Utility Week

Customers UTILITY WEEK | 5TH - 11TH APRIL 2019 | 23 Octopus Energy has launched a new tariff to replace the export element of the feed-in tariff (FIT) that closed to new applicants at the end of March. The supplier says its Outgoing Octopus tariff will allow custom- ers to sell surplus electricity from roo•op solar panels at a higher price than under the govern- ment's subsidy scheme. "Outgoing Octopus is ENERGY Octopus launches new export tariff following closure of the FIT designed to make it easy for households to choose to go green," said Octopus Energy chief executive Greg Jackson. There will initially be two var- iations of the tariff. Customers on Outgoing Octopus Fixed will be paid 5.5p for each kilowatt hour they export to the grid. Those on Outgoing Octopus Agile will be paid at a variable rate reflecting half-hourly prices in the wholesale market. Octo- pus says the time-of-use tariff will allow customers to boost their earnings by storing excess electricity in batteries when prices are low and then selling it when they rise. James Court, policy and external affairs director at the Renewable Energy Association, said: "Octopus Energy is at the forefront of a new era for renew- This week Aquaflow 'likely' to enter liquidation Ofwat estimates 74 business customers will be affected by water retailer going into administration As the non-domestic water market approached its second anniversary on 1 April, a water retailer informed Ofwat that it is "likely" to enter liquidation and become the first to exit the market. The regulator will be stepping in to protect the customers of Aquaflow Utilities, which was granted its supplier licences on 4 January 2018. Ofwat anticipates around 74 business customers will be affected by the retailer going into administration, but it has advised it will ensure customers have a new retailer "as soon as possible". Aquaflow Utilities is expected to enter liquidation as of midnight on 9 April and Ofwat will use its powers under the interim supply code to protect customers. Emma Kelso, senior director of customers and casework at Ofwat, said: "Aquaflow customers should be reassured that we have procedures in place to ensure there will be no disruption to your water and wastewater services. "We are working alongside the market operator MOSL to allocate customers to a new retailer as quickly as possible. They will contact affected customers shortly a•er being appointed. "Of course, it is always difficult to see a company fail, but this is the market in action. Not all retailers will thrive and it is possible that, in the future, others will leave the market too." Ofwat published a "notice of revocation" on its website in relation to Aquaflow Utilities' licences, which came into effect at 3pm on 28 March. Aquaflow Utilities has been contacted by Utility Week for comment. KP ENERGY Revised price cap comes into effect Ofgem's revised price cap on standard variable and default tariffs came into effect on 1 April. The energy regulator, which announced the changes in February, has raised the level of the cap to £1,254 – an increase of £117. The price cap for prepayment meter customers increased by £106 to £1,242 a year for the same period of a six-month "summer" price cap. The new level will be reviewed again later in the year. The rise has prompted con- cerns from the sector, with many urging customers to switch away from standard variable tariffs (SVTs). Natalie Hitchins, Which? head of home products and services, said: "Many people who hoped the price cap would bring an end to unwelcome price increases will be le• reeling a•er the price hike on Monday adds more than £1 billion to their [collective] energy bills." Lily Green, head of research at auto-switching service Look A•er My Bills, said 17 energy companies are raising prices. "The price cap has become an excuse for a price rise. Suppliers big and small are raising prices as high as they can," she said. "No less than 17 energy companies are raising prices, including all of the big six. "A big six supplier has never raised prices by this much in one go. There's no doubt many more suppliers will follow." ENERGY Supplier pledges to share with charities A new energy supplier launched on 27 March, promising to give a "significant" share of its business to charities. Home Energy has pledged to donate roughly 1.5 per cent of its annual income to customers' chosen causes as well as a fi•h of the cash value of the company "when it floats on the stock market around 2025". The fledgling firm says it should provide most of its cus- tomers with a "notable saving" against the revised energy price cap. It is offering the first 5,000 to sign up a 5 per cent rebate on their initial annual bill. Customers can now nominate charities to benefit from the company's eventual flotation. In the meantime, 20 per cent of its shares will be held by a charitable trust. Kevin Stoker, founder and chief executive of Home Energy, said: "We're determined to set an example of how companies and charities can work together — creating new ways for ethi- cally minded people to give to good causes, simply by being a customer. "We're sharply focused on what we know many customers want — a competitively priced supplier providing excellent service." Kelso: 'this is the market in action' ables and this tech innovation, arriving at the moment the feed- in tariff drops away, is hugely welcome and exciting news for industry and consumers." The government is planning to replace the export tariff with a new smart export guarantee that forces suppliers to pay eligible generators for electricity supplied to the grid whenever wholesale prices are positive.

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