Yesterday’s confirmation that the UK will remain locked down for at least another three weeks was surprising only in that nobody seemed remotely surprised.
Despite the resignation of the nation to more of the same, the narrative around coronavirus is starting to change. The fixation on adapting to a strange new world has instead turned to a discussion on how we safely exit this situation and what life will look like when we do.
Uncertainty around this exit plan is proving a major headache for management teams as they try to navigate a way forward.
This is especially true of the energy supply market, where discussions continue with government on what state intervention is possible – and appropriate – around energy bills. The longer the lockdown- and its influence on household budgets – continues, the more pressing the situation gets.
This week saw suppliers submit evidence about the energy usage of both domestic and small business customers, as well as the latest information on consumer debt. However, a decision from government on what help it can give is not expected anytime soon.
In the meantime, it appears two camps have formed on the best direction to take – with the largest and smallest suppliers on one side, and medium-sized retailers on the other.
It has also emerged that suppliers are consulting lawyers over “ambiguity” around force majeure clauses, which allow parties to suspend obligations or terminate contracts when faced with an “act of god”. The definition of this archaic phrase seems to be alarmingly broad and given the potential impact, there is an urgent need for clarity.
Sticking with energy suppliers, we also saw decisive action from the market’s biggest beast this week, with the appointment of Chris O’Shea as Centrica’s permanent chief executive – less than a month after he took the role on an interim basis. As an experienced chief financial officer at FTSE 100 level he is clearly well qualified for the role. However, the speed of the decision does also suggest Centrica wanted to make a public statement that they had a strong and stable leadership structure in place during the current crisis. We asked industry observers for their views.
Centrica’s move to succeed Iain Conn has led some Utility Week sources to contrast with the situation at the water sector’s most high-profile company. Thames Water is now approaching the unwelcome anniversary of one year without a chief executive. While chairman Ian Marchant is a more than capable steward for the ship, he has been clear that he does not want the job permanently. In the current circumstances, it’s fair to question who would.
At one time it looked as though Basil Scarsella did. However, having decided to stay at the helm of UK Power Networks he is now grappling with one of the most challenging situations of his career. Despite this he remained upbeat in an interview with Utility Week, in which he discussed the temporary impact on the company’s workplan and finances but also expressed his pride at the performance of his staff in extremely difficult circumstances.
This adaption to new circumstances was something also discussed by the chief executive of the Committee on Climate Change, Chris Stark, in a Utility Week interview. He explored the impact of the coronavirus spread on the net zero journey, including the extent to which it has prompted significant behavioural change.
He said: “The general rule is that the longer something goes on, the more we get used to it and accept it. In any moments of change, we tend to emphasise the negative aspects of that change, like going for a pint after work. There comes a point when that change itself becomes the status quo. Were that to happen you might see a far greater degree of homeworking after this.”