Kate Gillingham, Senior Policy Manager at SSE provides support on a range of Government policy areas to SSE’s Wholesale business.
Today, Kate Gillingham has been presenting at the Energy Live Consultancy Conference (ELCC), a specialist conference for energy brokers, talking about recent changes in UK Government energy policy and what impact this might have on our customer’s bills. Read the full presentation here.
Energy bills are an important consideration for businesses, so it’s crucial to understand the latest Government policy developments and how these might impact our customer’s bills. Understanding the high-level drivers behind potential changes can help businesses identify future cost impacts as well as potential new opportunities.
The levels of Government intervention in the energy sector have been significant in recent years as Government seeks to deliver its objectives for the sector, including decarbonisation and ensuring secure supplies. A number of the changes and reforms brought about have had a direct impact on the bills of businesses.
Non-commodity costs, including the levies used to fund Government schemes and charges for use of system, have had a growing impact on customer’s total bills over recent years. The reasons for this increase include the growing cost of schemes such as the Renewables Obligation (RO) and Feed-in-Tariff (FIT), as well as newer schemes introduced as a result of Government’s Electricity Market Reform, in particular the Capacity market and Contracts for Difference.
The policy landscape is, and will continue to, evolve and there are a number of short-term decisions to be made by Government, such as an exemption from part of the cost of RO and FITs for Energy Intensive Industries, which could have further implications. There are opportunities too though, particularly from the Government’s growing focus on flexibility and promoting electricity storage and Demand Side Response, as well as its development of an industrial strategy for the UK.
From a policy perspective the next twelve months are set to be as busy as ever. Sign up to our blog to keep up to date on all the news from SSE Business Energy. You can download today’s presentation, ‘Policy Changes and how they will affect you and your customers’ here.