Utility Week articles from March 2004

Utility Week archives from March 2004

TELECOMS; Mobile sector braces for spate of takeovers.(Brief Article)
March 5, 2004... byZoe Grainge Europe's telecoms sector is poised for brisk merger and acquisition activity with leading fixed-line operators snapping up small mobile operators as the industry begins to find new ways to drive growth, according to research...

TELECOMS; Belgacom gets go-ahead for part flotation.(Brief Article)
March 5, 2004... State-controlled Belgian telecoms operator Belgacom has been given the green light for a partial flotation that could value the company at e11 billion. The company has won the approval of the Belgian Banking, Finance and Insurance...

TELECOMS; UK will lead Europe in broadband access.(Brief Article)
March 5, 2004... by Zoe Grainge Britain will lead Europe in the broadband market by 2008 with 12.7 million connected households, beating historical market leaders Germany and France for the first time. New figures released by market researchers Screen...

ELECTRICITY; CEZ gets cold feet over Slovak bid.(Brief Article)
March 5, 2004... CEZ, the dominant Czech power company, has stalled on buying its Slovak counterpart because huge stranded costs at Slovenske Elektrarne (SE) were proving 'a big headache', David Svojitka, CEZ's chief financial officer, said last week. 'I want...

ELECTRICITY; Banks race to snap up struggling plant.(Brief Article)
March 5, 2004... Banking consortium CGEPower is racing against time to set up a clutch of deals to give it control of about 15 per cent of Britain's generation capacity. The group of some of Europe's biggest banks is bidding to gain control of about 12GW...

TELECOMS; Cesky slumps into loss as write-off bites.(Brief Article)
March 5, 2004... Dominant Czech Republic telecoms operator Cesky Telecom last week reported a e56 million net loss for 2003, compared with net profit of e133 million the year before, largely because of a major write-off for past investments into its network....

WATER; Six southern firms set up charity trust for the poor.(Brief Article)
March 5, 2004... Six water companies in southern England have launched a charitable fund to give financial help to their customers in need. The Eos Foundation has been formed by Portsmouth Water and is funded by donations from Portsmouth, Bournemouth and...

TELECOMS; Colt guns but shares shoot down.(Brief Article)
March 5, 2004... Pan-European corporate telecoms provider Colt Telecom released 2003 results showing underlying profits up 128 per cent on 2002, but a cautious outlook for the coming year hit shares hard. Colt chairman Barry Batemen said: '2004 is likely to...

ENERGY; Suppliers claim progress on mis-selling gripes.(Brief Article)
March 5, 2004... energy suppliers claimed last week that self-regulation on marketing was reaping benefits after complaints about direct sales fell to an all-time low. The latest figures compiled by Energywatch showed that complaints per thousand customers...

TELECOMS; BT has lion's share of directory calls.(British Telecommunications PLC)(Brief Article)
March 5, 2004... BT claimed it had the 'lion's share' of the deregulated directory enquiries market, shortly before raising the price of a call to its service. The company said its service handled 60 per cent of calls made from its own network. Its figures...

ELECTRICITY; Dutch to nationalise electricity grid.(Brief Article)
March 5, 2004... The Dutch government's latest Energy Bill is likely to include a proposal to nationalise the country's electricity grid. Economics minister Laurens Jan Brinkhorst has said he will respect the clear parliamentary majority for such a move...

ENERGY; Fuel poor need better energy advice.(Brief Article)
March 5, 2004... Fuel poverty campaigners have called for a single source of information to help guide vulnerable householders through the maze of energy efficiently advice and services currently on offer. That recommendation is highlighted in the second...

TELECOMS; Eircom returns to market with e300m float.(Brief Article)
March 5, 2004... Irish fixed-line telecoms operator Eircom has unveiled plans to return to the Dublin and London stock markets in the first half of this month with a e300 million flotation. In addition, Eircom said the offering would include a 'substantial...

GAS; Eni set to pick up e300m loan to boost output.(Brief Article)
March 5, 2004... Italian oil and gas giant Eni could get a e300 million loan from the the European Investment Bank (EIB) to boost the country's natural gas production in the Adriatic and Ionian seas. The planned investment would help Eni drill and work 85...

PAN-UTILITY; Five quit Eutilia after revenue dismay.
March 5, 2004... by Karma Ockenden Five of equipment-buying consortium Eutilia's eleven founder members have pulled out after its poor commercial performance and long-running in-fighting. National Grid Transco, Nuon, RWE, ScottishPower and United...

ENERGY; Fenosa profits lifted by Latin America.(Brief Article)
March 5, 2004... Union Fenosa, Spain's third-biggest power utility, has posted an 8 per cent increase in 2003 net profit to e372.8 million, helped by a strong Latin American business and gains from subsidiaries. Revenues rose 21 per cent to e447 million...

Tap water - it's the real thing.
March 5, 2004... Will it all end in tears? The great man muses thus after hearing about the bare-faced cheek of Coca-Cola, which is selling what is basically tap-water as bottled water, under the moniker Dasani. The drinks multi-national has admitted that...

GAS; Spain's Natural clinches Greek stake deal.(Brief Article)
March 5, 2004... Spain's biggest gas supplier Gas Natural has clinched 35 per cent of Greek counterpart Depa for e285 million. Barcelona-based Gas Natural presented an offer for Depa, which is being privatised by the Greek state, last September, becoming...

GAS; Supply boost as link grows.(Brief Article)
March 5, 2004... The security of UK energy supplies was set to receive a boost after plans were unveiled this week to upgrade the gas transmission facilities in Britain and Continental Europe on either side of the cross-channel pipeline. Interconnector...

GAS; MEPs and Brussels clash on security.(Brief Article)
March 5, 2004... MEPs are heading off a move by European Union ministers to agree without consultation legislation to guarantee the security of gas supplies in the event of a crisis in Europe. The industry committee has voted narrowly to block a bid by the...

GAS; German N Sea production bird blight.(Brief Article)
March 5, 2004... German gas producers have urged the government to abandon proposals to designate large swathes of Germany's North Sea sector as bird protection areas, warning that such a move could 'sterilise' significant offshore reserves. Gernot...

ELECTRICITY; Ministers detail aid for Scottish green plans.
March 5, 2004... by Roger Milne The government this week revealed more details of its plans to help renewable generators in outlying parts of Scotland, a move strongly criticised by regulator Ofgem (see box, page 7). At issue is concern that generators...

Will the grass ; be greener?
March 5, 2004... The renewable energy industry is preparing for unprecedented growth, since it will need an eight-fold increase in today's installed capacity to reach the government's 2010 target of 10 per cent of electricity supply from green sources. But can...

IP may quit US.(International Power)(Brief Article)
March 5, 2004... International Power (IP) has announced a [pounds sterling]404 million writedown against its power plants in Massachusetts and Texas. It has already mothballed one of its Texas plants and is now talking to its bankers over restructuring its...

eLECTRICITY; International Power's US sales rise but profits flop.(Brief Article)
March 5, 2004... Despite a 30 per cent rise in North American turnover at generation group International Power, a near total collapse of pre-tax profit across the Atlantic dragged group profit back more than a quarter. Weak wholesale prices in the US...

Keep it simple.
March 5, 2004... This week we carry an interview with Duncan Sedgwick (page 16), the chief executive of the recently created Energy Retail Association. The organisation is one of the three that now represent the various elements of the electricity industry in...

ENERGY; London launches clean power plan.
March 5, 2004... London mayor Ken Livingstone this week launched a green energy plan for the capital aimed at boosting energy efficiency and renewable energy projects. The plan sets targets for improving energy efficiency in London homes and commercial...

TELECOMS ; Markets bet on MMO2 falling to hostile bid.(Brief Article)
March 5, 2004... Analysts from leading investment banks have suggested it is only a matter of time before mobile operator MMO2 accepts a takeover offer from a rival. Of the aborted bid for the company by Dutch telecoms giant KPN, Merrill Lynch said in a...

Carbon allocation share-out.(emissions trading, natural gas consumption and renewable energy production)
March 5, 2004... The UK government has just published a sector-by-sector breakdown of provisional allocations of carbon dioxide emissions for the European Union Emissions Trading Scheme (ETS). The deadline for consultation on the proposals, the first published...

South Staffordshire Group.
March 5, 2004... by Zoe Grainge Two weeks ago, water and support services company South Staffordshire Group was forced into premature confirmation of demerger plans by intense media speculation. It is likely to spin off its regulated water business and...

TELECOMS; NTL poised for debt shake-up.(Brief Article)
March 5, 2004... Cable company NTL, which emerged from Chapter 11 bankruptcy proceedings last year, looks set to finalise its financial restructuring with a [pounds sterling]2.4 billion loan and a return to the high-yield bond market with a [pounds sterling]800...

electricity; N.(Brief Article)
March 5, 2004... orway's windfarms wait on grid upgrade by Gerard O'Dwyer Norway needs to expand the capacity of its national grid system if it is serious about becoming a major European producer of wind energy. According to a report from regulator...

ELECTRICITY; Statkraft told not to bid for Norsk Hydro plant.(Brief Article)
March 5, 2004... by Gerard O'Dwyer Norway's energy minister, Einar Steensnaes, has warned of 'possible government intervention' if Statkraft tries to buy Norsk Hydro's power stations. Steensnaes also confirmed the government's opposition to 'any new...

WATER; Fines looming for licence breaches.(Brief Article)
March 5, 2004... Water companies could be fined up to 10 per cent of their annual turnover if they fail to keep to conditions set down in their licences. Regulator Ofwat has issued a consultation in preparation for its new power to fine - granted by the...

Hewitt hangs fire over pay controls.
March 5, 2004... Those with longish memories may recall speculation that the government was going to take a tough stance on executive pay. Many people didn't subscribe to that piece of spin. Last week, trade and industry secretary Patricia Hewitt confirmed...

WATER; Ofwat access price formula savaged.
March 5, 2004... by Karma Ockenden The approach of water regulator Ofwat to access pricing was savaged last week at a seminar held by economic consultancy Nera. The Water Act has set down the principle to govern how much undertakers can charge for...

ENERGY; Switching set to decline in SME market.(Brief Article)
March 5, 2004... Energy switching levels in the small and medium-sized enterprise (SME) market are set to decline now that 70 per cent have changed their energy supplier, according to new research from market analyst Datamonitor. Datamonitor said that...

ELECTRICITY; Entergy in court battle over Saltend.(Brief Article)
March 5, 2004... Entergy Power Development Corporation is suing oil giant BP in a dispute over Saltend power station near Hull. Entergy is squaring up for a High Court battle over cash penalties imposed by BPunder conditions it placed on Entergy's sale of...

ELECTRICITY; Sludge combustion under threat from Brussels edict.(Brief Article)
March 5, 2004... Sludge burning in power stations is under threat from European waste legislation. ScottishPower is to launch a court challenge in May over the Scottish Environment Protection Agency's (SEPA) classification as 'waste' the fuel it burns in...

ELECTRICITY; Firms let off for RO gaffes.(Brief Article)
March 5, 2004... More than 30 companies that breached their licence requirements in the first year of the Renewables Obligation by not supplying information or payments in time will be let off by the regulator. In its first Renewables Obligation annual...

Sales pitch.
March 5, 2004... For an organisation representing a clutch of big names in the utility sector, the Energy Retail Association (ERA) has not splashed out on swanky offices. It currently occupies a suite of cramped rooms on the floor above the Association of...

WATER; Spain clean-up loan may help French.(Brief Article)
March 5, 2004... Wastewater projects lined up for European Investment Bank (EIB) loans in Spain's Basque province of Guipuzcoa should, the bank said, benefit the environmental performance of water supplies in France's Basque country. The EIB was planning...

WATER; Staffs split logic questioned.(Brief Article)
March 5, 2004... Investment bank Merrill Lynch has thrown cold water on South Staffordshire Group's plan to release shareholder value through demerging. The bank said: 'Taking the prospective two distinct companies, we struggle to get their aggregate value...

TELECOMS; Telefonica set to ring 10 per cent profit rise.(Brief Article)
March 5, 2004... Spanish telecoms major Telefonica expects revenues and profits to jump 7-10 per cent in 2004, boosted by its growing mobile and broadband internet franchises. Telefonica chairman Cesar Alierta said operating profit should rise 15-18 per...

World wide web.
March 5, 2004... It is not just this magazine that is ten years old in 2004. In the utility sector the water industry's research organisation has also reached its first decade. And, in an industry where criticism has often been meted out (on these pages...

Left ; in the dark.
March 5, 2004... On 10 February Ofgem decided its second case under the Competition Act 1998. Unfortunately, the decision in favour of United Utilities fails to explain the test it applied and gives little or no indication as to why the regulator reached the...

Manana, manana.
March 5, 2004... Union Fenosa has become Spain's perennial takeover target, with markets twittering for more than three years that the country's third-biggest power utility will be snapped up by a foreign rival. But despite the hype, observers don't think the...

ENERGY; Vattenfall profits surge 21 per cent.(Brief Article)
March 5, 2004... A stronger than anticipated performance from its German operations, in large part buoyed by rising electricity prices, contributed to a 21 per cent increase in profit at Swedish power group Vattenfall. The company reported a net profit of...

MULTI-UTILITY; United grows in telecoms with [pounds sterling]42m reseller deal.(Brief Article)
March 5, 2004... United Utilities-owned telecoms provider Your Communications has acquired corporate telecoms reseller Eurocall for [pounds sterling]42 million. In a move designed to gain access to customers in the small business market, loss-making Your...

ONE.(Energywatch)
March 5, 2004... interview minute Name Allan Asher Age 53 Job title Chief executive, Energywatch TIME IN CURRENT JOB Just under a year What's the best part of your job and why? Visiting Energywatch's national...

PAN-UTILITY; New rules set to tax utilities.(Brief Article)
March 12, 2004... Utility companies are set to be hit by a red tape mountain when new rules from the Treasury on intra-group transfer pricing start on 1 April, accountancy Ernst & Young has warned. Under the rules, utilities, along with other sectors, will...

ENERGY; Ministers move to clarify new appeals procedures.(Brief Article)
March 12, 2004... The government has decided to look again at its plans for a new regime for companies who want to appeal against decisions of the energy regulator, Ofgem. This move surfaced as peers completed their scrutiny of the Energy Bill, now waiting...

TELECOMS; NTL halves losses as broadband leads way.
March 12, 2004... by Zoe Grainge Cable operator NTLhas reduced its net loss for 2003 by 63 per cent to [pounds sterling]583.6 million, reflecting lower restructuring costs and increased revenues, but said that revenues would fall this year as a result of a...

TELECOMS; Telefonica eyes Latin America top spot.(Brief Article)
March 12, 2004... In a deal that would strengthen its position in Latin America's booming mobile telecoms market, Spain's Telefonica is considering buying Bell South's sprawling wireless network in the region for e4.8 billion. Bell South conceded that...

ELECTRICITY; DTI defends biomass plan.(Brief Article)
March 12, 2004... Plans for the development in Devon of the largest biomass power project of its kind in Europe, subsidised partly by public money, have come under parliamentary scrutiny. There was concern that the scheme could prove an expensive 'flop'...

ELECTRICITY; CEZ to sell off wires stakes.(Brief Article)
March 12, 2004... CEZ, the Czech electricity group, will sell the one-third stakes it owns in Prague's distribution company PRE and national grid company CEPS by the end of this month (March). The divestments are required by the Czech anti-monopoly office....

TELECOMS; Telekom off hook as it drops fees to rivals.(Keith Nuthall)(Brief Article)
March 12, 2004... by Keith Nuthall Deutsche Telekom has agreed to lower the fees it charges competitors to use its broadband local loop after pressure from the European Commission. The Commission had accused Deutsche Telekom of exploiting its dominant...

WATER; Parts of Scotland told bottled is better.(Brief Article)
March 12, 2004... Experts have advised people in parts of Scotland that drinking bottled water may be better for their health. According to reports in the Scottish press, scientists from Edinburgh University analysed data from the most recent drinking water...

TELECOMS; Eircom valued at e1.3bn in new float.(Brief Article)
March 12, 2004... Irish telecoms operator Eircom will this month return to the stock market in Dublin and London with a value of e1.26 billion. Shares in the fixed line giant are set to be priced between e1.48 and e1.75. The company's controlling consortium,...

gas; Sales surge gives Eni results boost.(Brief Article)
March 12, 2004... Italian oil and gas giant Eni has posted net profit up more than 20 per cent, buoyed partly by an increase in gas sales last year. The company reported net profit at e5.6 billion, up 21.6 per cent on 2002 figures. Revenues, at e51.5...

PAN-UTILITY; Polluter-pays set for roll-out.(Brief Article)
March 12, 2004... The polluter-pays principle is set to underlie all of Europe's green legislation after the European Parliament and Council finally agreed on the detail of the Environmental Liability Directive. The directive, set to be formally adopted by...

End of the mobile phone refuge.
March 12, 2004... So much for the nudge, nudge, wink, wink style of market information Disconnector's colleagues are on the receiving end of. Last month the rumour mills were alive with the sound of those claiming that BG Group's Frank Chapman was about to...

ENERGY; Spanish players clash on emissions.(Brief Article)
March 12, 2004... Spanish power company Union Fenosa has clashed with rival Iberdrola over implementation of Spain's proposed carbon dioxide emissions rights, allocated in the country's draft national plan for participation in the European Union emissions...

WATER; French diffuse pollution aid cleared by EC.(Brief Article)
March 12, 2004... A French state-aid package to help farmers reduce the pollution they cause to the water environment has been cleared by Brussels after a long-running row. The package, implemented between 1994 and 2000, was originally deemed unlawful by...

GAS; Slovakia orders Ruhrgas and GDF to slash fees.(Gaz de France)(Brief Article)
March 12, 2004... The Slovak government has forced Ruhrgas and Gaz de France (GDF), investors in Slovak gas company SPP, to accept a 25 per cent cut in advisory fees to e22 million. The government objected when Ruhrgas and GDF pushed through the consultancy fees...

WATER; Veolia bids for Gelsenwasser.(Brief Article)
March 12, 2004... French water giant Veolia has bid for a minority stake in German water supplier Gelsenwasser. Included in the terms of the bid is an offer to the municipal utilities of Bochum and Dortmund of stakes in various Veolia subsidiaries, and...

ENERGY; Germany fails again on emissions deal.(Brief Article)
March 12, 2004... by Simon Jones A second round of talks between Germany's economics and environment ministers has failed to agree a national allocation plan for emissions trading. Germany has to lodge its proposals with the European Commission by 31 March....

WATER; Ofwat wants to revamp rules on interim rises.(Brief Article)
March 12, 2004... Ofwat wants to alter the criteria for interim determination applications, so-called IdoKs. Included in a raft of licence alterations the regulator has proposed is a change in the IdoK 'materiality calculation', which would allow companies...

ELECTRICITY; If the price of price cuts is lights out.(Brief Article)
March 12, 2004... by Trevor Dooley BBC2's screening of its power cut catastrophe show If the Lights Go Out this week presents the electricity industry with one of the greatest lobbying opportunities it could hope for. In exploring the possibility of...

Southern Electric accused of mis-selling.(Brief Article)
March 12, 2004... Southern Electric has been accused of doorstep mis-selling by Energywatch. The company has, according to the gas and electricity watchdog, failed to curb the practices of its sales force, despite hundreds of complaints from consumers....

GAS; Gas network sell-off needs more scrutiny.(Brief Article)
March 12, 2004... by Roger Milne Energy regulator Ofgem this week decided that the complexities of the proposed sale of some of National Grid Transco's eight local gas distribution networks was such that two separate Regulatory Impact Assessments (RIAs)...

Is this the end of the line?
March 12, 2004... Did last month's Stone & Webster report for water regulator Ofwat sound the death-knell for water company mergers? Or is there still life in the idea of consolidation in the water industry in England and Wales leading to greater efficiency? ...

GAS; New gas rules surface at last.(Brief Article)
March 12, 2004... After more than two years of deliberations, the gas retail sector has been given less than one month to comment on the Ofgem-approved version of the industry's new governance regime, now due to come into force in July. The energy regulator...

Hot ; air.
March 12, 2004... Until recently, MMO2's City profile had been quite low. Public recognition is far higher. After all, as the sponsor of the English rugby team, its directors were probably more pleased than most Englishmen when Jonny Wilkinson slotted over that...

TELECOMS; MMO2 set to face second KPN offer.(Brief Article)
March 12, 2004... Mobile operator MMO2 was under City scrutiny this week as its shares rose on the back of a potential second takeover bid by Dutch operator KPN. MMO2's stock rose 0.7 per cent to 112p at the start of the week as KPN was again forced to deny...

WATER; Ofwat to prioritise maintenance spend.
March 12, 2004... by Karma Ockenden In stark contrast to Ofwat's position at the 1999 price review, regulator Philip Fletcher has said maintenance spending must take priority over environmental investment in 2005-10. Giving evidence to the Environmental...

Energy saving in the capital.
March 12, 2004... Energy saving in the capital The Greater London Authority has drawn up an ambitious plan to improve the energy efficiency of the capital's building stock. Much of the focus will be on housing. Domestic energy consumption accounts for...

Statkraft.
March 12, 2004... by Zoe Grainge Norwegian state-owned power company Statkraft is keen to expand. This month, the Norwegian parliament is due to publish a White Paper on the company's future, including the prospect of semi-privatisation. The...

eNERGY; OMV turns in best ever group results.(Brief Article)
March 12, 2004... A 21 per cent rise in volumes of gas traded by OMV, central Europe's leading energy group, helped it achieve its best ever yearly results, the Vienna-based company reported this week. The group's earnings before interest and tax for 2003,...

ELECTRICITY; ScotPower wins USplant approval.(Brief Article)
March 12, 2004... ScottishPower's US subsidiary PacifiCorp has won approval from the Utah state regulator to build a [pounds sterling]210 million 525MWgas-fired power station near the state capital Salt Lake City. The approval followed the company's latest...

Brown urged to green up his act.
March 12, 2004... Will the Chancellor surprise us? And no, we are not referring to speculation that Gordon Brown is poised to quit UK politics and take the top job in the International Monetary Fund. The Budget announcement is due next week so there is...

TELECOMS; Portugal Tele hurt by slide in fixed-line sales.(Brief Article)
March 12, 2004... Increased line rental fees and the roll-out of high-speed digital services did not make up for the fall in fixed-line traffic at Portugal Telecom last year, leaving the core operation nursing a 6 per cent slide in sales for 2003. Growth in...

WATER; Help for the poor may be reviewed.(Brief Article)
March 12, 2004... The government is considering changing the measures for helping vulnerable customers with their water bills. The announcement came in the government's response to the accusation from the Environment, Food and Rural Affairs Committee that...

ENERGY; Merger values take a dive as power leads.(Brief Article)
March 12, 2004... by Trevor Dooley energy sector merger activity in Europe collapsed last year, particularly in the gas industry, according to the latest annual analysis by consultancy PricewaterhouseCoopers (PwC). In the US, activity increased only...