Utility Week articles from February 2005

Utility Week archives from February 2005

WATER; Thames strikes back against pressure slur.(Brief Article)
February 4, 2005... Thames Water has defended its plans to cut leakage and pipe bursts by lowering water pressure in parts of London, after a mauling from the London Assembly. The assembly accused Thames of failing to assess how many (mostly high-rise)...

ENERGY; Austria raises grid fees as Allianz cracks.(E-Control)(Brief Article)
February 4, 2005... Austrian energy regulator E-Control has ordered incumbent Verbund and the provincial suppliers of Carinthia, Burgenland and Salzburg to cut electricity grid fees by between 9 and 21 per cent. E-Control president Walter Boltz said the cuts,...

TELECOMS; BT wins major contract with US drugs firm.(British Telecommunications PLC)(Bristol-Myers Squibb Co.)(Brief Article)
February 4, 2005... BT has won a major communications contract in the US, marking a large-scale return to America. The firm has signed a managed services agreement with pharmaceutical company Bristol-Myers Squibb. Analysts said the deal was worth [pounds...

ELECTRICITY; Green energy producers cry foul over rates change.(Brief Article)
February 4, 2005... The renewables sector has complained that green energy targets will be undermined by new business rates, which are set to increase some scheme's bills by up to 700 per cent. The development of wind power could be inhibited by about 33 per...

TELECOMS; C&W warns of tough markets.(Cable & Wireless)(Brief Article)
February 4, 2005... Corporate telecoms provider Cable & Wireless (C&W) last week warned its shareholders that conditions for its UK business remained tough, while revenues from its residential Caribbean business had suffered from increased competition. In a...

WATER; Cornish poison probe finds no link to illness.(Brief Article)
February 4, 2005... A government probe into the Camelford water contamination incident has ordered further scrutiny, despite finding no conclusive link between the incident and the delayed or persistent ill health of locals. A report out last week from the...

WATER; Brussels changes tack to get more public buy-in.(Brief Article)
February 4, 2005... The European Commission is in the process of a wholesale rethink of its water policy strategy in a bid to get greater public buy-in for its rules and laws. According to Gaetane Suzenet, European policy adviser to UK water industry trade...

ENERGY; Czech Bill will boost renewables.(Brief Article)
February 4, 2005... Czech environment minister Libor Ambrozek has unveiled a new Bill to boost the country's use of renewable energy, claiming it is one of the most 'modern' in Europe. Upon joining the European Union, the Czech Republic committed to more than...

GAS; Union warns of safety risk over network sales.(Brief Article)
February 4, 2005... One of Britain's biggest unions has voiced safety fears over the proposed sale of half the UK's eight gas distribution networks. The warning came from the GMB, many of whose members will be affected by the change of ownership. The sale...

PAN-UTILITY; Firms keep marketing data in-house.(Brief Article)
February 4, 2005... Utilities contract out fewer of their direct marketing campaigns to experts than any other sector. A survey by data management specialist CDMS revealed only 31 per cent of utilities outsourced the management of their direct marketing...

ENERGY; Dong in last-ditch bid for control of Elsam.(Brief Article)
February 4, 2005... by Gerard O'Dwyer and Zoe Grainge Danish oil and gas utility Dong has raised the stakes in its battle for control of compatriot Elsam. The company was said last week to have offered a better deal to Elsam shareholders as a last-ditch...

WATER; Yorkshire tops league for efficiency ratings.(Brief Article)
February 4, 2005... by Karma Ockenden Yorkshire Water is at the forefront of an ever more efficient water industry, Ofwat's annual efficiency league has revealed. The Bradford-based company scored an industry first in achieving top rank 'A' status in all...

ENVIRONMENT; Carbon trades raise asset problems.(Brief Article)
February 4, 2005... Accountants have warned that the advent of the European Union's Emissions Trading Scheme could disrupt companies' annual financial reporting. That was the view of the European Federation of Accountants, which is concerned that...

TELECOMS; Ofcom ready to wield law to open network.
February 4, 2005... by Zoe Grainge Communications regulator Stephen Carter has signalled his willingness to use legislation to open the market for BT's rivals if the industry cannot achieve a level playing field by itself. Speaking at last week's...

ENERGY; Eon stands firm on hold of Finnish stake.(Brief Article)
February 4, 2005... by Trevor Dooley Finnish power group Fortum and German energy giant Eon were this week headed for a courtroom clash over the control of Eon's operations in Finland. Fortum has claimed it had an option under an earlier deal to buy...

gas; O'Brien: no upstream role for Ofgem.
February 4, 2005... by Roger Milne and Trevor Dooley Energy minister Mike O'Brien this week rejected calls for changes to the regulatory regime for the upstream gas market. His cold-shoulder for action on this front came on Tuesday when he appeared before the...

GAS; GDF jockeys for lead sell-off slot.(Gas giant Gaz de France )(Brief Article)
February 4, 2005... Gas giant Gaz de France (GDF) has cranked up the campaign for its part-privatisation as the French government considers its latest sell-off programme. Jean-Francois Cirelli, chief executive of GDF and a former adviser to the prime...

ENERGY; Grid charges cut for German heavy users.(Brief Article)
February 4, 2005... by Simon Jones The German government has said it will add a clause to the country's draft energy law cutting grid fees for heavy industry. The surprise move came after a meeting between economics minister Wolfgang Clement and the heads of...

WATER; Welsh Water to slash bills by [pounds sterling]18 a year.
February 4, 2005... by Karma Ockenden Welsh Water's not-for-profit ownership structure looked set to continue to deliver to customers over the next five years when the supplier announced last week it would slash bills further. Welsh Water pledged an...

WATER; Northumbrian gives handout to Hexham.(Brief Article)
February 4, 2005... Northumbrian Water has committed [pounds sterling]225,000 to the community of Hexham to help it get back on its feet after last month's devastating River Tyne flooding, which resulted in a loss of water supplies in the area. Northumbrian...

PAN UTILITY; MPs call for action to cut household carbon.(Brief Article)
February 4, 2005... by Roger Milne Parliament has urged ministers to set a rigid timetable for requiring new houses to achieve zero carbon emissions. MPs warned that, without such action, current housing plans will put the government's climate change strategy...

ELECTRICITY; Italy may end ban on new nuclear plant.(Brief Article)
February 4, 2005... Italian prime minister Silvio Berlusconi has indicated his government may end the ban on nuclear power generation in Italy. Speaking at the opening of a new interconnector between Italy and Switzerland, Berlusconi said 'whether or not to...

The chain gang.(utility industry)
February 4, 2005... Is the utility industry ready to manage the massive round of capital investment needed over the coming years? Utility companies have become adept at managing costs, outsourcing and caring for customers, but the coming rounds of investment will...

It's Your turn.
February 4, 2005... Last year was a year most alternative telecoms operators would like to forget. Huge overcapacity in all-but-valueless networks, fierce price-cutting for services and tough market conditions allowed no room for mistakes in the running of a small...

TELECOMS; MMO2 launches 3G on solid results.(Brief Article)
February 4, 2005... Mobile telecoms operator MMO2 reported solid top line figures for the third quarter of last year, and this week launched third generation (3G) services to consumers. The company added 360,000 customers in the UK in the last quarter, taking...

Emerging hope.(water utilities)
February 4, 2005... The passage into law of the Enterprise Act 2002 has stimulated a number of comments about the prospect of an increase in merger and acquisition activity in the water industry in England and Wales. With prices of the shares of those companies...

TELECOMS; EC calls for faster access to local lines.(Brief Article)
February 4, 2005... The European Commission wants to see an end to potentially discriminatory delays by incumbent telecoms operators in the time they take to provide local broadband lines to competitors. In a recommendation to member states last week, the...

Severn Trent.
February 4, 2005... by Trevor Dooley Birmingham-based environmental services group Severn Trent Group last week announced 350 job casualties from the efficiencies demand in the regulator's price controls for the next five years. The company has also had a...

WATER; Northern Ireland workers vote to strike over reforms.(Brief Article)
February 4, 2005... Water Service workers in Northern Ireland have given the thumbs-up to industrial action in protest against government reforms, which they fear will lead to up to 700 job cuts. As Utility Week went to press, three of the four unions that...

ELECTRICITY; Norway looks at wind farm proposals.(Norwegian Water Resources and Energy Directorate )(Brief Article)
February 4, 2005... Norway's energy regulator, NVE, has received notification and planning proposals from 20 different Norwegian power groups interested in building large-scale onshore and offshore windfarms in Norway by 2010. According to the regulator, the...

Pushing the right buttons.
February 4, 2005... Measuring customer service, you sometimes suspect, is one of those things that many organisations do when compelled, but then quietly file away somewhere. Is customer service really a concrete measurement that management relies on, like...

WATER; Watchdog says fine cash should go to customers.(WaterVoice)(Brief Article)
February 4, 2005... WaterVoice has criticised the detail of Water Act proposals to fine water companies for service breach or failure. While it welcomed the incentive to improve performance the fines would provide, the customer champion said the Treasury,...

Team game.
February 4, 2005... Over the past 20 years, we have all witnessed incredible changes in the shape and dynamics of the utility market as a whole in the UK. We have seen radical shifts in asset ownership and business provision models and the market has experienced...

ELECTRICITY ; Endesa plans E1.9bn for renewables plant.(Brief Article)
February 4, 2005... by Ivan Castano Spain's largest electricity generator, Endesa, said it will invest e1.9 billion on 2,900MW of renewable generation in Spain and Europe by 2009. The company said it would invest e1.4 billion in Spain and Portugal and...

WATER; Spain delays water tax until 2009.(Brief Article)
February 4, 2005... Spain has put its plan to introduce sliding-scale water levies on hold for four years. The government said last week that it would not introduce the tariffs, designed to encourage efficient water use, until 2009. Under the plan,...

MULTI-UTILITY; Suez revenues edge up on back of energy gains.(Suez Lyonnaise des Eaux S.A.)(Brief Article)
February 4, 2005... Rising sales from energy offset a downturn in water revenues for French multi-utility Suez in 2004. The group has reported that revenues for the year to 31 December 2004 were up 2.8 per cent to e40.7 billion. Revenues from the energy...

electricity; TXUcreditors seal [pounds sterling]2bn payout deal.(Brief Article)
February 4, 2005... Creditors of bankrupt energy supply giant TXU Europe last week agreed a settlement that gave them access to a payout from the TXU estate totalling [pounds sterling]2 billion without going to the courts. At a meeting last Friday, creditors...

ENERGY; Cashflow recovery makes mergers likely, says bank.(Brief Article)
February 4, 2005... European utilities are packing a war chest of e80 billion, and cashflow recovery has put merger and acquisition activity back on the agenda, according to the latest trends report from investment bank UBS. Merger activity, UBS forecast, was...

TELECOMS; Vodafone dials up customers to 150 million.(Brief Article)
February 4, 2005... The world's largest mobile company, Vodafone, has boosted its global subscriber base to 150 million after adding 5.42 million customers in its third quarter of 2004, beating analyst expectations. But trends in Average Revenue Per User...

ELECTRICITY; Wave and tide power crests on [pounds sterling]42m injection.(Brief Article)
February 4, 2005... A swell rose from wave and tidal power players this week after the Department of Trade and Industry unveiled a [pounds sterling]42 million, three-year scheme to 'kick-start' large demonstration wave and tidal projects. The renewables...

TELECOMS; Report endorses mobile mast planning model.(Brief Article)
February 4, 2005... A review of the planning and siting of mobile telecoms masts has vindicated the industry's planning model. The review - undertaken by Deloitte and commissioned by the Mobile Operators Association (MOA), studied how well operators followed...

TELECOMS; BT sales slide as fixed market falls.(British Telecommunications PLC)(Brief Article)
February 11, 2005... BT's third quarter 2004 revenues will be hit by a cut in call termination rates, and underlying profit will fall because of pressure on the company's traditional fixed-line voice market, according to investment bank Merrill Lynch. The...

TELECOMS; BT offers access as calls grow for split.(British Telecommunications PLC)(Access Services division )
February 11, 2005... by Zoe Grainge BT last week proposed to establish a ring-fenced division to speed up equality of access to its network. The move by the former incumbent sparked renewed calls for BT to be broken up, and speculation that the company would...

WATER; Agency spells out detail on river basin planning.(United Kingdom. Environment Agency)(Brief Article)
February 11, 2005... The Environment Agency has published proposals on how the Water Framework Directive should be implemented. In Water for Life and Livelihoods, published last week, the green watchdog set out its vision for river basin planning, the process...

ELECTRICITY; Supplier launches smart meter for small firms.(BizzEnergy)(smart metering package )(Brief Article)
February 11, 2005... Small business online power supplier BizzEnergy has launched a mobile telecoms network-based smart metering package that it has claimed could cut bills by 25 per cent. The technology was supplied by Blackburn-based Bglobal Metering....

GAS; Watchdogs demand Brussels action.(Energywatch)(Ofgem)(Brief Article)
February 11, 2005... UK energy watchdogs went to the European Parliament last week to put the case for a European Commission probe into the working of the European gas market, in the light of the high prices on the UK wholesale market over the past 18 months. ...

ELECTRICITY; Czechs deny rumours about CEZstake sale.(CEZ A.S.)(Czech Republic )(Brief Article)
February 11, 2005... by Martha Grace The Czech Republic has quashed speculation that it is poised to sell a significant stake in energy firm CEZ, taking it nearer to full privatisation. The denial was seen as further damaging the company's plans for expansion....

TELECOMS; BT speeds up broadband.(British Telecommunications PLC)(Brief Article)
February 11, 2005... BT last week moved to deliver faster and cheaper broadband services to wholesale and retail customers. It unveiled planned trials of new speeds of broadband amid a range of price cuts for existing products. The announcements came as part of...

Hard sell.(Privatization)(Brief Article)
February 11, 2005... Shortly before his resignation as France's finance minister, the ultra-ambitious Nicolas Sarkozy announced a swathe of privatisation initiatives. Part of the reason was the French Treasury's compelling need to tackle its bloated public sector...

eNVIRONMENT; Carbon trade undercut by allowances glut.
February 11, 2005... by Roger Milne The UK government has been urged to use its presidency of the European Union later this year to push for a tougher regime for allocating carbon allowances under the European Emissions Trading Scheme (ETS). The call came...

MULTI-UTILITY; Multi-utility model is risky business.(Edison International S.p.A.)(Norsk Hydro ASA)(Brief Article)
February 11, 2005... The multi-utility business model was called into question by leading utilities last week as a risky strategy for companies. Speaking at the Economist conference, executives from Italian energy firm Edison and Norwegian gas major Norsk Hydro...

ENERGY; Banks threaten EDFwith sale of 37% of Edison.(Electricite de France)(Banca Intesa S.p.A.)(Capitalia S.p.A.)(Sanpaolo IMI S.p.A.)(Brief Article)
February 11, 2005... Three Italian banks have threatened to call on an obligation on Electricite de France (EDF) to buy their stakes in energy firm Edison, thereby increasing the French giant's stake in Edison to a level where it would be forced to make a full...

ENERGY; Vattenfall aims to woo Elsam shareholders.(Vattenfall AB)(Brief Article)
February 11, 2005... Swedish energy giant Vattenfall was this week working to persuade 'floating' shareholders in Danish power firm Elsam to sell their shares to it rather than to Danish rival Dong. If Vattenfall succeeds it would up its stake in Elsam from 35.3 to...

GAS; Enagas' profits soar beyond e157m forecast.(Empresa Nacional del Gas S.A.)(Brief Article)
February 11, 2005... Spanish gas transporter Enagas last week posted an 11 per cent jump in 2004 profit to e158 million, beating analysts' average earnings forecast of e157 million. Madrid-based Enagas attributed the hike to a 7 per cent jump in regulated...

MULTI-UTILITY; Enel shares hit record on profit rise.(ENEL S.p.A.)(Brief Article)
February 11, 2005... Italy's largest utility, Enel, said last week its 2004 underlying profit grew 12 per cent on the previous year to e11 billion, and forecast further growth in 2005. The news boosted the company's share price to a three-year high of e7.43....

TELECOMS; BT could face [pounds sterling]1m payment to Energis.(British Telecommunications PLC)(Energis PLC)(Brief Article)
February 11, 2005... BT could be forced to pay around [pounds sterling]1 million to corporate communications provider Energis after the UK giant allegedly overcharged its rival for access to its wholesale line rental service. In a draft resolution,...

gas; Italy watchdog calls for gas market reform.(Autorita Energia)(Brief Article)
February 11, 2005... by Simon Jones Italy's energy regulator, Autorita Energia, has recommended that oil and gas giant Eni reduce its holding in network operator Snam Rete Gas from 50 per cent to 5 per cent. The regulator last week outlined to the Italian...

ENERGY; Competition crackdown for energy.(Brief Article)
February 11, 2005... European Union competition commissioner Neelie Kroes last week pledged to target the energy sector in a bid to root out anti-competitive behaviour in a number of key industries. Kroes said she wished to deploy newly acquired powers to take...

Energy theft underestimated.
February 11, 2005... Sir: I was surprised by the headline stating that '[pounds sterling]60m a year' was lost through electricity theft in 2003 (Utility Week, 28 January) because the January 2005 Ofgem Theft Report Summary (line 10) indicates energy theft in...

ENERGY; Iberdrola set to profit from energy review.(Brief Article)
February 11, 2005... Spanish energy giant Iberdrola could see its profits boosted by a major energy regulation review this June, according to investment bank Morgan Stanley. The bank upgraded Iberdrola's stock rating but kept rivals Endesa and Union Fenosa -...

PAN-UTILITY; Merger could create one giant utility union.
February 11, 2005... Bonding: two unions have started exploratory talks about a merger

Dong.(Dansk Olie og Naturgas A/S)
February 11, 2005... by Trevor Dooley State-controlled Danish energy company Dong has expanded a long way from its gas exploration, production and transportation roots, reflecting its strategy of having a presence at every point in the value chain. It is...

ELECTRICITY; Capacity margin to fall below 20%.(Brief Article)
February 11, 2005... The UK's total power generation capacity margin above winter peak demand will be 21.1 per cent for the year to the end May, falling to 19.9 per cent the following year, according to the latest Seven Year Statement update from National Grid...

WATER; Ulster workers to strike over job cuts threat.(Brief Article)
February 11, 2005... Northern Ireland Water Service workers were due to strike on Wednesday after Utility Week went to press over government reforms that they fear will lead to 700 job cuts. The four unions representing the workforce met last week after their...

PAN-UTILITY; Merger could create one giant utility union.(Brief Article)
February 11, 2005... by Roger Milne The utility sector faces the possible emergence of a single 'super union' with particularly strong representation in energy and water businesses. Three of Britain's biggest trade unions are considering a possible...

GAS; Norway and UK agree North Sea deal.(Brief Article)
February 11, 2005... Detailed negotiations on the UK/Norway Framework Treaty have been completed, paving the way for unprecedented co-operation on North Sea projects between the two states. Last week energy minister Mike O'Brien met with his Norwegian...

GAS; Greater data flow could deliver [pounds sterling]235m in benefits.(Brief Article)
February 11, 2005... Energy regulator Ofgem is consulting on measures to increase the flow of information on offshore gas production, which could deliver benefits to the market worth [pounds sterling]235 million a year. The regulator has asked for three options...

Go with the flow.
February 11, 2005... In stark contrast to the storm of criticism that followed the 1999 price review, the mood of the water industry and its financiers - if not its customers - now that the 2004 review is officially concluded is far more contented. Of course, it's...

WaterAid mission to get facts on Tanzania.(Brief Article)
February 11, 2005... by Zoe Grainge Eleven UK water industry workers have embarked on a fact-finding trip to Tanzania in support of charity WaterAid. The group set off last week to see how money raised in the UK helps to provide safe water and sanitation...

Sexton leaves Thames after three decades.(John Sexton)(Thames Water Utilities Ltd.)(Brief Article)
February 11, 2005... The managing director of Thames Water Utilities, John Sexton, is set to retire after 29 years with the company. Sexton, 56, led the company's 2005-10 price review discussions with water regulator Ofwat. Bill Alexander, chief executive...

International law firm gets utility partner.(Richard Temple )(appointments)(Brief Article)
February 11, 2005... International law firm Hogan & Hartson has appointed Richard Temple as energy and natural resources partner. Temple has a long history with the water sector and made his name more than ten years ago by publishing a 'toolkit' for the World...

pan-utility; Energy sector lags in marketing investment.
February 11, 2005... by Trevor Dooley Energy companies were among the backmarkers in a survey of investment in customer marketing and communications while the telecoms sector took pole position in a recent survey of the UK's top marketers. The findings by...

PAN-UTILITY; Study identifies pinchpoints.(regeneration agency)
February 11, 2005... by Roger Milne A major study into the problems utilities cause major regeneration schemes and ways the position could be improved has been carried out for the government's regeneration agency, English Partnerships (EP). The board of...

WATER; South West MPs fail to win help for bills.(Members of Parliament)(Brief Article)
February 11, 2005... by Karma Ockenden The government has snubbed South West MPs' calls for help for constituents who will struggle with high water bills from 1 April. MPs led by Matthew Taylor, member for Truro and St Austell, last week called on the...

ENVIRONMENT; Chief scientist backs carbon capture plans.(Sir David King)
February 11, 2005... by Roger Milne Serious consideration should be given to capturing carbon from power station emissions and sequestrating it in depleting or depleted offshore oil and gas fields, according to Sir David King, the government's chief scientist....

Brussels probes Slovenia green aid.(Slovenia's Preferential Dispatching system)(Brief Article)
February 11, 2005... The European Commission has opened a formal investigation under state aid rules into a renewable energy support scheme in Slovenia. The so-called preferential dispatching system places an obligation on network operators to buy power from...

ELECTRICITY; Network damage drives up Finnish power prices.(finland)(Brief Article)
February 11, 2005... Damage to the grid system between Sweden and Finland has caused power companies to reactivate reserve coal-fired capacity and increase prices in Finland. According to a report by Finnish grid operator Fingrid, heavy rain in Norway since...

Love letters.(postal services)(electronic communications )
February 11, 2005... It is safe to say we have seen something of a communications revolution during the past few years that is having a deep impact on the way we interact with each other. While in the 20th century a high reliance was placed on postal communication...

ELECTRICITY ; Generation shortage could mean outages.(Union for the Co-ordination of Transmission of Electricity)(Brief Article)
February 11, 2005... A report by the association for European electricity grids said Europe would need 3GW of new capacity by 2015 and that supply shortages would become a serious problem. The Union for the Co-ordination of Transmission of Electricity (UCTE)...

WATER; Ongoing work lifts Veolia sales by 3.5%.(Veolia Environnement S.A.)(Brief Article)
February 11, 2005... Although disposals dented Veolia Environnement's consolidated revenue for 2004, the French company reported an upturn in revenue from continuing operations last week. Consolidated revenue fell from e28.6 billion at 31 December 2003 to...

Delight at the end ; of the tunnel.(Customer loyalty)
February 11, 2005... Received wisdom tells us that in the face of a fast-moving environment with increasingly fickle customers who enjoy endless choice, businesses have to live and breathe the maxim 'the customer is king'. We recognise there are obvious and...

Pump up the volume.(Water meters)
February 11, 2005... About a quarter of domestic properties currently have a water meter. By 2030, this figure is projected to reach between 35 per cent and 90 per cent, depending on which company serves the property. The pattern of metering in the UK is driven...

GAS; Farmers voice fears over new pipeline plan.(Brief Article)
February 11, 2005... Gas pipelines operator Transco last week held a meeting with farmers and landowners who are concerned about plans for a 128km gas pipeline between Milford Haven and Aberdulais. The multi-million pound project is crucial to UK security of...

WATER; Home Service told off for 'bill style' adverts.(Brief Article)
February 11, 2005... WaterVoice has reprimanded former South Staffs subsidiary Home Service, the company that sells plumbing and drainage insurance through water companies, for confusing marketing. After meetings, Home Service agreed to phase out its...