Utility Week

Utility Week 10th May 2019

Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government

Issue link: https://fhpublishing.uberflip.com/i/1114444

Contents of this Issue

Navigation

Page 16 of 31

UTILITY WEEK | 10TH - 16TH MAY 2019 | 17 Operations & Assets Operations & Assets Power Renewables invested more than £500 million for the project develop- ment. The expansion increased the total number of turbines to 215 and the total capacity to 539MW. The wind farm now has the capacity to provide power to 330,000 homes, more than the number of households in Glasgow. A planning application to the Scot- tish Government for a third expansion to add five turbines and increase the overall capacity by 12MW was made in 2012. It was declined and the decision is being appealed. If you have an asset or project you would like to see featured in this slot, please send your pictures and details of the project to: paulnewton@fav-house.com. Market view The big threat of auto-switching Vicky Bullen says brand will be all-important in a digital-first world of automatic switching. T wo years ago the government introduced a policy to make it easier to switch provider, and to its credit consumers are switching more than ever as a result. With a more level playing field, the number of disrup- tive new energy providers has burgeoned, the tanks of tech-savvy challengers like Octopus and Robin Hood parked on the lawns of the big six. Competition has driven down prices and improved customer service. But according to consumer group Which?, two-thirds of its members have still never switched energy suppliers. Great news for the big six, no doubt. Eon was first to announce that its tariffs would rise to essentially the maximum permitted under the newly introduced price cap and the other five have followed suit. But this gravy train won't last. Profits at Britain's biggest energy firms fell from £1 billion to £900 million in the face of tough competition, and their market share dropped to a record low as more than a million customers le' them for smaller challenger companies. Despite switching being easier the process still requires a fair amount of manual input – especially through traditional price comparison services like Com- pare The Market or Uswitch. But some new firms offering automatic switching are disrupting the sector, ensuring consumers are always on the cheapest rate possible. Switchcra', for example, is an online service where customers enter their details once and are automatically moved to the best possible energy deal. Monzo offers a similar service, as does Flipper, which promises to take care of the "tedious and complicated process of energy switching for you". Backed by serious marketing, these services all prom- ise to lower rates by hundreds of pounds a year. And this presents a challenge for the big six. When switching becomes a wholly automatic process from which the consumer is detached, it risks eroding the relationship with the originator brand. The big six need to provide a reason for consumers to not look elsewhere. Cost, convenience, technology and customer service will carry them so far. But they need to double down on brand – to improve their image and prove that their decades of insight and experience are enough of a dif- ferentiator to combat the start-ups' promises. Brand is about more than logos and identity. It means providing a great experience. Ensuring employees are engaged, willing and able to answer customers' questions. To be useful and positive; adapt to stay relevant. There's little doubt the big six's market share will continue to erode. Just how far is up to them. Vicky Bullen, chief executive, Coley Porter Bell

Articles in this issue

Links on this page

Archives of this issue

view archives of Utility Week - Utility Week 10th May 2019