Utility Week

UTILITY WEEK | 2ND - 8TH NOVEMBER 2018 | 3 This week 4 | Seven days 6 | Interview Lord Hutton of Furness, chair Energy UK 10 Policy & Regulation 10 | News Restart onshore wind auctions, Clark urged 11 | Chief executive's view Stuart Lacey, Electralink 12 | Event Roundtable: looking at new and emerging business models 15 Finance & Investment 15 | News Scot Power profits up, but customers leave 16 | Analysis Testing times for small energy suppliers 18 Operations & Assets 18 | High viz Yorkshire Water's concrete experiment 19 | Market view Spotting the signs of energy theft 20 | Analysis Electricity and gas networks look to innovation as they prepare for decentralisation 25 Customers 25 | News Struggling customers need more help 26 | Analysis The take-up of EVs offers up new revenue streams for energy suppliers 19 | Market view Better support for vulnerable customers 30 Community 31 | Disconnector GAS 12 | Event Roundtable: looking at new and emerging business models 20 | Analysis Electricity and gas networks look to innovation as they prepare for decentralisation WATER 10 | News Sector to halve leakage by 2050 15 | News Severn Trent plans service reservoir 18 | High viz Yorkshire Water's concrete experiment ELECTRICITY 11 | Chief executive's view Stuart Lacey, Electralink 19 | Market view Spotting the signs of energy theft 26 | Analysis The take-up of EVs offers up new revenue streams for energy suppliers ENERGY 6 | Interview Lord Hutton of Furness, chair Energy UK 16 | Analysis Testing times for small energy suppliers a 19 | Market view Better support for vulnerable customers 25 | News 'Record' number of switches in 2018 Should energy supply be a risky business? A few months ago one imaginative energy chief executive lik- ened the energy supplier retail model to a scene from Ocean's Eleven, where George Clooney's character explains how a casino needs to be able to cover every bet on the table. As the CEO rightly pointed out, in this respect energy suppliers don't compare favourably with them. Ofgem's supplier of last resort (SoLR) process had just been draed in to rescue Iresa Energy's customers because, unlike the great gambling houses of Las Vegas, the industry levy is the only game in town for underwriting failed supplier debt. It was an analogy that stuck in the mind – and one that came rushing back this week when news of another supplier going bust hit the headlines. Ironically, the company chosen to ride to the rescue of Usio Energy's 7,000 customers was the very same one that had warned of the potential pitfalls of a market where energy retailers do not have to honour their commitments should they make the wrong call. The argument was strengthened just days later when small supplier Snowdrop transferred its customers to Nabuh Energy, citing whole- sale market prices as putting pressure on its business. Just how much longer customers will be exposed to the energy roulette wheel of fortune remains to be seen. Industry has made its representations to Ofgem's current review of market arrangements and must await the consultation document due soon. But will it have the answers? The regulator is certainly mak- ing the right noises about updating its rules for new entrants to a market place originally home to just the big six. One Utility Week source, however, suggested Ofgem's review should go far further in light of recent unprecedented news that 34 suppliers could be late in meeting their payments for Renewables Obligation Certificates (Rocs). If, as some fear, any potential multi- million pound shortfall will have to be bankrolled by the industry, then surely this part of the system is not fit for purpose either – especially if suppliers who default are offering cheap renewable energy deals. One wonders, should Roc payments become a monthly rather than annual obligation? Whatever the decision, financial prudence must sit at the heart of any new arrangements. Being able to play fast and loose with an essential service was never the game plan. Suzanne Heneghan, acting editor, suzanneheneghan@fav-house.com Leader Suzanne Heneghan Talend: Sponsored Free Water Case Study: optimising water supplies https://bit.ly/2CEQQpf IFS: Sponsored report: Getting Ahead in the Diversifying Energy Market https://bit.ly/2MXkFkI Unify: Sponsored Free Water Case Study: Transform CX and deliver exceptional omnichannel experiences https://bit.ly/2CEQQpf

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