DONG Energy is to offer electricity supply services to its business customers, following a successful pilot project to supply power to a UK ceramics manufacturer.
The move is a first for DONG, which has until now limited its activity in the UK commercial supply market to gas. The company supplies gas to around 11% of the industrial and commercial market.
Available since September, the new service offers business customers a power supply that can be tailored to their needs. Customers can choose which cost elements of their contract are fixed and which are flexible, ensuring that customers only take on the risks they are comfortable with, DONG said, adding that, as there are no minimum clip sizes, the service could also be of benefit to business customers with smaller energy requirements.
All customers will receive a detailed breakdown of consumption and all costs at meter level with each monthly invoice.
Interestingly, businesses looking to boost their low-carbon supply will also be able to fix exactly how much of their supply is from renewables – from 0-100%. DONG, which has stakes in a number of major wind farms in the UK, claims that renewable energy supplied to its business customers will be directly traceable to its wind farms.
Clarity and transparency
The company began trialling its power supply service late last year with Steelite, a ceramics manufacturer that supplies tableware to the hospitality sector. Steelite, which supplies giants such as Pizza Express and TGI Fridays, uses around 12GWh of power a year at its Stoke-on-Trent pottery.
“Business energy costs have seen a dramatic rise in recent years and now form a substantive part of any organisation’s bottom line,” said Mike Hogg, managing director of DONG Energy’s sales division. “Effective energy management and optimising spend has therefore moved up the boardroom agenda and, with increasing environmental responsibilities and renewable energy targets, this is set to continue.”
He added: “Our research indicated that companies would welcome more clarity and transparency around pricing, as well as simple documentation, timely and accurate billing, and accessible account management.”
With energy suppliers in the UK under pressure to improve their management of customer billing and contracting – a recent report from the House of Commons Select Committee on Energy and Climate Change suggested that overly complex billing is undermining trust in the energy sector – DONG is keen to drive home its message that it is a trustworthy supplier.
Davin Bates, Steelite’s management accountant gave his voice in support of the new service in this respect. “I’ve never had to query anything on our bills and, with so much mistrust in the energy market, I’m glad it’s not something I have to worry about,” he said.