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OFGEM has just published a factsheet titled: It’s now easier for micro-businesses to review their options at the end of a contract.
You can download it from https://www.ofgem.gov.uk/sites/default/files/docs/2015/07/micro-business_contract_renewals_factsheet_web_0.pdf
The main points which apply to micro-businesses are:
– Contract End date and termination notice date must be printed on all bills
– 60 days before the contract end date supplier must send you notice stating relevant dates, current rates, new rates and      annual consumption.
– Termination can be given at any time prior the notice period which is maximum 30 days.

OFGEM published today a guidance of its price-control of the Data- and Communication Company who is commissioned to establish and manage the data and communications network to connect smart meters to the business systems of energy suppliers, network operators and other authorised service users of the network.
However, OFGEM, finds it is important that DCC receives sufficient funds to fulfil its role and deliver high quality services. It is equally important that we hold DCC to account for its costs, which are ultimately passed on to consumers. The price control mechanism under its Licence is designed to ensure that the costs DCC incurs to provide its services are economic and efficient.

Interesting, for DCC, OFGEM has got a price control mechanism, while energy suppliers are being accused of taking advantage of the free market and charging customers as they wish. While DCC cost will only make up a small fraction of the total energy bill, suppliers charges make up the bulk, and yet there is nothing stopping them to rip us off.

Eon just issued a new briefing regarding the changes surrounding profile 05-08 (MD) meters.
The main points are:

• Eon will no longer accept any MD renewals with a renewal date after 5th November 15.
• New MD contracts will be accepted but no more than 120 days in advance.
• Customers with an AMR meter will have their meter (usually remotely) reconfigured to send half-hourly data.
• Customers currently without an AMR meter will need to have their meter changed requiring an engineer visit arranged by the supplier.
• Current Eon customers with a contract end date after 5th November 15 will continue on their current rate all the changes are in place to be expected in 2nd half of 2016. No termination required and you are free to change supplier if you wish.
• Despite increased cost of supplying the electricity (due to increased government levies and distribution cost), these extra costs will not be passed on to the customers.
• Customers will receive a letter outlining how these changes will affect them.

What’s the outlook for the security of electricity supply in Ofgem’s latest analysis?
Capacity margins have been falling as many older coal and oil-fired power stations are closing due to age and European Environmental Regulations. Most of these plants have already closed and the rest will shut down by 2015 or earlier. Unprofitable gas fired power stations have also been closing or mothballing.

The margin is likely to be tighter than previously expected for winter 2015/16 due to further power station closures over the last year. However to manage lower margins Ofgem has given National Grid tools it can use to balance the electricity system if needed.

These tools allow National Grid to contract with generators and businesses to provide additional balancing services, outside the normal operation of the market. You can find out more about how National Grid does this, and view an infographic guide, in our section Electricity Security of Supply.

Using the tools National Grid has secured 2.56 gigawatts of additional balancing services for this winter. As a result National Grid projects a manageable margin for this winter at 5.1 per cent above demand.

There is uncertainty on the outlook in 2016/17, and a significant opportunity for industry to play a role in delivering security of supply, for example by returning mothballed plant to the market or improving the availability of their plant. Margins could also be boosted by higher imports from neighbouring countries.

National Grid will also consult on extending the additional balancing services for winter 2016/17. We think this is a prudent step.

We expect a reduction of the risks to security of electricity supply for 2017/18 due to plant returning to the market.

Following British Gas’ announcement of a 5% price-cut OFGEM released the following statement:
Commenting on today’s gas price cut by British Gas Ofgem’s Senior Partner for Markets Rachel Fletcher said:

“We are pleased that British Gas’s most loyal customers are seeing some of the benefits from lower wholesale energy prices. However, the Competition and Markets Authority last week found that active consumers get a much better deal than those who don’t shop around.”

What is true for domestic consumers certainly applies to business customers.

As reported by The Energyst National Grid is confident it has secured sufficient reserve capacity for the coming winter.
However there are warnings about future outlook for the coming years. National Grid says margins will be tight over the next few years but is still confident it has the tools to deal with even the toughest winter conditions.
Lord Redesdale on the other hand predicts blackouts and price rises of up-to 25% over the next year.
He says we waist 40% of the energy we use but would need to halve that to bring us below the point where we are going to have brownouts or blackouts.
While time has come for everyone to invest time and money in energy efficiency we would also recommend longer term electricity contract to protect you from likely price rises.

While some suppliers have offered in the past cost neutral green energy contracts this will no longer be the case.
With the chancellor’s announcement that green energy will no longer be exempt from Climate Change Levy, the extra cost of green energy can no longer be offset against the savings of the CCL.
I suppose suppliers have used this option to finance their renewables obligation, thus being of little benefit to the overall environment.

However I would like to know how suppliers are going to treat customers when the change takes place in mid-contract.

CMA has yesterday published it’s report of the energy market:

Roger Witcomb, Chairman of the energy market investigation, said among other points:

– There are millions of customers paying too much for their energy bills – but they don’t have to.

– Whilst competition is delivering benefits to increasing numbers of customers, mainly through the growth of smaller suppliers with cheaper fixed-price deals, the majority of us are still on more expensive default tariffs. Many customers do not shop around to see if there’s a better deal out there – let alone switch. The confusing way energy is measured and billed can make comparing deals understandably daunting.

While this relates to the domestic market, it also very much applies to commercial customers.
Far too many businesses just allow their contract to auto-renew with their current supplier or go onto a variable or even deemed rate.
Either way they can end up paying ££££’s more than necessary, which in a tight economic climate can weigh heavily onto their profit margins.

This report should serve as reminder to pass on copies of your current gas & electricity bills to your trusted energy broker.
Once received Alpine Utilities Ltd will analyse your bills and check whether immediate action needs to be taken or make a note on our diary to contact you nearer the time.

OFGEM published yesterday a factsheet to outline what is happening and the benefits of P272. This can be accessed through https://www.ofgem.gov.uk/sites/default/files/docs/2015/07/factsheet_131_cheaper_electricity_for_businesses_web_0.pdf

The idea is to charge customers more accurately for the time of use where peak times typically early evening costs more than off peak times when there is less demand and more renewable electricity available.

Any maximum demand smart meter that comes up for renewal after 5th November, will be half-hourly metered for 45 days and then charged accordingly.

While this arrangement should offer some savings to some larger business, it will be difficult to tender a supply for the most competitive offer, as the final prices will probably only be available long after the start the contract.
Alpine Utilities will request some further clarification on this point.

ELN reports: The UK economy has saved more than £1 million a day by cycling and walking.
The savings have been made as a result of improved health and reduced congestion, pollution and greenhouse gas emissions.

So just think of your own health and take out your bike to get to work; you’ll be doing everyone a favor.