Build Scotland Construction Directory
Time and date
CONSTRUCTION DIRECTORY
Share this page
Construction News
09/10/2019

SSE Welcome Ofgem Action On 'Irresponsible' Energy Companies

Construction News Image
SSE Renewables (SSE) have welcomed action being taken by energy regulator Ofgem against suppliers who failed to pay their industry bills for renewables generators.

SSE said that a situation where "irresponsible" energy companies don't pay their bills which ultimately have to be covered by consumers, must be avoided.

Stronger action on defaulting suppliers is therefore welcome, SSE said, but added that measures to prevent customers having to cover the cost of these unpaid bills in the first place was "more urgently needed".

SSE said that this is especially pressing as the energy industry faces its annual reckoning – the struggle to make annual Renewables Obligation payments will likely be compounded by another one-off 'catch-up' bill for historic payments due to generators under the Capacity Market, a scheme which is currently suspended due to an EU state aid dispute but is expected to resume shortly.

These costs are known to suppliers well in advance and any responsible supplier will have set money aside ready to pay. But we've seen before that those who haven't prudently managed their financial position could well be sent over the edge.

NorthernAsbestosServicesLtd

There is currently no requirement for suppliers to set aside funds to cover such payments. Last year 34 energy suppliers missed the deadline for making their Renewables Obligation Certificate payments in full with a number of these eventually going bust.

SSE Renewables' Stephen Forbes, said: "Recent supplier insolvencies have left an estimated £170m in unpaid bills – these unpaid costs are then spread across the industry through the 'supplier of last resort' process. Ultimately the cost is being picked up by the customers of responsibly run suppliers who bail them out. This distorts competition, increases costs and undermines customers' trust in the market.

"We therefore need additional protections to put an end to the bubble effect of suppliers being able to build up huge liabilities that – due to undercharging or mismanagement – they are unable to pay when the bill arrives. We need to see new measures put in place which require high-risk suppliers to provide security or credit cover for their financial obligations to make sure customers are truly protected in the event of failure.

"Make no mistake – it's tough out there for everyone. We have one of the most competitive household energy markets in the world with around 60 suppliers and record switching. The Government's price cap puts further pressure on the market with Ofgem openly expecting some suppliers to fail as only the most efficient suppliers can earn a low margin of less than 2%.

"We welcome competition, and are embracing the challenge of becoming more efficient. But for competition to thrive there needs to be a level playing field and consumers need confidence that the cheap deals being offered to them aren't, as Citizens Advice put it, too good to be true."

(MH/CM)

Latest Construction News

23/10/2019

The first detailed roadmap to show how local communities can play their part in reaching the UK's NetZero targets has been published by ScottishPower and SP Energy Networks. Launching Zero Carbon Communities, Scottish Water stated: "In a few short years, our roads will look very different as electr
23/10/2019

SSE Renewables has welcomed a new offshore jack-up installation vessel, the Jan De Nul-owned Voltaire, to the world's largest offshore wind farm project, Dogger Bank Wind Farms. The Jan Voltaire has a lifting capacity of over 3,000 tonnes and stands taller than the Eiffel tower, making it the large
23/10/2019

The City of Edinburgh Council has published a road map for moving forward the ambitious target to deliver a carbon neutral Capital by 2030. The 'short window improvement plan' outlines 37 immediate and short-term actions across all areas of Council business such as planning, transport, housing, ene
23/10/2019

A new £8 million affordable housing development in Blairgowrie has been officially opened by Housing Minister Kevin Stewart. The newly-built Blackthorn Place development has delivered 71 high-quality rural homes and is a joint project between Hillcrest Homes and Perth & Kinross Council. Mr Stewar
23/10/2019

The Highland Council has announced the completion of a £1.8 million refurbishment of a city centre building owned by the Inverness Common Good Fund. The building is now fully let, with Highland & Islands Student Association collecting the keys to the 3rd floor at 1-5 Church Street earlier this week
23/10/2019

Stirling Council has announced that resurfacing works to improve the A875 between Endrick Bridge and Boquhan have gotten underway as part of a commitment to upgrading the rural road network. Resurfacing has begun between Endrick Bridge and Boquhan and is scheduled to last until Wednesday 30 October
23/10/2019

Construction work is underway on a new Early Childhood Centre at Loanhead Primary School in Kilmarnock as part of East Ayrshire Council's early years' expansion programme. These works will contribute to the Council's overall preparations for the introduction of 1,140 hours of early learning and chi
23/10/2019

Dundee City Council is to consider proposed plans for a £735,000 improvement scheme for the city centre. The plans could see additional seating, street improvements and more public art. The money, from the Scottish Government's Town Centre Fund initiative, will be complemented by the development o
23/10/2019

Edinburgh's Heriot Watt University has been announced as a finalist in the Solar Decathlon Middle East 2020. Three undergraduate engineering students from the Edinburgh campus; Scot Calder, Jessica Haskett and Martin Juricek, were selected to represent Team ESTEEM at the ceremony in Dubai. Created
23/10/2019

A housing and care development from Bield has been announced as a finalist in the prestigious Inside Housing Development Awards 2019. The Meadow Apartments in Lenzie has been nominated as the 'Best Older People's Housing Development of up to 50 homes'. The Meadow Apartments, developed in collabora
Scot Hoist LtdNorthern Asbestos Services LtdSibbald Training LtdArtisan Rooftech LimitedCyclone Steel BuildingsJSJ Foam Insulation LtdMorris & Spottiswood LtdClarus Site SolutionsSibbald Training LtdContainex
Terms and Conditions