Utility Week

16 | 26TH APRIL - 2ND MAY 2019 | UTILITY WEEK This week Funding delays Tonik Energy accounts £10.3 million investment in February resulted in its accounts becoming overdue on 20 March A "significant funding injection" has resulted in the accounts for challenger supplier Tonik Energy being listed as "overdue" on the Companies House website. Tonik has revealed it received a £10.3 million investment from Tokyo-based trading company Mitsui & Co in February this year, and as a result its accounts became overdue on 20 March. Chris Russell, managing director at Tonik, told Utility Week: "Given the size of the investment and proximity to the accounts filing date, this has delayed the signing and filing of the financial statements. "We have been in regular dialogue with Companies House, who were aware the filing would be delayed. We are working closely with our auditors, PwC, to finalise these and now expect the accounts to be filed by the end of April. The directors are confident that the five-year plan will continue to be met." Overdue accounts or extending an accounting period can be an indication suppliers are in trouble – as recently demonstrated by the demise of Economy Energy. The supplier extended its accounting period, later went into credit default and then ceased trading in January. An industry source previously told UW there was a "concerning trend" of suppliers who are late filing their accounts, or who reduce their accounting year end by one day to buy an extra three months to file their accounts: "This can be linked to disagreements with auditors over the state of the accounts – or the accounts not being in a fit state to file." AJ ELECTRICITY Nuclear innovation 'needs extra £1bn' The government has been urged to invest an additional £1 billion in its Nuclear Innovation Programme by 2025 on top of the £180 million it has already pledged to spend by 2021. The Nuclear Innovation Research and Advisory Board (NIRAB) says £600 million should be spent on a demonstra- tion programme for advanced nuclear technologies, including small modular reactors, and that at least one pilot should be up and running by the mid-2020s. "Government support for the demonstration of new, advanced concepts is essential for attract- ing and making feasible the necessary scale of private invest- ment," the board explains in a new report. In addition to the £600 mil- lion for demonstration projects, the report says the government should invest £100 million in supporting infrastructure and £300 million in "key UK capa- bilities" and the supply chain. ENERGY Ombudsman owed by failed suppliers Several failed energy retailers have exited the market owing the Energy Ombudsman money, meaning customers who filed a complaint cannot receive redress. Ombudsman Services, which is responsible for the Energy Ombudsman, said while the supplier of last resort process ensures continuity of energy sup- ply for consumers and protects credit balances, it does not cover complaints to the Ombudsman. A spokesperson said: "This means that if a consumer com- plains to us about a supplier that subsequently ceases trading, there is no formal mechanism that enables the complaint to be resolved or the consumer to receive redress. "We are funded by the fee a company that is signed up to our scheme pays to have each com- plaint reviewed. This covers the cost to us of handling the case." Estimates by CityAM indicate the Ombudsman could be owed around £1 million. ELECTRICITY Drax shareholders vote against pay rise Almost a fi¡h of shareholders (19.33 per cent) at Drax rejected a motion to approve its remunera- tion report increasing executive pay at the company's annual general meeting on 17 April. Drax group chief executive Will Gardiner received £1.9 mil- lion in remuneration in 2018, up from £790,000 the previous year, when he was chief finance officer. Drax Power chief executive Andy Koss received £806,000, up from £632,000. Russell: working closely with auditors PwC Stock watch 16 15 14 13 12 11 EDF SHARE PRICE, ONE MONTH Dec 2018 Feb 2019 Apr 2019 EDF SHARE PRICE, SIX MONTHS EDF shares have gained almost 6 per cent in value since 15 April, following reports in the daily newspaper Le Parisien that the French government – its majority owner – is preparing to renationalise the group's nuclear operations. Having closed at €12.12 on Friday 12 April, the shares were selling for €12.78 as Utility Week went to press on 23 April. 13.0 12.5 12.0 11.5 28 Mar 2 Apr 5 Apr 10 Apr 15 Apr Finance & Investment euros euros 18 Apr

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