Utility Week

Customers UTILITY WEEK | 9TH - 15TH MARCH 2018 | 23 No useful lessons can be drawn from other countries' experience of implementing price caps, Claire Perry has told the House of Commons. The minister of state for energy and climate change was quizzed last week on the government's price cap legisla- tion by Conservative backbench MP Mark Menzies. Menzies, who represents the Lancashire ENERGY Perry: 'no useful comparisons' from international price caps constituency of Fylde, asked business, energy and industrial strategy secretary Greg Clark if his department had assessed the impact of the introduction of energy price caps in Canada, the US, Spain and New Zealand. Critics of the government's price cap say overseas experi- ence is proof that the introduc- tion of such measures in the UK is ultimately counterproductive. In a written answer on Clark's behalf, Perry replied to Menzies that while the government had assessed other countries' energy policies, they were not relevant because of the liberalised nature of the UK market. "In those countries where there were, or had been, price interventions in the energy sector, markets were either not previously liberalised or had only recently been This week Ofgem confirms ban on back-billing Gas and electricity firms will not be allowed to bill customers for energy used more than a year ago Ofgem is to formally ban gas and electricity suppliers from issuing customers with bills for energy used more than 12 months ago. A‹er a consultation launched last November, the energy regu- lator said bills for energy used more than a year ago will not be issued if customers acted in good faith. At present there is no limit on back-billing, and the average back bill was £1,160 last year. In extreme cases, customers received bills of more than £10,000, accord- ing to Citizens Advice. But Ofgem has been talking about this for more than a year, and most of the big suppliers are already bound by the Energy UK Billing Code, a voluntary agreement that prevents them from chasing a domestic customer for energy supplied more than a year ago. The ban, which also covers small businesses, comes into effect in early May. Alex Neill, Which? managing director of home products and services, said: "Receiving a back-dated energy bill of hundreds or even thousands of pounds is a real blow for consumers, particularly those who are already struggling with their bills." Lawrence Slade, chief executive of Energy UK, said energy companies take accurate billing "very seriously": "Companies covering 80 per cent of the market have signed up to the Energy UK Billing Code to ensure greater accuracy of bills. Audit results of the code show year-on- year improvement and complaint numbers are falling. "There are now over 8 million smart meters in UK homes and businesses, bringing many benefits includ- ing an end to estimated billing, helping consumers understand exactly what they are spending in pounds and pence, in near real-time." AC ENERGY Shell appoints new CEO for First Utility Shell's former vice-president for downstream strategy and portfolio, Colin Cooks, has been appointed chief executive of First Utility. Cooks succeeds Ian McCaig, who was in the post from 2012 until October 2017. The news came last week as Shell completed its acquisition of First Utility a‹er European Commission approval. First Utility is now a wholly owned subsidiary of Shell, which said the move will give consumers "a real alternative" to other energy companies. ELECTRICITY Good Energy queries consistency of ASA Renewable energy supplier Good Energy – which has had an advert that said its electricity "contains" no carbon dioxide banned – has said it can be "difficult to manage simplicity against detail". Although the company accepts the Advertising Stand- ards Authority (ASA) ruling, it believes the authority may be inconsistent when assessing adverts for other fuels and said it would investigate the decision. The advertising regulator upheld a complaint about Good Energy's website advert wording, which said: "An average unit of electricity in the UK (a kilowatt hour or kWh) results in 360g of carbon dioxide (CO2) emissions and 0.007g of radioactive waste. But the electricity we supply contains zero grammes of CO2 and no radioactive waste." A complainant said Good Energy makes use of biomass energy that can produce more CO2 than coal. The firm said the claim was based on calculation methods used by the govern- ment and pointed to a 2010 Department for Business, Energy and Industrial Strategy report that stated biomass fuels were considered a form of renewable energy. However, the ASA noted 2011 research from the Department for Environment, Food and Rural Affairs, which found most con- sumers o‹en interpreted "zero carbon" as "emits no carbon". WATER Severn Trent issues management plan Severn Trent is asking custom- ers for their views on its dra‹ water resources management plan (WRMP), which includes a 25-year forecast of factors likely to affect the water sector. Every five years, water com- panies are required to publish a WRMP that should demonstrate the company has long-term plans to balance the supply and demand of water in the future. Severn Trent proposes to reduce leakage to "record low levels never achieved before", help customers to use less water and increase the use of water meters across the network. Some back bills have exceeded £10,000 liberalised. This is very different to the situation in Great Britain, and so no useful comparisons can be drawn on the effect on employment and investment in those countries," she said. In a separate response, Perry told Menzies the government's decision not to allow energy suppliers the right to an appeal to the Competition and Markets Authority complies with the law.

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