Utility Week articles from March 2005

Utility Week archives from March 2005

ENERGY; ERA launches better billing initiative.(Energy Retail Association)(Brief Article)
March 4, 2005... Energy suppliers have signalled plans to improve their billing performance. The move could lead to the introduction of a self-regulatory code of practice. The Energy Retail Association (ERA) is behind work to improve the billing practice...

PAN-UTILITY; Utilities fare worst in brand spend payback.(Brief Article)
March 4, 2005... by Karma Ockenden Utilities have derived less benefit from investment in their brands than any other sector, according to the findings of a study by marketing specialist Ion Group. Ion's research found the payback utilities got from...

Cut carbon, and the sniping.(Letter to the Editor)
March 4, 2005... Sir: I refer to Final Demand (Utility Week, 18 February) and challenge your support for merging the Energy Saving Trust (EST) and Carbon Trust. Environmental issues are more in need of explanation and action now than ever before. This...

ENERGY; Industry dents Centrica's year.
March 4, 2005... by Trevor Dooley Price surges hit the industrial and wholesale business of energy supply giant Centrica, taking the shine off its full-year results. The results headlined an 18 per cent rise in net profit before exceptionals to [pounds...

TELECOMS; Colt braced for tough year after core earnings drop.(COLT Telecom Group PLC)(Brief Article)
March 4, 2005... Corporate telecoms operator Colt Telecom reported little let up in its struggles after a tough 2004, and forecast further difficult market conditions for 2005. Earnings before interest, tax, depreciation and amortisation were [pounds...

On the defensive.(water companies management)
March 4, 2005... So, all the water companies are happy, then. Certainly, none have chosen to go to the Competition Commission to challenge Ofwat's final determinations for the recent price review, which takes effect from April. But does this mean they all agree...

GAS; 'Jury out' on competition success.(Brief Article)
March 4, 2005... Large industrial gas customers and potential new entrants to the wholesale gas market have slammed the poor state of competition in Europe. Delegates at last week's Flame gas conference in Amsterdam complained about the dominance of a...

ENERGY; Ofgem unveils credit cover upgrade.(Brief Article)
March 4, 2005... Energy regulator Ofgem has set tighter best-practice credit cover standards for network operators. The new standards will influence how much bad debt a company will be allowed to pass through. The review of credit cover arrangements came in...

ENERGY; Czech renewables law gets green light.(Brief Article)
March 4, 2005... by Katka Krosnar The Czech parliament has approved a much-delayed law designed to boost the use of renewable energy by guaranteeing prices for producers. In its European Union accession treaty, the Czech Republic committed to meet 8...

GAS; Industry urges action on new appeals rules.(Brief Article)
March 4, 2005... by Roger Milne The gas industry has urged government action to ensure shippers, suppliers and customers can challenge key decisions about the sale of four of National Grid Transco's gas distribution network businesses. Industry fears...

GAS; Dong steps up Norwegian offshore plans.(Dansk Olie og Naturgas A/S)(Brief Article)
March 4, 2005... Danish state-owned oil and gas company Dong has signalled further activity in the Norway Sea, another sign of the company's intention to become a significant player on the Norwegian Continental Shelf. The company has confirmed that it has...

ENERGY; EDF sets deadline for Italenergia final bids.(Electricite de France)(Brief Article)
March 4, 2005... by Zoe Grainge French state-owned utility Electricite de France (EDF) has confirmed that 100 per cent of Italenergia is up for sale, and that it expects to receive final bids for the Italian holding company by the end of March. ...

ENERGY; EDP in bid to reverse Brussels' merger veto.(Energias de Portugal)(Brief Article)
March 4, 2005... by Martha Grace In a last-minute move, Portugal's dominant electricity company, Energias de Portugal (EDP),is to appeal against a European Commission veto last year of a deal in which the firm was to take a controlling stake the country's...

eNVIRONMENT; Landmark carbon trade transaction.(Certified Emissions Reductions)(Brief Article)
March 4, 2005... The largest transaction yet in Certified Emissions Reductions (CERs) has been completed on the secondary market, part of the European Union's Emission Trading Scheme (ETS). UK energy giant Centrica's trading subsidiary Accord Energy is to...

ENERGY; Eon-Fortum tug of war heaves.(Eon Finland)(Brief Article)
March 4, 2005... The tug of war with Fortum for the Finnish business of German energy giant Eon continued this week. Fortum claims it has the right to force the German company to sell its stake in Eon Finland. But Eon has responded by invoking an agreement with...

GAS; Gasunie slams delay of Dutch energy reforms.(Brief Article)
March 4, 2005... An executive of Dutch gas incumbent Gasunie has criticised the Dutch government's indecision in reforming the energy sector. He also urged the European Commission to take into account the high taxes Gasunie will pay in its upcoming energy...

GAS; France unlikely to sell off more than 30% of GDF.(Gaz de France)(Brief Article)
March 4, 2005... When Gaz de France is part-privatised this year, the French government is expected to sell 'well below' 30 per cent of the company, it has emerged. That was the prediction of GDF's chairman, Jean-Francois Cirelli, when he revealed the...

eLECTRICITY; Power firms at odds over new plant prospect.(Brief Article)
March 4, 2005... International Power insisted last week that recent increases in wholesale electricity prices would not persuade it to build a new gas-fired power plant in the UK. International's chief executive, Philip Cox, told journalists last week: 'We...

See the delight.
March 4, 2005... In the latest residential electricity survey by JD Power and Associates, during which 2,646 people were interviewed, 14 per cent said they were disappointed with the service they received from their electricity supplier. The remaining...

WATER; Merrill dismisses Kelda link with Northumbrian.(Merrill Lynch and Company Inc.)(Northumbrian Water Group PLC)(Brief Article)
March 4, 2005... Ongoing speculation that Kelda has predatory intentions towards neighbouring Northumbrian Water has been deemed 'improbable at this point in time' by Merrill Lynch. This contributed to the investment bank reiterating its 'sell' recommendation...

TELECOMS; Ofcom must deliver 'regulatory clarity'.(Office of Communications )
March 4, 2005... by Zoe Grainge Communications regulator Ofcom this week came under pressure from BT's rivals to deliver a clear model for sustainable competition for the telecoms industry in the next few months. Presenting evidence to the House of...

WATER; Belfast to take [pounds sterling]88m slice of investment up to 2008.(Brief Article)
March 4, 2005... A three-year, [pounds sterling]88 million capital programme for Belfast was unveiled by Northern Ireland's Department for Regional Development last week. The jewel in the programme's crown is the modernisation of the city's sewer network....

WATER; Judges condemn 'soft' water laws.(Brief Article)
March 4, 2005... The law must be strengthened to make the many agreements and treaties that underpin international water and sanitation targets worth the paper they are written on, top lawmakers from around the world concluded last week. The chief justices...

ELECTRICITY ; Nordic grids set to build interconnector.(Brief Article)
March 4, 2005... Finnish and Swedish electricity transmission system operators Fingrid and Svenska Kraftnat have gained regulatory approval to build a subsea interconnector between the two countries with a 600MW-800MW capacity. It is estimated that the...

Private ; in parts.(privatisation)
March 4, 2005... Water privatisation in the UK is widely regarded as a success, but much of Europe has yet to follow . By Nigel Hawkins. It is curious that the 1989 privatisation of the English and Welsh water companies, which was so controversial at the...

multi-utility; RWEpromises to simplify access to gas networks.(Brief Article)
March 4, 2005... Harry Roels, the chief executive of multi-utility giant RWE, has announced plans to simplify access to the company's 7,000km gas transport network. His comments came days after the European Commission unveiled plans to investigate the...

WATER; Ongoing capex demand is piling on the pressure.(Brief Article)
March 4, 2005... The regulatory regime will become increasingly strained after 2010 because there is no end in sight to investment needs, Thames Water's asset management director Rob Harrison said at the CIWEMconference. The [pounds sterling]1.5 billion...

Retail therapy.(Energy Retail Association)
March 4, 2005... Domestic energy retailers may be under the lash for rising fuel bills but the sector is putting its house in order when it comes to billing, customer transfers and looking after vulnerable customers. That's the clear message from Duncan...

ENERGY; Skills shortage threatens security.(Brief Article)
March 4, 2005... The most immediate problem facing Britain's energy industry is not security of supply but the skills shortage, ScottishPower chief executive Ian Russell warned this week. Russell claimed that current wholesale electricity prices were not...

GAS; Italy outlines terms for Snam sale.(Snam Rete Gas)(Brief Article)
March 4, 2005... The Italian government has approved a decree setting out the terms for the privatisation of gas network operator Snam Rete Gas, further forcing Snam's owner, Eni, to cut its stake. The Economics Ministry will retain a golden share in Snam,...

ELECTRICITY; Sweden to get tough on energy legislation.(Brief Article)
March 4, 2005... by Gerard O'Dwyer The Swedish government is planning tougher energy legislation to increase reliability and raise compensation levels to consumers. The Swedish energy agency, Energimyndigheten, will review changes to the law and present...

TELECOMS; Telecom Italia growth reports beat forecasts.(Brief Article)
March 4, 2005... Telecom Italia bucked an industry trend and grew its fixed-line business in 2004 with revenues up 2.1 per cent on 2003 to e17.6 billion, helped by a doubling of its broadband lines to 4.43 million. The group's annual results, which included...

TELECOMS; Telefonica profits soar on fixed success.(Brief Article)
March 4, 2005... Spanish telecoms giant Telefonica reported net profit for 2004 up 30.6 per cent to e2.8 billion, but restructuring charges meant the figure was shy of analysts' expectations. Telefonica took charges for its Spanish and UK businesses and its...

WATER; Tide turning in favour of Thames sewer tunnel.(Brief Article)
March 4, 2005... A giant tunnel under the Thames to intercept sewage overflows at times of heavy rain would be the best way of protecting the river from pollution, the Thames Tideway Strategic Study Group has concluded. The group, formed in 2000 to assess...

ELECTRICITY; Wires charge review raises bills by 25%.(Brief Article)
March 4, 2005... Industrial users were left licking their wounds this week when Ofgem approved a new charging regime for using the power transmission network. Users claimed using the network would raise the fees they paid by 25 per cent. The transmission...

ELECTRICITY; United sells wind division.(United Utilities)(Novera Macquarie Renewable Energy, )(Brief Article)
March 4, 2005... United Utilities has sold its windfarm development portfolio to Eon UK for an undisclosed cash sum. The portfolio's potential capacity is 600MW, including shares in two offshore wind joint ventures: the 108MW recently consented Scarweather...

GAS; VNG strikes deal with Italy's Hera.(Verbundnetz Gas AG)(Brief Article)
March 4, 2005... German gas importer Verbundnetz Gas (VNG) and Italian utility Hera have extended their supply agreement to 2007 and set up a European gas marketing joint venture. Hera said it expected the deal to more than double its annual gas imports to...

WATER; Exceptional gains shore up Agbar.(Aguas de Barcelona )(Brief Article)
March 4, 2005... Exceptional gains at Spain's biggest water company, Aguas de Barcelona (Agbar),boosted its 2004 net profit 1.9 per cent on the previous year to e197.9 million. These included a e78.8 million revaluation of provisions for its Argentinian...

WATER; Work to go abroad as efficiencies bite.
March 4, 2005... by Karma Ockenden Volumes of work could be shipped overseas over the next five years as the water industry and its contractors struggle to meet the demands of the 2005-10 price review settlement. Ian Kirkcaldy, a director at contractor...

TELECOMS ; BT banks on access success.
March 11, 2005... by Zoe Grainge BT chief executive Ben Verwaayen has staked his reputation on the success of the company's proposed access service division, which would be charged with offering BT's rivals open access to the company's network. He told...

TELECOMS; BT state aid claim faces Brussels with taxing task.(Brief Article)
March 11, 2005... The European Commission said last week that wholesale telecoms products developed after liberalisation could 'serve as benchmarks' to assess how BT should be taxed. The Commission's comments came in recently published reports of its...

WATER; Severn's staff happy in their work.(Brief Article)
March 11, 2005... Severn Trent Water is one of the top ten big companies to work for, according to The Sunday Times. The only utility to make it on to the list (in ninth position), Severn was praised for its flexible working practices, good pay and benefits...

TELECOMS; Bulldog growls over time BT takes to repair faults.(Brief Article)
March 11, 2005... Cable & Wireless-owned broadband provider Bulldog has lodged a formal complaint with the telecoms adjudicator over the time BT takes to repair faulty broadband lines it uses. Bulldog said the matter had been disputed for over a year, but BT...

ELECTRICITY; CEZ revenues soar on high domestic use.(Brief Article)
March 11, 2005... Central Europe's largest power company, the Czech Republic's CEZ, reported a 14 per cent rise in revenues in 2004 to e2.10 billion, beating financial forecasts. Analysts said the figures were helped by higher electricity prices and...

Read all about it.(new Operating and Financial Review Regulations)
March 11, 2005... It is time for big companies to get serious about accountability. The new Operating and Financial Review Regulations, applicable to financial years starting on or after 1 April this year, will force 1,300 or so quoted companies to report on the...

ENVIRONMENT; Brussels shifts on emissions.
March 11, 2005... by Trevor Dooley The European Commission this week gave its first hint of compromise in its battle with the UK over the country's request to increase its allocation of carbon dioxide emissions, but victory for the UK could lead to a...

ENERGY; Single market not there yet, says Centrica.(Brief Article)
March 11, 2005... Energy giant Centrica last week complained that 'distorted' liberalisation of the European Union's energy market was denying customers in the UK and abroad the full benefits of competition. Centrica chief executive Sir Roy Gardner told a...

TELECOMS; France Telecom cleared for Cesky bid.(Brief Article)
March 11, 2005... France Telecom has been allowed to join a consortium bidding for the Czech government's 51.1 per cent stake in dominant fixed-line telecoms operator Cesky Telecom. The French company will team up with a consortium of private equity...

ELECTRICITY; Danes in smart meter rollout.(Brief Article)
March 11, 2005... Danish network operator Nesa plans to install automatic meter reading for all its customers in the next five years. Speaking at a conference in Vienna, Austria, organised by software giant SAP, Nesa's Willy Bergstrom said the economics of...

TELECOMS; Deutsche Telekom takes the credit.(Brief Article)
March 11, 2005... German telecoms giant Deutsche Telekom last week reported results for 2004 that beat analysts' expectations. Revenue growth was boosted by the performance of its mobile and broadband divisions. Credit ratings agency Standard & Poor's...

ENERGY; Vattenfall/Dong legal row.(Brief Article)
March 11, 2005... Swedish energy giant Vattenfall's threat to challenge the legality of Dong's bid for Danish utility Elsam could delay a formal merger of Elsam and Dong for 'several years', Elsam's chief executive Peter Hostgaard-Jensen said. Danish power...

ELECTRICITY; Dutch to rethink closure of last nuclear reactor.(Brief Article)
March 11, 2005... The Dutch government is set to review the planned closure of the country's only nuclear plant. The Borssele plant is due to close in 2013, but the government said any shutdown could trigger compensation claims of up to e1 billion. The...

WATER; Framework authorities found lacking by greens.(Brief Article)
March 11, 2005... The Environment Agency and its counterpart 'competent authorities' in Scotland and Northern Ireland received mediocre ratings from green groups in a survey of how implementation of the Water Framework Directive was progressing in Europe. ...

energy; Court finds for EDF in Italy.(Electricite de France's)(Brief Article)
March 11, 2005... State-owned power giant Electricite de France's (EDF's) position in Italy was strengthened last week when the European Court of Justice attacked the Italian law preventing the company from gaining control over Italian power companies. The...

ENVIRONMENT; Italy finally submits its carbon plan.(Brief Article)
March 11, 2005... Italy has finally submitted its proposals for allocating emissions allowances under the European Union Emission Trading Scheme, 11 months after the original deadline. According to the National Allocation Plan (NAP) now under consideration...

GAS; Ofgem to rule soon on row over gas flow information.(Brief Article)
March 11, 2005... The endgame in the campaign by Energywatch for a radical change in the amount of information available about gas flows has been reached, with Ofgem to pronounce on the relevant Network Code modification soon. Upstream energy producers are...

PAN-UTILITY; Targeted marketing offers rich pickings.(Brief Article)
March 11, 2005... by Stephanie Joanna Utilities could increase their market shares by focusing on the 25 per cent of customers who are 'highly conscious' of service, according to a report by market analyst Datamonitor. Datamonitor's study segmented...

Fixed; lines.
March 11, 2005... Recently, top politicians have made high-profile interventions in the affairs of both Deutsche Telekom and France Telecom. Three years ago, these European giants were in the financial equivalent of intensive care as their combined debts...

WATER; Welsh jobbers fined for sewer building error.(AWG's Morrison Construction)(David Lewis Civil Engineering)
March 11, 2005... Two Welsh Water contractors were fined last week for polluting a river while undertaking work on a new sewer system. AWG's Morrison Construction and David Lewis Civil Engineering were each fined [pounds sterling]4,000 with costs of [pounds...

Flood engineers drying up.
March 11, 2005... by Zoe Grainge The Environment Agency, the Institution of Civil Engineers (ICE) and the Department for Environment, Food and Rural Affairs have produced an action plan targeting skills shortages in flood risk management. Action on...

The information age.
March 11, 2005... It is unusual for the introduction of new legislation in the UK to generate the very high level of media interest that marked the launch of the Freedom of Information Act two months ago, five years after its enactment by Parliament. But then,...

GAS; Chemical sector cries foul over price spikes.(Brief Article)
March 11, 2005... by Roger Milne Last week's high gas prices prompted chemical companies to make an anguished call for action by the government and the energy regulator. If not, they warned, sites may have to close. Last week the price of gas on the...

PAN-UTILITY; Consolidation is firms' top IT priority in 2005.(Brief Article)
March 11, 2005... Consolidating and securing their ITsystems will be European utilities' top technology priorities over the next year, according to a study from Forrester Research. Nearly two-thirds of firms said they planned to prioritise efforts to...

ELECTRICITY; Ulster customers' bill hikes pegged.(Brief Article)
March 11, 2005... Northern Ireland's customers have had their bills reduced by a government subsidy on energy efficiency measures unveiled by the government this week. Enterprise minister Barry Gardiner announced on Tuesday an [pounds sterling]8.8 million...

Problem bills.(Letter to the Editor)
March 11, 2005... Sir: I refer to the profile of the ERA's Duncan Sedgwick (Utility Week, 4 March). Energywatch has been impressed by the efforts of the Electricity Retail Association (ERA) to solve the customer transfer morass, but I regret to say that our...

WATER; Government to plug gaps in sea monitoring.(Brief Article)
March 11, 2005... The government is to overhaul the way it monitors ocean environments after the first integrated health check revealed knowledge gaps and threats to aspects of marine life. While certain human impacts, such as nutrient load and...

BT.(market share)
March 11, 2005... by Trevor Dooley Telecoms operator BT has had to duck and dive for more than a decade to hold on to its market share under increasing pressure from rivals and the regulator's efforts to increase competition. With the aim of keeping...

ENVIRONMENT; Nord Pool starts carbon exchange.(Brief Article)
March 11, 2005... Nordic power exchange Nord Pool has formally inaugurated its new carbon trading scheme, putting in place Europe's first exchange to trade and clear European Union Allowances (EUAs) in carbon. The exchange followed months of discussion with...

ELECTRICITY; UK signs up for new nuclear research.(Brief Article)
March 11, 2005... The government has signed an international agreement to research and develop advanced nuclear reactors, which could offer a carbon-free energy option after 2030. The UK is joining Canada, France, Japan and the US in a collaborative...

PAN-UTILITY; Top salaries soar but staff pay stands still.
March 11, 2005... by Karma Ockenden Growth in boardroom pay since privatisation has far outstripped increases for the bulk of utility workers, a survey compiled by industrial relations research specialist Incomes Data Services (IDS)has shown. There are...

Scot Water HR chief leaves.(Immigration and Nationality Directorate of the Home Office)(Brief Article)
March 11, 2005... Scottish Water's human resources director has been appointed director of human resources at the Immigration and Nationality Directorate of the Home Office. Paul Pagliari was part of the management team that oversaw the creation of Scottish...

eNERGY; Brussels: no need for immediate unbundling.(Brief Article)
March 11, 2005... by Roger Milne The European Commission has made it clear it has no immediate plans to require Europe's integrated energy giants to unbundle their transmission and retail activities. However, the prospect has not been ruled out for the...

TELECOMS; Broadband sales soar 153% at PT.(Brief Article)
March 11, 2005... Incumbent telecoms operator Portugal Telecom posted full-year figures in line with analysts' expectations, but with retail broadband revenues soaring 153 per cent on 2003 to e100 million. The increase in broadband sales helped offset a 0.9...

ENERGY; End to 'trading nightmare'.(Brief Article)
March 11, 2005... European energy trading prospects are back to a bullishness not seen for nearly five years, market analyst Prospex Research reported last week. Prospex said trading volumes had risen in almost all major European power and gas markets in...

ELECTRICITY; REE blames gas supply failures for power cuts.(Red Electrica de Espana)(Brief Article)
March 11, 2005... Spanish electricity network company Red Electrica de Espana (REE) was forced to cut power supplies to a number of industrial users for nearly 24 hours last week, as a row broke out over gas supply to Spain's combined cycle turbine electricity...

ELECTRICITY; Scots greens win wires tariff cap.(renewable energy generators in northern Scotland will have cap on costs)(Brief Article)
March 11, 2005... Customers and renewable generators in the Scottish Islands and possibly in the extreme north of Scotland are to have their bills capped so they are not punished for being in some of the country's most remote areas. Under the pan-Britain...

Mind the gap.(utilities' planning strategies)
March 11, 2005... To be successful, utilities' high-level strategies must be tied more closely to their operational action plans . By Mike Turner and Steve Blackwell Since privatisation, utilities have undergone a period of unprecedented change as they have...

ENERGY; Ministers moot trade scheme for efficiency.(Energy Efficiency Commitment system)(Brief Article)
March 11, 2005... by Roger Milne The government is considering ending the requirement on energy suppliers to spend on energy saving measures. Instead, it could be replaced by a trading scheme in energy efficiency certificates. The possibility that the...

ENERGY; Barseback will close in May, say Swedes.(Barseback nuclear reactors)(Brief Article)
March 11, 2005... by Gerard O'Dwyer Sweden's energy minister Mona Sahlin has warned power generators and the heads of the country's energy-intensive industries that 'the government will not be bullied' into reversing a decision to shut down the last two...

Mid Kent helping Africa.(Mid Kent Water workers among those on WaterAid mission)(Brief Article)
March 11, 2005... Last month Utility Week reported on a trip to Tanzania by a group of UK water industry workers together with WaterAid to help provide safe drinking water in rural areas. Sue Sampson from Mid Kent Water returned last week from Tanzania,...

UCLan course tailored for BNFL staff.(University of Central Lancashire to offer course with British Nuclear Fuels PLC)(Brief Article)
March 11, 2005... Staff at BNFL are set to benefit from the launch of a new foundation degree by the company in conjunction with the University of Central Lancashire (UCLan). UCLan's foundation degree in construction engineering has been expanded to cater...

WATER; UK not fulfilling promises to help world's poorest.(Brief Article)
March 11, 2005... The Environmental Audit Committee has accused the government of making only 'patchy' progress after the 2002 World Summit on Sustainable Development. The summit framed international commitments to improving the supply of clean water and basic...

WATER; EU states in the frame for dodging directive.(European Union Water Framework Directive)(Brief Article)
March 11, 2005... by Karma Ockenden The efforts of European Union member states to implement the Water Framework Directive have been condemned by green groups across Europe for being 'minimalist' and for 'showing little real ambition'. According to a...

TELECOMS; C&W set to cut another 10% of workforce.(Cable and Wireless PLC )(Brief Article)
March 18, 2005... Corporate telecoms provider Cable & Wireless (C&W) has announced plans to cut a further 10 per cent of its UK workforce, blaming tough market conditions for the move. The company said last week that 480 sales and marketing posts would be...