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Energy debt hits record £3.8bn, as Ofgem propose initiatives to raise standards
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MHHS could pose a major commercial risk for suppliers
Market-wide Half Hourly Settlement (MHHS) has the potential to pose a major commercial risk for suppliers, with a risk of overpaying for energy purchases by up to 8%.
Is your operation ready for increased customer switching?
Change of supply - it's been a while. As wholesale energy prices remain high but stable, suppliers should be making sure they're operationally prepared for a material increase in switching, which we're expecting to see from the announcement of the October Price Cap onwards.
Price Cap to increase 10% in Oct-24, but annual bills stay flat
Ofgem's headline Price Cap is set to increase 10% this Winter (~£140 rise from October-24), but demand-weighted annual bills are expected to remain flat. Based on our projections, customers' annual bills should be ~£1,700 from 01 October, staying unchanged since April-24
Optimising your DCA strategy to mitigate rising debt
Domestic debt keeps rising, and engaging customers through tailored journeys is crucial to take control of the situation. Refining your approach to DCAs can drive these improvements, supporting your internal efforts to better manage customer debt. We've outlined three steps here to help maximise results from your DCA relationships.
Average solar payback takes 14 years - optimising efficiency is key
Recovering install costs for domestic solar panels currently takes ~14 years, and customers can optimise efficiency to access the full potential of these systems, as covered here.
Domestic energy suppliers faced £1.9bn cash coverage deficit
By combining Ofgem's new data on customer credit with their recent market debt figures, our analysis shows domestic suppliers faced a £1.9bn shortfall to the target cash reserve in March 2024 - an increase of £1.1bn in the past 12 months.
Engaging customers is critical as energy retail diversifies
Energy retail's diversification continues to gather pace, with margins strained, and uncertainty looming around Ofgem's price cap review. Service-oriented models offer a route to sustained growth and profitability, but it's not without risk, as question marks remain over customer uptake. We've assessed the opportunity here.
Heat Pump support increasing, with budget for 3.3k installs pm
Support for Heat Pumps is set to increase next year, with budget for up to 3.3k installations per month - doubling the current funded install rate.
Addressing the carbon reduction challenge in data utilisation
The technology and software sectors are a key driver of economic growth, attracting private equity and venture capital investment thanks to their scalability and high margins. Global tech spend is booming, forecasted to reach £3.6 trillion in 2024, so what’s the catch?
Improving settlement performance is a ~£200m opportunity for suppliers
Since the migration of first-generation (SMETS1) smart meters into the DCC network, there’s been a steep decline in settlements accuracy across the energy industry, which could be costing suppliers up to £200m based on our analysis.
Domestic energy debt has reached £3.3bn, up £1.1bn in a year
Ofgem have shared their Q1-24 view of domestic energy debt, reporting a total debt value of £3.3bn in the industry (54% increase since Q1-23).
Identifying opportunities for smart rollout acceleration
The government's smart rollout target for 2025 is getting closer, and although our analysis shows most suppliers are set to fall short of 75% coverage, opportunities to hit the target still exist - as shown in this article.
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