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Network February 2018

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WHO: CENTRICA/BRITISH GAS What's the deal?: With its headquarters in Windsor, Centrica's principal ac vity is the supply of electricity and gas to businesses and consumers. It is the largest supplier of gas to domes c customers in the UK, and one of the largest suppliers of electricity, opera ng under the trading names Sco sh Gas in Scotland and Bri sh Gas in England and Wales. It owns Bord Gáis Energy in Ireland and significantly dominates the market for boiler installa on and maintenance. Why it ma ers: When it comes to u li es, Centrica is the big dog. As such, it wields the power to disrupt the industry simply because of its sheer size and influence. This said, 2017 saw Bri sh Gas haemorrhage over 800,000 customers and the company knows it cannot rest on its laurels in a me of industry upheaval. Carving out a new lease of life for itself as an energy services provider, it launched Local Heroes in 2017, an online pla orm which connects customers with tradespeople for the comple on of household tasks. It has also invested heavily in its smart thermostat business Hive, which is now deployed interna onally. Say what?: "It rather feels as if [Centrica itself] has been disrupted, having been challenged by government policy, but more importantly by consumers walking away. 2017 was a difficult year for them with their connected home strategy not yet evidently capturing the consumers imagina on, while they had to suffer an almost unprecedented profits warning." – Laura Sandys, former MP, entrepreneur and CEO of Challenging Ideas WHO: SUPERMARKETS What's the deal?: Supermarkets have long been a local focal point na onwide, but now rumours abound they could move beyond groceries and become energy producers, for both themselves and their respec ve surrounding communi es. There has been no official word on this to date, but it wouldn't take too much imagina on to foresee a me when lithium-ion ba eries in supermarket car parks could stockpile excess power generated by other systems in the building. Electric vehicle (EV) chargers could then distribute that extra power to customers who want to top up their car's ba ery while they shop, (which helps overcome the infrastructural limita on that is o en associated with public EV chargers). The surplus power could also be stored and used to light up the car park outside daylight hours. Alterna vely, supermarkets could create a new supplier model to power or partly-power local homes and businesses. Why it ma ers: The supermarket of the future could transform the energy grid and poten ally help it to become safer, cleaner and more flexible. Supermarkets could become a key part of the decentralised energy system of tomorrow, and set a new standard for efficiency. Say what?: "They understand their customers so much be er than many of the 'tradi onal' energy suppliers – they have near-daily access to consumers in a space where they're used to seeing new and affordable proposi ons, like homeware, travel money, banking. It just wouldn't be radical to see a supermarket-led energy proposi on, and obviously the economy of scale is on their side, so they could provide the service at a good price. It could happen." – Survey respondent WHO: NATIONAL GRID What's the deal: The lynchpin of the UK energy system, Na onal Grid is a behemoth that comprises electricity and gas transmission in England and the system operator role for the UK power grid, together with a host of ancillary func ons. One of the world's largest investor-owned companies, it also has opera ons in the US and a con nued stake in UK gas distribu on via Cadent, formerly Na onal Grid Gas Distribu on. Why it ma ers: Na onal Grid is at the heart of UK energy and, as such, cri cal to the energy transi on. It is thought the grid's ability to adapt to the changing energy distribu on will stand it in good stead in the years to come, but there are those who fear it may not be ready to deal with the deep engineering challenges that lie ahead. It also faces poli cal scru ny about perceived conflicts of interest among its various roles, together with the ongoing pressure to guarantee security of supply in the face of rapidly changing pa erns of genera on and consump on. Say what?: "Supply and demand will become more distributed and unbalanced, and how Na onal Grid reacts to this will be crucial." "The whole infrastructure is changing, and if Na onal Grid is ahead of that curve they can change the shape of the industry." – Survey respondents I N A S S O C I A T I O N W I T H NETWORK / 23 / FEBRUARY 2018

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