In response to the Public Accounts Committee’s report on infrastructure investment, Angela Knight, Chief Executive of Energy UK said:
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Energy UK welcomes the Capacity assessments from DECC and National Grid, Energy UK said:
The referral to the Competition and Markets Authority will give an opportunity to clear the air. It will allow the energy industry to address domestic customer issues and bring forward serious impact studies of policies.
The industry knows there is much to do to restore trust between customers and companies. Now that the referral has been confirmed, it is essential that it:
“Ofgem’s figures are estimates on earnings before tax and interest paid. The figures do not take into account the companies’ financing costs, the interest or the tax they are paying. More generally, the UK needs a healthy energy sector with companies that turn a profit. Profitability and investor confidence is vital at a time when the industry needs to attract a lot of investment, including up to £100bn in new electricity infrastructure between 2013 and 2020.
Electricity Market Reform (EMR) is an important milestone in the ongoing development of the market. These are the changes that are needed to bring investment from around the world into the UK. New electricity generators, new companies and more jobs is what EMR is all about.
“Most customers are happy with their energy provider. But, in an industry which serves 27 million households, sometimes things can go wrong. If a customer has any concerns about their service, they should contact their supplier as soon as they can. Energy companies work very hard to resolve problems and most complaints are fixed within a few working days with no more than a phone call.
Switching sites should be encouraged to say how much commission they charge energy suppliers. Comparison sites play an important role in the energy market allowing customers to find the best deal for them and save money by comparing deals and companies. They are quick and easy to use meaning customers can cut bills in no time. However, as the industry becomes more transparent, it is important that switching sites follow suit.
New legislation needs to go with the grain of what is working well and should not add additional burdens or greater costs to energy projects Energy UK said on Wednesday.
This comes ahead of Government plans which look to strengthen the regime for ensuring communities have an active role in local schemes. The industry already does a great deal of work to engage local residents when developing new power plant both throughout the planning process but also by offering a chance to invest financially in their local infrastructure. There are already over 5,000 community energy projects across the UK and the industry undertakes all this work on a voluntary basis.
“Switching is already simple: just pop in your post code; pop in your how much gas and electricity you use - which is on every bill; and Bob’s your uncle. It’s as simple as that, as over quarter of a million customers find every month.
In response to Ofgem's announcement asking suppliers to explain energy prices to customers, Energy UK said:
“Wholesale energy is just one of a number of costs outside of an energy company’s control, which make up a household bill. All energy suppliers aim to hold costs as low as possible for as long as possible. There are now 24 domestic energy retailers in the UK. They buy gas and electricity months and even years in advance to smooth out the swings in the market. When wholesale prices fall it can take time for bills to catch up as the gas and power may have been bought at a higher price some time ago.
Ofgem’s figures are estimates on earnings before tax and interest paid. The figures do not take into account the companies’ financing costs, the interest or the tax they are paying. More generally, the UK needs a healthy energy sector with companies that turn a profit. Profitability and investor confidence is vital at a time when the industry needs to attract a lot of investment, including up to £110bn in new electricity infrastructure between 2013 and 2020.