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UTILITY Week 21st November 2014

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10 | 21st - 27th November 2014 | UtILItY WeeK Interview for price cuts from consumer groups. "Do we pass on lower wholesale costs? Well, we'd be out of business if we didn't pass that on. If the customer buys their energy in the summer then they have the summer prices – if they do it later then they have dif- ferent prices – so on the B2B markets that's really not an issue," Weiss says. Although domestic customers are also free to opt for fixed-price or rolling contracts, Weiss says the rates are not as market-reflective as B2B contracts. But perhaps they should be. "If [a domestic customer] buys a fixed-price contract in January or July you should see a difference in price because the underlying trading market is different," he argues. But the dissatisfaction surrounding domestic retail supply extends beyond price, into customer service, Weiss adds. "If, as a business, you pick up the phone to four or five different suppliers, by the next day you'll have four or five different offers," he says. It's hard to imagine a household having this much buying power. Or, in many cases, a satisfactory response from an energy supplier. And Weiss agrees. "From my personal experience, coming here, it seems really hard for big companies to be personable. I think there is a niche in the market for suppliers who want to treat customers like human beings," he laughs. As a supply company with ambitions for growth and a commitment to customer service, GDF Suez seems well placed to fill exactly such a niche. But Weiss is not easily drawn on the prospect of entering the domestic market. "We have no immediate plans, but of course we watch the market carefully. We would like to be in any chain of the energy business where it is possible and when it is profitable," Weiss says. The issue of profit is not a hindrance, he says. "From what we see in mainland Europe, if you do a proper job, household supply can be more profitable than the business supply side. And that is something that is the next step for us. You see us doing that in mainland Europe so I don't see a reason why we shouldn't – sooner or later, at some time – be here. But again we don't have concrete plans for that," he adds quickly. With the harsh regulatory glare of the CMA focused on the generation and supply market, now might not be the best time to enter a market as politi- cised as the domestic sector. But even though the B2B market is not as firmly in the spotlight, Weiss says the UK's regulatory tangle has very real implications for the market GDF is in. "The rules and regulations are layered on top of each other and when there is a new rule or regulation we see immediately that it impacts the customer. I don't have an opinion about whether this is a good or bad thing, but from a practical point of view I think the industry spends more money on being compliant than we do on innovating our products, and I think that's a pity." The CMA probe could be a good time for the industry to rethink the way that regulation is put in place. It's not all about the rules, but how they are implemented, Weiss argues. And efficiency is key. "Ofgem consults and then comes back with a deci- sion. But what I'm used to in the Netherlands is that representatives from the whole industry make a decision together and they also manage the process together. For example, the national electricity grid, the national gas grid: they have a company together that handles all the energy data, so all the data for the grid and for the customers is all together. It is quite efficient." But for now, Weiss's focus falls on the year-end period when many companies will be looking to agree new contracts for the next calendar year. The goal, he says, is that GDF Suez is always "at least considered" as the supplier of choice. In a sector as competitive as B2B energy, Weiss has his work cut out for him. And he seems rather pleased to be tackling it. He smiles, shrugs. "In a way, it's a nice game to play." "Do we pass on lower wholesale costs? We'd be out of business if we didn't pass that on." Tracking and triads Last month, GDF Suez launched a service to help businesses track their energy use ahead of tight supply periods. The data could help custom- ers minimise TNUoS charges, which are based on average consumption in "triad" periods. The triad refers to the three half-hour settlement periods with highest system demand between November and Febru- ary, separated by at least ten clear days. National Grid uses the triad to determine charges for demand customers with half-hour metering. The triads are determined aer the event using settle- ment metering and may differ from the indicative triads on Elexon's Electricity Data Sum- mary, which uses operational metering. The triads are calculated in accordance with the statement of use of system charging methodology. A triad can occur on any settlement period between the start of November and the end of February. Monday 25 November 2013 had the highest half-hour average demand of 50,694MW between 17:00 and 17:30 and was therefore a triad. No further triads could have occurred between 15 November and 5 December 2013, inclusive, due to the ten clear day rule. The next highest half-hour average demand of 49,947MW occurred on Thursday 30 January 2014 between 17:00 and 17:30 and was therefore a triad. No further triads could have occurred between 20 January and 9 February 2014, inclusive, due to the ten clear day rule. The next highest half-hour average demand of 49,927MW occurred on Friday 6 December 2013 between 17:00 and 17:30 and was therefore a triad. 25 Nov 2013: 50,694MW 6 Dec 2013: 49,927MW 10 Jan 2014: 49,947MW Source: National Grid System demand (MW) 55,000 50,000 45,000 40,000 35,000 30,000 1-Nov-13 3-Nov-13 5-Nov-13 7-Nov-13 9-Nov-13 11-Nov-13 13-Nov-13 15-Nov-13 17-Nov-13 19-Nov-13 21-Nov-13 23-Nov-13 25-Nov-13 27-Nov-13 27-Nov-13 1-Dec-13 3-Dec-13 5-Dec-13 7-Dec-13 9-Dec-13 11-Dec-13 13-Dec-13 15-Dec-13 17-Dec-13 19-Dec-13 21-Dec-13 23-Dec-13 25-Dec-13 27-Dec-13 29-Dec-13 31-Dec-13 02-Jan-14 04-Jan-14 06-Jan-14 08-Jan-14 10-Jan-14 12-Jan-14 14-Jan-14 16-Jan-14 18-Jan-14 20-Jan-14 22-Jan-14 24-Jan-14 26-Jan-14 28-Jan-14 30-Jan-14 1-Feb-14 3-Feb-14 5-Feb-14 7-Feb-14 9-Feb-14 11-Feb-14 13-Feb-14 15-Feb-14 17-Feb-14 19-Feb-14 21-Feb-14 23-Feb-14 25-Feb-14 27-Feb-14 System demand Triads Clear days

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