Page 8 - October 2019

industry & Government news

UK ENERGY PRICE FEARS AS complications of severing ties with EU
energy markets.
Gas and electricity bills rose by
IMPORTS CLIMB TO RECORD HIGH £2 billion in the year after the 2016
referendum result because of the
plummeting value of the pound,
according to a report from University
College London.
This translated into an average
household’s bill increasing by £35
for electricity and £40 for gas, and
researchers predicted bills would climb
by a further £61 every year in the years
following the referendum.
A report commissioned by National
Grid before the referendum predicted
that energy bills could climb by £500
million every year by the 2020s if the
UK left the EU’s internal energy market.
A spokesperson said the
government had taken steps to make
sure energy trading continued and
that energy laws “work effectively and
provide value for money”.
The Guardian reports that a pan-
QUESTIONS REMAIN UNANSWERED AHEAD OF BREXIT European network of energy system
operators has agreed a plan for the UK
THE UK’S RELIANCE on energy that higher import prices could lead to to remain within the internal market on
imports has climbed to a record high higher energy bills. a voluntary basis, which would offer the
amid fears that homes and businesses The government’s leaked no- same commercial terms.
could face higher bills if the UK deal planning report, Operation A spokesman for National Grid said
crashes out of Europe. Yellowhammer, predicted a marked it was “not anticipating any additional
In total, European electricity imports increase in energy prices for homes charges for interconnectors in the event
made up almost seven per cent of the and businesses if the UK crashes out of a no-deal Brexit”.
UK’s total demand, and the government without a deal. However, the plan has not been
hopes to increase imports to about 20 per The market price for electricity agreed by the European Commission
cent by 2025, according to The Guardian. could climb because of a fall in the and could be cast in doubt if the UK
Although this is a small share of the value of the pound against the euro, leaves without an agreement or without
UK’s electricity, experts have warned but also because of potentially costly paying the £39 billion exit fee.

OVO TO BECOME UK’S SECOND LARGEST ENERGY SUPPLIER

Ovo, which was created 10 years ago, MoneySuperMarket, said Ovo’s deal
is already the UK’s largest independent to buy SSE’s business “will enhance
energy supplier, with 1.5 million the ever-growing competition for
customers and about 2,000 employees. customers”. He added: “The likes of
But it will now take on SSE’s 3.5 million Ovo, Shell, Bulb and Octopus mean
customers and 8,000 staff, making it there’s a base of emerging suppliers
second only to British Gas. who are continuing to challenge the Big
SSE said it would “do all it can Six in the domestic energy market.”
to ensure a smooth transition for SSE had announced in May that it
customers and employees”. planned to offload its energy services
The deal is expected to be completed division after more than 500,000
in late 2019 or early 2020. SSE said households switched to a new supplier
there would be no immediate impact on in the year to April. The company said
SSE ANNOUNCED IN MAY THAT IT WAS customers after completion. it would sell or float its energy services
LOOKING TO OFFLOAD ITS SUPPLY BUSINESS It added that the SSE brand would be arm by the second half of 2020.
operated by Ovo under licence for a period, In November last year, a proposed
OVO IS SET TO BECOME the UK’s “allowing time for a phased and carefully merger of SSE’s household supply
second largest energy supplier after it managed migration and continued high arm with rival Npower was called off,
agreed to buy SSE’s retail business for standards of customer service”. with SSE blaming “very challenging
£500 million, according to the BBC. Stephen Murray, energy expert at market conditions”.

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News.indd 3 19/09/2019 15:05