Utility Week

Customers UTILITY WEEK | 10TH - 16TH MAY 2019 | 29 Eversmart Energy has launched a fixed tariff, which the company claims is the cheapest on the market. The "She's Electric" tariff has an average cost of £888 a year for Eversmart's 100 per cent renewable electricity, which the company claimed beat other deals by more than £40 at the time of launch (25 April). It said the tariff was more than £360 a ENERGY Eversmart Energy launches 'cheapest' fixed energy deal year cheaper than the average big six tariff, priced at £1,248. Eversmart Energy chief executive Barney Cook said: "W e pride ourselves on being able to competitively price our tariffs whilst still offering great customer service. "The smart metering rollout has helped to massively drop operational costs within the business, allowing us to pass on the benefits to our customers. "The world of marketing has changed dramatically with the rise of social media. Our best marketers are our own custom- ers. By providing the cheapest energy with great customer service, our products effectively market themselves. "Avoiding commercial rela- tionships with price comparison sites also means we can pass on This week Micro businesses fail to engage with market Regulator to review micro business market as customers struggle to make informed decisions Ofgem is "concerned" that some micro businesses are struggling to engage with the market and are paying more for their energy than they should. This has prompted the regulator to launch a strategic review of the £3.5 billion micro business energy market. A micro business is defined as a business that consumes no more than 293,000kWh of gas or 100,000kWh of electricity a year or has fewer than ten employees and an annual turnover not exceed- ing €2 million. Market information for micro businesses is "o•en inaccessible" and results in customers paying high prices and struggling to make informed decisions, according to Ofgem's initial analysis. The regulator says it has found that micro businesses that do not engage in the market pay a higher "loyalty penalty" than disengaged domestic consumers. In 2016 the Competition and Markets Authority ordered suppliers to provide clear pricing to micro business customers through a quotation tool on their websites or through price comparison websites, to help micro businesses engage in the market. Ofgem implemented this the following year and last week published an evaluation of its effectiveness. It suggests that while there has been an improvement in the level of price information available, it has had only a limited effect on engagement levels and has failed to address some of the fundamental problems in the market. The regulator will now gather further evidence before publishing its action plan this coming winter. Responses are due by 21 June. AJ ELECTRICITY ENW forms customer engagement group Electricity North West (ENW) has appointed eight industry experts to its newly established customer engagement group (CEG). As part of the RIIO2 price controls set out by Ofgem, dis- tribution network operators are required to set up independently chaired CEGs. This, the regulator says, will challenge the business plans proposed by the network companies for the next round of price controls. ENW's appointees will hold their first meeting this month. They are: • Jayne Scott, a former non- executive director at Ofgem; • Professor Jovica Milanovic, deputy head of school and head of Electrical Energy and Power Systems Group at the School of Electrical and Elec- tronic Engineering, University of Manchester; • Bev Keogh, a former director at Scottish and Southern Electricity; • David Holden, who sits on the Heathrow consumer challenge board and Ofcom's consumer communication panel; • Caroline Farquhar, senior pol- icy researcher in the energy networks and systems team at Citizens Advice; • Todd Holden, director for low carbon at The Growth Company; • Jenny Willis, who has sup- ported SGN and SP Energy Networks with their stake- holder engagement; • Independent board secre- tariat and report dra•ing is being led by Gemma Osula. The group is headed by inde- pendent chair Jeff Halliwell. ENERGY Epex Spot acts to avoid 'distorting competition' Ofgem is minded to close an investigation into power exchange company Epex Spot a•er it committed to take steps to avoid distorting competition. Before it makes the final deci- sion, the regulator has opened a public consultation and will consider comments raised about the commitments Epex and its parent company EEX have made. In December 2018, Ofgem launched an investigation under into whether Epex had "abused a dominant position" by failing to take the steps required to enable main rival Nord Pool to participate in certain electricity trading auctions. As a result of the investiga- tion, Epex has committed to take steps to enable Nord Pool to participate in the auctions and to carry out an internal review of its competition law training. Responding, a spokesman for the company said: "At this stage of the investigation, Ofgem has preliminary concerns only. Epex Spot's offer of commitments to Ofgem does not constitute or imply any admission of any wrongdoing by Epex Spot." High prices: micro businesses can pay too much further savings to our custom- ers." In April, Ofgem's revised price cap came into effect, which led to a number of suppliers raising their prices, including all of the big six. The latest switching figures show that the movement of customers from larger suppliers to small and medium-sized ones continues to gain momentum.

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