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Friday 13th: unlucky for some. But here’s hoping the fickle fates will be on the side of utilities this year, because without the odd stroke of good fortune, there’s no way the industry’s going to escape 2017 with reputations, relationships and finances all intact.
Here are eight things to keep fingers and toes crossed for in the months ahead.
1. As the political fallout from the Brexit vote and wider global political shifts continue, all eyes are on the economy. Inflation is predicted to rise this year, and CFOs that have been sitting comfortably might suddenly find their jobs that bit more tricky. Meanwhile, belt-tightening among the public could return energy bills to the top of the political agenda – and this time, water companies might not escape the scrutiny.
2. Talking of Brexit, the negotiations on how we leave the EU have huge consequences for utilities, from the environmental legislation that governs so much of the water industry to the European electricity market to which we are so closely connected.
3. 2017 is a critical year if the UK is to have a chance of meeting the 2020 deadline for blanket smart meter coverage, despite the numerous delays to the start of the rollout. But has anyone asked the customers? Here’s hoping they’ll open the door to the smart meter installers – when they finally arrive.
4. There’s nothing as high profile as diggers in the ground. With two once-in-a-generation utility infrastructure projects due to start on site this year, Hinkley Point C and the Thames Tideway Tunnel, major delays or setbacks would be embarrassing, to say the least.
5. The capacity market has had a difficult birth. The first capacity procured through the auction is due to come online later this year, and is critical in light of the growing capacity crunch. Fingers crossed for no more broken contracts.
6. Companies have restructured, central systems are in place, letters of assurance have been penned – but is the non-domestic water market ready to open at the beginning of April? Because if the market falls over on Day One and ministers and customers want to know why, water companies could find the April Fools’ joke is on them.
7. Will someone finally listen to sense on storage? Mixed signals came out of Ofgem in 2016, and networks will be hoping for some clarity after the smart systems consultation closes later this month.
8. And finally, as ever, we’ll be keeping a weather eye on the forecasts. With a cold snap predicted to start this week, will the climate be kind this year?
Happy new year: it’s good to be back.
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