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Water deregulation in England – an aid to navigation



utilitywise water

The water market in England is deregulating, giving business the chance to tap into savings and other opportunities. Here’s how it will affect your organisation.

In April 2017, water industry deregulation will start in England, giving businesses, charities and public sector organisations the ability to shop around and switch retail service provider.

Until now, only non-domestic customers in Scotland and very high water users (over 50ML a year) in England and Wales could switch water and wastewater supplier. If others were unhappy with the service they received, all they could do was complain.

This situation will change when the water market opens for competition in England. It means about 1.2 million customers will be able to pick and choose retail providers based on customer service, the package being offered and differences in charges. Wales has decided not to deregulate.

So what opportunities will competition bring to your organisation? Water experts from Utilitywise, the UK’s largest energy consultancy, say the Scottish experience provides a steer on what lies ahead.

utilitywise water

Lessons from Scotland

Scotland became the first country in the world to deregulate its water market in 2008. Since opening it up to competition, customers have seen a raft of benefits including savings in water charges, fewer CO2 emissions and water efficiencies, as well as better monitoring and understanding of water use.

“Water deregulation in Scotland happened when the Scottish government decided it was dissatisfied with the monopoly held by Scottish Water,” said Tony HItchens from Utilitywise.

“It deliberately enforced a split in Scottish Water’s business between wholesale – the infrastructure arm – and retail, which sent bills out and collected the cash. Business Stream was formed to run the retail side, while Scottish Water owned the wholesale part.”

Licensed providers were then able to offer a discount to customers by buying water at the same price Scottish Water was supplying to Business Stream – taking advantage of the increased margin between the wholesale and retail price.

A couple of years later, after a rebalancing of the market created even greater margins, any business or organisation with a water bill could benefit from a significant discount.

Changing course

“When the English market deregulates, the margins will be small at first because the wholesale price is artificially inflated by the country’s 14 water companies,” said Tony.

“So we expect there will be little price advantage initially, although businesses and organisations will see some modest savings.”

However, deregulation will benefit your organisation in another significant way, especially if you have more than one branch or site.

As well as being able to tap into real choice, you’ll also receive one unique bill for all your branches. It means, instead of having different sites across the UK receiving bills from each area’s water company, you will get one consolidated, multi-site bill.

Three years later, in 2020, you will see big savings begin – like they did in Scotland – when industry watchdog Ofwat intends to force the wholesale price down and rebalance the market.

Pooling resources

For organisations plotting a course in England’s new open waters, good seamanship will be a must, especially as the environment is complicated by some of the 14 water companies deciding not to enter the retail market.

This will leave their customers high and dry. Other companies are going the retail route, changing their business name at the same time, and the rest are undecided.

Meanwhile, other opportunities are on the horizon.

In a The Daily Telegraph interview with Cathryn Ross, CEO of Ofwat, about government plans to introduce competition into the domestic market, customers were told it could result in multi-service bundles where water, gas, electricity and telecoms are provided by the same firm.

As far as we know, Utilitywise is the only company actively pursuing this idea. “We hope we can save non-domestic users money and tidy up their bill in all utilities, while ensuring wastage and consumption is reduced,” added Tony.

Although April next year seems a long way off, prices will be available from October this year. So non-domestic users do not need to wait – you can get everything sorted and relax knowing your switch-over is sorted.



Are the UK Governments Plans for the Energy Sector Smart?



The revolution in the energy sector marches on, wind turbines and solar panels are harnessing more renewable energy than ever before – so where is it all leading?

The UK government have recently announced plans to modernise the way we produce, store and use electricity. And, if realised, the plans could be just the thing to bring the energy sector in line with 21st century technology and ideologies.

Central to the plans is an initiative that will see smart meters installed in homes and businesses the length and breadth of the country – and their aim? To create an environment where electricity can be managed more efficiently.

The news has prompted some speculation about how energy suppliers will react and many are predicting a price war. This could benefit consumers of electricity and investors, many of whom may be looking to make a profit by trading energy company shares online using platforms such as Oanda – but the potential for good news doesn’t end there.

Introducing New Technology

The plan, titled Smart Systems and Flexibility is being rolled out in the hope that it will have a positive impact in three core areas.

  • To offer consumers greater control by making smart meters available for all homes and businesses by 2020. Energy users will be able to monitor, control and record the amount of energy they use.
  • Incentivise energy suppliers to change the manner in which they buy electricity, to offer more smart tariffs and more off-peak periods for energy consumption.
  • Introduce new standards for electrical appliances – it is hoped that the new wave of appliances will recognise when electricity is at its cheapest and at its most expensive and respond accordingly.

How the Plans Will Affect Solar Energy

Around 7 million houses in the UK have solar panels and the government say that their plan will benefit them as they will be able to store electricity on batteries. The stored energy can then be used by the household and excess energy can be exported to the national grid – in this instance lower tariffs or even payment for the excess energy will bring down annual costs significantly.

The rate of return on energy exported to the national grid is currently between 6% and 10%, but there are many variables to take into account, such as, the cost of battery storage and light levels. Still, those with state-of-the-art solar electricity systems could end up with an annual profit after selling their excess energy.

The Internet of Things

Much of what the plans set out to achieve are linked to the now ubiquitous “internet of things” – where, for example, appliances and heating systems are connected to the internet in order to make them function more smartly.

Companies like Hive have already made great inroads into this type of technology, but the road that the government plans are heading down, will, potentially, go much further -blockchain technology looms and has already proved to be a game changer in the world of currency.

Blockchain Technology

It has already been suggested that the peer to peer selling of energy and exporting it to the national grid may eventually be done using blockchain technology.

“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.”

Don and Alex Tapscott, Blockchain Revolution (2016)

The upshot of the government’s plans for the revolution of the energy sector, is that technology will play an indelible role in making it more efficient, more flexible and ultimately more sustainable.

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4 Case Studies on the Benefits of Solar Energy




Demand for solar energy is growing at a surprising rate. New figures from SolarPower Europe show that solar energy production has risen 50% since the summer of 2016.

However, many people are still skeptical of the benefits of solar energy.Does it actually make a significant reduction in our carbon footprint? Is it actually cost-effective for the company over the long-run?

A number of case studies have been conducted, which indicate solar energy can be enormously beneficial. Here are some of the most compelling studies on the subject.

1.     Boulder Nissan

When you think of companies that leverage solar power, car dealerships probably aren’t the first ones that come to mind. However, Boulder Nissan is highly committed to promoting green energy. They worked with Independent Power Systems to setup a number of solar cells. Here were the results:

  • Boulder Nissan has reduced coal generated electricity by 65%.
  • They are on track to run on 100% renewable energy within the next 13 years.
  • Boulder Nissan reduced CO2 emissions by 416,000 lbs. within the first year after installing their solar panels.

This is one of the most impressive solar energy case studies a small business has published in recent years. It shows that even small companies in rural communities can make a major difference by adapting solar energy.

2.     Valley Electric Association

In 2015, the Valley Electric Association (VEA) created an 80-acre solar garden. Before retiring from the legislature, U.S. Senate Minority Leader Harry Reid praised the new project as a way to make the state more energy dependent and reduce our carbon footprint.

“This facility will provide its customers with the opportunity to purchase 100 percent of their electricity from clean energy produced in Nevada,” Reid told reporters with the Pahrump Valley Times. “That’s a step forward for the Silver State, but it also proves that utilities can work with customers to provide clean renewable energy that they demand.”

The solar energy that VEA produced was drastically higher than anyone would have predicted. SolarWorld estimates that the solar garden created 32,680,000 kwh every year, which was enough to power nearly 4,000 homes.

This was a major undertaking for a purple state, which may inspire their peers throughout the Midwest to develop solar gardens of their own. It will reduce dependency on the electric grid, which is a problem for many remote states in the central part of the country.

3.     Las Vegas Casinos

A number of Las Vegas casinos have started investing in solar panels over the last couple of years. The Guardian reports that many of these casinos have cut costs considerably. Some of them are even selling the energy back to the grid.

“It’s no accident that we put the array on top of a conference center. This is good business for us,” Cindy Ortega, chief sustainability officer at MGM Resorts told Guardian reporters. “We are looking at leaving the power system, and one of the reasons for that is we can procure more renewable energy on the open market.”

There have been many benefits for casinos using solar energy. They are some of the most energy-intensive institutions in the world, so this has helped them become much more cost-effective. It also helps minimize disruptions to their customers learning online keno strategies in the event of any problems with the electric grid.

4.     Boston College

Boston College has been committed to many green initiatives over the years. A group of researchers experimented with solar cells on different parts of the campus to see where they could produce the most electricity. They discovered that the best locationwas at St. Clement’sHall. The solar cells there dramatically. It would also reduce CO2 emissions by 521,702 lbs. a year and be enough to save 10,869 trees.

Boston College is exploring new ways to expand their usage of solar cells. They may be able to invest in more effective solar panels that can generate far more solar energy.

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