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You can find the current article at its original source at https://www.theguardian.com/commentisfree/2017/oct/04/energy-companies-price-capped
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| I'm an energy boss, but even I support price-capping. Here's why | I'm an energy boss, but even I support price-capping. Here's why |
| (11 days later) | |
| Most energy companies are infuriated by what they see as government meddling in their business, and breathed a sigh of relief when the government’s proposed price cap appeared to be watered down in the Queen’s speech. But the issue is not going away. Indeed political attention is ramping up and 192 MPs have called for the government to deliver on its manifesto commitment. With winter fast approaching and energy bills going up by almost 10% this year, we could be facing an October revolution. | Most energy companies are infuriated by what they see as government meddling in their business, and breathed a sigh of relief when the government’s proposed price cap appeared to be watered down in the Queen’s speech. But the issue is not going away. Indeed political attention is ramping up and 192 MPs have called for the government to deliver on its manifesto commitment. With winter fast approaching and energy bills going up by almost 10% this year, we could be facing an October revolution. |
| In June I outlined my reasons for supporting a market-wide energy price cap, despite believing that in most situations free markets and competition deliver the best results for customers. Instead of hoping the government gets distracted by other policies, or indeed Brexit, we should be asking ourselves why energy companies have been under the spotlight for the last decade. | In June I outlined my reasons for supporting a market-wide energy price cap, despite believing that in most situations free markets and competition deliver the best results for customers. Instead of hoping the government gets distracted by other policies, or indeed Brexit, we should be asking ourselves why energy companies have been under the spotlight for the last decade. |
| Despite countless reviews and proposed reforms, between 60% and 70% of consumers continue to be overcharged, underserved and taken for granted by their energy supplier. It is clear that competition, in its current form, is neither serving customers nor incentivising energy companies to invest for the future. | Despite countless reviews and proposed reforms, between 60% and 70% of consumers continue to be overcharged, underserved and taken for granted by their energy supplier. It is clear that competition, in its current form, is neither serving customers nor incentivising energy companies to invest for the future. |
| Poor customer experience was what drove me to set up OVO in 2009. I believed we could use technology to make energy cheaper, greener and simpler for everyone, and still do. We set out simple tariff structures and offered a low standard variable tariff (SVT). That was considered innovative in 2009, but it should not be in 2017. We should have moved on; it is amazing to me that we are still in a debate about energy pricing. | Poor customer experience was what drove me to set up OVO in 2009. I believed we could use technology to make energy cheaper, greener and simpler for everyone, and still do. We set out simple tariff structures and offered a low standard variable tariff (SVT). That was considered innovative in 2009, but it should not be in 2017. We should have moved on; it is amazing to me that we are still in a debate about energy pricing. |
| With steady advances in generation and storage we need to be looking beyond traditional retail models | With steady advances in generation and storage we need to be looking beyond traditional retail models |
| With steady advances in generation and storage technologies, we need to be looking beyond traditional retail models to a future of integrated energy services. Earlier this week we announced our intention to launch the UK’s first vehicle-to-grid service for electric car owners, allowing them to recoup their energy costs by selling power back to the grid at peak times. Their cars act as batteries that can discharge electricity to the grid to help balance supply and demand, at the same time as reducing the cost of bringing more renewable energy onto the system. | With steady advances in generation and storage technologies, we need to be looking beyond traditional retail models to a future of integrated energy services. Earlier this week we announced our intention to launch the UK’s first vehicle-to-grid service for electric car owners, allowing them to recoup their energy costs by selling power back to the grid at peak times. Their cars act as batteries that can discharge electricity to the grid to help balance supply and demand, at the same time as reducing the cost of bringing more renewable energy onto the system. |
| We’ve also launched a new customer proposition using home batteries to help customers get more out of their solar generation and substantially reduce their energy bills. | We’ve also launched a new customer proposition using home batteries to help customers get more out of their solar generation and substantially reduce their energy bills. |
| These sort of innovations are complex and difficult to deliver, but they are where the future lies. They are what should be the focus of energy strategy, policy and debate, rather than the level at which a company sets its SVT. It is time energy companies accepted the need for some form of price regulation, adapted to the new environment, and focused on delivering more value for their customers, rather than fighting to maintain the status quo. | These sort of innovations are complex and difficult to deliver, but they are where the future lies. They are what should be the focus of energy strategy, policy and debate, rather than the level at which a company sets its SVT. It is time energy companies accepted the need for some form of price regulation, adapted to the new environment, and focused on delivering more value for their customers, rather than fighting to maintain the status quo. |
| It is October 2017, 100 years on from the Russian revolution, and we are still debating the merits of capitalism. I firmly believe in free markets and private ownership of enterprise. It is the best framework for driving social progress and raising living standards. But when business becomes synonymous with greed, we do great damage to the cause of free enterprise. | It is October 2017, 100 years on from the Russian revolution, and we are still debating the merits of capitalism. I firmly believe in free markets and private ownership of enterprise. It is the best framework for driving social progress and raising living standards. But when business becomes synonymous with greed, we do great damage to the cause of free enterprise. |
| Technology companies such as Google, Facebook and Amazon, which were once lauded as a force for good, are now being seen in the same light as former corporate giants: self-serving, detached and socially irresponsible. Technological advancement is accelerating; and with robotics, autonomous vehicles and artificial intelligence all coming down the track, the debate about how we share the benefits of progress and the role of the company in society will become increasingly important. Companies do not exist in a vacuum, they cannot operate in isolation from the societies they are supposed to serve. | Technology companies such as Google, Facebook and Amazon, which were once lauded as a force for good, are now being seen in the same light as former corporate giants: self-serving, detached and socially irresponsible. Technological advancement is accelerating; and with robotics, autonomous vehicles and artificial intelligence all coming down the track, the debate about how we share the benefits of progress and the role of the company in society will become increasingly important. Companies do not exist in a vacuum, they cannot operate in isolation from the societies they are supposed to serve. |
| Companies that do not work towards shared prosperity, striving to create value for customers, for their employees and for society as a whole, and which focus primarily on shareholder value, are fuelling public anger and inviting government scrutiny and intervention. Business and society thrive together, and as business leaders we need to understand that it is through sharing our success with society that we invest in our own future. | Companies that do not work towards shared prosperity, striving to create value for customers, for their employees and for society as a whole, and which focus primarily on shareholder value, are fuelling public anger and inviting government scrutiny and intervention. Business and society thrive together, and as business leaders we need to understand that it is through sharing our success with society that we invest in our own future. |
| • Stephen Fitzpatrick is the chief executive of OVO Energy | • Stephen Fitzpatrick is the chief executive of OVO Energy |
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