The Big Six – Hero or Zero?

Over the last two years we have seen a dramatic shift in our energy supply services. Customers have been switching suppliers and new companies have been entering the market offering cheaper deals and better service.

New entrants to the energy market and a greater consumer focus being shifted to customer service, ethical supplies and trust; has reduced the market share of the big six from 100 per cent five years ago to 86 per cent at the end of 2016.

The future focus for consumers could very well include trusted local suppliers, a move away from the historic market providers, an increase in low carbon generation and a need to make their homes as efficient as possible with the forecasted escalations in tariff rates.

Increases from suppliers such as Npower and EDF, with predictions the other big 6 energy companies will follow suit, to begin in March or later this year have renewed political scrutiny. This increase is reflective of global energy price rises exacerbated in the UK by a sharp depreciation in the pound since the EU referendum — increasing the cost of imported gas, coal and electricity. Ofgem are demanding companies such as Npower justify increases of up to 15% on standard electricity and 4.8% on gas standard tariffs.

The energy industry, it seems is undergoing a seismic shift, such as experienced within the telecommunications industry with the influx of mobile technology and its associated variety of providers. There is a move from a fixed cartel of suppliers, with large power station production, controlled prices and inertia of long standing customers; to a new system based on decentralised generation, greater market competition and greater customer control over their supply arrangements.

We have also seen a rise in renewable energy installations and rapid developments in energy storage and generation. Community energy has been at the forefront of this revolution, with community benefit societies developing community owned renewable energy installations to add to the local supply model.

This has created not only low carbon energy but has provided local investment opportunities, produced community benefit funds and delivered energy advice to those suffering from fuel poverty.

Across the country £25m has been invested in community share offers, showing trust in these organisations and a belief in low carbon technologies.

In the UK £23m has been raised through community energy schemes to invest in local communities, with an ever increasing need to support fuel poor households, advise on fuel debt, improve homes energy efficiency and examine supplier switching deals. With uncertainty around centralised energy efficiency schemes such as ECO and the disappearance of the Green Deal Scheme, community energy organisations across the country are playing an ever increasing strategic role in energy efficiency.

So what role could and should community energy organisations play within this moving economic and political landscape? ECOE, Exeter’s own Community Energy organisation is looking to address this question and learn from the experience of other pioneer organisations at two events to be held in the city on the 1st March.

“Innovation in Community-led Energy Efficiency” is for community energy practitioners and other professionals involved in energy efficiency. The second event, which follows, turns the focus onto Exeter - “Energy, Efficient Exeter: What role for ECOE?” Everybody living and working in Exeter are invited, this event is for those who are involved or interested in what is happening with energy efficiency in Exeter. For more information please visit https://www.ecoe.org.uk/newsevents/innovation-community-led-energy-effic...