Utility Week

UTILITY WEEK | 30TH NOVEMBER - 6TH DECEMBER 2018 | 3 This week 4 | Seven days 7 Policy & Regulation 7 | News Smart meter rollout targets 'won't be met' 8 | Analysis Converting the gas network in the North to hydrogen 10 | Analysis The dire share price performance of the big energy utilities 13 | Chief executive's view Alistair Phillips-Davies, SSE 14 | Analysis Regulated asset businesses need to make 'giant leaps' 17 Finance & Investment 17 | News Ofgem confirms RO shortfall is £58.6m 18 Operations & Assets 18 | High viz Cable-pulling with the Ed1son alliance 19 | Market view A new dawn for water research 20 | Market view The legal and regulatory challenges of prosumerism 21 | Market view Maximise customer value with a whole-system view 22 | Market view Why voice is compelling as an interface for the smart home 25 Customers 25 | News Scottish Power takes on Extra customers 26 | Analysis A round-up of the competitive business water retail market 28 | Market view Charge point strategies and EVs 30 Community 31 | Disconnector GAS 8 | Analysis Converting the gas network in the North to hydrogen WATER 19 | Market view A new dawn for water research 26 | Analysis Water retail market round-up ELECTRICITY 14 | Analysis Regulated asset businesses need to make 'giant leaps' 17 | News Ofgem confirms RO shortfall is £58.6m 18 | High viz Cable- pulling with The Ed1son alliance 20 | Market view The challenges of prosumerism 21 | Market view Maximise customer value with a whole- system view 28 | Market view Charge point strategies and EVs ENERGY 7 | News Smart meter rollout targets 'won't be met' 10 | Analysis The dire share price performance of energy firms 13 | CEO view Alistair Phillips- Davies, SSE 22 | Market view Why voice is compelling for the smart home 25 | News Scottish Power takes on Extra customers Supplier failures are down to policy The trickle of energy retailer failures is rapidly turning into a flood. The past week alone has seen two suppliers, Extra Energy and Spark Energy, go bust. This brings to nine the total number of retailer failures over the past two years. And Spark was the biggest so far: nearly 300,000 customers were on the Scottish Borders-based company's books before it went out of business last Friday. Spark's long-suffering and predominantly low-income customers, many of whom rent off the social housing landlords that the firm targeted, probably won't be too upset about being transferred to a new supplier. Which? revealed this week that Spark had the worst call waiting times of any energy retailer, typically leaving customers on hold for nearly half an hour. Too oen, poor customer service has proved to be a marker for subsequent failures. Ofgem has been understandably criticised this week for being asleep at the wheel regarding new suppliers. The regulator's moves last week to introduce a tougher regime for licensing suppliers have been widely seen as shutting the stable door aer the horses have well and truly bolted. Ofgem has proposed that suppliers should be able to meet their customer service obligations and show they have sufficient resources to function for 12 months. To many this will sound the minimum that should have always been expected of new entrants. And in the wake of the price cap, the Klondike-like rush to enter the market has probably ended, irrespective of the new rules. However, the failures of the energy retail market go deeper than any inaction on the regulator's part. Ofgem has been operating within the context of a policy that saw competition as the primary route for delivering lower prices. And ministers have been happy to boast about the proliferation of new entrants even as question marks grew about how some of these companies could offer cut-price deals. So far, the mounting body count in the retail energy market hasn't caused any collateral damage to ministers. With their custom- ers and liabilities being picked up by the rest of the industry, the consequences of these failures have been kept out of the limelight. But there is only so long that any industry, especially one as under pressure as energy retailing, can be expected to swallow the consequences of clear policy and regulatory failures. David Blackman, policy correspondent Leader David Blackman 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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