Utility Week articles from January 2005

Utility Week archives from January 2005

Fifth amendments.
January 14, 2005... Energy. By the end of this year the sense that we in Britain are part of a single European energy market will start to take shape. The early light of this dawn came with the onset of Europe-wide emissions trading on 1 January, but it will cast...

WATER; Three blacklisted for high shortage risk.(Office of Water Services (UK government) )(Brief Article)
January 14, 2005... by Karma Ockenden Customers of Southern Water, Folkestone & Dover Water and Thames Water are at greater risk of having to suffer hosepipe bans in dry years than their suppliers had planned. Ofwat ranked the three southeast firms in the...

TELECOMS; Ofcom orders BT to slash fees for local loop access.(Office of Communications (United Kingdom))(Brief Article)
January 14, 2005... Communications regulator Ofcom has ordered BT to slash the amount it charges rivals for local lines by a much larger amount than originally proposed. In a surprisingly tough move, Ofcom has ordered BT to cut the cost of a connection to a...

TELECOMS; Industry mulls cable tie threat.(Brief Article)
January 14, 2005... Rival telecoms operators were pondering their responses to the threat to Ofcom's strategy of 'equivalence' in the industry from the potential merger of cable companies NTL and Telewest. If the two firms merged this year, as is widely...

GAS; Germany's FCO probes gas market abuses.(Federal Cartel Office )(Brief Article)
January 14, 2005... Germany's Federal Cartel Office (FCO) has started an investigation into possible market abuse by five German gas suppliers. The move follows a preliminary investigation into potential market abuse by gas companies. The FCO suspected the...

TELECOMS; Bidders line up for a slice of Cesky.(Brief Article)
January 14, 2005... Nine companies have expressed interest in buying the Czech Republic's 51.1 per cent stake in incumbent fixed-line operator Cesky Telecom, according to the deputy chairman of the government body in charge of the sale. 'Five telecoms firms...

ENVIRONMENT; EU faces bigger carbon cuts.
January 14, 2005... by Roger Milne Europe will have to start laying the groundwork for swingeing cuts in emissions of greenhouse gases, environment ministers from the European Union have said. At the ministerial meeting held just before Christmas the...

PAN-UTILITY; Boards slack about rising debt problems.(Brief Article)
January 14, 2005... Every utility and telecoms revenue collection manager questioned in a recent survey expected the number of people with payment problems to rise this year. Eighty-seven per cent said they expected the level of bad debt written off by their...

ELECTRICITY; EDF goes to court to clear way for Edison.(Electricite de France )(Brief Article)
January 14, 2005... by Simon Jones State-owned electricity company Electricite de France (EDF) was this week looking to the Italian courts to resolve outstanding issues around its takeover of power supplier Edison. Fellow Edison stakeholder Fiat said it...

ENERGY; EDFEnergy ups bills as it launches new brand.(Brief Article)
January 14, 2005... EDF Energy this week became the first energy supplier this year to increase its domestic tariffs. The move came close on the heels of the group's launch of a new national supply brand to operate alongside its regional brands. In its third...

WATER; Irish councils set for sewage clampdown.(Brief Article)
January 14, 2005... by Karma Ockenden Ireland's local authorities should prepare for a clampdown by the Office of Environmental Enforcement (OEE), the country's Environmental Protection Agency has warned, after it emerged that nearly 60 per cent of secondary...

environment; Engineers pan government's climate review.(Brief Article)
January 14, 2005... Leading engineers have slammed the credibility of the government's consultation in its review of the UK Climate Change Programme. Four of the UK's largest professional engineering bodies said they were 'disappointed' that the Department...

Eurelectric acts on workforce diversity.(Brief Article)
January 14, 2005... by Zoe Grainge European electricity industry union Eurelectric has announced plans to set up a 'toolkit' to promote equal opportunities and diversity in the industry's workforce. Eurelectric and its 'social partners', trade unions EPSU...

ENERGY; Brussels slates law delay.(Brief Article)
January 14, 2005... The European Commission has blamed member states' delays in translating its directives into national law for hindering the growth of competition in energy markets. However, productivity improvements in European Union utilities were 'excellent',...

Cosmic bread and bad smells.(Artisan Bread)(briefs)
January 14, 2005... Would you Adam and Eve it? The great man (Disconnector) refers to the news that a bakery is fighting plans for a phone mast near its premises because it claims the radio waves will'ruin' its 'cosmic bread'. The bakery, in Whitstable, Kent,...

Spreading its wings.(Gemserv)(company overview)(Company Profile)
January 14, 2005... When the Republic of Ireland's electricity retail market goes fully competitive for domestic customers next month, Nigel Bromley, chief executive of Gemserv, will be watching with more than academic interest. Gemserv was awarded the...

GAS; International Energy bags ScottishPower networks.(Brief Article)
January 14, 2005... Guernsey-based gas transporter International Energy has bought ScottishPower's gas metering and transportation assets for [pounds sterling]15.1 million in cash. Under the debt-financed deal, International Energy subsidiary The Gas...

ENERGY; Iberdrola claims it will not launch hostile bid for EDP.(Energias de Portugal )(Brief Article)
January 14, 2005... Iberdrola, Spain's second-biggest power utility, will not launch a hostile bid for Portugal's top electricity company Energias de Portugal (EDP), company sources have said. The comments came after Iberdrola raised its stake in EDP to 5.7...

EDF raises prices.(Public Notice)
January 14, 2005... Just at that time of year when hard-pressed, hard-up consumers are suffering the after-effects of excess Christmas spending and their credit cards and bank balances are suffering as a result, along came more bad news from French-owned EDF -...

ELECTRICITY; Industry slams Barseback closure plan.(Brief Article)
January 14, 2005... Sweden's leading industry organisations have united in their condemnation of the government's 'definitive decision' to decommission the nuclear Barseback Reactor 2 by 31 May. The decision on Barseback, which is operated by Vattenfall...

Get some perspective.
January 14, 2005... The New Year always provides an opportunity for a little introspection, the chance to ponder on what has happened in the past year and what might happen in the coming 12 months. This year, however, our own parochial dilemmas have been put into...

ELECTRICITY; Ofgem ups spend for Scots line upgrades.(Office of Gas and Electricity Markets)
January 14, 2005... by Roger Milne Ofgem has announced that transmission companies will be allowed to spend more on strengthening their networks in Scotland and the North of England ahead of the next price control, due in 2007. The initiative was designed...

Pennon.(Pennon Group's downsizing plans)
January 14, 2005... by Trevor Dooley Pennon Group, the owner of South West Water, has announced plans to cut 100 staff from its water business in a bid to make the efficiencies demanded by water regulator Ofwat in its price controls for 2005-10. The Devon...

ELECTRICITY; Nordic-Dutch interconnector to go ahead.(Brief Article)
January 14, 2005... Norwegian and Dutch grid companies Statnett and TenneT are set to proceed with the construction of the 600MW NorNed subsea power cable that will connect the grid systems of the two countries following approval of the e560 million project by...

WATER; Merger hope from new rules.(water merger guidelines)
January 14, 2005... by Karma Ockenden New water merger guidelines put out by the Competition Commission just before the New Year have opened the door to consolidation. Speculation has mounted that firms wanting to merge - particularly now the uncertainty...

ELECTRICITY; Thousands get storm payout.(Electric Utilities get compensation)(Brief Article)
January 14, 2005... Thousands of United Utilities' customers in central Carlisle hit by flooding in last weekend's storm were eligible for a [pounds sterling]25 payment from the power firm under new compensation rules after they were left without power for more...

ELECTRICITY; United probe prompts connections changes.(Brief Article)
January 14, 2005... by Trevor Dooley Energy regulator Ofgem has said it has 'serious regulatory concerns' about competition in connections to power distribution networks after an investigation into United Utilities' practices. As a result, the watchdog has...

PAN-UTILITY; Liberalisation in Central Europe requires better IT.(Information Technology)(Brief Article)
January 14, 2005... Better ITis essential for Central European utility liberalisation, according to a survey by market analyst the Economist Intelligence Unit (EIU). The Oracle-sponsored survey found that driving cost efficiencies was key for the utilities...

TELECOMS; PO phone service challenge to BT.(Post Office planning for residential telecoms services)(Brief Article)
January 14, 2005... The Post Office this week launched a [pounds sterling]15 million move to challenge BTin residential telecoms services. It claimed it had a lead over other small operators through its recognisable brand. The Post Office is aiming for one...

ELECTRICITY; Dash for gas shows signs of replay.(Eon UK and RWE Npower plans for greater gas productivity)(Brief Article)
January 14, 2005... TEXT: Two of the UK's biggest generators have announced plans for significant new gas-fired generation capacity. Eon UK has applied to convert its 2.4GW Grain power station in Kent into what would be the UK's biggest combined cycle gas...

Ever increasing circles.(employee skills training)(Energy & Utility Skills)
January 14, 2005... Utilities, led by the gas sector, are combating impending staff shortages in a variety of resourceful ways. Creating an increasingly diverse workforce to meet both current and future industry needs is a key driver for Energy & Utility Skills...

People on the move ... People on the move ...(appointments)
January 14, 2005... Dipesh J Shah will become the new non-executive chairman of Northern Ireland energy company Viridian when Philip Rogerson retires in April. Shah joined the board as a non-executive director in November 2003. He is the chief executive of the...

Brussels coming under pressure.(energy prices)
January 14, 2005... Westminster was back in business this week with few signs of seasonal goodwill. The aftermath of the tsunami in Asia may have crossed the political divides, but Labour's leadership faultlines and the electioneering of the opposition parties is...

New calling.(German energy market)
January 14, 2005... This spring, the German energy market is set to enter a new phase. After years of criticism from new entrant energy companies and the European Commission, the German parliament is set to pass an energy law that for the first time will allow...

ELECTRICITY; TXUcreditors inch towards payback.(compensation to Drax power station)(Brief Article)
January 14, 2005... Two major creditors of bankrupt power group TXUEurope came nearer to receiving compensation for revenue lost when the US-owned supply business collapsed in 2002. The consortium of banks that own Drax power station has proposed an...

ELECTRICITY; Enel poised for talks on French generator Snet.(Brief Article)
January 14, 2005... Italian utility Enel was rumoured to be poised to enter talks with state-owned Electricite de France (EDF) about buying a stake in power generator Snet. The move comes after fellow French utility Gaz de France (GDF) was said to have...

ENVIRONMENT; Court thwarts Scot sludge-burn plan.(Scotland Environment Protection Agency)(Brief Article)
January 14, 2005... ScottishPower and Scottish Water were this week considering the implication of a court ruling that effectively outlaws the burning of sewage pellets at the power company's Longannet plant. The Scottish Environment Protection Agency (SEPA)...

ELECTRICITY; Users cheer on grid charges.
January 14, 2005... by Trevor Dooley Industrial users were celebrating a victory this week after National Grid Transco was forced by the energy regulator to scrap plans for a steep increase in users' transmission charges. National Grid wanted to increase...

Thames Water top at charity funds total.(Brief Article)
January 14, 2005... Staff at Thames Water helped to raise [pounds sterling]150,000 for local and national charities in 2004. Volunteers from across the company took part in a variety of fundraising activities during the year, collecting more than ever before....

ELECTRICITY; Australians drive into UK green generation.(Brief Article)
January 14, 2005... by Trevor Dooley United Utilities has sold its renewable energy operations to an Australian joint venture for [pounds sterling]63 million on the same day the venture signed a long-term deal with supply giant Centrica for about 300GWh a...

ELECTRICITY; Vattenfall's coal plant profit to go into wind.(Brief Article)
January 14, 2005... by Trevor Dooley The Swedish government has ordered state-owned power company Vattenfall to invest profits from its German coal power operations into Swedish renewable energy projects. The surprise move was a bid by Sweden to catch up...

MULTI-UTILITY; TXU arm sells German stake to Veolia.(TXU Stadtwerke)(Brief Article)
January 14, 2005... TXU Stadtwerke has agreed to sell its 74.9 per cent stake in the municipal energy and water company supplying the German city of Braunschweig to multi-utility giant Veolia Environment for E370 million. The remaining shareholding in...

ONE.(interview Travers Clarke-Walker )(Interview)
January 14, 2005... minute interview Name Travers Clarke-Walker Age 34 Company EDF Energy Job title Sales and marketing director, EDF Energy, Customers Branch, Retail Division career history In the 1980s,...

MULTI-UTILITY; ASM Brescia set to merge with BAS.(Bergamo Ambiente e Servizi )(Brief Article)
January 21, 2005... The board of Italian local authority utility supplier ASM Brescia has approved plans to merge with multi-utility Bergamo Ambiente e Servizi (BAS). The deal, which values BAS at E93 million, was approved by the BAS board before Christmas....

ELECTRICITY; British Energy faces hard road to recovery.(Brief Article)
January 21, 2005... TEXT: by Trevor Dooley British Energy chief executive Mike Alexander this week criticised its previous management and warned of a tough time ahead in the bid to recover from near demise. It has only recently concluded a lengthy and...

TELECOMS; Accounting change will warp BT profit.(Brief Article)
January 21, 2005... The incoming finance director of BT said the new international accounting rules starting this year will distort the company's profits. Analysts thought it likely that BT's important pension deficit could be affected. Hanif Lalani is set to...

PAN-UTILITY; English speakers flummox foreigners.(Brief Article)
January 21, 2005... UK utilities are losing out on overseas deals because they have poor language and communication skills. Eighty per cent of UKexporters surveyed by the British Chamber of Commerce (BCC)felt reticent about conducting business in a foreign...

WATER; UK gets last warning on sewage breaches.(Brief Article)
January 21, 2005... by Karma Ockenden The European Commission has issued its last warning to the UK about non-compliance with urban sewage legislation before it brings charges in the European Court of Justice. Sewage treatment standards in 14 UK cities...

ELECTRICITY; Government panic plant sale 'idiocy'.(Brief Article)
January 21, 2005... British Energy's government-enforced fire-sale of Canadian nuclear power plant Bruce Power in 2002, as the generator slid near to collapse, has been slammed as 'idiocy'. Bruce has since reported rising profits with the promise of further...

Eligible batches.(water supply licensing)
January 21, 2005... At the end of October last year, after discussions in water industry workgroups, regulator Ofwat issued a consultation paper on the eligibility and licensing proposals for water supply licensing introduced by the Water Act 2003. The...

ELECTRICITY; Vattenfall to move on Danish power firm.(Brief Article)
January 21, 2005... by Zoe Grainge and Gerard O'Dwyer Swedish energy giant Vattenfall has bid for 67 per cent of Danish utility Elsam, valuing the latter at e3.4 billion. There was no comment on the bid from fellow Danish utility Dong, which before Christmas...

Experience wanted.(customer satisfaction)
January 21, 2005... Organisations that have focused on laying pipes and delivering a clean, quality product could be forgiven for being surprised to learn that they now have to be thought trustworthy and caring to retain customer loyalty. Yorkshire Water was...

WATER; Bill payment code heads list of licence changes.(Ofwat)(Brief Article)
January 21, 2005... Ofwat has proposed introducing a 'code of practice' for domestic customer bill payments into water company licences. The code would replace clauses on disconnection (given this practice is no longer permitted) and guide companies in...

WATER; Two face fines after ignoring Court rulings.(Brief Article)
January 21, 2005... by Karma Ockenden The prospect of fines loomed closer for France and Ireland last week after the European Commission pushed ahead with legal action against the two for ignoring European Court of Justice rulings on green legislation. ...

ENVIRONMENT; Carbon trading in big trouble.
January 21, 2005... by Roger Milne Top consultants have called for radical changes in the way the European Union's carbon trading scheme is run after claims that it favours major emitters such as power generators. According to senior staff from ERM,...

TELECOMS; Eircom beaten in broadband deal tenders.(Brief Article)
January 21, 2005... Dominant Irish telecoms operator Eircom has failed to win a significant government broadband contract worth e20 million. The company was beaten by a number of smaller rivals, who will use fixed, wireless and satellite technologies to...

ENERGY; Union Fenosa reinvests in renewables.(Energias Especiales)(Brief Article)
January 21, 2005... Union Fenosa's chief executive, Honorato Lopez Isla, has said that the company wants to buy back 30 per cent of the 80 per cent of its renewables venture that it sold to Italy's Enel. Union Fenosa sold 80 per cent of Energias Especiales to...

Storage solutions.
January 21, 2005... The move towards distributed generation creates a pressing need for more energy storage solutions . John Baker reports. The rapid development of distributed generation, including renewables, presents many new challenges for the UK. One of...

ELECTRICITY; Atom finance under fire as state aid.(Brief Article)
January 21, 2005... The European Commission has confirmed it is considering launching a full-scale investigation into claims that the financing for a new nuclear power station in Finland has breached state-aid rules. The project under a cloud is the Olkiluoto...

ENERGY; Fortum buys Eon's Finland division.(E.ON Finland Oyj)(Brief Article)
January 21, 2005... Finnish energy utility Fortum has made an offer of e390 million to Eon for the German company's shares in Eon Finland. The purchase price depends on Eon Finland's final 2004 results. Fortum is exercising a 'call' option, established in...

ENERGY; Gas Natural on for merger, says report.(Gas Natural SDG S.A.)(Brief Article)
January 21, 2005... Spain's gas grid operator, Gas Natural, may seek a merger with electricity compatriots Endesa or Iberdrola in the second half of the year, a leading bank has said. In a report, Dresdner Bank added to recent speculation about a potential...

GAS; Gasunie sales increase on higher exports.(Brief Article)
January 21, 2005... Dutch gas trading company and gas transporter Gasunie increased sales almost 12 per cent to 86 billion cubic meters (bcm) last year. The improvement was mainly due to higher exports, although domestic sales also rose for the first time since...

ENERGY; UKtops green prospects table as prices harden.(Brief Article)
January 21, 2005... The UK has topped a global league table of national prospects for renewable energy. The UK moved ahead of Spain in the latest collection of indices of countries' attractiveness for renewable energy investment published last week by Ernst &...

GAS; Transco looks to sweat its holder assets.(Brief Article)
January 21, 2005... National Grid Transco has appointed a specialist consultancy to sharpen up its asset management policy for its remaining gas holders. The Ewan Group will provide this service. Holders once played a crucial role in daily storage for...

We deserve truth about bills.
January 21, 2005... Sir: the Freedom of Information Act, which came into force at the beginning of January, will hopefully tell consumers how accurate their energy bills are. For years, consumers have not had access to basic information about meter accuracy, but...

ELECTRICITY; Domestic power Bill gets frosty reception.(Renewable Energy Bill)(Brief Article)
January 21, 2005... by Roger Milne The government has given the cold shoulder to a Private Member's Bill designed to help domestic-scale generation. When the measures were given a second reading in the House of Lords last week a government minister...

TELECOMS; MMO2 rejigs structure for dividend.(Brief Article)
January 21, 2005... Mobile operator MMO2 is to revamp its corporate structure to enable it to issue a dividend to shareholders. The company said it would also reduce the number of shareholders with small stakes in the company, delist in the US and change the name...

WATER; Cable on warpath over Mogden pong.(Vincent Cable)(Mogden Sewage Treatment Works)(Brief Article)
January 21, 2005... The problem of sewage works smells was given a parliamentary airing this week when Vincent Cable MP complained that Thames Water's Mogden sewage works was blighting southwest London. Cable, the Liberal Democrat member for Twickenham, said...

MMO2.(company overview)(Company Profile)
January 21, 2005... by Trevor Dooley In a rapidly saturating market, mobile telecoms operator MMO2 has surprised analysts with impressive growth figures in recent months. The company turned in revenues up 23 per cent at the halfway stage of 2004/05 at...

WATER; Ulster staff set for strike ballot.(Brief Article)
January 21, 2005... Unions representing Northern Ireland Water Service workers are to ballot their members on industrial action over the looming shake-up at the public sector supplier. The four unions involved - Nipsa, TGWU, GMB and Amicus - have warned that...

ENERGY; Npower in High Court battle with marketer.(Brief Article)
January 21, 2005... by Roger Pearson One of the UK's leading gas and electricity suppliers, Npower, has launched a High Court damages claim against a marketing agent over an alleged attempt to bribe an Npower manager. Npower, Britain's third-largest...

ELECTRICITY; Nuclear build programme gets backing from public.(Brief Article)
January 21, 2005... Public opinion has swung in favour of a nuclear power station building programme, according to the findings of a recent poll. The survey by pollster MORI for the nuclear power industry revealed that 35 per cent of respondents backed a...

TELECOMS; CAT rescinds Ofcom moan.(Competition Appeals Tribunal)(Brief Article)
January 21, 2005... Communications regulator Ofcom has been cleared of any criticism by the Competition Appeals Tribunal (CAT) over its conduct during an ongoing case involving BT and Wanadoo. In papers released last week, the CAT had reported that in an in...

ELECTRICITY; as Germany is number one in the sun.(Brief Article)
January 21, 2005... Germany has remained the top country in Europe for solar power, and last year it installed more solar power plants than any other country in the world. Solar industry body UVS released figures for the solar market in 2004, which said that...

The big chill.(Ratings of Merger and Acquisition (M&A) activity of 2002 in the Utiltiy Sector)
January 21, 2005... After a period of high tension, pressure has eased on the credit ratings of Europe's utilities . Peter Kernan explains why. In contrast to the heady Merger and Acquisition (M&A) activity of 2002, the past two years have been times of...

ENERGY; Regulator calls for halt on green subsidy.(Brief Article)
January 21, 2005... The Republic of Ireland electricity regulator has angered the renewable energy sector by calling for an end to financial support for wind power. In a letter to Ireland's energy minister, electricity watchdog Tom Reeves said there was no...

WATER; Details emerge of 2004 price review probe.(Brief Article)
January 21, 2005... Water regulator Ofwat has published details of what will be covered in its probe of the 2004 price review process. The review will scrutinise whether the process used was suitable and properly applied by Ofwat. It will also examine how...

ENERGY; Emission trade lifted by cash futures deal.(Brief Article)
January 21, 2005... A European Union carbon trading milestone was passed this week with the first forward contract settled in cash. The deal was expected to create better opportunities for new entrants. The cash settlement ended the convention of physical...

WATER; South Staffs customers slam absentee owner.(WaterVoice Central)(South Staffordshire Waterworks Co.)(Brief Article)
January 21, 2005... South Staffordshire customers have far from welcomed the Walsall-based water company's new owner, the First Islamic Investment Bank. Regional watchdog WaterVoice Central slammed the 'absentee landlord' ownership structure as 'opaque and...

TELECOMS; UK set for spectrum bonanza.
January 21, 2005... by Zoe Grainge Mobile telecoms base station providers such as National Grid Transco stand to benefit as more radio spectrum is freed up for civilian use since the 2000 auction of third generation (3G) licences. At the same time, the...

TELECOMS; Top mobile safety adviser slams comms regulator.(National Radiological Protection Board)(Ofcom)(Brief Article)
January 21, 2005... The government's top mobile telecoms safety adviser has criticised communications regulator Ofcom for not providing adequate information on the siting and surveying of mobile telecoms network masts. Sir William Stewart said Ofcom had been...

GAS; Imports to quell price rises, say producers.
January 21, 2005... TEXT: by Roger Milne Long-term UK gas prices are set to fall as new import streams begin reaching the UK, parliament has been told by offshore producers. That was the stance taken by the UK Offshore Operators Association (UKOAO) in its...

After the money ran out.(power industry forecasts)
January 21, 2005... During the latter part of 2002, independent power producers were reeling from the collapse in wholesale power prices, which had reached their lowest levels since the privatisation of the power sector in 1990. In a move that sent shockwaves...

A chance to be heard.(Energy & Utility Skills)
January 21, 2005... Without dismissing the value of a trained utilities workforce, benchmarked against agreed industry standards and benefiting from forward thinking government/education initiatives, these things are always much easier to say than to do. A...