Utility Week articles from August 2003

Utility Week archives from August 2003

Directory enquiries: which number, please?(BT)
August 1, 2003... On 24 August, BT's 192 directory enquiries service ends, to be replaced by about 15 competing services using new six-digit numbers all beginning with the new 118 prefix. Even telecoms regulator Oftel does not know exactly how many new operators...

ENERGY; Telefonica hit with second Terra suit.(Brief Article)
August 1, 2003... Spain's Adicae, a banking and insurance association, is suing Telefonica over its e1.72 billion bid for internet portal Terra. Adicae claimed that the Spanish telecoms company's takeover of loss-making Terra would mean big losses for small...

Brim-full ; of Asher.(Allan Asher)
August 1, 2003... Allan Asher's appointment earlier this year as chief executive of the consumer watchdog Energywatch has to be some sort of a record - the process took less than a week. The headhunters had been at work. 'I had a call one Friday night, went to...

environment; Austria in dock for flouting pollution rules.(Brief Article)
August 1, 2003... Austria is being taken to the European Court of Justice by the European Commission over its failure to properly implement the integrated Pollution Prevention and Control Directive. Ireland has been threatened with legal action for the same...

eLECTRICITY; British Energy rescue may breach aid rules.(European Commission investigates)
August 1, 2003... by Roger Milne British Energy's survival was in question this week after the European Commission revealed it believed that key elements of the troubled generator's rescue plan, underwritten by the government, constituted illegal state-aid....

ELECTRICITY; Centrica to top 2GW capacity with Barry.(Brief Article)
August 1, 2003... Home services group Centrica has bought a 249MW gas-fired power station in Barry, south Wales, from its US owner AES for [pounds sterling]39.7 million. The deal will take Centrica's total capacity to over 2.17GW, one-quarter of its peak...

TELECOMS; BT signs Wi-Fi roaming deal with US player.(Brief Article)
August 1, 2003... TELECOMS BT signs Wi-Fi roaming deal with US player Fixed-line operator BT has signed a wireless broadband roaming agreement with a US company in bid to achieve its 'broadband on the move' target. The deal with Airpath Wireless...

TELECOMS; C&W reins in the costs as sales slide.(Cable & Wireless (C&W) sliced its capital expenditure figure )(Brief Article)
August 1, 2003... World-wide telecoms and internet hosting company Cable & Wireless (C&W) sliced its capital expenditure figure as part of its restructuring programme, despite revenues slipping in the first quarter of 2003. Sales for C&W were [pounds...

electricity; CEZ may cling on to distribution holdings.(Brief Article)
August 1, 2003... by Mark Andress Czech power generator CEZ is considering the possibility of keeping all five regional distribution companies it acquired majority stakes in earlier this year, and not selling one of them, as ordered by the country's...

electricity; Commission to tighten nuclear safety regime.(Brief Article)
August 1, 2003... The European Commission has proposed taking a more active role in the nuclear sector by ensuring that all new projects comply with safety and security rules from the planning stage. Brussels has said that nuclear undertakings should...

ENERGY; Ofgem defends competition record.(Non-domestic energy market )(Brief Article)
August 1, 2003... Ofgem said last week that competition was working in the non-domestic energy market despite evidence that after ten years of liberalisation over half of non-half-hourly metered customers have never switched supplier. According to an Ofgem...

telecoms; Contactel says Cesky getting too dominant.(Cesky Telecom)(Brief Article)
August 1, 2003... Czech alternative telecoms operator Contactel has called on the competition authorities to impose conditions on incumbent operator Cesky Telecom's acquisition of Eurotel, the country's biggest mobile telecoms company. Contactel, wholly...

TELECOMS; Colt wows City with capex forecast.(Colt Telecom )(Brief Article)
August 1, 2003... Former City darling Colt Telecom impressed analysts last week by confirming that it was on track to be cashflow positive in 2005, and by reducing its capital expenditure forecast. In its second quarter results, Colt posted underlying...

telecoms; Cost of calling Czech mobiles faces probe.(Brief Article)
August 1, 2003... The Czech competition office is to look into alleged discrimination against fixed-line telephony by the country's two largest mobile telecoms companies. Representatives of the Czech Association of Public Telecoms Networks (APVTS) last week...

water; Czech water infrastructure gets e32m.(Brief Article)
August 1, 2003... The European Commission has awarded e32.35 million towards the cost of building a wastewater treatment plant and sewerage system in the Becva River Basin in the Czech Republic. The grant will meet 70 per cent of the e51.56 million estimated...

telecoms; Commission fine prompts DT price hikes.(Deutsche Telekom AG)(Brief Article)
August 1, 2003... German telecoms incumbent Deutsche Telekom is set to raise its monthly line rental rates for analogue lines by e1.94 to e15.66. More than 29 million customers will be affected. The move was prompted by telecoms regulator RegTP's discovery...

ELECTRICITY; AES snubs IPower Drax bid.(AES walks out of talks with International Power over bid to become major stakeholder in AES's debt-strapped Drax power station)(Brief Article)
August 1, 2003... US power group AES has walked out of talks with International Power over the UK company's bid to become a major stakeholder in AES's debt-strapped Drax power station. It also threatened to pull its support unless shareholders and creditors...

ENVIRONMENT; Water sector in dock for repeated pollution.(Brief Article)
August 1, 2003... by Roger Milne Three of the water industry's biggest companies - United Utilities, Anglian Water and Thames Water - were named and shamed this week when the Environment Agency (EA) said they were persistent polluters who were undeterred by...

electricity; Spain backs Iberian power market.(Brief Article)
August 1, 2003... Spain has welcomed a plan by Electricidade de Portugal to foster the development of an integrated Iberian power market. The news emerged from a meeting between energy minister Jose Folgado and EdP president Joao Talone, who met in Madrid...

electricity; Italy and France try to agree terms of access.
August 1, 2003... by Simon Jones italian energy giant Enel and Electricit? de France (EdF) have renewed talks aimed at giving Italy's leading player greater access to French capacity and markets. Parallel talks were being undertaken at the political...

electricity; Eon forced to quit Bayerngas.(Brief Article)
August 1, 2003... Germany's energy giant Eon has completed the sale of its stake in regional supplier Bayerngas to a group of Bavarian municipal utilities. The sale was stipulated as part of the price of its takeover of Ruhrgas. The utilities, which serve...

Tidy sum?(utilities, court settlements)
August 1, 2003... Consider this: a contractor hits a utility company's underground infrastructure and damages it. The utility company issues a claim against the contractor and the contractor settles the claim, acknowledging its culpability. That's an end to the...

energy; German regulation could go private.(Germany may follow Austria's lead and transfer responsibility for regulating energy sector to private sector)(Brief Article)
August 1, 2003... Germany may follow Austria's lead and transfer responsibility for regulating the energy sector to the private sector. Berlin has pledged to set up an independent regulator by next summer, and telecoms regulator RegTP and the Federal Cartel...

electricity; Row over Majorca blackout.(Gesa Endesa says it isn't to blame)(Brief Article)
August 1, 2003... Gesa Endesa has struck back at criticism that it was to blame for a four-hour power blackout on the island of Majorca on 21 July. The company said the biggest outage in Majorca in three years occurred after an overload at one substation...

Electricity; Iberdrola mulls Portuguese plant move.(Combined-cycle gas-fired power station )(Brief Article)
August 1, 2003... Spanish energy company Iberdrola is studying building a e300 million, 800MW combined-cycle gas-fired power station near the city of Coimbra, central Portugal. An Iberdrola spokesman confirmed the company was choosing a location for the...

C&W share revolt.(About 18 per cent of Cable & Wireless's shareholders voted against pay policy)(Brief Article)
August 1, 2003... Around 18 per cent of Cable & Wireless's shareholders voted against the company's pay policy at last Friday's AGM. Chairman Sir Richard Lapthorne was forced to defend his policy of encouraging non-executive directors to buy C&W shares. As...

The ease of going green.
August 1, 2003... A week or so after the media was full of reports and comment about Britain's renewable energy aspirations, and the debate about whether wind energy was the green future, an environmental disaster or economic nonsense, the latest National...

WATER; Two blamed for leaks rise.(Poor showings by Thames Water and Severn Trent Water hurt industry's leakage performance)(Brief Article)
August 1, 2003... Poor showings by Thames Water and Severn Trent Water dragged down the industry's leakage performance in 2002/03, Ofwat has reported. All companies bar Thames and Severn Trent reached their leakage targets, cutting water lost by 3 per cent....

MULTI-UTILITies; Lloyds TSB poised to hit retail market.(Brief Article)
August 1, 2003... Bank Lloyds TSB is set to launch a multi-utility retail operation offering energy services from ScottishPower, telecoms from Cable & Wireless and billing and management services from home services supplier Servista. Lloyds - a partner with...

WATER; Firms to pin landlords down on tenant data.
August 1, 2003... by Karma Ockenden The water industry is set to have another stab at making landlords take responsibility for the water debt of their tenants. Companies have already tried to amend the Water Bill to make landlords directly liable for...

ENERGY; Customers apathetic rather than loyal.(Utilities must change way they serve customers )(Brief Article)
August 1, 2003... Utilities must change the way they serve customers if they are to build customer loyalty, according to a study which found that fewer than one in ten customers were loyal to their energy supplier. The study said customers who did stay with...

Taxing problem.(deferred tax standards hurt water companies)
August 1, 2003... New deferred tax standards have already made a significant dent in water companies' bottom lines . Ray Tidbury warns that there's worse to come. The new accounting standard for deferred tax introduced last year, FRS19, was not greeted with...

TELECOMS; Mobile results please City.(Brief Article)
August 1, 2003... Strong key performance indicators at two of the UK's largest mobile operators have cheered the market as telecoms companies continue their recovery. French-owned Orange and global mobile giant Vodafone both reported increases in customer...

Gasunie.(Its future remains uncertain, but Dutch gas industry generally will continue to be important sector)
August 1, 2003... by Nigel Hawkins Gasunie, Holland's major gas trading and transportation company, was founded in April 1963. Subsequently, it has played a key part in exploiting the rich natural gas reserves in the Groningen area of north Holland. ...

MMO2.(Became first UK operator to write down value of its third-generation licences in UK and Germany)
August 1, 2003... by Zo Grainge Earlier this year, Europe's fifth-largest mobile operator MMO2 became the first UK operator to write down the value of its third-generation licences in the UK and Germany as it reported one of the biggest corporate losses in...

Clean power under scrutiny.(UK politicians question energy policy)
August 1, 2003... Politicians on both sides of the English and Scottish Border are meant to be taking a summer break but you could be forgiven for thinking there was the distinct absence of a holiday feel about recent pronouncements. The Scottish National...

electricity; Baltic interconnector takes Pole position.(Two firms reach agreement for project in which electricity interconnector would link the Baltic States with central Europe )(Brief Article)
August 1, 2003... by Gerard O'Dwyer The prospect of an electricity interconnector linking the Baltic States with central Europe took a major step forward after agreement was reached between Lithuanian and Polish energy groups Lietuvos Energija and Polskie...

eLECTRICITY; Green policies set to cost suppliers [pounds sterling]1.1bn.(Brief Article)
August 1, 2003... by Roger Milne By 2010 electricity supply companies could face extra liabilities of up to [pounds sterling]1.1 billion to meet the government's green energy plans, credit ratings agency Standard & Poor's (S&P)has warned. The...

electricity; RWE postpones eastern push.(RWE Trading)(Brief Article)
August 1, 2003... RWE Trading has put on hold plans to expand into eastern Europe. A survey of six national markets from Poland to Slovenia revealed that local laws and regulations were 'designed so that we could not trade profitably', according to Ralf...

ENERGY; MPs slate 'incoherent' White Paper.(Britain can not expect sustainable energy to be cheap)(Brief Article)
August 1, 2003... An all-party group of MPs has savaged the government's Energy White Paper as 'vacuous' and 'incoherent' and warned ministers that Britain could not expect sustainable energy to be cheap. The criticism came from the Commons Environmental...

Binders ; keepers.(Utilities industry focuses on retaining customers )
August 1, 2003... The industry has switched its attention from winning new customers to keeping the ones it's got. By Ian Robinson. Customer communication has fast become one of the most challenging areas for utility companies. With a growing portfolio of...

ENERGY; US fans ScotPower flame.(ScottishPower outstripped analysts' forecasts )(Brief Article)
August 1, 2003... Energy group ScottishPower outstripped analysts' forecasts as improvements on both sides of the Atlantic lifted its first-quarter results. Operating profit from each of the group's four divisions was up for the three months to 30 June. ...

TELECOMS; TIM's figures fail to impress the City.(Telecom Italia Mobile)(Brief Article)
August 1, 2003... Italian mobile giant Telecom Italia Mobile (TIM) increased its first-half 2003 revenues in line with expectations, but failed to impress analysts with its growth prospects. Consolidated revenues increased 6.7 per cent on the first half of...

Hot air fires up BG and ScotP.(energy industry stock prices in London)(Brief Article)
August 1, 2003... by Trevor Dooley Profit-taking hit the telecoms sector to stall some recent gains. Meanwhile ScottishPower continued its William Wallace-like disregard for the opinions coming from London, as BG was once again tipped for a sacking. ...

Command of the chain.(utilities, mobile technologies)
August 1, 2003... Over the past few years, suppliers have made a great deal of noise about field force automation and mobile enterprise solutions. Next-generation mobile technologies have been constantly on the brink of revolutionising the way companies do...

Bend it like Beckham.(Telefonica)
August 1, 2003... Over the last few weeks, Madrid has been obsessed with the arrival of El Beckham. Given that the great man is the public face of the successful Vodafone 'Live' campaign, it would be hardly surprising if Spain's incumbent telecoms operator,...

WATER; United Utilities plans cut-price rights issue.
August 1, 2003... by Karma Ockenden In a move that could prompt further share issues in the water sector, cash-strapped United Utilities has announced plans to raise [pounds sterling]1 billion through a heavily discounted rights issue. The multi-utility...

ENERGY; Confusion and cost are green barrier.(Brief Article)
August 1, 2003... Ignorance about green electricity and energy efficiency offerings are as important as cost and convenience in hampering the take-up of sustainable energy. A study by pollster Mori for the National Consumer Council has found that choosing...

ENERGY; VAT cutting right to be law.(value added tax)(Brief Article)
August 1, 2003... The right of European Union (EU) member states to reduce Value Added Tax (VAT) on natural gas and electricity will be enshrined in EU law if a reform of sales tax law is approved by national governments. VAT exemptions are currently based...

water; Users need to know true cost of supplies.
August 1, 2003... by Keith Nutthall A need exists for greater openness in the management of scarce water resources in Europe, north Africa, the Middle East and central Asia, to better highlight the growing cost of ensuring reliable supplies and persuade the...

WATER; AWG defends sale rejection stance.(Takeover saga involves WestLB and bidding vehicle Bream Investments)(Brief Article)
August 8, 2003... AWG chairman Peter Hickson last week defended to shareholders his board's actions over the takeover saga involving German bank WestLB and bidding vehicle Bream Investments. Speaking at AWG's annual general meeting, Hickson acknowledged...

eLECTRICITY; British Energy bullish on prospects.(Is confident of obtaining European Commission clearance for financial restructuring )(Brief Article)
August 8, 2003... British Energy insisted last week that it was confident of obtaining European Commission clearance for its financial restructuring and government financial aid despite preliminary findings that the package could breach rules on state aid. ...

GAS; BP looks at UK LNG options.(Brief Article)
August 8, 2003... BP has confirmed it is evaluating options for getting involved in the UK's burgeoning Liquefied Natural Gas (LNG) import market. A spokesman said the exercise was at an early stage but agreed one option might involve building a terminal at...

TELECOMS; BTre-enters mobile game.(Brief Article)
August 8, 2003... Fixed-line telecoms operator BT last week launched its first significant entry into the mobile market. The launch came a day before the company's first-quarter results, which showed the challenge facing BT to maintain its hold on its...

ELECTRICITY; Wires sale fires up CEZ's interims.(Brief Article)
August 8, 2003... Czech power generator CEZ increased first-half-year net profit 71 per cent to e381 million, largely due to the sale of a two-third stake in the national grid. CEZ sold the grid to the state for e388 million in April, but the company's...

ENERGY; CHP tally falls as UK is short of green target.(Combined Heat and Power )(Brief Article)
August 8, 2003... Use of Combined Heat and Power (CHP) in the UK fell last year, according to the latest annual energy statistics compiled by the Department of Trade and Industry. The news of a net fall in CHP generating capacity was 'a wake-up call to the...

TELECOMS; Cesky off as mobile arm ups growth.(Cesky Telecom)(Brief Article)
August 8, 2003... Plummeting voice revenues left Cesky Telecom, the Czech Republic's dominant fixed-line telecoms operator, nursing a 13 per cent drop in first-half-year profit to e71.5 million. The fall was less than the 25 per cent analysts had forecast,...

ENVIRONMENT; Eleven states face pollution law summons.(Brief Article)
August 8, 2003... The European Commission has threatened to take eleven European Union member states to the European Court of Justice for failing to comply with the the Large Combustion Plants Directive. The directive aims to cut sulphur and nitrogen oxide...

ELECTRICITY; Price falls hit Czech wires.(Brief Article)
August 8, 2003... Market liberalisation and lower regulated electricity prices have resulted in poor first-half-year performances from five Czech regional power distributors. North Bohemia's SCE had the worst downturn, with net profit off 46.7 per cent to...

electricity; Denmark plans could halve green backing.
August 8, 2003... by George O'Dwyer The Danish government plans to cut state funding and tax breaks for the country's renewable energy sector. Industry chiefs fear budget cuts in 2003/04 could halve state allocations to the sector. The controversial...

water; Poor state of assets is causing pollution.(Brief Article)
August 8, 2003... by Roger Milne Green regulator Barbara Young has voiced fears that economic regulation of the water industry could be eroding maintenance standards and contributing to the sector's current difficulties over environmental performance. ...

ELECTRICITY; Electricity trade body closure costs 50 jobs.(Brief Article)
August 8, 2003... by Roger Milne and Trevor Dooley Winding up power sector trade body the Electricity Association will cost 51 jobs. But Utility Week understands that pension rights have been guaranteed. As the association headed for break-up next...

In the ; family ; way.(Utilities need to adopt family-friendly policies to comply with new legislation)
August 8, 2003... Utilities have to adopt family-friendly policies to comply with new legislation, but they may also end up with happier staff . By Cherry Livesey. We may only be just over half way through the year but there have already been a large number...

electricity; Endesa's blues bottom out.(Brief Article)
August 8, 2003... A strong performance from its domestic and European businesses bolstered Spanish electricity major Endesa's first-half-year results. It recorded a net profit of e876 million, up 4.7 per cent on the first half of 2002. Operating profit from...

WATER; Eni poised to sell stake in Potabili.(Water supplier Acque Potabili)(Brief Article)
August 8, 2003... Italian energy group Eni is to sell its 67 per cent holding in Turin-based water supplier Acque Potabili. Shares in the water company were suspended briefly as rumours of the planned Eni disposal prompted heavy buying. Eni's adviser,...

If that's God, put him ona.
August 8, 2003... Barbara Young, the chief executive of the Environment Agency, looked a bit worried last week at the press conference where the green policeman named and shamed some of the water industry's finest for being 'serial' polluters. In her...

WATER; Pollution fine axed by Appeal Court.(Fine imposed on Anglian Water Services is cut by London's Court of Appeal to [pounds sterling]60,000)(Brief Article)
August 8, 2003... A [pounds sterling]200,000 fine imposed on Anglian Water Services has been cut by London's Court of Appeal to [pounds sterling]60,000. The fine was the largest single pollution fine levied last year, imposed for causing sewage effluent to be...

ELECTRICITY; Novel 'clean coal' plant approved.(Coal plant would use Texaco technology)(Brief Article)
August 8, 2003... The government this week gave the go-ahead for Britain's first coal plant using a US technology that combines high efficiency and low emissions. The power station is planned to burn deep-mined coal from the Hatfield colliery in Yorkshire. ...

WATER; Eon sells off Gelsenwasser.(Brief Article)
August 8, 2003... German utility giant Eon is to sell its 80.5 per cent stake in Berlin water supplier Gelsenwasser to the municipal utilities of Dortmund and Bochum for e835 million as part of the conditions for its acquisition of Ruhrgas. Eon, which announced...

Style counsel.(Employment in the gas, water and electricity industries is falling)
August 8, 2003... It is estimated that more than 500,000 people are employed in the gas, water and electricity industries. Overall the numbers are falling. They dropped by 205,000 people between 1971 and 2000 as a result of privatisation, restructuring and cost...

Role reversal.(changing workforce to match business model)
August 8, 2003... Changing your business model is one thing, changing you workforce to match it is quite another . By Richard Emerton. Only four years ago, many commentators were prophesying the death of the utilities sector. The old public sector power...

Centrica in spotlight.(Brief Article)
August 8, 2003... The past few days have been eventful ones for Centrica, 'Britain's biggest household energy supplier' (the FT). It has sold its interest in Goldfish to Lloyds TSB, which owned 30 per cent already. Goldfish bank will receive [pounds...

WATER; Ofwat expects more firms to ask for rises.
August 8, 2003... by Karma Ockenden Ofwat director general Philip Fletcher last week said he expected other companies to join United Utilities in asking for interim price determinations in September. Although the regulator did not say how many he...

ENERGY; CHP a priority for new EU president.(Combined Heat and Power will be addressed)(Brief Article)
August 8, 2003... The new Italian presidency of the European Union (EU) has announced that its key energy priorities will be to bring into law proposed directives on Combined Heat and Power (CHP), and address minimum oil and gas stocks. Italy has the presidency...

GAS; NGT appoints advisors on network sales.(National Grid Transco appoints Morgan Stanley, Rothschild)(Brief Article)
August 8, 2003... National Grid Transco (NGT) has appointed Morgan Stanley and Rothschild as financial advisers, as the infrastructure giant works up its strategy for divesting one or more of its eight regional gas distribution networks. The company said no...

Right skills, right people.(Utilities sector has long-term problem--that of recruiting employees)
August 8, 2003... Last week there was a welter of messages from Energywatch and elsewhere suggesting that many utilities operating in the competitive market today are failing their customers. For many of them it has been a case of billing problems, which by and...

TELECOMS; Brussels hangs up leased line obligation.(Brief Article)
August 8, 2003... Telecoms companies in the European Union, especially large dominant operators, will no longer be compelled to provide leased lines for rivals to provide in-company networks, as well as internet and service links, the European Commission has...

GAS; Access case ends as Brussels strikes deal.(Deal over third-party access to gas pipelines is agreed to by German group BEB and European Commission)
August 8, 2003... by Keith Nuthall A comprehensive and detailed deal over third-party access to gas pipelines has been agreed between German group BEB and the European Commission, ending a competition investigation into the company's refusal to allow...

Water discharge compliance up.
August 8, 2003... The water industry's environmental performance came under the spotlight last week when the Environment Agency released its latest assessment. For the first time, the agency has revealed the extent of compliance with discharge consents....

ELECTRICITY; UKPX sell-off 'by end of year'.(OM is on course to complete divestment of power exchange operations in UK and North America this year)(Brief Article)
August 8, 2003... OM, the Stockholm power and securities exchange operator, is on course to complete the divestment of power exchange operations in the UK and North America this year, the company told Utility Week. The divestment schedule includes the...

Have I got good news for you?(Centrica will invest half a billion pounds in renewables over next five years, )
August 8, 2003... Ministers are well aware that there is profound unease about the current state of energy policy. Exhortations and aspirations are one thing: major investments make you feel a tad more secure. So there was a palpable sense of relief from...

ELECTRICITY; Brokers in bid to boost power trading.(Brief Article)
August 8, 2003... A group of energy traders has launched a set of electricity price benchmark indices in a bid to boost UKenergy trading. The move last week by the London Energy Brokers' Association was the latest of a number of initiatives to inject...

When ; the ; wind ; grows.(Renewable energy will play key part in Europe's energy mix over coming decades)
August 8, 2003... There is no doubt that renewable energy is going to play a key part in Europe's energy mix over the coming decades. Many factors are driving this growth: concern over the long-term sustainability of fossil fuels, increased awareness of climate...

GAS; Rough deal could be mission impossible.(for Centrica)
August 8, 2003... by Roger Milne Centrica is not yet out of the woods in its bid to acquire the Rough offshore and onshore gas storage facilities, as a result of last week's government acceptance of the findings of the Competition Commission investigation....