Data firm urges regulators to rethink their approach to climate change and market shocks

Predictive analytics firm, CK Delta – a stablemate of Northumbrian Water – has called on Ofwat and energy watchdog, Ofgem along with the industries they regulate to “rethink their approach” to addressing shocks and trends that challenge them.

In a recent report, CK Delta promotes its use of data to model and test network operations as a means to plan measures to deal with “external shock and weather conditions, shifting patterns of usage, the transition to net zero, and the need to upgrade ageing infrastructure across the UK.”

The report Embedding resilience to enhance adaptability was penned by CK Delta and other stablemates in the Hong Kong-based conglomerate, power distributor, UK Power Networks and energy efficiency business Ista Energy. It points to predictive data models developed from machine learning with high-frequency data as means to “assess alternative energy and investment needs against other commercial targets, such as cost reduction.”

Managing director of Dublin-based CKDelta, Geoff McGrath, said: “External shocks – from abnormal weather to the war in Ukraine – are having a significant impact on energy supplies and the provision of water in the UK and Europe. These shocks are not going away anytime soon. We must look to utilise the tools at our disposal to mitigate their associated risks as soon as they arise.”

McGrath added: “We cannot plan with 100% certainty, but we can innovate and invest in digital tools to to give ourselves the greatest opportunity to overcome the hurdles that have blighted the sector over the last few years.”

The report report highlights CK Delta’s work with UK Power Networks’ using machine learning to add to its capacity to address current and anticipated trends such as heat pump installation and growth in electric vehicle charge points.