Energy and Utility Management Consultants

Ofgem Announces Energy Markets Competition Review

April 2014

 

Ofgem has called for an investigation into competition in the energy market, based on the findings of its recent ‘State of the Market’ Assessment. The inquiry, to be conducted by the newly formed Competition and Markets Authority (CMA), will determine whether the vertical integration of the ‘Big Six’ utility companies results in barriers to effective competition, and could take up to 2 years to complete. The call for this investigation comes at a time of low consumer confidence, with 43% distrusting energy companies to be open and transparent, and with supplier retail profits soaring (threefold increase from 2009 to 2012) despite no evidence of suppliers reducing their own costs.

Clifford Talbot recently began managing a property following a sale to our client. We completed a competitive tender exercise for the electricity supply, agreeing a contract with a new supplier as soon as possible. However, there was still a short period from the date of sale to the date the new contract started, during which out of contract rates were applied. We negotiated with the old supplier to agree a backdated contract for the entire supply period, which meant that the total charges were reduced by over £16k, or 30%.

If you are responsible for the utility costs of a property with more than one tenant, why not find out how we can streamline your recharging process by using our tenant billing service? We can save you time by verifying readings and by providing recharges in a way they can be issued directly to tenants by you. And because we create the recharges using supplier contracted rates; you can achieve your budget and minimise the number of issues being raised by tenants thanks to the clear and concise format we present these in. Get in touch to find out more.


Wholesale Market Price Update – 2nd April 2014

Wholesale electricity and gas prices have fallen considerably over the past fortnight. This has been in part due to the dwindling geopolitical risk from the situation in Ukraine, with markets now sitting below the levels seen prior to the crisis. The other key factor has been continued low demand across Europe, due to unseasonably high temperatures which are forecast to continue well into April. This has been coupled with ample supply to the UK from the continent, with UK gas storage remaining above 50% heading into the summer trading period.

http://www.cliffordtalbot.co.uk/energy-prices


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