Utility Week

24 | 18TH - 24TH MAY 2018 | UTILITY WEEK Customers Npower profits rose by more than a quarter over the first three months of 2018 as continued customer losses were offset by increased demand and reduced costs. The supplier shed around 114,000 household accounts dur- ing the period due to "intense" competition in the retail market and fixed-price tariffs coming to an end. At the close of March, ENERGY Npower profits rise as customer losses are offset by higher demand the tally stood at 4.44 million – a year-on-year decrease of 66,000. Revenues were up 10 per cent at £1,894 million as a result of higher consumption driven by the cold winter weather and a hike in the company's standard variable tariff (SVT) last year. The boost in sales, along with the ongoing effects of its cost-cutting programme, led to a 28 per cent increase in adjusted earnings before interest and taxation (EBIT) to £37 million. Npower chief executive Paul Coffey said the results show the company is "building on the momentum gained during 2017". He lauded its improvements in customer service, noting the supplier has been climbing up the rankings in external surveys: "Our score in Citizens Advice's energy star rating is the best This week Ofgem might extend safeguard tariff again Regulator's proposals would require suppliers with more than 50,000 customers to offer tariff Ofgem has revealed plans to further expand the reach of its safeguard tariff for vulnerable customers. The regulator says it now intends to require all well- established suppliers with more than 50,000 customers to offer the tariff, if it is extended to a wider pool of low-income households later this year. The safeguard tariff was introduced in April 2017 to protect the 4 million customers on prepayment meters, and in February was broadened to cover another 1 mil- lion customers who are automatically eligible for the Warm Home Discount (WHD). In December, Ofgem proposed to extend the tariff to another 2 million vulnerable customers who are not automatically eligible for the scheme. The regulator suggested two different methods for identifying these vulnerable customers. Its preferred approach is to provide protection to customers who qualify for certain government benefits. This would require a new data-matching exercise between the Department for Work and Pensions and suppliers, enabled by changes to the Digital Economy Act. Ofgem said it could be difficult to implement this option in time for the coming winter. It therefore sug- gested a backstop approach, which would see suppliers identify vulnerable customers based on information they already hold. Ofgem expects to make a decision on whether or not to proceed with the proposed licence modifications in June once it has a clearer idea of when the default tariff cap bill, currently being debated in parliament, will be passed into law. The deadline for responses to the consultation is 31 May. TG WATER Business Stream wins contract for all Network Rail sites Network Rail has appointed Busi- ness Stream as its water retailer to manage water and wastewater services across all its sites. The contract value has not been disclosed, but Business Stream claims it is one of the "largest" to be awarded since the water market opened for compe- tition in England on 1 April 2017. It will cover major train stations including Birmingham New Street, Edinburgh Waverley, Glasgow Central, London Euston, London King's Cross and Manchester Piccadilly. Business Stream has been Network Rail's water supplier in Scotland since the retail water market opened there in 2008. The new agreement will con- solidate all Network Rail's water and wastewater billing, while Business Stream will also pro- vide support on leak detection, contingency planning, metering and water efficiency advice. Jo Dow, chief executive at Business Stream, said: "Aer nearly a decade working closely with Network Rail in Scotland, we're delighted to now be work- ing with the organisation across England and Scotland. "We are committed to devel- oping strong partnerships with our customers and we're very pleased that we now have the opportunity to expand our work- ing relationship with Britain's rail infrastructure provider." Network Rail owns, operates and develops 20,000 miles of track, 40,000 bridges, tunnels and viaducts and thousands of signals, level crossings and stations. Business Stream said it secured more than £155 million of new contract wins in the first 12 months of the open water market in England. ELECTRICITY Scottish Power launches EV tariff Scottish Power has introduced its first tariff to enable customers to charge their electric vehicles (EVs) at home. The two-year, fixed-price "Smart Green Electric Vehicle June 2020" tariff will provide 100 per cent renewable energy, the company said. Neil Clitheroe, chief execu- tive of retail, said: "All analysis shows that the shi to electric vehicles will gather serious pace in the coming years, and customers quite rightly expect bespoke services to support them in their journey to electric. "Our growing focus on electric vehicle services and bespoke tariffs reflects the exciting changes in the energy retail market, as we modernise and digitise the hardware and soware that supports our customers." The company has also introduced a charge point finder in its "Your Energy" app to help customers locate their nearest charging point away from home. Cold comfort: tariff protects the vulnerable it's ever been and over 30 per cent higher than it was when this data was first published in 2016." Coffey continued: "Although our results show signs of pro- gress, this is mainly due to cost management as the market we operate in remains very competi- tive, which is putting real pres- sure on margins and customer account numbers."

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