Water 2009
10th Annual Conference: Regulation, recession, sustainability and competition: adapting successfully to the challenges ahead
14th & 15th October 2009, Le Méridien Piccadilly, London
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Conference Agenda
Print ProgrammeWednesday 14 October 2009, Le Méridien Piccadilly, London
Day One
KEYNOTE OPENING ADDRESS: Presenting the Government’s strategy for water: ensuring a sustainable future

Rt Hon. Hilary Benn MP
Secretary of State for Environment, Food & Rural AffairsQuestions
SESSION ONE: STRATEGIC DISCUSSION FORUM – THE CURRENT PRIORITIES FOR THE WATER INDUSTRY
Weathering the financial storm: how can the water industry mitigate the impact of recession?

Frédéric Devos
Chief Executive Officer - Veolia Water UK, Ireland & Northern EuPanel discussion: PR09 and beyond details
- Assessing the long-term implications of Ofwat’s proposals on customer satisfaction and service levels
- How has the availability and cost of capital changed over the past year? How should this influence Ofwat’s decision regarding cost of capital?
- What is the long-term outlook for water’s financeability?
- How realistic are the proposed capital expenditure plans for AMP5 in the current economic climate?
- Investing in operational efficiency versus reducing customer demand: how are priorities shifting?
- Achieving sustainability: how can the industry successfully balance environmental, financial and social considerations?
- Encouraging innovation: what are the barriers and how can they be overcome?
Questions will be taken from the floor throughout the discussion

Frédéric Devos
Chief Executive Officer - Veolia Water UK, Ireland & Northern Eu
Stephen Kay
Managing Director, Cambridge Water
Stephen Kay
Managing Director, Cambridge Water
Biography
Stephen Kay has spent almost his entire career supplying water and associated customer service – firstly in South Africa and Mauritius before commencing 35 years in the English water industry with Lee Valley Water, Thames Water and Cambridge Water.
Stephen believes that water companies should be at the heart of the communities they serve which enables them to be closer and more responsive to the customers they supply. Leading one of England's smallest water companies gives him the opportunity to spend time speaking directly to customers and encouraging his colleagues to play an active part in community initiatives.
Stephen is also a passionate supporter of Water UK and plays a full part in developing a consistent approach to technical issues across the industry as Chairman of both the Water UK [technical] Standards Board and the Water Regulations Advisory Service (the organisation that helps enforce standards of plumbing fittings and installations in buildings).
In his spare time Stephen is an active cricket administrator representing Cambridgeshire with the England and Wales Cricket Board.

Allison Bainbridge
Group Finance Director, Kelda GroupRefreshments
SESSION TWO: THE IMPACT OF REGULATION ON LONG-TERM STRATEGY
How can regulation help to create a sustainable future for water? details
As the water industry reaches a critical juncture in its development, this session will provide an excellent opportunity for delegates to hear Ofwat’s perspective about the challenges ahead, prior to the publication of its final determinations.

Regina Finn
Chief Executive, Ofwat
Regina Finn
Chief Executive, Ofwat
Biography
Regina Finn is the Chief Executive of Ofwat, the water regulator for England and Wales. She has extensive experience regulating utility sectors, including the electricity and natural gas sectors in Ireland, the telecommunications, post and electricity sectors in Guernsey in the Channel Islands and the communications sector in Ireland.
Striking a balance between long-term sustainability and the immediate priorities of PR09

Philip Green
Chief Executive Officer, United Utilities
Philip Green
Chief Executive Officer, United Utilities
Biography
Philip Green became Chief Executive of United Utilities PLC in February 2006. United Utilities is one of the largest utilities (water, gas, and electricity) companies in the UK, ranked mid-way in the FTSE100, with a market cap of £3bn+ after recently returning £1.5bn to shareholders. During the last three years it has restructured and strengthened management, created strategic focus through some disposals, and improved operational performance.
In 2003 Philip was appointed CEO of P&O Nedlloyd, one of the largest container shipping companies in the world, and a joint venture between P&O and Royal Nedlloyd. He led the company to its successful listing as Royal P&O Nedlloyd BV in Amsterdam in April 2004. Under his leadership operating profit increased from $77m in 2003 to approximately $550m in 2005. In August 2005, the company was acquired at a share price of €57 compared to a market price of less than €10 in 2003.
He was previously Chief Operating Officer at Reuters Group plc, which he joined in 1999. His responsibilities included the design and implementation of a global change management programme. From 1990 to 1999 he was at DHL, the global market leader for cross-border express delivery, becoming Chief Operating Officer for Europe and Africa.
He holds an MBA from the London Business School and a BA (Hons) from the University of Wales.
Philip is a member of the Commission for Skills and Employment. He is also a Director of Business in the Community, and Chairman of BitC’s Environment Campaign. He is a Trustee of the Philharmonia Orchestra.
He was born in 1953 and is married with two daughters.
Regulation, sustainability, and the long-term outlook

Keith Richards
Director of Regulation, South West WaterResponding to the efficiency and customer satisfaction challenge

Martin Wells
Vice President, Utilities, Capgemini
Martin Wells
Vice President, Utilities, Capgemini
Biography
Martin has worked at the senior executive and operational levels of the largest utility companies in the UK and Ireland, helping household-name clients in the electricity and water industries to transform customer service and increase efficiency in front and back offices, and in the field. He has 15 years' experience of programme and change management, CRM and customer operations, human performance management and outsourcing, all gained in the utilities sector. Currently he is working with a number of our UK water clients to help them respond to the challenges they face in AMP5.

Ian Moore
Director, Energy and Utilities Centre of Excellence, Capgemini
Ian Moore
Director, Energy and Utilities Centre of Excellence, Capgemini
Biography
Ian has 30 years’ experience in global energy, and was exploration co-ordinator at Chevron before joining Capgemini in 1997. He helps international blue chip companies to keep abreast of leading industry practice, drawing on his specialist knowledge of business and IS strategy development and technology management, as well as his programme and change management skills. A recognised thought leader for Digital Oil Fields of the Future, he has spoken on the subject at many conferences. Clients that Ian has worked with include household-name energy companies and the UK government.
Questions
Introduction to the IEA by Philip Booth, Editorial and Programme Director
Lunch
SESSION THREE: RESPONDING EFFECTIVELY TO THE FINANCIAL CRISIS
INVESTMENT AND FINANCEABILITY FORUM
In an unstable financial climate, the water industry faces the challenge of meeting the financing requirements for its ambitious investment programmes. As the PR09 process nears completion and Ofwat’s final decision about the cost of capital will shortly be released, three expert speakers from different parts of the industry will examine the key issues surrounding investment and financeability for the future:
- How have water company ratings been affected by the financial turmoil and what might the long-term implications be of Ofwat’s initial proposals?
- What has been the impact on access to and cost of capital over the past year?
- Could a split cost of capital ever be feasible?
- How have attitudes to gearing changed?
- How significant a threat is deflation looking forwards? Are there sufficient safeguards in place to mitigate risk for investors?
- How is regulatory risk affecting investor confidence? The implications of competition on financeability
- How can water attract investment in the long term? Does the financing structure need to be revised?
How have water credit ratings fared over the past year and what are the key drivers of ratings?

Peter Kernan
Managing Director, Standard & Poor’sWhat are the most appropriate financing models for the current economic climate?

Mike McKeon
Group Finance Director, Severn Trent
Mike McKeon
Group Finance Director, Severn Trent
Biography
Michael joined the board of Severn Trent Plc on 13 December 2005 as Finance Director. Prior to that, he was Finance Director of the buildings materials group Novar Plc. He worked for Rolls Royce Plc from 1997 to 2000 in various senior roles including Finance Director of the Aerospace Group.
He has extensive international business experience, having worked overseas for CarnaudMetalbox, Elf Atochem and Price Waterhouse. Michael is a Chartered Accountant and a Member of the Institute of Chartered Accountants of Scotland. He was appointed a non-executive director of The Merchants Trust Plc, with effect from 1 May 2008.
Is water still an attractive prospect for investment? The investor perspective

Steven West
Director – Energy & Utilities, BNP Paribas FortisQuestions and discussion
Refreshments
SESSION FOUR: PROVIDING AN AFFORDABLE SERVICE FOR CUSTOMERS
The impact of the economic downturn on revenues and affordability

Martin Kane
Director of Customer Relations, Severn TrentGuaranteeing a fair and affordable resource for the consumer: the outcomes of the Walker Review

Anna Walker
Chair, Independent Review of Household Charging for Water and Sewerage Services
Anna Walker
Chair, Independent Review of Household Charging for Water and Sewerage Services
Biography
Anna was appointed to lead a review of charging for household water and sewerage services in August 2008.
She has wide ranging experience in the public sector particularly in regulation, the needs of disadvantaged customers and the interrelationship between economic and environmental issues.
Anna was appointed as chair of the Office of Rail Regulation in July 2009 the statutory board which is the combined economic and safety regulatory authority for Great Britain’s rail network.
Prior to that, Anna was Chief Executive of the Healthcare Commission which was created in April 2004 and regulates both public and private sector healthcare.
She was Director General, Land Use and Rural Affairs at Defra from 2001-2004. Her responsibilities there included drawing up a new rural policy following the foot and mouth outbreak. . She was also responsible for a review of the regulation Defra was responsible for worked on Defra’s strategy as a then newly established department.
Anna was Director General, Energy at the Department of Trade and Industry (1998-2001) – responsible for all aspects of the government’s energy policy including the regulation of the energy industry. She was Deputy Director General at the Office of Telecommunications regulating the telecommunications industry from 1994-98. Anna joined the Department of Trade and Industry in 1975 following jobs at the British Council and the Confederation of British Industry,. She was Assistant Private Secretary to the Secretary of State for Industry (1977-79). She is a member of the new National Consumer Council which brings together the functions of the National Consumer Council energywatch and postwatch.
Anna is married and lives in London. She has 3 daughters: When time allows, she likes to travel, cycle and walk.
Questions
Chairman’s closing remarks and end of day one
Please join us for a drinks reception after the conference
Thursday 15 October 2009, Le Méridien Piccadilly, London
Day Two
Chair’s opening remarks

Alan Sutherland
Chief Executive Officer, Water Industry Commission for Scotland
Alan Sutherland
Chief Executive Officer, Water Industry Commission for Scotland
Biography
Alan has been the Chief Executive of the Water Industry Commission since its establishment in July 2005. Prior to that he was the Water Industry Commissioner. He was appointed by the Scottish Ministers to that role in November 1999. He has extensive experience in management consultancy and in the investment banking industry, being a former management consultant with Bain and Company and before that a Manager with Robert Fleming and Company. More recently he was a Managing Director of Wolverine CIS Ltd, a division of Wolverine World Wide. Alan has a MBA and MA from the University of Pennsylvania and a MA(Hons) from the University of St Andrews.
SESSION FIVE: RESPONDING TO THE CLIMATE CHANGE CHALLENGE – MITIGATING AND ADAPTING TO ITS IMPACT
What impact will climate change have on water resources? A long-term forecast

Professor John Beddington
Government Chief Scientific Advisor and Head, Government Office for ScienceBuilding asset resilience in the face of adverse operating conditions details
- How will climate change impact upon asset security?
- Investing in asset resilience: how can infrastructure cope with more frequent extreme weather events?
- Developing an effective risk profile and incorporating climate considerations into long-term business strategy
- Does existing technology provide appropriate solutions, or is further investment in research and development required?

David Elliott
Director of Planning & Asset Management, Wessex Water
David Elliott
Director of Planning & Asset Management, Wessex Water
Biography
David is responsible for ensuring that the Company invests in and maintains appropriate assets to meet our customer service, regulatory, financial and quality objectives. He is responsible for liaising with regulators and preparing regulatory business plans, developing policy and implementing investment plans to deliver our obligations within an acceptable level of risk and return.
David joined Wessex Water in 1984, and has spent many of those years delivering services within the operational side of the business.
Elliott, David BSc Director of Regulation and Assets. Wessex Water Director since June 2007. Responsible for investment planning and risk management. Previously General Manager Asset Planning and Group Services. Joined Wessex Water in 1984.
Questions
SESSION SIX: CUSTOMERS IN FOCUS
In this session, starting at 10:05, each speaker will present a short 10 minute address sharing their perspective on how to achieve optimum customer service and high levels of consumer satisfaction. They will outline the current challenges and propose strategies for the future. This will be followed by 15 minutes of discussion and questions.

Dame Yve Buckland
Chair, CC Water
Dame Yve Buckland
Chair, CC Water
Biography
Dame Yve was appointed the first National Chair of the Consumer Council for Water on 1st October 2005.
Dame Yve is also currently the National Chair of the NHS Institute for Innovation and Improvement. Before joining CCWater Dame Yve had substantial experience in local government and between 1992 and 1999 she was City Secretary of Nottingham City Council. Dame Yve is an honorary member of the Faculty of Public Health Medicine and an associate of the Warwick Business School. She was awarded the DBE in June 2003 for services to public health.
SESSION SEVEN: MAXIMISING WATER RESOURCES THROUGH IMPROVING EFFICIENCY
Fibre innovation and technology in the water industry

Dafydd Thomas
Chief Technical Officer, i3 Group Limited
Dafydd Thomas
Chief Technical Officer, i3 Group Limited
Biography
Dafydd Wyn Thomas has over 28 years experience in the fibre optic industry. He commenced his career with Pilkington Communication Systems as a Quality Engineer and progressed through to Production Manager, Plant Manager and finally Operations Director until the then named Pinacl Communication Systems was bought out by Tyco in 2001.
At this time with his wealth of industry knowledge and expertise Dafydd decided to create ‘Fibre Associates’. Fibre Associates Ltd started supplying H2O Networks Ltd in 2003, and after 6 years as a supplier, Fibre Associates Limited was acquired by i3 Group Ltd in February 2009.
As CTO of i3 Group Limited, Dafydd’s vision is to continue developing cost effective solutions for the deployment of fibre infrastructure which will be used to revolutionise an ageing network. I3 Group is committed to the ongoing FIBRECITY® network and FIBREZONE® network programmes and the deployment of high speed broadband, typically 100Mbit/s FTTH (Fibre To The Home).
This may be achieved by utilising a water company’s existing infrastructure including sewers, fresh water and storm drains, iin order to provide the water companies with alternative revenue streams. In addition we have the ability via the fibre network to have a real-time activity reporting for monitoring / metering & sensing which will yield lower operating costs and increased efficiencies.
Questions
Refreshments
Reducing water use: is metering the answer?

Jean Spencer
Director of Regulation & Executive Director, Anglian Water
Jean Spencer
Director of Regulation & Executive Director, Anglian Water
Biography
Jean Spencer was appointed as Regulation Director with Anglian Water in May 2004. Prior to joining Anglian Water, she held a number of positions with Yorkshire Water and Kelda, including Head of Regulation, Head of Internal Audit and Regulatory and Accounting Controller.
A qualified chartered accountant, Jean began her career at Grant Thornton in 1980. In 1984 she joined the Audit Commission, leaving in 1989 to join Yorkshire Water.
During 2006-2008, Jean chaired the Steering Group for Waterwise's Evidence Base for Large-scale Water Efficiency in Homes. The Evidence Base brought together and analysed for the first time around twenty large-scale water company water efficiency retrofit projects, and produced cost-benefit data and scenarios to inform water company and regulatory delivery of retrofit programmes, to help the supply-demand balance as demand increases, and supply is threatened as a result of climate change. The Evidence Base was used by water companies and Ofwat in the PR09 process. The Steering group has now reconvened to deliver phase 2 of the evidence base.
Efficient investment in structural rehabilitation at Northumbrian Water: managing leakage, burst and interruption levels through time

Colum Goodchild
Water Asset Strategy Manager, Northumbrian Water
Colum Goodchild
Water Asset Strategy Manager, Northumbrian Water
Biography
- Academic background in Environmental Sciences and Water Management (posh Geography).
- Joined Essex & Suffolk water as a graduate trainee in 2000, working in various areas of the business before finding a home in Water Distribution.
- From 2002 responsible for overseeing maintenance and refurbishment activities on the Companies strategic network (big pipes). Also, co-ordinating investment activities in the Distribution Network arena. I developed skills in engineering and finance.
- Transferred to Northumbrian Water in 2006 to compile the Company’s period review submission for water networks – analysing investment needs to compile a robust forecast for the 2010-2015 period. Also managing the day to day activity of the Asset Strategy team responsible for all water assets.
- Recently completed an MBA with Durham University
- Actively involved with my local church in Durham – sitting on the PCC and helping out with the youth group.
Managing our carbon, managing our business, making a difference

Yvette de Garis
Head of Environmental Strategy, Thames WaterPanel discussion details
The above speakers will now form a panel to examine the following issues:
- How can operational efficiency be further improved? Are the ambitious efficiency targets for AMP5 realistic?
- How can water reduce its carbon emissions? Optimising waste streams, using renewable energy, employing new technologies
- Tackling leakage: what further progress can be made?
- Preventing pollution at the source: what are the most energy-efficient solutions?
- How can the industry take a more multi-party approach to discussions about future water use and demand?
Lunch
SESSION EIGHT: DEBATING THE ROLE OF COMPETITION IN THE WATER INDUSTRY
In this session, speakers will each present a different competitive model and outline its advantages. This will be followed by audience questions and debate to assess the benefits and limitations of competition in the water industry.
Innovation and competition in water: what are the implications of the Cave Review and the next step for policy?

Martin Cave
BP Centennial Professor, London School of Economics
Martin Cave
BP Centennial Professor, London School of Economics
Biography
Martin Cave was until recently director of Warwick Business School’s Centre for Management under Regulation and is now holder of the BP Millenium Chair at the London School of Economics and Political Science. He specialises in regulatory economics, and is the author of 'Understanding Regulation' and co-editor of the forthcoming 'Oxford Handbook of Regulation'. He has advised many governments and regulatory agencies and has undertaken reviews for Defra, the Department of Communities and Local Government, the Department for Transport, the DTI and the Treasury. He is the author of the recently published Independent Review of Competition and Innovation in the England & Wales Water Sector (April 2009).
What are the implications of competition for long-term strategy?

Keith Harris
Director of Finance and Policy, Wessex Water
Keith Harris
Director of Finance and Policy, Wessex Water
Biography
Keith Harris has 20 years of experience in utilities specialising in regulation, competition and government affairs, capital markets and mergers and acquisitions.
Keith oversaw the 1994, 1999, 2004 and 2009 Price Reviews and had the dubious pleasure of being the global head of regulation at Azurix, Enron's water subsidiary. He was then integral to protecting Wessex Water and realising value from the Azurix group upon Enron's collapse.
After gaining an Economics degree with a specialisation in the privatisation of public utilities, Keith continues to study the increasingly important part that utility companies play in delivering social and sustainability policies. He introduced Wessex Water’s innovative “Assist” social water tariff, and pioneered the company’s approach to contracting with farmers not to pollute water sources.
He is a member of the Water UK Council and Steering Committee and is Vice Chairman of Norton Radstock Regeneration Limited.
How has competition benefitted consumers in Scotland?

Mark Powles
Chief Executive, Business Stream
Mark Powles
Chief Executive, Business Stream
Biography
Mark Powles joined newly formed Business Stream in March 2007. Since then he has created a dynamic, customer focused company that successfully operates in the non-household Scottish retail market.
Powles brings a wealth of relevant senior management experience operating in highly regulated, competitive retail service markets across travel, transport and Financial Services, with Companies such as Sealink Stena Line, National Express Group and AEGON UK.
At Business Stream, Powles has created a strong, sustainable brand where the customer sits at the heart of all activities and business is retained on merit by the strength of the products, services and value for money it provides. Since 2008 customer satisfaction has increased, around 60% of customers are benefiting from discounts and the range of services has expanded from 6 to 57. Business Stream has also helped our customers make over £19 million of efficiency savings overall. That’s a saving of over 4.39 billion litres of water or 8,205 tonnes of CO2.
Business Stream has won best business performance at the European Utility Awards, Green Business at the CBI Growing Business Awards and Partnership in Environment with Glasgow City Council at the LGC Business Partnership awards 2011.
Questions and discussion
KEYNOTE CLOSING ADDRESS: The Conservative vision for the water industry

Nick Herbert MP
Shadow Secretary of State for Environment, Food & Rural AffairsQuestions
Chair’s final remarks and close of conference
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