department for Environment, Food and Rural Affairs for enforcement undertakings. The OEP said the three bodies have failed to comply with the law and could face court action. ⚡ Four things Ofgem is doing for sector to reach Clean Power 2030 – and what we want in return https://buff.ly/3ZMvGNs The government has pledged to amend Ofgem’s strategic priorities to include the target of decarbonising the power system by 2030. The regulator’s director general of infrastructure Akshay Kaul writes for Utility Week about what Ofgem is doing to accelerate this goal and what it needs to see from the industry.

Top stories today (£) 💷 More than 2m customers set to benefit from Ofgem’s £1bn debt write-off plans https://buff.ly/4fc4flz Ofgem’s proposals to write-off up to £1 billion worth of debt accumulated as a result of the energy crisis could see 2.3 million customers supported. The energy regulator has published details of its proposed debt relief scheme, which it hopes will “reset” the £3.8 billion worth of arrears built up in the last few years. Ofgem said depending on the scheme’s design, the proposals “could provide direct debt support to up to 2.3 million customers” if all those in debt within its defined “crisis period” are eligible. 💧 Will Ofwat turn on the money tap or spark a wave of appeals? https://buff.ly/3DhmIAc With a week to go until Ofwat delivers its final determinations on water company business plans for 2025 - 2030, the stakes could not be higher. Utility Week chief correspondent Ruth Williams highlights what to to look out for and examines the chances of the regulator prompting a fresh wave of appeals to the CMA. ⚡ Slye: Zonal pricing overhaul and 2030 clean power target not inconsistent https://buff.ly/4gwJW3A Attracting the investment required to achieve the government’s 2030 grid decarbonisation target is "not inconsistent” with introducing zonal electricity wholesale pricing, Fintan Slye has insisted. However, the National Energy System Operator chief executive said that any such reform of the wholesale market would need to be carried out in a “very, very measured and clear way”. 🗨️ It will be distribution that delivers decarbonisation https://buff.ly/3ORcWai As the government unveils its Clean Power Action Plan, SSEN Distribution’s managing director Chris Burchell sets out how the network has been preparing for the future with its own Strategic Development Plans. He also gives his thoughts on Ofgem’s recently published RIIO-ED3 framework and why ultimately it will be distribution that delivers decarbonisation.