Utility Week Live

15 As independent suppliers steadily gain market share, Utility Week Live will explore the forces working for and against their growth and diff erence they are making to the market. Chris Marsters, senior product lead, First Utility, the UK's largest independent supplier, helps spark the debate. Ready to release As the energy sector gets stuck into an end- to-end transformation of infrastructure, business models and culture innovation is the watchword – yet this is a discipline the sector has struggled to master eff ectively in the past. In 2015 the Energy Systems Catapult will begin its mission to accelerate smart energy solutions into the UK market as Nick Smailes explains. What are the Energy Systems Catapult's priorities? We are clear that there is a distinct role to play for the new Catapult. It needs to enable the UK to be a global leader in the development of new products and services for energy systems by exploiting the commercial opportunities created by the transformation of the UK's energy systems. The themes of particular interest to the Catapult will include localised energy systems, integration of energy storage, advanced control solutions, heat network solutions and demand side management. Would you say there has been a lack of collaborative innovation in the energy sector in the past? The level of innovation activity in energy systems in the UK is strong compared to other European countries. However, it is still rare for new technology based products and services to reach the market, especially from SMEs. This is where the new Catapult will play a key role because it will be focused on exploiting the commercial opportunities for new technology-based products and services. Do you think developments in the energy sector's regulatory regime are distracting businesses from innovation? There is no doubt that regulation is one of the challenges to innovation – the sector is regulated, necessarily conservative and complex. This is particularly challenging for [technology] SMEs who do not have the resources to navigate the complex market. But this is one of the key benefi ts for companies to work with a Catapult – they help de-risk investment in innovation. They also provide a hub for larger companies – like utilities – to work with some of the UK's most innovative and agile SMEs How does the Catapult intend to overcome competitive or intellectual property concerns utilities might have about getting involved? Catapults provide a place to network and collaborate in a safe environment where you are able to share knowledge and ideas, knowing that your intellectual property will be carefully managed in a safe and transparent way. The model for engaging with the Catapult is very fl exible. There are diff erent ways to commercialise your innovation and businesses can engage in a number of ways depending on the type of project you are involved in, the type of research that is needed and how you would like to see the IP to be managed. How soon are we likely to start seeing results from the Energy Systems Catapult? The Catapult will start developing its capabilities from April 2015 when its core funding from Innovate UK begins. We hope to see its fi rst projects developing during the fi rst 12 to 18 months to fully establish and kick-off projects. But this is a long-term investment that will help the UK be a global leader in energy systems over the next few decades. Will government funding for Catapult centres continue after the election if a new government is elected? The Government has guaranteed core funding up to 2017/18 and in the Science and Innovation Strategy confi rmed its commitment to supporting the existing network, plus signalled its intention to expand the network pending future spending review decisions. There is also strong cross-party support for the Catapult programme. The future brings great challenges for the energy industry, and National Grid is playing a key role in developing many of the solutions." Chris Bennett, head of RIIO delivery, National Grid The hike in complaints suggests consumers are becoming more aware of their rights, less willing to accept poor customer service, and more ready to switch supplier as a result." Lewis Shand Smith, chief ombudsman Independent energy suppliers gained of market share for the fi rst time in 2014 gained gained of market gained of market gained government is elected? core funding up to 2017/18 and in of market share Strategy confi rmed its of market of market gained gained 10 % Underdogs on the What is it that allowed First Utility to grow so signifi cantly last year? We saw more people switch to independent providers than the big six for the fi rst time last year which suggests a level of comfort and trust combined with a feeling of simply having had enough of the old guard. We were able to offer consistently lower prices and engage our customers to help them use less energy. We had one of the top two deals in the market for 48 weeks of 2014 - and customers are buying in to our approach. Are ambitions for a 'big 6,000' realistic? We certainly don't want to become a big seven. We have a very different mindset that starts at the customer and works back. In an industry with low engagement, we're determined to give insights, knowledge and control to our customers to engage them with energy and put them in charge. What makes an independent supplier more suited to the future of energy? We're really focused on engaging and empowering our customers which hasn't traditionally been the case in this market. We're taking inspiration from companies in other industries to deliver innovation in areas like data visualisation and personalisation which we believe will put our customers in control.By working in partnership with our customers we're able to give them what they need in an engaging, relevant and personalised way. This customer feedback is at the very centre of our approach and ensures we're not doing things for the sake of it, but that they deliver real value. See p18 for seminar agenda details Chris Marsters,

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