Public energy company: strategic outline case
Independent strategic outline case to consider how Scotland's public energy company could be developed suggests that a phased approach would work better.
Footnotes:
2. A significant proportion of households in Scotland are not connected to the gas distribution network and are therefore required to use electricity or alternative fuels for cooking and heating.
3. Ofgem, 2017, State of the energy market
4. /policies/home-energy-and-fuel-poverty/energy-saving-home-improvements/
5. http://www.energysavingtrust.org.uk/scotland/grants-loans/home-energy-scotland-loan
6. CMA (2016), Energy Market Investigation https://www.gov.uk/cma-cases/energy-market-investigation
7. The evolving regulatory market will need to be reviewed during the OBC and any developments that could impact the deliverability of Energy Co will be considered.
8. https://www.ofgem.gov.uk/publications-and-updates/state-energy-market-2017
9. Helm (2017), Cost of Energy: Independent Review https://www.gov.uk/government/publications/cost-of-energy-independent-review
10. Scottish Government (2016) http://www.gov.scot/Resource/0051/00511081.pdf
11. Ofgem (2017), State of the energy market 2017 report https://www.ofgem.gov.uk/system/files/docs/2017/10/state_of_the_market_report_2017_web_1.pdf
12. Factors are not mutually exclusive, i.e. an energy supplier may advertise more than one feature, and so percentages do not add to 100%
13. Go Effortless Energy, https://goeffortless.co.uk/prices/
14. Ovo Energy, https://www.ovoenergy.com/
15. Green Energy, https://www.greenenergyuk.com/
16. Good Energy, https://www.goodenergy.co.uk/
17. Green Network Energy, https://greennetworkenergy.co.uk/
18. VAT is set at 5% for domestic energy bills.
19. Based on data from the Big 6.
20. Ofgem (2017), https://www.ofgem.gov.uk/electricity/retail-market/retail-market-monitoring/understanding-profits-large-energy-suppliers
21. Figure 1.3 of Ofgem 2017 State of the Market Report
22. Ofgem (2015), Non-traditional business models: Supporting transformative change in the energy market https://www.ofgem.gov.uk/ofgem-publications/93586/non-traditionalbusinessmodelsdiscussionpaperpdf
23. Nolden C., Sorrell S. (2016), The UK market for energy service contracts in 2014–2015, Energy Efficiency (2016) 9: 1405-1420
24. UKERC (2005) Unlocking Energy Services: Main Findings of a Joint SDC/UKERC seminar. http://www.ukerc.ac.uk/publications/unlocking-energy-services-main-findings-of-a-joint-sdc-ukerc-seminar.html
25. Roche (2016), The role of Local Authority Energy Companies and Community Energy Co.-operatives in Building a Low Carbon Energy System for Scotland
27. http://www.aberdeenheatandpower.co.uk/
28. Ofgem (2016), https://www.ofgem.gov.uk/system/files/docs/2016/08/retail_energy_markets_in_2016.pdf
29. Which? (2017), https://www.which.co.uk/news/2017/10/is-your-region-the-best-at-switching-energy-supplier/
30. Ofgem (2017), State of the energy market 2017 report https://www.ofgem.gov.uk/system/files/docs/2017/10/state_of_the_market_report_2017_web_1.pdf
32. Companies House accounts, https://beta.companieshouse.gov.uk/company/08053212
33. Companies House accounts, https://beta.companieshouse.gov.uk/company/SC472682
34. Turner, Karen and Katris, Antonios and Riddoch, Fiona and Figus, Gioele (2017) Potential Economic Impacts of the Scottish Government's £20million 'Post-Brexit' Energy Efficiency Spending Stimulus.
35. Companies with a customer base of over 200k are required to install smart meters.
36. This occurs as well among vertically integrated companies, who have to maintain separate supply and generation accounts and balance them ahead of gate closure.
37. Currently set at the weighted average price of the 50MW of most expensive balancing actions taken in that period. From November 2018 this will be set according to the 1MW of most expensive balancing actions.
38. BEIS (2017), https://www.gov.uk/guidance/smart-meters-how-they-work
39. Some policies are specific to electricity or gas supply.
40. Small domestic energy suppliers are exempt from some of these polices, and so do not face the associated costs.
41. The EU submitted one collective Intended Nationally Determined Contribution, and the UK's pledge was part of this submission
Contact
Email: Alan.Clark@gov.scot
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