Utility Week articles from May 2002

Utility Week archives from May 2002

TELECOMS; MPs demand auction clawback.(radio spectrum auctions)(Brief Article)
May 3, 2002... MPs have demanded that future auctions of radio spectrum should include a clawback provision so that winning bidders cannot profit from a rapid sell-on. The powerful House of Commons Public Accounts Committee made the call after a winning...

WATER; AWG ups bond return to quell rebels.(incentive package for bondholders)(Brief Article)
May 3, 2002... AWG has moved to appease bondholders who were threatening to stop its restructuring plan by offering them a new package of incentives. Holders of two types of bond - one maturing in 2008 and the other in 2014 - have been offered an increase...

Rising to the challenge.(UK utility regulation)
May 3, 2002... Utility regulation in the UK seems to roll along under its own unstoppable momentum. Some of the key features of this process - its ubiquity and intrusiveness, its propensity to add rules and constraints where none had existed before - are part...

ELECTRICITY; British Energy appeal win unlocks cash.(price dispute with ScottishPower)(Brief Article)
May 3, 2002... by Trevor Dooley Nuclear generator British Energy has won an appeal against a court ruling forcing it to set aside money for ScottishPower until a price dispute between the two companies is resolved. Last December Scottish judges...

WATER; Bathing water the best ever.(beach standards)(Brief Article)(Statistical Data Included)
May 3, 2002... Bathing water quality for the 2001 bathing season in England and Wales smashed all records to reach 97 per cent compliance with mandatory European Commission standards, 1.7 per cent up on 2000. Beaches in the North East and Thames regions...

Cool centre.(call centers)
May 3, 2002... Search the web for articles on call centres, and the word you'll find associated with it again and again in headlines is 'sweatshop'. Call centre work is often put across as mindlessly repetitive, with stressed-out employees constantly...

WATER; Sluggish competition is not down to firms.(government blamed for not encouraging competition)(Brief Article)
May 3, 2002... by Karma Ockenden The water industry has heaped criticism on the government and Ofwat for holding up the development of competition. Defending themselves against criticism from major water users at the Energy Information Centre's water...

WATER; Pollution quick fixes not viable in long term.(Brief Article)
May 3, 2002... The water industry has called on the government and all interested parties to work together to deliver sustainable solutions to diffuse pollution, rather than relying on quick fixes which fail to deliver long-term benefits. Speaking at a...

ENVIRONMENT; Forecast: droughts, floods and rain.(in Britain)(Brief Article)
May 3, 2002... Britain can expect an increased risk of droughts and floods caused by global warming, environment secretary Margaret Beckett warned last week. 'Climate change will be earlier and sharper than we thought and some of the change is already...

Home and dry.
May 3, 2002... Given the luxury of hindsight, which product area should utility chief executives of the late 1990s have chosen: home services or telecoms? The recent success of home service insurance, and the torrid time that telecoms providers have had, make...

ENERGY; Cheap gas squeezes baseload generators.(wholesale electricity prices may drop)(Brief Article)
May 3, 2002... by Roger Milne Baseload generators can expect further grief with more reductions in wholesale electricity prices set to worsen the economics of running coal-fired and nuclear stations. The assessment surfaced in a major report on the...

Lattice and National Grid merge.(Brief Article)
May 3, 2002... The merger between Lattice and National Grid will create the world's sixth-largest utility and, according to the Sunday Express, may be the deal that 'makes the UK's utility sector sexy again'. The Sunday Express predicted that the merger will...

GAS; Three-leg link brings gas to Isle of Man.(Bord Gais to develop pipeline)(Brief Article)
May 3, 2002... The Isle of Man celebrated an historic first last week when Ireland's Bord Gais signed an agreement to develop a natural gas spur pipeline linking the island with the second gas interconnector between Scotland and the Republic Ireland. The...

WATER; Final days of River Kelvin clean-up.(Scottish Water begins sewer construction)(Brief Article)
May 3, 2002... Scottish Water has begun construction of a ?5.2 million sewer that will complete its ?75 million Kelvin Valley project - a ten-year scheme to improve the quality of the River Kelvin. The project involves decommissioning 11 ageing wastewater...

Strength together.(utility mergers, services)(Brief Article)
May 3, 2002... The impending merger between National Grid and Lattice has clearly led to people having another look at their options. If the country's biggest utility can be created by the amalgamation of those two big names, then maybe there is scope for...

What use data if it profit not the wise?(Letter to the Editor)
May 3, 2002... Sir: While I echo Mr Konarek's sentiments on the need for planning in water companies' capital maintenance programmes (Utility Week, 8 February), the real drivers for efficiency don't lie in asset management software. These technologies are a...

ENERGY; Users demand probe into RWE Innogy deal.(Major Energy Users' Council; Competition Commission may investigate)(Brief Article)
May 3, 2002... Industrial energy customers have called for a Competition Commission investigation into the takeover of Innogy by German utility giant RWE. The Major Energy Users' Council (MEUC) said the takeover reduced competition in the industrial and...

Gas supply on tap until 2040.(in Europe)(Brief Article)(Statistical Data Included)
May 3, 2002... Fears that Europe is close to running out of available gas supplies are unfounded, a report commissioned by broker UBS Warburg concluded last week. According to energy consultancy Ilex, which compiled the assessment for Warburg, there is...

National Grid.(renamed National Grid Transco in fall 2002)(Brief Article)
May 3, 2002... by Sumi Sastri National Grid will be renamed National Grid Transco this autumn, following its ?15 billion merger with the Lattice Group. It will retain ownership of the merged group with 57.3 per cent of the shares if it obtains regulatory...

KPMG.(KPMG Consulting Inc. attempts Andersen acquisition)(Brief Article)(Statistical Data Included)
May 3, 2002... by James Ockenden Consultancy firms are more difficult to assess financially than, say, a traditional utility, a fact never more evident than in KPMG's attempted purchase of rival Andersen in the wake of the Enron scandal. Rather than one...

Keeping them sweet.(Richard Frost from Cadbury Ltd. goes to Npower)(Brief Article)
May 3, 2002... It would be hard to find two more different companies than Npower and Cadbury. Npower: a modern, corporate company seeking to dominate the supply of an intangible thing called energy. Cadbury: a long-established former family business,...

TELECOMS; Radio spectrum licences review.(Radiocommunications Agency auctions 15 licenses)(Brief Article)
May 3, 2002... The Radiocommunications Agency will auction 15 licences to make 3.4GHz radio spectrum available to operators and is consulting with industry on the implications. Phased payments will be accepted for the licences, which will be awarded for...

ENERGY; Users fear a possible Scot power merger.(ScottishPower and Scottish and Southern Energy)(Brief Article)
May 3, 2002... by Paul, Garrett Talk of a merger between ScottishPower and Scottish & Southern Energy has provoked concern among users that it could arrest competition north of the border. Analysts have welcomed the possibility of a deal. A...

ELECTRICITY; Profits slide at Seeboard as controls bite.(financial statistics)(Brief Article)(Statistical Data Included)
May 3, 2002... Bid-peppered power firm Seeboard posted group pre-tax profit down 4.3 per cent to ?115 million for 2001 on sales down the same amount to ?1 billion. Distribution profit before tax was off 3.5 per cent to ?87 million, while in supply...

Hostile atmosphere for O2.(Brief Article)
May 3, 2002... Mustapha Omar (the outspoken analysts who predicted the fate of Marconi)?landed a stunner on mobile telecoms operator MMO2 this week as the rest of the telecoms sector went into yet another nosedive. Broker Collins Stewart's 'zero value'...

pan-utility; Home insurance billions go begging.(Brief Article)
May 3, 2002... Utility suppliers eager to diversify are missing out on a market worth e20 billion (?12.5 billion), according to a report by market analyst Datamonitor. The report found that people were more inclined to buy home insurance from utilities...

TELECOMS; Mobile user numbers up in gloomy market.(Brief Article)
May 3, 2002... by Sumi Sastri French-owned Orange has forged ahead in the subscription number stakes with a 3 per cent hike in the first quarter of the year, compared to rivals Vodafone and T-Mobile who each added about 1 per cent. The small advances...

WATER; Data needed to tackle growing water poverty.(Brief Article)
May 3, 2002... Consumer think-tank the Public Utilities Access Forum (PUAF) has urged Ofwat to provide more useful data on the extent and reasons for water customer debt. It said Ofwat did not collect detailed information about debt or about which...

WATER; Severn Trent in race to tap aquifer.(Brief Article)
May 3, 2002... Severn Trent Water and new entrant the Birmingham Water Company are vying for access to millions of litres of water beneath Birmingham. Last week, Severn Trent lodged a planning application for six trial boreholes to establish whether...

WATER; Prospects bright for outsourcing market.(Brief Article)
May 3, 2002... by Karma Ockenden Prospects for water companies with ambitions to outsource their expertise in overseas markets are very bright, according to two studies out last week. Market researcher Frost &Sullivan predicted huge growth potential...

WATER; Bondholders threaten Wessex sale.(Brief Article)
May 3, 2002... The sale of Wessex Water to Malaysian energy group YTL could falter because of the concerns of bondholders in Wessex's parent, Azurix. Azurix was to buy back Wessex bonds so that YTLdid not have to take on the debt when it bought the...

PAN-UTILITY; Power, gas and water appeal on appeals.(price control decisions)(Brief Article)
May 10, 2002... The electricity, gas and water industries have joined forces in a bid to improve what a recent government-sponsored study found to be an inadequate procedure for appealing against regulators' decisions. The Electricity Association, Lattice...

eNERGY; British Energy in talks to run Magnox fleet.(nuclear power stations)(Brief Article)
May 10, 2002... British Energy may take over the running of British Nuclear Fuels' ageing fleet of Magnox nuclear power stations, industry insiders confirmed this week. Neither company would comment on the speculation at the weekend, but a source...

TELECOMS; Colt results fail to inspire City.(alternative carrier Colt Telecom Group PLC)(Brief Article)
May 10, 2002... Alternative telecoms carrier Colt Telecom posted higher than expected first-quarter turnover and earnings figures but the company's lack of a good business strategy resulted in the stock falling rather than gaining on the news. Colt's...

WATER; Water chiefs call for kick-start to mergers.(England's water industry)(Brief Article)
May 10, 2002... by Paul Garrett Two senior water chief executives have called on the industry to kick-start consolidation by pursuing merger plans despite the inevitability of a Competition Commission probe. They argued that mergers were needed to improve...

WATER; 'Bill without bite' lets down consumers.(draft Water Bill)(Brief Article)
May 10, 2002... by Karma Ockenden Legislation that promised to 'put water consumers at the heart of regulation' has been slammed by the existing water customer representative as lacking bite. WaterVoice (the renamed Ofwat National Customer Council)...

ENERGY; Cost of helping the fuel poor soars.(Home Energy Efficiency Scheme)(Brief Article)
May 10, 2002... The cost of running the government's flagship energy saving scheme for the fuel poor has risen fivefold, ministers said last week. The so-called new Home Energy Efficiency Scheme (HEES) was launched in June 2000, marketed as Warm Front,...

ELECTRICITY; Friends of the Earth slams green tariffs.(environmental campaign group)(Brief Article)
May 10, 2002... Environmental campaign group Friends of the Earth (FoE) has slammed the green energy market, saying it has been in 'disarray' since the government introduced its obligation on supply firms to take 3 per cent of their demand from green sources....

Fringe benefits.
May 10, 2002... Keeping in touch with customers' rising service expectations is a challenge facing any business trying to retain or grow market share, and is arguably further magnified for utilities with their vast and disparate customer bases. The many ways...

Getting it together.(Brief Article)
May 10, 2002... Last week this column speculated about the prospect of a combined ScottishPower and Scottish & Southern Energy, which would have the potential to be Britain's third national utility champion, after Centrica and Vodafone. What a difference...

eLECTRICITY; Ofgem unveils policy on wires mergers.(Office of Gas and Electricity Markets)(Brief Article)
May 10, 2002... by Trevor Dooley Ofgem plans to charge distribution companies that merge ?32 million. This is to cover the cost of the detriment to the watchdog's ability to regulate caused by the fall in the number of companies that can be used for...

Cut in the middleman.(Brief Article)
May 10, 2002... Since competition first entered the telecoms services sector a decade ago, there has been a continuing debate about the importance of owning infrastructure. While some companies staked their futures on building and owning the high capacity,...

Forecast: hotter and wetter.(Brief Article)
May 10, 2002... Natural variations in the weather will continue to be the rule until the 2020s but by the 2050s greenhouse gas emissions will become the dominant factor for climate change, according to the government's latest assessment of global warming. ...

Thus.(Brief Article)
May 10, 2002... by Sumi Sastri ScottishPower set up a telecoms arm in 1994, called it Scottish Telecom and targeted customers in Scotland. In 1999 it was rebranded as Thus and ScottishPower floated 49.9 per cent of its shares. Its 6,000km fibre optic...

Mitsui Babcock.(Brief Article)
May 10, 2002... by James Ockenden Heavy engineering conglomerate Mitsui Babcock generated a record turnover in the UK of ?160 million, 40 per cent higher than targeted in 2000/01. Most of this revenue, ?130 million, was for maintenance and refurbishment...

ENVIRONMENT: Beckett refutes claim of emissions trade rig.(Brief Article)
May 10, 2002... by Roger Milne Environment secretary Margaret Beckett has expressly denied claims that the UK's ground-breaking Emissions Trading Scheme (ETS) has been undermined by emissions reductions that have already been achieved as a result of...

Neater governance required.
May 10, 2002... Elexon, the service company that operates the Balancing and Settlement Code (BSC) under the New Electricity Trading Arrangements (Neta), has just issued a lengthy circular about the arrangements being made over the next few months to nominate...

ENERGY; Energywatch calls for end to disconnections.(Brief Article)
May 10, 2002... Consumer watchdog Energywatch has called on the government to ban domestic energy disconnections if Whitehall is serious about 'eradicating' fuel poverty. The call came last week when it gave evidence to the Commons Trade and Industry...

TELECOMS; Ofcom 'could cost more'.(Office of Communication)(Brief Article)
May 10, 2002... The government admitted this week that Ofcom, the proposed new regulator for broadcasting, telecoms and radio spectrum, could cost more than the five bodies it will replace. That admission comes in the Regulatory Impact Assessment (RIA)...

ENERGY; Sparks fly over risks to green target.(energy policy and the wind power industry)(Brief Article)
May 10, 2002... A spat has broken out between energy regulator Ofgem and the wind industry over what poses the greatest threat to the government's target of 10 per cent green power by 2010. Ofgem chief executive Callum McCarthy said planning obstacles were...

Backbenchers query regulation.(Brief Article)
May 10, 2002... This week MPs on the influential Commons Public Accounts Committee have an opportunity to quiz the watchdogs about life with, or perhaps after, RPI-X, the central plank of present regulation. In the past, misgivings about the system have...

WATER: Change of climate for reservoir bids.(Brief Article)
May 10, 2002... Climate change could force an end to traditional hostility to water company plans to build more reservoirs. Environment secretary Margaret Beckett said last week that the issue of water storage and resource planning would have to be...

ENERGY: No Pict pact but ScottishPower eyes the US.(Brief Article)
May 10, 2002... by Trevor Dooley ScottishPower revealed plans to establish a greater presence in the US as it reported an end-of-year loss of nearly ?1 billion after an exceptional hit of ?1.3 billion from goodwill write-offs, largely from the sale of its...

WATER: Vivendi to face Southern bid probe.(Brief Article)
May 10, 2002... Investment consortium First Aqua is to sell Southern Water, recently acquired from ScottishPower, to French multi-utility Vivendi. The Royal Bank of Scotland-led consortium was set up as a vehicle to steer the sale to Vivendi through the...

ScottishPower makes progress.(Brief Article)
May 10, 2002... Bullied new boy, mobile operator MMO2, came up for air this week, even if its new brand didn't exactly cause a sharp intake of breath. Meanwhile, the water became a little choppy for AWG, while ScottishPower resurfaced from its own dip in the...

TELECOMS: Telewest cuts 1,500 jobs as losses mount.(Brief Article)
May 10, 2002... Telewest is to cut 1,500 jobs in a bid to save some ?50 million a year, as it posted a ?166 million loss in its first quarter. The company may also seek buyers for its Flextech unit, the business telephony division. Turnover for the first...

ENERGY: Viridian sells insurance business.(Brief Article)
May 10, 2002... Northern Ireland energy-to-insurance company Viridian has sold its financial services business Open+Direct for ?111.4 million. The sale could be the start of a clearout to focus on energy utility operations. Finance director Patrick Bourke...

TELECOMS: Vodafone eyes French mobile player.(Brief Article)
May 10, 2002... Vodafone has emerged as a likely buyer for France's second-largest mobile operator, SFR. Vivendi has indicated that it would like to sell its stake in SFR, as the operator posted a e17 billion (?10.6 billion) loss in the first quarter of...

WATER: Industry set to fail to hit European Community's targets alone.(Brief Article)
May 10, 2002... by Karma Ockenden The water industry has warned that it cannot meet the standards set by the Water Framework Directive (WFD) unless there is a radical overhaul of the way the legislation is implemented. Speaking at Water UK's...

ELECTRICITY; EcoGen loses wind plant decision.(U.K.)(Brief Article)
May 10, 2002... The High Court has upheld the rejection by trade and industry secretary Stephen Byers of plans for a windfarm at Kielder, Northumberland, without a public inquiry. The judge said that the project had been refused because the Ministry of...

GAS; BG Group rides out tough times.(financial report, U.K.)(Brief Article)(Statistical Data Included)
May 17, 2002... Despite falling oil prices and exposure to difficult trading conditions in Latin America, BG Group last week posted stronger first-quarter results than rivals BP and Shell. BG reported a 5 per cent fall in operating profit to ?220 million,...

WATER; Entrants urged to push pipe sharing.(water utilities regulation)(Brief Article)
May 17, 2002... Ofwat has thrown down the gauntlet to new entrants in the water sector to advance common carriage now that incumbents have published their access prices. Competitors had complained to Ofwat about company delays in publishing access prices....

TELECOMS; Cabinet Office turns big guns on telecoms.(Brief Article)
May 17, 2002... by Roger Milne Prime minister Tony Blair last week wheeled in the Cabinet Office's Performance and Innovation Unit (PIU) to carry out a quick-fire study of how UK 'electronic networks' will develop over the next decade. Under scrutiny...

WATER; MPs chide Ofwat for debt finance risk.(Parliament's Public Accounts Committee grills water regulator Philip Fletcher over water utilities financing)(Brief Article)
May 17, 2002... by Karma Ockenden MPslast week accused water regulator Philip Fletcher of piling risk on to consumers by allowing water companies to switch from equity to debt finance. During questions to the regulator from the Public Accounts...

GAS; Cash-strapped Dynegy mulls Hornsea sale.(receives 6 bids for its onshore gas storage facility, U.K.)(Brief Article)
May 17, 2002... by Sumi Sastri Houston-based energy trader Dynegy is assessing six 'unsolicited' bids for Hornsea, its onshore UK gas storage facility, with a view to a sale in 60 days' time. Dynegy scotched market rumours that it was exiting the UKgas...

TELECOMS; Energis to ditch Ision after sale fails.(to write off multimillion-pound investment; also looking to sell UK business)(Brief Article)(Statistical Data Included)
May 17, 2002... Troubled telecoms group Energis is to write off its ?590 million investment in German web hosting business Ision after failing to find a buyer for the unit. Energis last week stopped funding the business because closure was likely. ...

ELECTRICITY; Government trawls for views on nuclear.(may seek support for nuclear power plant building program, U.K.)(Brief Article)
May 17, 2002... by Trevor Dooley The government has revived speculation that it is seeking support for a nuclear power plant building programme. In a consultation asking energy users to consider the possibilities for UK energy policy, the Department...

PAN-UTILITY; Sectors act to help overcome skills shortage.(gas and water industry utilities announce moves to overcome skills shortage among job seekers)(Brief Article)
May 17, 2002... Employers from the gas and water industry, as well as a consortium of energy industry interests, have announced moves to overcome the growing skills shortage among utilities. The groupings have applied for Sector Skill Council (SSC) status...

WATER; Farm grants needed to beat pollution.(Brief Article)
May 17, 2002... The Environment Agency and English Nature have called for a national aid package to help farmers tackle diffuse pollution because it is damaging the water environment so severely. Joint research from the two bodies suggested grants should...

ENERGY/ENVIRONMENT; MPs told strategy is failing fuel poor.(National Right to Fuel Campaign)(Brief Article)
May 17, 2002... MPs on the House of Commons Trade and Industry Committee have been told by fuel poverty campaigners that the government's strategy was flawed and unlikely to end the problem by 2015, which is the current ministerial commitment. National...

GAS; MPs debate Transco's safety record.(Brief Article)
May 17, 2002... Transco's safety record came under parliamentary scrutiny this week when Labour backbencher Tony Lloyd instigated a debate in the Commons on Tuesday as Utility Week went to press. The debate, described on the order paper as 'public health...

GAS; Lattice profits slip under new report.(Brief Article)
May 17, 2002... Network company Lattice -? owner of gas pipeline operator Transco -?has reported a second set of annual figures for its new reporting period, showing an 18.6 per cent fall in profit before tax on near-flat sales. Lattice has moved its...

Storm clouds gathering.(possible lack of adequate electric power in the future)(Brief Article)
May 17, 2002... For a while now some voices have suggested that, thanks to low power prices, not all is rosy with security of supply in the UK's electricity industry. Put simply, come next year the balance between supply and demand could be precarious. ...

EU stabilises carbon targets.(Brief Article)(Statistical Data Included)
May 17, 2002... Despite an emissions upturn in the final year of the period, the European Union delivered on its long-standing commitment to stabilise emissions of the main greenhouse gas (carbon dioxide) at their 1990 level by 2000. That is the...

Siemens.(Siemens Metering)(Brief Article)
May 17, 2002... by James Ockenden Considering the first water meter patent was lodged almost 150 years ago, it is surprising that many homes in the UK still have unmetered water supplies. Were he still alive, this might have bothered William Siemens, the...

TELECOMS; USbankruptcy deal keeps NTL afloat.(Brief Article)
May 17, 2002... Cable operator NTL last week filed for bankruptcy in the USunder a debt-for-equity deal with its bondholders that will enable it to continue trading. Under the so-called pre-arranged proceedings, bondholders have agreed they will exchange...

Green energy target problem.(energy minister Brian Wilson on renewable energy resources)(Brief Article)
May 17, 2002... Energy minister Brian Wilson has always been something of a political street fighter. He is also a realist in the sense that he hates to set targets which can't be met. Recently, questioned by MPs on the Commons environmental audit...

ENERGY; Insurance costs bite as terror takes its toll.(utility companies face high insurance premiums)(Brief Article)
May 17, 2002... by Sumi Sastri Power generators will have to shell out for higher insurance premiums because the squeeze of market forces has led to a flight of capital from the utilities insurance market, according to industry experts. Fewer...

PAN-UTILITY; Regulators accused of remit creep.(Brief Article)
May 17, 2002... The House of Commons Public Accounts Committee last week accused the three utility regulators of stretching their role to go beyond the remits set when their offices were created. Committee member Nick Gibb MP said the purpose of regulation...

ELECTRICITY; Curb on power self-supply may be lifted.(Brief Article)
May 17, 2002... In a response to increased competition in retail and wholesale electricity supply, energy regulator Ofgem is to consult on the removal of the so-called self-supply restriction. The restriction limits certain suppliers' ability to use...

eNVIRONMENT; Shell in first UK emission swap with Danes.(Brief Article)
May 17, 2002... Oil giant Shell and Danish electricity supplier Elsam last week made the first-ever swap of government-backed greenhouse gas emissions allowances. Under the transaction, brokered by Natsource-Tullett Europe, Shell sold UK allowances and...

Art of the survivor.(YTL Corp. acquires Water Wessex PLC)(Brief Article)
May 17, 2002... About Wessex Water Wessex Water serves 2.5 million wastewater customers and 1.2 million clean water customers in a 10,600 km2 area of Wiltshire, Dorset, Avon and Somerset. Bristol Water and Bournemouth & West Hampshire Water service a...

Vodafone recovery short-lived.(Brief Article)
May 17, 2002... by Trevor Dooley Investors this week conjured a recovery for Vodafone after its plunge below the ?1 line. The mobile giant and other telecoms stocks were levitated by good news from another high-tech giant across the Atlantic. Then bad...

TELECOMS; Telewest under fire over top brass bonuses.(Brief Article)
May 17, 2002... Telewest shareholders have slammed senior management for awarding themselves huge bonuses while the cable operator struggled to pay back interest on its debts - which top ?5 billion. Investors have demanded that Telewest justify why it paid...