Utility Week

4 | 24TH - 30TH JANUARY 2020 | UTILITY WEEK Seven days... 'Price cap has failed to end rip-offs' Theresa May's energy price cap has failed to tackle the problem of electricity rip-offs because she introduced the "wrong kind" of limit, according to the ex-minister who led the Tory campaign for action. John Penrose said the "gap" between default tariffs and the cheapest deals available to those who switched had risen to £300 – a similar level to before the cap was implemented last year. He is calling for the current cap on overall bills to be replaced with a £150 limit on the gap between default tariffs and the cheapest ver- sions available. The Times Wind farms paid to switch off turbines Energy firms were handed more than £12 million in compensation following a fault with a major power line carrying electricity to England from turbines in Scotland. The payouts, which will ulti- mately be added onto consumer bills, were between 25 per cent and 80 per cent more than the firms, which own giant wind farms in Scotland, would have received had they been producing electric- ity, according to an analysis of official figures. The Sunday Telegraph Mini-nuclear plants set for the North The first of a new generation of revolutionary mini-nuclear power stations is to be built in the North of England and North Wales by a consortium led by Rolls-Royce. A number of existing licensed nuclear sites have already been informally discussed within Whitehall. The sites under consideration include Moorside in Cumbria and Wylfa in North Wales. The Mail on Sunday Press roundup 'No end in sight' for Octopus acquisitions, says CEO O ctopus Energy chief executive Greg Jackson has told Utility Week there is "no end in sight" for acquisi- tions as the challenger brand last week made its sixth such deal in two years. The company is acquiring the 70,000 domestic customers of Engie as the French firm exits the UK domestic energy market. Engie, meanwhile, insisted it is "deeply committed" to the UK market. Engie will instead shi„ its focus to working with busi- nesses and local authorities, helping them to improve the efficiency of their operations and reduce carbon emissions. Nicola Lovett, chief executive of Engie in the UK and Ireland, said: "Our decision to exit the UK residential energy supply market is driven by our focus on activities closely aligned to our UK strategy of making zero carbon happen for businesses and local authorities. "Octopus is a strong, well- established business and a good fit for our UK residential retail customers. We are incredibly proud of what we have achieved in a short space of time and believe we have influenced the market for the benefit of customers. "Engie remains deeply com- mitted to the UK and we will continue to invest and play a leading role in the UK's journey to a net zero future." Speaking to Utility Week, Jackson hailed the firm's Kraken platform as giving it the "com- petitive edge". He said: "Our platform enables us to migrate more cus- tomers more easily than rivals can. The tech process of making acquisitions and integrating is pretty painless for us." When asked about further acquisitions, he said there was "definitely no end in sight". As a result of this acquisition, Octopus now supplies 1.4 mil- lion UK customers, with a 5 per cent share of the domestic mar- ket, an increase from 500,000 at the end of 2018. Last year it acquired 300,000 customers from Co-op Energy, while last week it began supply- ing customers via the council- backed London Power. Octopus also supplies customers via M&S Energy and Affect Energy. Octopus Energy for Business, meanwhile, manages more than 10,000 customers. AJ "The hard truth is that none of the companies in this market are currently turning a profit." Sarah McMath, chief executive, MOSL. See interview, p6 STORY BY NUMBERS UK's green economy grows The latest figures on the UK's green economy, published by the Office of National Statistics. 46.7bn Turnover of the UK's low-carbon and renewable energy economy in 2018. £2.1bn Increase on year before. 5,000 Rise in number of people directly employed by the sector, to an equivalent of 224,800 full-time jobs. £19.3bn Turnover accounted for by energy-efficient products. £4.4bn Amount low- emissions vehi- cles accounted for, the second in terms of revenue, followed by bioenergy at £4.3bn and nuclear at £3.8bn.

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