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UTILITY Week 17th March 2017

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8 | 17TH - 23RD MARCH 2017 | UTILITY WEEK Water brokers Orchard Energy Orchard Energy has been active in the energy market for more than 12 years. It was independently owned until 2015, when managing director Gareth Henderson (pictured) sold the busi- ness to asset and energy support services company Lake- house Group. The company views the deregulation of water market in England as "a real opportunity for growth", and expects to win new water clients, and potentially new energy clients, as a result. The broker has been an active participant in the Scottish market for more than four years and says this has really grown the business. Despite the consensus that conditions in the new open water mar- ket will be challenging and margins tight, Orchard believes brokers and consultancies will play an integral role in the development of the market. The 80-strong team has combined experience of more than 50 years in the water industry, and the broker says it plans to use that experience to "make sure customers get the best deal". The company says it does not want to "force a customer down a particular route", and will cater to each individual customer's requirements – in Scotland it offers complete end-to-end utility man- agement for some customers, just water management for others, and only energy management for others. Its overall aim is to be a one-stop shop for customers' water and wastewater needs, from bill validation, revenue recovery, historic invoice analysis and ultimately brokering customers water contracts, through to helping customers with smart metering, leak detection and repair, and water auditing. For now, the company will address all segments of the market. It has not focused on a particular niche, but that may change as the market evolves and it starts to pick up new customers. In the run-up to the deregulation of the market, Orchard is car- rying out PR around education and awareness of the deregulation. This, is says, has generated a lot of enquiries into the business. In Scotland, the company set up a panel of water suppliers that it believes can deliver – both commercially and operationally – for customers. To make it on to the panel, retailers must go through Orchard's due diligence process to ensure they will deliver what they say they can. Only then will the broker place business with them. It is planning on using the same model in the English market, and has already set up a panel, which so far includes Water Plus, SES Business Water, Anglian Water Business and Business stream. The broker's plan now is to bring on some of the smaller independents such as Everflow, with whom it is currently in discussion. The broker has plans for expansion – in both energy and water – and its business plan has been signed off by the Lakehouse board of directors. The growth will begin with the expansion of Orchard's sales and back office teams. Utilitywise Utilitywise was set up ten years ago to help what it saw as the most poorly-served section of the market – small and medium- sized businesses – procure their gas and electricity. Since its establishment in 2006, the broker has grown to more than 1,500 employees and serves around 38,500 customers across Europe. It has established trading relationships with several major UK energy suppliers. In that time, Utilitywise has developed its service offering to energy customers and now provides a four- step service: 1. A bill-check, to let a customer know if they are pay- ing too much. 2. Analysis of the market, to find the best-priced energy contract – either by negotiating a better deal with the current supplier or recommending a new supplier. 3. A switching service, to manage the process if the customer decides to switch supplier. 4. Ongoing account management, to offer support to the customer, the account management team can talk to them about any problems they experience with their energy account. The account manager then works with the business customer to create and deliver a "utility management plan", which aims to save time and money through pro- active management of their utility services. Utilitywise has been preparing for the deregula- tion of the English water market since last year and, as part of these preparations, commissioned a survey through Edelman Intelligence to gauge what consum- ers want from their water provider in the open market. In response to the results of this research, the broker partnered with Scottish water retailer Business Stream to provide customers with a triple utility offer incorpo- rating water, gas and electricity. The offer is available in the Scottish market and Utilitywise says it has, so far, been well received by customers. The broker will establish similar partnerships in England once the water market opens, providing cus- FACT FILE Founded: 2004 Headquarters: Elland, West Yorkshire Employees: 100+ Target market: all, in the short-term Clients: 1,500+ Managing director: Amar Hussain Finance director: Simon Worrall Revenue (2015): £5.3 million Pre-tax profit (2015): £1.3 million Fee or commission: either, depending on what customer wants Additional: Founding members of the Utilities Intermediaries Association Utility Helpline Utility Helpline was set up by its now managing director Richard Bonelle, and has been active in the business energy market for more than ten years. It employs eight people, including Bonelle. The broker has more than 3,000 clients. Its client base is wide-ranging and it does not target any one sector, although it works closely with licensed premises such as hotels, bars, pubs and restaurants. The company also works with a number of buying groups within that sec- tor, to assist their clients. Utility Helpline is privately owned, and is part of Sid- ney Phillips – a property management company that sells licensed premises. The company has retained all the customers it won on day one. It works on a fee basis, commission and also per- centage of savings. It says that how it works depends

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