Utility Week articles from December 2005

Utility Week archives from December 2005

PAN-UTILITY Trust trial delivers savings.(Brief Article)
December 2, 2005... Government-sponsored energy adviser the Carbon Trust has released an update on its [pounds sterling]1.5 million "advanced" metering trial across the UK, showing that one user had already saved [pounds sterling]24,000 a year on its water and gas...

ENVIRONMENT BPplans green double-up.(Brief Article)
December 2, 2005... Oil and gas company BP is to double its investment in renewables and gas-fired power plant over the next three years to $1.8 billion ([pounds sterling]1 billion). It said it could spend [pounds sterling]4.6 billion over the next decade and...

News.
December 2, 2005... It's adding up Advertising watchdog the Advertising Standards Authority is understood to be poised to uphold most of the five items featuring in 24 complaints drawn by British Gas's recent television campaign. If upheld, the latest...

WATER Watchdog pledges to focus on facts.
December 2, 2005... Water consumer champion the Consumer Council for Water (CCWater) this week pledged that its policies would be based on firm evidence and that it would conduct extensive research among consumers and businesses. The promise came as the...

PAN-UTILITY Brussels details plan to counter terrorism.(Brief Article)
December 2, 2005... by Keith Nuthall The European Commission has published a detailed green paper outlining its plans for legislation and guidelines on protecting critical infrastructure such as power lines, gas pipelines and telecoms networks against terror...

WATER Debt revealed at only [pounds sterling]170m.
December 2, 2005... by Steve Hobson Customer debt owed to UK water companies in the past year has been put at [pounds sterling]170 million, one-fifth of the [pounds sterling]800 million reported as outstanding in the June return to regulator Ofwat. The...

ENERGY EDFEnergy wins applause for fuel poverty initiative.(Brief Article)
December 2, 2005... An energy watchdog has applauded moves by EDF Energy to help its customers avoid fuel poverty. The supplier has introduced a "social tariff" designed to help 100,000 of its low-income customers. Under the initiative, due to start next...

ELECTRICITY Power cut fear if ESB curbed from new build.(Brief Article)
December 2, 2005... Irish trade unions last week warned the government that the Republic faced blackouts unless state-controlled electricity company ESB was allowed to build more power stations. The Irish energy regulator is blocking ESB from building new...

ENVIRONMENT Generators hail extra allowance success.(Brief Article)
December 2, 2005... by Roger Milne Generators last week welcomed the government's successful legal challenge to the European Commission's refusal to consider revised UK allowances under the European Union's Emissions Trading Scheme (ETS). Power station...

GAS Eni probed over market abuse claim.(Brief Article)
December 2, 2005... Italy's competition authority last week opened an investigation into claims that oil and gas giant Eni's liquefied natural gas (LNG) division, GNL Italia, abused its dominant position in the market. The inquiry will focus on GNL's...

ENERGY UK users among winners in Europe's liberalisation.(Brief Article)
December 2, 2005... UK consumers have enjoyed some of the biggest electricity price falls in Europe since liberalisation began a decade ago, said Eurelectric in a vote of confidence for the free market. Industrial electricity users in the UK on average paid 41...

French stick leaves bad taste.
December 2, 2005... As storms in teacups go, this had quite a lot going for it. The great man refers to the spat between British Gas and rival EDF Energy, which brought the Advertising Standards Authority in as arbitrator. The story goes something like this....

ENERGY Builder denies Fenosa bid.(ACS)(Brief Article)
December 2, 2005... Spanish construction company ACS has said it will not make a takeover bid for Union Fenosa despite offering e1.05 billion for an additional 10 per cent of Spain's third-biggest power firm. The bid "is not a prior step to a merger", ACS...

ELECTRICITY Nuclear new-build a hot issue in Finnish elections.(Brief Article)
December 2, 2005... Finland's long-term position on nuclear power has surfaced as a primary issue among presidential candidates ahead of February 2006 elections. Finnish industry is campaigning for a political decision on the building of a sixth nuclear...

GAS Gas fitters plan for action over Centrica pensions.(Brief Article)
December 2, 2005... Nearly 6,000 domestic gas fitters from British Gas are scheduled to begin five 24-hour strikes on 12 December and to halt out-of-hours working in protest against changes to their pension scheme. The GMB union agreed the action this week...

GAS French deal opens up US to Gazprom.(Brief Article)
December 2, 2005... Russian gas giant Gazprom last week announced that it had concluded its first piped gas for liquefied gas swap with Gaz de France (GDF). Under the deal, Gazprom will deliver pipeline gas to GDF in Europe and will purchase a liquefied...

Play to your strengths.
December 2, 2005... Partnering with an IT specialist may make more sense for utilities than coming up with an in-house solution or outsourcing . By Peter Franklin A survey by EnStra has highlighted the water sector's current state of mind about the challenges...

Features.
December 2, 2005... Recent energy and water price rises have only served to reinforce what utilities have known for a while - they have a problem with customer debt. Both regulators and government have made it plain that bad debt is the utilities' problem, leaving...

MID falls short.(Letter to the Editor)
December 2, 2005... Sir: The Measuring Instrument Directive (MID) is, after many years, in its final stages and should soon be enshrined in British law. The MID will marginally improve the standard for gas meters when they leave the factory. This I warmly welcome....

ELECTRICITY Bank cash for atom switch plant upgrade.(Brief Article)
December 2, 2005... The European Bank for Reconstruction and Development (EBRD) is granting E90 million to upgrade environmentally and technically a Lithuanian multi-fuel power plant at Elektrenai that will replace the doomed Lithuanian Ignalina nuclear plant. ...

GAS Grid faces trouble as terminal misses mark.(Brief Article)
December 2, 2005... by Roger Milne National Grid has been threatened with regulatory action over its massive new Isle of Grain liquefied natural gas (LNG) terminal as concern grew this week about market behaviour in the UK and across Europe. Regulator...

Coal's power role in decline?
December 2, 2005... The competitive position of coal has improved in the past few years, due mainly to the significant increases in gas prices and generally low coal prices. However, the latest assessment by Whitehall presented to the Commons environmental audit...

eNVIRONMENT UK emissions victory prompts copycat bids.(Brief Article)
December 2, 2005... by Roger Milne A number of European Union states are studying last week's European court judgment allowing the UK to increase its allocation of emissions under the European Union's Emissions Trading Scheme to see if they could get similar...

ENERGY Nordic market stranglehold.(Brief Article)
December 2, 2005... More competition needs to be injected into the Nordic power market to loosen the grip of a handful of powerful regional energy groups, according to Nord Pool's chief executive Torger Lien. "The Nordic market has only a few big power...

PAN-UTILITY Bill pay network hits 14,000.
December 2, 2005... PayPoint last week reported that it had increased its reach in the first half of this financial year to more than 14,000 outlets. The company has the UK's largest network of branded payment terminals for cash payment of utility bills (including...

War of words over winter gas supply.
December 2, 2005... Energy issues made plenty of waves in Westminster last week. But was the supply crisis real or imagined? Last week saw the government firmly in the firing line over energy and climate change issues, with gas prices right near the top of the...

ELECTRICITY Brussels starts inquiry into Polish deals.(Brief Article)
December 2, 2005... The European Commission last week opened a formal state aid investigation into long-term power purchase agreements struck by Polish state-owned network operator Polskie Sieci Energetyczne (PSE) and power generators. The inquiry follows the...

GAS Consumers challenge Eon price calculation.(Brief Article)
December 2, 2005... by SimonJones Consumer groups and energy experts have challenged gas price calculations released by north German supplier Eon Hanse. The calculations were used to support claims by parent firm Eon that group gas profit margins had fallen...

WATER Review period out of step with Europe.(Chartered Institution of Water and Environmental Management)(Brief Article)
December 2, 2005... The Chartered Institution for Water and Environmental Management (CIWEM) has hit out at the five-year Periodic Review of the water industry, saying it is incompatible with the Water Framework Directive. CIWEM's director of policy, Justin...

ENERGY No public cash for nuclear.
December 2, 2005... by Roger Milne While emphasising that no firm decision had been made on the future use of nuclear power, the government pledged this week that there would be no public subsidy for the controversial generation technology. Unveiling the...

WATER Unions to fight Scot funding failure.(Brief Article)
December 2, 2005... Trade unions have pledged to fight any "unreasonable demands" placed on Scottish Water in its 2006-10 Final Determination, expected from the Water Industry Commissioner for Scotland this week. A joint statement from the Amicus, GMB, Unison...

Germany plans to reap the rewards of LNG.(liquefied natural gas )
December 2, 2005... German utility Eon has announced its intention to start a feasibility study into the possibility of building a liquefied natural gas (LNG) terminal at Wilhelmshaven, on the German North Sea coast. The company is understood to be examining...

ELECTRICITY Reign in Spain faces crisis, bank warns.(Brief Article)
December 2, 2005... Spain's regulated electricity market could make a loss of about e3 billion this year and its liberalised market could report a e1.7 billion loss, thanks to a crisis in the regulatory regime, investment bank Credit Suisse First Boston (CSFB)...

ELECTRICITY Norway blocks Statkraft divestment.
December 2, 2005... Norway's ministry of modernisation has effectively annulled a competition authority directive that required Statkraft to reduce its market share in power generation and supply by divesting Trondheim Energiverk (TEV). Statkraft responded to...

MULTI-UTILITY Capital couple wins [pounds sterling]500m network deal.
December 2, 2005... EDF Energy and Thames Water look set to win a joint contract worth more than [pounds sterling]500 million over 40 years to install and operate utility infrastructure. The pair was the preferred bidder for a Land Securities contract to...

ENERGY Watchdog bites back as MPs lash record.(energywatch (United Kingdom))(Brief Article)
December 2, 2005... by Vic Wyman Consumer organisation Energywatch came out fighting after it was criticised in a report by a cross-party group of MPs. Energywatch claimed the report's conclusions were based on information years out of date. Allan Asher,...

Credit on tap.
December 2, 2005... After privatisation, water companies were eager to gear up their balance sheets . Now there are risks attached, says Nigel Hawkins It is ironic that the pioneer of water privatisation in the 1980s, Thames Water under its then chairman Sir...

Common problems.
December 2, 2005... New proposals should simplify utilities' negotiations over common land, says David Shakesby Common land is an important resource. It comprises approximately 550,000 hectares of land in England and Wales (about 4 per cent of the land area...

Delays on the line.
December 2, 2005... BT is rolling out a national digital network that may not support functions that are vital for the safe running of utility networks . Peta Firth reports Under new regulations, BT has promised that it will behave itself. Communications...

Doing it right.(social responsibility of energy industries)
December 2, 2005... For utilities, it is essential not only that they behave with corporate responsibility, but that they are seen to do so . By Karen Higginbottom Corporate Social Responsibility (CSR). Those three words sum up a concept that is becoming...

ELECTRICITY US firm unveils e1bn Bulgaria plant project.
December 16, 2005... US electricity company AES has announced a e1.1 billion power plant project in Bulgaria to develop the country's first large-scale greenfield and fully privately owned plant. The 670MW lignite-fired plant will be fitted with...

GAS Germany offers Poland access to pipeline.(Brief Article)
December 16, 2005... German chancellor Angela Merkel has offered Poland access to the planned North European Gas Pipeline. The proposal, made during a Warsaw meeting with Polish prime minister Kazimierz Marcinkiewicz, would link Poland to the controversial...

ELECTRICITY Failures stunt British Energy as cash flows.
December 16, 2005... by Trevor Loveday Failures at its nuclear power stations have forced British Energy to drop its forecast for the year's output, but increased cash flow has boosted funds for investment needed to stem unscheduled plant outages. ...

News.(John Mogg apponited as chairman)(sales for Centrica been reported)(sales for Telecom Plus been reported )(Brief Article)
December 16, 2005... Dee Valley Profit before tax increased 13.1 per cent in the six months to 30 September to [pounds sterling]2.7 million at Dee Valley Group after Ofwat agreed a price rise of 5.7 per cent. Turnover was up 9.3 per cent to [pounds...

WATER Bristol reshaped ship sails.(Brief Article)
December 16, 2005... Having completed its disposal of all non-regulated assets, water-only firm Bristol Water has set its sights on squeezing costs as last week it reported profits up more than a third. Unveiling its interim results, chief executive Alan...

eNVIRONMENT 'Time running out' for carbon capture plans.(carbon capture and storage )(Brief Article)
December 16, 2005... by Roger Milne The power sector has warned parliament that time is running out for key decisions to be made about the funding, regulation and licensing of future carbon capture and storage (CCS) schemes. Last week, MPs on the Commons...

ENVIRONMENT UN pact agrees need for later Kyoto targets.(Brief Article)
December 16, 2005... by Roger Milne Negotiations that lasted through the night on the final day of the UN Climate Change Conference in Montreal last week resulted in agreement on the need to set new targets on greenhouse gas emissions after 2012, when current...

A cashless society.
December 16, 2005... New research has found that differentiating the "can't pays" and the "won't pays" is not as straightforward as many think . Steve Hobson reports. New research from Accent shows that the boundary between customers who "can't pay" and those...

ELECTRICITY EDF to shed 5,000 in efficiency drive.(Electricite de France)(Brief Article)
December 16, 2005... French state-controlled electricity giant Electricite de France (EDF) is set to shed 5,000 jobs over the next two years as part of a drive to save e1.5 billion. The company told French trade unions including CFDT and Force Ouvriere that it...

ENERGY Elsam faces curbs on market force.(Brief Article)
December 16, 2005... Denmark's Competition Authority is to impose tough restrictions on Elsam's electricity tariffs after it found in a report that the power firm had abused its dominant market position. The authority's proposed price curbs are contained in a...

ENVIRONMENT MEPs to give green light to energy saving regime.
December 16, 2005... The European Parliament was due this week to formally approve an end-use energy efficiency and energy services directive that would involve European Union states agreeing to cut annual energy use by 1 per cent. The sign-off was scheduled...

ENERGY Heaviest users seek managers as prices rise.(Brief Article)
December 16, 2005... The UK's major energy users are taking action to reduce their energy bills, including appointing energy managers, according to Npower's Business Energy Index. The survey found that 80 per cent of heavy users were adopting a new approach to...

GAS Relax green rules to aid fuel switch, says MPs.(Brief Article)
December 16, 2005... Parliament has criticised ministers for their reluctance to relax environmental regulations if gas shortages this winter necessitate more polluting fuels be used to generate power. The criticism came from the Commons Trade and Industry...

Features.(Energias de Portugal)(Brief Article)
December 16, 2005... Stake out Portuguese energy giant Energias de Portugal has sold its 14.3 per cent stake in compatriot Galp Energia to industrial group Amorin for e720.5 million. The move follows Galp stakeholder Eni outlining two weeks ago a ten-year...

Affordability the main issue in a year of soaring prices.
December 16, 2005... As this is our last issue of 2005, it is a good opportunity to review the past year and to see what lessons can be learned for the future. A common theme across utilities was affordability, with rising energy and water prices turning more...

Short on facts.(Brief Article)
December 16, 2005... Sir: Your leader last week was short on the facts of the reasoning behind the Commission's determination of price limits. Under Scottish water regulation, ministers set objectives and the Commission's job is then to set prices based on the...

ELECTRICITY Help for households to be major generators by 2050.(Brief Article)
December 16, 2005... The government plans next year to consult on changes to the planning regime that would make domestic generation easier to install, according to its response to Kate Barker's review on housing supply. Some local councils already define...

Power mix fears feed review.
December 16, 2005... The energy policy review launched by the UK government is courting controversy because the exercise is widely expected to signal a new-build nuclear programme. Ministers have justified the review on a number of counts, citing changes in...

WATER London sewer plan 'a drain on consumers'.(Brief Article)
December 16, 2005... Water regulator Ofwat has asked environment secretary Elliot Morley to carry out more studies to see whether other solutions were better value than building a 35km tunnel to reduce sewage in the Thames. Ofwat said the tunnel would add...

ENERGY Remove blocks to switching, says NCC.(National Consumers Council )(Brief Article)
December 16, 2005... The regulators of energy and other markets must do more to promote customer switching, said the National Consumers Council (NCC) this week. It called for the removal of hurdles such as difficult switching procedures and mis-matched equipment....

WATER Ulster gets [pounds sterling]30m to ease charge pain.(Brief Article)
December 16, 2005... The government has put together a [pounds sterling]30 million package of subsidies to help low-income groups when water charging is introduced in Northern Ireland. The measures have won the backing of consumer groups, smoothing the way for...

WATER Northumbrian profits up 50% on price rises.(Brief Article)
December 16, 2005... by Vic Wyman A 9.9 per cent water and sewerage price rise helped the Northumbrian Water Group (NWG) to boost its pre-tax interim profit by more than 50 per cent. Group profit before interest and tax (PBIT)was up by 16.5 per cent year...

Nuclearoptions.
December 16, 2005... Nigel Hawkins takes a look at the nuclear issues in the new energy review Anyone reading the 2003 Energy White Paper would be surprised that the government seems to have gone nuclear when three years ago it waxed so lyrical about...

PAN-UTILITY Utilities have Bacs to the wall on delays.(Bacstel)(Brief Article)
December 16, 2005... One-in-seven utilities faced disruption to their regular payments, including staff pay, in the New Year, according to automated payment organisation Bacs Payment Schemes. The problem has arisen because 14 per cent of utilities look like...

WATER South West Water moves into high gear.(Pennon Group PLC)(Brief Article)
December 16, 2005... by Janet Wood Pennon Group said it would raise gearing at its core South West Water by 11 per cent as it announced a 14.8 per cent increase in operating profit across the group to [pounds sterling]93.7 million. Regulatory asset value...

Plan of action.
December 16, 2005... Electricity utilities need to work together to come up with a long-term solution to address chronic skills shortages . Zoe Grainge reports In the debate about skills shortages, utilities often draw a blank on how to move forward from...

Cameron goes for green high ground.(David Cameron of Conservative Party (United Kingdom))
December 16, 2005... The new Conservative leader has hit the ground running on the policy front. Climate change is on the list David Cameron MP, the new leader of the Conservative Party, has lost no time in making it clear that under his direction, the party...

ENERGY RWE says pylons not to blame for outages.(Brief Article)
December 16, 2005... by Simon Jones German multi-utility giant RWE was last week resisting pressure to compensate customers for recent large-scale outages in parts of North Rhine-Westphalia. The firm set up a e5 million hardship fund within days of the...

What's the damage?
December 16, 2005... The right balance must be struck between the cost of maintaining assets and the risk of them failing . Ruth Allen and Martin Hall take a fresh approach Maximising service to customers through the effective operation and maintenance of...

GAS Snam Rete Gas privatisation delay denied.(Brief Article)
December 16, 2005... Italy's industry minister, Claudio Scajola, has denied reports that privatisation of pipeline operator Snam Rete Gas may be delayed until 2012. Under existing law, Eni must cut its stake in Snam Rete from its current 50.06 per cent to 20 per...

Home truths forthe chancellor.
December 16, 2005... The chancellor's announcement that all over-60s on pension credit will be given free central heating if they don't already have it is recognition by the government that the energy industry alone cannot reduce fuel poverty. Poverty in...

Sustained effort.
December 16, 2005... There is still a lot of work to be done before sustainability becomes a "business as usual" issue for water companies, says Maurice Hoban Is sustainability "business as usual" for the water industry? There is certainly a lot of discussion...

Climate crunch.(Brief Article)
December 16, 2005... In time-honoured fashion, the most recent round of international talks on climate change came and went and managed to hit the buffers and chalk up a resounding success, seemingly in the space of 24 hours. Actually it's called brinkmanship,...

WATER Consumers should share the profits.(Consumer Council for Water)(Brief Article)
December 16, 2005... The Consumer Council for Water (CCWater) has called for water companies to improve their level of service in line with recent big increases in their profits. "Consumers have been paying more this year, so they expect to get more," said...

Think local, act local.(water utilities)
December 16, 2005... The private sector is making a big impact on the global water sector, to the benefit of firms and consumers . Steve Hobson talks to David Lloyd Owen Growing numbers of funding vehicles allowing local people to invest securely in their...