Utility Week

4 | 2ND - 8TH MARCH 2018 | UTILITY WEEK STORY BY NUMBERS Seven days... National media Big six 'routinely over- charging' customers Research by The Guardian suggests the big six are moving customers off standard variable tariffs (SVTs) on to an almost identically priced deal. It says that when customers contact their supplier to change their tariff, most are moved to the most expensive fix that the company offers. The data suggests the companies are engaged in what is essentially a rebadging process rather than a genuine effort to cut customers' bills by switching them to more competitive products. The Guardian, 23 February Nissan completes UK battery plant Nissan and its project partners have finished the development of a new manufacturing process in Sunderland. The plant will begin production of high density 40kWh battery cells for electric vehicles and energy storage systems. The High Energy Density battery project won funding of £9.5 million from the Advanced Propulsion Centre (APC) and the government. The first applications have already been used in construction machines, municipal and autono- mous vehicles, and airport ground fleets. Energy Live news, 23 February Gardiner 'a hypocrite' for taking water cash Labour shadow international trade secretary Barry Gardiner has been branded a hypocrite for accepting a £5,000 donation from supplier Castle Water, following news of the party's pledge to renationalise the water industry. The Scotland-based company supplies water to businesses, chari- ties and public bodies. Gardiner, who was previously shadow water minister, declared the donation on the Register of Members' interests. The Times, 23 February RIIO threat 'caused WPD's share price to plunge' O fgem's proposal to reopen the RIIO price settlement for electricity networks wiped 20 per cent off Western Power Distribution's (WPD's) share price, according to chief executive Robert Symons. In an exclusive interview with Utility Week, Symons, who recently took over the chairman- ship of the Energy Networks Association (ENA), attributed the recent fall in owner PPL's share price directly to Ofgem's inclusion of "option three" in its consultation on whether to hold a mid-period review (MPR) of RIIO. Option three of the consultation means reopening "financial and incentive perfor- mance and design" – effectively, how much profit the networks make. Warning of the impact this has on investor confidence, Symons told Utility Week: "Our investors'… regard for UK regula- tion was exceptionally high up until the MPR consultation. They regarded the UK jurisdiction as one of the best in the world, mainly because it gave investors stability over a period of time. "As soon as an agreement looks as though it's going to be turned on its head, that creates great uncertainty for them. At least 20 per cent has been knocked off the stock price because of it." In a warning for Ofgem, which is currently setting the framework for the next round of RIIO amid widespread criticism that the current settlement is too generous, Symons said: "Discus- sions or debates about excess profits, which in themselves are a fallacy, and adjustments that could be made during an MPR melt into insignificance when you compare that to the effects of uncertainty – which are higher equity and financing costs in the future, resulting in higher costs for customers." PPL is listed in New York and saw its share price plunge from $36.67 on 30 November, the day before Ofgem released its con- sultation, to $29.82 at the time of going to press. Ofgem's consultation on the mid-period review closed on 2 February. EB See p6 for the full interview with Robert Symons and ENA chief executive David Smith Low-carbon generation hit record high last year Low-carbon gen- eration accounted for almost half of the UK's energy supply in 2017, according to fig- ures published by the Department for Business, Energy and Industrial Strategy. 47% of the electricity supply in 2017 was from renewables and nuclear. 23.4% of electricity came from renewable sources. 23.6% of electricity came from nuclear. 47% increase in low- carbon generation over 2016. 45.2% Gas was still the biggest fuel source in 2017, although this was down from 47% in 2016. "All of us in the water sector need to ask ourselves if we are doing enough to reach out to small businesses" Tony Smith, chief executive of the Consumer Council for Water, says research shows companies must do more to engage customers in the non-domestic water retail market.

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