Utility Week

Customers UTILITY WEEK | 19TH - 25TH OCTOBER 2018 | 23 The market share of the big six has dropped to a "new low" as a quarter of customers have now switched to small and medium- sized suppliers, according to Ofgem. The regulator's latest State of the Energy Market report found the annual profits of the six largest suppliers fell last year for the first time since 2014, to £900 million. ENERGY State of the market report says big six share has fallen to a new low Competition is benefiting more energy customers but many, especially the vulnerable, are still getting a poor deal, the report suggested. Ofgem chief executive Dermot Nolan said: "We have witnessed many positive developments in energy over the last year, but the market is still not delivering good outcomes for all, especially the vulnerable. "Ofgem has introduced the safeguard tariff which ensures that five million households, including some of the most vulnerable, pay a fairer price for their energy. Price protection will be extended to a further 11 million customers on the worst deals." As of April this year, 54 per cent of households were still on a poor-value default deal, This week Small supplier Usio latest to cease trading Ofgem will yet again need to find a new supplier to take on around 7,000 domestic customers Usio Energy has become the latest energy supplier to cease trading following the recent demise of Iresa, Gen4U and non- domestic provider National Gas and Power. Ofgem will choose a new supplier to take on around 7,000 domestic customers of Usio Energy, whose energy supplies will continue as normal. The regulator said customers' credit balances will be protected under its safety net. It has advised custom- ers not to switch and suggests they should take a meter reading and wait until they are contacted by the new supplier. Mary Starks, executive director for consumers and markets at the regulator, said: "Ofgem is working to choose a new supplier as quickly as possible. "Whilst we're doing this our advice is to 'sit tight' and don't switch. Your energy supply will not be affected and will continue as normal – the thing that will change is that your energy will come from a new supplier." Ofgem said customers should ask to be put on the cheapest deal or shop around when a new supplier is appointed. Customers will not be charged exit fees for switching away from their new supplier. Ofgem's regulation of small suppliers was under scru- tiny following problems coming to light at Iresa. Critics claim it is too easy for new suppliers to enter the market without the correct processes in place. The regulator is reviewing its approach to supplier licensing and could toughen the rules that apply for entry into the energy market. KP WATER Business complaints drop for first time The number of complaints non- household water customers have made to the Consumer Council for Water (CCWater) about retail- ers has fallen for the first time since the market opened. New figures show the water watchdog received 766 com- plaints during the first quarter of 2018/19 – a 21 per cent reduction on the 968 received during the final three months of 2017/18. It is the first time CCWater has seen non-household com- plaints fall during a full quarter since the market launched on 1 April 2017. However, complaints are still double what they were during the first three months of the market, and CCWater has warned some retailers have much more to do. CCWater pol- icy manager Evan Joanette said: "It's too early to say whether the poor-performing retailers on complaints have turned a corner, but we're encouraged to see this improvement, which is long overdue. "More than two-thirds of cus- tomers raised complaints about their bills and charges compared to just over half this time last year. That suggests some retail- ers need to do a better job of pro- viding their customers with bills they understand and trust." CCWater said it wants to see retailers providing more sup- port and information to micro and small businesses, which accounted for nine out of ten non-household contacts to the watchdog. ELECTRICITY Fifth DNO joins flexibility trial SP Energy Networks has become the fih distribution network operator (DNO) to join a trial of flexibility marketplace Piclo Flex. UK Power Networks, Scot- tish and Southern Electricity Networks, Electricity North West and Northern Powergrid have all previously signed up to the online platform. As part of their shi towards a distribution system operator (DSO) model, DNOs will use the marketplace to procure flexibil- ity to tackle congestion on their networks. Piclo Flex is an offshoot from a peer-to-peer energy trading platform called Piclo, which Open Utility launched in 2015. It has since taken the name Piclo for itself and rebranded the origi- nal platform as Piclo Engage. The company was awarded more than £400,000 by the Department for Business, Energy and Industrial Strategy (BEIS) last October to undertake a trial of Piclo Flex. The platform will be launched on a com- mercial basis following the end of the BEIS-sponsored trial on 15 February 2019. The only DNO not to join the trial so far is Western Power Distribution, although it said it is currently in discussions about signing up. 'Sit tight': Ofgem's advice to Usio customers compared with 57 per cent of households in October last year. The report also found that customer satisfaction with com- plaints handling has increased "significantly", from 27 per cent in 2016 to 32 per cent in 2018. Ofgem also revealed that last year only 17 households had their electricity or gas discon- nected, down from a peak of 8,300 a decade ago.

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