The UK Energy Sector
Through the eyes of an
independent domestic supplier
Ramsay Dunning
Co-operative Energy
Topics
• Who I am, Who Co-operative Energy is
• UK Energy Market domestic gas,
electricity
• Challenges Ahead
• Opportunities ahead
2
Who we are
• Co-operative Energy
–Supplier of Gas, Electricity to
domestic properties in the UK
–Created by Midcounties Cooperative
–Trade under National co-operative
brand
3
Key Achievements to date
• July 2010 Midcounties Board agree to create Cooperative Energy
• December 2010 first customers go on supply
• April 2011 granted exit from controlled market
entry
• May 2011 announce Co-operative Energy to the
general public
• July 2012 exceed 50,000 customers and no longer
classed as a small supplier
• July 2014 customer numbers exceed 200,000
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UK Energy Market
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Regulated by OFGEM
Policy by DECC
Big Six domination (declining)
Political
Policy to meet Trilemma
– Security
– De-carbonisation
– Affordability
5
Electricity
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Increasing renewables
Govn’t led price support mechanisms
Potential generation gap
Balancing challenges with increased
renewables
6
Gas
• Increasing dependence on imports
• Fracking
–Global price/supply implications
–UK potential implications
7
Challenges Ahead
• Trilemma
– Security – increasing dependence on imported gas
– electricity potential shortfall
– Decarbonisation – pace/cost of move to
renewables, commercial CCS
– Affordability, domestic (voter) home, commercial
for UK economy v low energy cost nations
– Pace of political and technological change
– If either gas or electricity scarce, domestic takes
priority
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Opportunities ahead
• Renewables, Commercial CCS,
• Linking renewables to controllable
generation
• Increasingly open wholesale markets
• Location
• Collaboration, linking above, a) protect
investments, b) exploit potential profits
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