Utility Week - authoritative, impartial and essential reading for senior people within utilities, regulators and government
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UTILITY WEEK | 29TH SEPTEMBER - 5TH OCTOBER 2017 | 5 ENERGY Eon to replace SVTs with fixed- price contracts Eon UK has become the first of the big six energy suppliers to commit to replacing its standard variable tariff (SVT) with a one-year fixed price contract, as part of a package of measures to boost customer engagement. Smart meter customers and those having a new meter installed will be offered the one-year deal. "Standard variable tariffs have had their day. Tomorrow is about customers feeling free to engage with the market with tariffs that work for them," said Michael Lewis, chief executive of Eon UK. From early 2018, SVTs will no longer be the default option for people coming to the end of their existing tariff, Eon said. Instead, they will have the option to roll over on to the latest version of its fixed- term contract. See analysis, p10 52% Amount of electricity generation over the summer that came from low-carbon and renew- able sources, according to National Grid. £262 million Amount raised by Greencoat Capital's Greencoat Solar II fund, from some of the UK's largest corporate pension schemes. 116 The last of 116 turbines has now been installed at the 400MW Rampion offshore windfarm being built by Eon, the UK Green Invest- ment Bank and Canadian energy infrastructure company Enbridge. See High viz, p18 "This is the biggest time of change that I have ever seen in the water sector in the UK, and I have been in the sector for 35 years" Southern Water chief executive Ian McAuley hails the sector's transformation at a day held by the wholesaler for water retailers on 20 September. Gardiner to replace Thompson at Drax Drax Group has announced that its long-serving chief executive, Dorothy Thompson, is step- ping down at the end of the year and will be replaced by chief financial officer Will Gardiner. Thompson has been at the helm for 12 years, during which time the company has undergone fundamental change. Three of its four coal-fired units have been con- verted to biomass and the company has expanded into retail supply. Gardiner joined Drax as group chief financial officer and became a member of the group's board in November 2015. He is currently responsible for finance, strategy and IT systems. Before joining Drax, Gardiner was the chief financial officer at the international semi- conductor business, CSR plc. EXECUTIVE MOVES OUT IN Utilities face 2030 'nightmare' On-site renewable generation will be able to match the grid on both service and cost by the end of the next decade, according to research by Imperial College London. The falling cost of solar panels and storage are set to create a "nightmare situation" for utilities as it becomes profitable for households even in "relatively cloudy" London to go off-grid from 2030 onwards. The Centre for Climate Finance and Investment at Imperial College Business School said existing energy pricing models had "systemati- cally understated the potential of renewable technologies". Previous research has con- centrated on whether consumers can generate electricity more cheaply than buying it. The new study says this does not capture the complex relationship between producers and consumers, and is "flawed on several levels". The Energy Networks Association has launched a new social media campaign to educate the public about the investments network operators have made to improve service and reliability since privatisation. The campaign, #energynetworks, will issue facts, figures and blogs relating to seven key areas in which network com- panies have improved performance and delivered increasing value for customers. These include: prioritising safety; deliver- ing value for money; cornerstone of the economy; and innovating for the future. Social media campaign backs networks The average UK gas distribution network part of the customer's bill is £118.20 per year, which amounts to 32p per day – that's less than the price of a packet of chewing gum. £118.20 per year For this you get: • Secure and reliable service • Upgrade and maintenance • Emergency service • Gas mains replacement programme • Outstanding customer service • Innovation The average UK electricity distribution network part of the customer's bill is £85.08 per year, which amounts to 23p per day – less than half the cost of a first class stamp.