Utility Week

28 | 2ND - 8TH MARCH 2018 | UTILITY WEEK Customers Ofwat urges clarity on use of public money Regulator's chief executive says water firms must show they are working in the public interest The chief executive of Ofwat says the regulator has been encourag- ing water companies to "shed much more light" on the use of the public's money. Speaking on BBC Radio 4's Today programme last week, Rachel Fletcher said: "Ofwat has been beating a drum to make the water companies understand that they must show they are working in the public interest and to shed much more light and transparency around where the public's money is going." Business presenter Dominic O'Connell referenced a study by the University of Greenwich that found water companies over the past decade had "paid out as much in dividends as they made in profits – about £18 billion" and the debate around nationalising the water industry. He said: "Some think the industry's economic regula- tor Ofwat needs to get tougher. Michael Gove has written to the regulator asking it to look at executive pay, pay- ments to shareholders, offshore companies – all sorts of things. And he is ready to give the regulator new powers." Asking Fletcher what the regulator has been doing to address the concerns of the public, he challenged whether Ofwat has been "asleep at the wheel for the previous ten years". Fletcher stressed there have been "improvements" in the way companies are operating their businesses and defended Ofwat's role, stating the regulator has some "hard levers" it is using. "We've seen real improvements in terms of perfor- mance and those improvements come in while keeping costs flat for customers in real terms," she said. KP ELECTRICITY Smart tariff could see customers paid Octopus Energy has launched a new time-of-use tariff for smart meter customers that could see them paid to use electricity when demand is low or there is a glut of renewable power. The Octopus Agile tariff will provide customers with half- hourly prices reflecting actual wholesale energy costs. In a "world first", this will include passing on negative prices to customers through "plunge pricing" when the grid is oversupplied, the supplier said. Customers will be alerted to this pricing via text message, email or via their online dashboard. The firm hopes the tariff will encourage the consumption of excess renewable power and claimed it could save frequent electric vehicle drivers up to £669 per year. Octopus Energy founder and chief executive Greg Jackson said: "If the wholesale price goes below 0p/kWh, Octopus Agile will actually pay you to take the unwanted energy from the grid." ELECTRICITY Superfast EV charge network proposed National Grid has outlined proposals for a countrywide network of superfast chargers in an effort to end range anxiety for drivers of electric vehicles (EVs). The firm has identified 50 strategic locations around the UK where the transmission and motorways networks overlap, enabling the installation of banks of 350kW chargers that could recharge EV batteries in as little as five minutes. National Grid said between £500 million and £1 billion would need to be invested in grid infrastructure in order to create the charging network. Around 90 per cent of the population would live within 50 miles of a charging station. ENERGY 23% of customers have never switched Nearly a quarter (23 per cent) of UK households have never switched energy provider, according to the latest research from MoneySuperMarket. The price comparison website also found more than a third (36 per cent) think they are already getting a good deal. But it said "millions of customers languishing on expensive stand- ard variable tariffs" could benefit from potential savings of £250 a year by switching. Other factors preventing people from switching included: thinking the switching process is too much hassle (22 per cent), not believing they would get the advertised savings (17 per cent) and thinking the switching process takes too much time (16 per cent). Fletcher: 'Ofwat has been beating a drum' I am the customer Alex Neill "It is doubtful the smart meter target will be met" The end of 2020 marks the deadline for energy suppliers to install smart meters in millions of homes across the UK. Our analysis shows large energy companies would have to install 24 smart meters per minute, 24 hours a day, 365 days a year, to get one in every home that doesn't yet have one. We know that those who have smart meters reap the benefits, such as better understanding of their energy consumption, not having to submit meter readings and having more accurate bills. With trust in the energy industry already low, all involved with the rollout must address concerns, resolve prob- lems and keep the programme on track. In the meantime, the industry must work to address the needs of consumers right now – this means helping customers on poor-value tariffs to get a better deal and improving customer service. Alex Neill, managing director of home products and services, Which? The government also estimates the rollout to homes and small businesses will produce eco- nomic benefits of £16.7 billion, with savings of £47 a year on the average household bill by 2030. But our research found not all consumers who get a smart meter see the positives. The most common issues include SMETS1 models losing smart function- ality when customers switch supplier, and difficulty in getting a meter reading. While energy companies publicly say they will meet the rollout target of 2020, we at Which? believe this is doubtful given the delays and current pace of installation. 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