Utility Week

4 | 13TH - 19TH DECEMBER 2019 | UTILITY WEEK Seven days... Energy supply giants muscle out minnows Big companies are dominating the energy supplier best-buy lists for the first time in more than a year, as smaller rivals struggle to offer cheap deals and stay in business. Deals from new suppliers traditionally top the best-buy tables as the fledgling firms seek to build their market share. However, they have now been muscled out by a "full-blown punch-up" between the big five energy providers — British Gas, Eon, EDF, Scottish Power and SSE — over prices. The Times Robin Hood delays council's accounts Robin Hood Energy, Britain's first council-owned energy supplier, has caused a delay of three months to the publication of Nottingham City Council's accounts. Officials have been unable to sign off on the books because they are waiting for information about Robin Hood, which has hit financial trouble. The company's accountant, BDO, is yet to finish its audit. Robin Hood's finances have been under scrutiny since the council was forced to lend it an extra £9.5 million earlier this year. Daily Telegraph Smart meters failing to reduce demand Only one in three households have reduced their energy use aŽer having a smart meter installed, a damning survey has revealed. The gadgets promised to slash bills by showing households how much they were spending. But a survey of 1,000 house- holds by researchers Consumer Intelligence for the Daily Mail found that 53 per cent of smart meter own- ers had not changed their energy usage aŽer having one installed. Only 31 per cent said they were using less power. Daily Mail In the media Renewables Obligation shortfall is almost £100m A lmost £100 million in Renewables Obligation (RO) payments is owed by energy suppliers, many of which have le• the market, Ofgem has confirmed. As a result, the energy regula- tor has announced that mutuali- sation is to be triggered for the second time in as many years. In line with the RO orders, suppliers who discharged part or all of their obligation will be contacted to make quarterly pay- ments to make up the shortfall, in proportion to their obligation. In total, the shortfall is £97.5 million, and a majority of the suppliers named by Ofgem have ceased trading. Hudson Energy Supply, which is listed as owing more than £37 million, was recently bought by Shell Energy Retail. In October, Ofgem issued a final order to Gnergy to meet its outstanding payment plus inter- est by 31 October 2019. Breeze and Nabuh were also issued with a provisional order to com- pel them to pay by 31 October. Nabuh, Planet 9 Energy and Hudson Energy made payments shortly a•er the late payment deadline. Payments received a•er the late payment deadline total £38.7 million, which will be redistributed at a later date. Ofgem is unable to pursue enforcement action against sup- pliers that ceased trading before obligations became due, but it said it would seek to recover outstanding money through the organisations' administrators "where appropriate". In response to the news, Gillian Guy, chief executive of Citizens Advice, said: "House- holds are picking up an ever- increasing bill as more suppliers go to the wall. If other suppliers fail in the future, that bill is likely to keep rising. "Ofgem has proposed meas- ures to limit the costs to consum- ers, but more action is needed. The government should legislate to compel suppliers to make industry payments – in particu- lar the RO – more regularly. "This would stop suppliers from building up such high levels of debt and stop consum- ers from being the ones to foot the bill." AJ "If we don't get it right, we will still be talking about this in ten years' time and frankly it will be too late" Lord Deben, chair of the Committee on Climate Change, says all three major parties are approaching the issue of climate change too "delicately". STORY BY NUMBERS Battery storage is growing RenewableUK statistics show the electricity storage market is growing rapidly. 10.5GW Capacity of battery storage projects for which planning permis- sion was sought in the UK in the past 12 months. 6.9GW Comparable figure last year. 2MW The planning permission figure in 2012. 150 Number of firms who entered the sector over the past year, taking the total to 450. £1.6bn Planned battery and EV charging station invest- ment by Pivot Power, acquired by EDF Energy last month. Renewable subsidy fund will be mutualised among the other suppliers

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