Utility Week

Customers 28 | 10TH - 16TH JANUARY 2020 | UTILITY WEEK The Smart Export Guarantee, requiring all suppliers with more than 150,000 domestic custom- ers to offer an export tariff for small-scale renewables, has come into effect with the begin- ning of the new year. The measure was introduced as a replacement for the feed-in tariff (FIT) scheme, which closed to new applicants in March 2019. "It's a New Year and a ELECTRICITY League table shows varied response to export tariff obligation positive new start for owners of small solar PV systems," said Chris Hewett, chief executive of the Solar Trade Association (STA). "A'er a nine-month policy gap, the new Smart Export Guarantee (SEG) should help boost interest in solar as leading electricity suppliers compete with each other to offer attractive payments for clean power exported to the grid. "As more and more house- holds take steps to do their bit in the fight against the climate emergency, we hope that today's SEG launch will have a positive impact on the market and help the solar industry to build on our track record of a million solar homes delivered to date." According to the STA's league table for SEG-compliant tariffs, This week iSupply to pay £1.5m after price cap breach Ofgem says senior employees were aware of the breach in January 2019 but did not report it Challenger brand iSupply Energy will pay £1.5 million into a volun- tary redress fund a'er breaching the price cap and overcharging customers around £36,000. Ofgem said iSupply, which was acquired by Swedish energy group Vattenfall in 2017, also failed to alert the regulator to the breach or put things right quickly. For the first price cap period (January to March), iSupply overcharged around 4,400 customers £36,270 in total. For the second price cap period (April to Septem- ber), 25 customers were collectively overcharged by £53. Ofgem revealed that senior employees were aware of the breach in January 2019 but did not report the issue. In August, however, a whistleblower came forward with credible information, supporting Ofgem's own monitor- ing and compliance activities on the issue. The regulator found iSupply had insufficient govern- ance and processes in place to prevent and swi'ly address the non-compliance. It did not correct customers' tariffs or issue refunds to those affected in a timely manner. Affected customers have since been refunded and iSupply has also confirmed it has improved its gov- ernance and processes and will continue to invest in process and systems change to ensure these or similar issues do not reoccur. Ofgem has decided not to take formal enforcement action a'er considering the steps iSupply has taken to address its failings and the redress it has agreed to pay. Anthony Pygram, director of conduct and enforcement at Ofgem, said: "The action we have taken against iSupply sends a strong message that all suppliers must treat their customers fairly and quickly address known harm so that customers are protected, or face the consequences." AJ WATER CCWater: don't mislead customers about lower bills Customers will feel misled if water bills rise a'er promises of lower prices in PR19, the water watchdog has warned, while predicting increases from five companies. The Consumer Council for Water's chief executive Tony Smith urged caution to prevent customers feeling confused about the cost of water following the price review and told Utility Week there is more to be done on affordability. "It's a good start and we are pleased Ofwat has been tougher on the industry than it has in the past. On the face of it this looks like a tougher deal and com- panies will have to work a lot harder to deliver for customers," Smith said. He explained that some customers would feel misled by the way Ofwat and the industry express bills in "real terms" but without adding the effects of inflation. "The bill reduction also excludes the effect of any incen- tive benefits the company gets, so customers could be confused by that," Smith said. "We always have a look at the effects of inflation and there are a few companies that – depending on the rate of inflation – some will have prices going up." Smith predicted an inflation rise of 2 per cent would see bills for Hafren Dyfrdwy go up by £25 and Thames by up to £10 as well as increases from Portsmouth, South East and Affinity over the five-year period. ENERGY Switching on track to break 2018 record Energy UK says the number of electricity switches in 2019 will surpass last year's record of 5.8 million. In the latest switching figures released on 16 December, the trade body said more than half a million (502,817) customers switched supplier in November 2019, up 1.2 per cent on the same month the previous year. This brought the total num- ber of switches in the first 11 months of 2019 to 5.8 million – up 8.4 per cent on the previous year and equalling 2018's total. ENERGY New retail MD for EDF Energy Philippe Commaret has been appointed as managing director of EDF Energy's Customers busi- ness, overseeing the company's UK retail arm. Commaret moves from EDF in France, where he worked as director of sales. He was previously director general of ES Energies Strasbourg, part of a majority-owned subsidiary of EDF Group. He succeeds Beatrice Bigois, who became chief executive of EDF Trading at the end of the year. Pygram: suppliers must address known harm at least three suppliers are will- ing to match or exceed the most recent FIT rate of 5.4p/kWh. Social Energy is offering 5.6p/ kWh, while Octopus Energy and Eon are both offering 5.5p/kWh. However, the SEG only requires that the payments be "greater than zero at all times of export" and some of the tariffs in the table are worth much less than these headline figures.

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