Utility Week

Customers UTILITY WEEK | 15TH - 21ST MARCH 2019 | 27 Nottingham City Council has applied to Ofwat for a self- supply licence, which would allow it to provide its own water retail services. In its application, the council said it intends to introduce a water self-supply model for its operational sites and the com- munal areas within its invest- ment portfolio and Nottingham City Homes properties – which WATER Nottingham Council bids to self-supply water retail services encompass around 377 supply point identifiers (SPIDs). It added that the introduc- tion of a self-supply model will enable an "improved standard of performance monitoring, control of budgets and reduced water consumption as well as more tailored customer service". Alongside the model, the council is introducing a water efficiency loan scheme to deliver water efficiency projects in order to generate additional water utility savings. It is anticipated that, if the licence is granted, Nottingham City Council would access whole- sale water prices, securing cost savings of 10 per cent. Combining water savings and efficiency indi- cates that a total of 10 per cent will be saved per annum based on the baseline figure (2016/17). This week Brilliant Energy is third to fail in 2019 London-based supplier ceases trading just days after it was revealed to be in credit default Brilliant Energy has ceased trad- ing just days aŽer it was revealed to be in credit default, Ofgem announced on 11 March. The London-based supplier had around 17,000 domestic customers and also supplied customers under a white label agreement with Northumbria Energy. Industry regulator Ofgem will now choose a new supplier for the customers; Philippa Pickford, director for future retail markets, said: "Our message to energy cus- tomers with Brilliant Energy is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected. "Ofgem will now choose a new supplier for you, ensuring you get the best deal possible. Whilst we're doing this our advice is to 'sit tight' and don't switch. You can rely on your energy supply as normal. "We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers." Responding to the news, Matthew Vickers, chief executive at the Energy Ombudsman, said: "The collapse of an energy supplier can be a stressful and unsettling experience for consumers. "We are keen to work with whichever supplier is appointed to take on Brilliant Energy's customers in order to find the best possible outcome for the small number of consumers who have a complaint about the failed company open with us." The collapse of Brilliant Energy marks the third time a supplier has ceased trading in 2019. It joins Economy Energy, which was also in credit default prior to market exit, and Our Power. AJ ELECTRICITY Ofgem warns DNOs over connections Ofgem has warned electricity distribution network operators (DNOs) to make improvements to connections and environ- mental outputs, as the regulator published its annual network report on 8 March. The RIIO-ED1 report outlines key findings for the DNOs' performance in 2017/18 – the third year of the eight-year price control period, which runs until 2023. It shows how the 14 DNOs operating in Great Britain, which are managed by six companies, have performed against their agreed outputs and incentives, innovation schemes and overall financial performance. The regulator said DNOs "continue to perform strongly" against four of the six output categories: reliability and avail- ability, customer satisfaction, social obligations, and safety. But it suggested there is "scope for improvement" in connections and environmental outputs. Despite the potential for financial rewards associated with connecting customers to the network in an "efficient and timely manner", six of the 14 DNOs missed their targets. Northern Powergrid (both its North East and Yorkshire licen- sees), UK Power Networks' East- ern Power Networks licensee, SP Energy Networks (both licen- sees) and Scottish and Southern Electricity Networks' (SSEN) Southern Electric Power Distri- bution licensee were all shown to have missed their "time to connect (TTC) incentive targets". Ofgem noted this is an improvement on the previous year, when eight DNOs missed their targets, but said it wants to see all DNOs meet their target and "learn lessons" from those that have. The TTC sets common targets for the time to both quote and connect customers to the net- work and resulted in a total pay- ment of £12.8 million in 2017/18. ENERGY Outfox the Market is latest to cut prices Outfox the Market has become the latest supplier to announce it is dropping prices, following other challenger suppliers. The energy retailer, which has more than 90,000 custom- ers, says it has cut gas prices by 5.5 per cent and electricity unit rates by 2.5 per cent, meaning customers will see a 3.4 per cent reduction in energy prices over- all – with the average bill falling by more than £40 a year. Outfox joins renewable energy supplier Bulb and Igloo Energy, both of which announced recently they were cutting prices. Outfox the Market chief executive Keith Bastian said: "Despite what many suppliers may want you to believe, the price of the commodity has reduced in recent weeks and as promised, we pass these savings back to our customers." Vickers: collapse of a supplier can be 'stressful' Nottingham is the second council to have applied to self-supply, aŽer Blackpool was granted its licence last June. If successful, it will be the tenth self-supplier. The others are brewers Greene King, Marston's, Heineken and Stonegate, hospi- tality firm Whitbread, soŽ drinks maker Coca-Cola European Part- ners, laundry firm Berendsen, and telecoms company BT.

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