Over the past six months, energy and water regulators have announced major steps to drive the industry forward. The new Labour government’s Clean Power 2030 agenda has set an urgent deadline to decarbonise electricity by 2030, sparking a flurry of policy activity.
Ofgem’s latest interventions are a prime example from overhauling how new generation connects to the grid, to pushing suppliers to deliver a genuine “culture change” in customer service. Across the board, utilities are being challenged to innovate faster, invest smarter, and put customers at the centre of a net-zero and digital era.
Regulatory Drivers for Change
Recent regulatory moves are shaking up long-established practices. In February 2025, Ofgem unveiled “radical” reforms to the grid connection regime. Under the old first-come-first-served queue, countless renewable and storage projects were stuck waiting up to 15 years to plug in, with the backlog growing tenfold in just five years. This bottleneck was literally holding back the UK’s green growth.
Now, so-called “zombie” projects that aren’t ready will no longer clog the queue. Priority will go to developments that are shovel-ready and aligned with Britain’s 2030 clean power goals, whether that’s a new wind farm or a data centre needing green energy. In short, “first ready, first connected” is replacing “first come, first served.” Ofgem calls it a “step change” that could unlock £40 billion a year in private investment and spur growth across the country. It’s a vivid example of policy driving real, practical change. Network operators will need to adopt fast-track processes, and developers finally have the chance to seize opportunities sooner.
Regulators are also flexing their muscles in other areas. Ofgem, still grappling with the fallout from supplier failures and billing scandals, has made consumer outcomes a central priority. Last year, it demanded a wholesale “culture change” to rebuild trust and improve service. New rules require suppliers to be much more proactive in supporting struggling customers and could eventually lead to an FCA-style consumer duty that puts customer needs first.
In water, Ofwat’s PR24 settlement for AMP8 is pushing companies to improve both service and environmental performance. It’s backing this up with serious funding. In January, Ofwat doubled its Innovation Fund to £400 million to support collaborative projects tackling leaks, storm overflows and climate resilience. The message from regulators is clear, adapt and innovate, or risk being left behind. This is a perfect environment for Skewb to help utilities navigate new rules from redesigning connection processes (such as ConnectMe) to embedding genuinely customer-centric practices through our transformation projects.
Innovation to Deliver the Net-Zero Mission
The water sector is innovating at pace. Under rising public and political pressure to reduce leaks and pollution, companies are piloting some clever solutions. One standout example is the use of “pipebots”—tiny robotic devices that travel inside underground pipes to detect cracks and leaks. Backed by Ofwat’s innovation funding, these pipe-inspecting robots (developed with the University of Sheffield) could save millions of litres of water and avoid disruptive roadworks.
Water companies are also exploring advanced ways to treat wastewater and tackle “forever chemicals,” and partnering on nature-based solutions like seagrass restoration to boost flood resilience. The next five years will be about moving these trials into mainstream operations. Ofwat is clear that new tech must “scale and deliver lasting impact for customers, society and the environment” whether that means AI systems predicting leaks before they happen, or smarter treatment processes to meet tougher standards. For Skewb, this innovation drive is a real opportunity to help clients move from pilots to full-scale deployment.
Digital and Customer-Centric by Design
Underpinning all this change is the recognition that digital technology and customer engagement are the critical enablers of transformation. Utilities are becoming truly data-driven, tapping into AI and automation across their operations. Many are now using AI-powered chatbots and virtual assistants to handle routine customer queries, speeding up response times. This not only improves service but frees up teams to focus on more complex issues. In control rooms and field operations, predictive analytics are helping forecast equipment failures before they happen, optimise maintenance schedules, and deploy crews more efficiently. Anticipating which transformers or water pumps are likely to fail means problems can be fixed before customers even notice. Our products like Skewb Novus, Skewb Opus, and Control Room all have roles to play in this transformation.
Crucially for me, the regulator is ensuring that utilities place the customer at the heart of this digital transformation. Customers expect the same level of transparency and convenience from their utility as they do from Amazon, John Lewis etc. Regulators have set out clear expectations that utilities must step up on customer service. In practice, this is driving investment in better digital products, more personalised insights, and seamless communication.
On Reflection
All told, the UK utilities sector in mid-2025 feels charged with purpose and urgency. Across Board rooms today there are important investment decisions being made, regulatory frameworks being implemented, and day-to-day operations continuing in a very tough ecosystem. This creates a great case for Skewb to add real value. Now is the moment for us to lean in, help our clients interpret new regulations, configure our digital products to meet their problems, and deliver the programmes and services needed to hit their performance goals. The most successful utilities in the coming years will be those that act early, centre on the customer, and use innovation to drive creativity.
By Rob Upton-Moir
Rob Upton-Moir is chief of staff at Skewb. To speak with him about this topic in more detail, you can connect with him on LinkedIn.
