Page 8 - Gi flipbook February 2018

NEWS | GOVERNMENT

UK energy cap could have been

avoided, lobby group says

ENERGY SUPPLIERS
COULD have avoided the
government imposing a
price cap if they had acted
faster to shift customers
off the tariffs branded a
“rip-off” by Theresa May,
according to an industry
lobby group.
Lawrence Slade, Chief
Executive of Energy UK,
told The Guardian he
believed it was still possible
the cap might not happen –
if the sector can transform
itself in time.
Asked if the cap could
have been avoided in a year
dominated by politicians
threatening regulation
to stop some consumers Price caps will knock hundreds of
paying hundreds of pounds millions of pounds off profits
more than others, he said: “I
don’t think it was inevitable. He also suggested it was But he did argue, as as an industry is getting
I suppose the industry still feasible the cap might Npower, SSE and Centrica the customer engagement
could have moved a bit not happen. “Anything is – owner of British Gas – and getting the meters into
faster or been clearer about possible. And if competition have done, that exemptions people’s houses.”
what it was willing to do.” carries on at the rate it’s for companies with less On the changing nature
Slade said that going, and if the companies than 250,000 customers of power generation, Slade
recent commitments put through the changes should come to an end. said that renewables were
by firms including E.on, they’ve committed to, the These smaller firms do not “winning the argument”,
ScottishPower and Centrica market could look a very have to pay the costs of but some myths persisted.
to get householders off different place in 12 months’ government schemes for He also said that electric
default tariffs were positive time,” he said. vulnerable people, such as cars were a “tremendous
and serious, but conceded Should a ceiling be the warm home discount. opportunity” for energy
they had come too late. imposed, as most industry- Slade said that as well as firms.
But the industry chief, watchers expect, Slade said caps, smart meters would But he said efforts to
who represents the Big the growing number of be a priority in 2018. More limit the climate change
Six and other suppliers, people switching suppliers than eight million smart impact of heating the UK’s
defended companies, could suffer a setback. “It’s meters, which automate buildings were lagging
saying it was difficult to an obvious worry,” he said. meter readings, have been behind. “I’m really worried
be the first to act because About 5.5 million people installed so far, ahead of a about heat. I honestly
the sector was such a will have switched by the government target of every don’t believe we’re doing
“competitive arena”. end of the year, up by more home being offered one by nearly enough to look at
than two million on 2014. the end of 2020. heat and contributions that
Lawrence Slade, Slade rejected the idea But the project has come need to be made towards
Energy UK that reduced switching under fire because almost decarbonisation.”
would kill off the smaller all the meters installed are Various options have
players, which have taken a first-generation models been mooted as an
fifth of the market. (known as SMETS1) alternative to the gas that
“I’d like to think we’ve which can lose their heats most homes, from
reached a tipping point, a smart functionality after hydrogen to electric heat
point where you just have households switch energy pumps. But Slade said more
sustained market change supplier. investment was needed
and you have companies “I worry it has tarnished now to spur innovation and
that have to fight for their the project,” Slade said. cut the costs of greener
customers,” he said. “One of our big problems heating technologies. ■

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News.indd 3 18/01/2018 11:18