VATTENFALL STEPS INTO THE UK SUPPLY MARKET

United Kingdom Vattenfall starts direct sales of renewable electricity to business customers in the UK.

The UK operations go from sustainable production to include also sustainable consumption as business customers can now buy Vattenfall’s wind power directly from Vattenfall.

“Over the last few years, we have been approached by large corporate customers who want to be supplied with renewable energy directly from us. Now we are finally able to respond positively to the increasing number of medium to large commercial and industrial companies that have a strong desire to become more sustainable in their energy consumption,” says James Hunt, UK Originator in BA Markets. Hunt has been leading the project that has been an intense team effort involving both the Markets and Customers & Solutions business areas, since it was initiated in the summer of 2016.

Expanding into the customer segment
“Until now, we have sold all our renewable electricity through the wholesale market. But with this new initiative, we are able to offer customers electricity directly from our portfolio of Vattenfall wind turbines and from other renewable generators with whom we have power purchase agreements (“PPAs”).

“In addition to purchasing renewable electricity, our customers will have the opportunity to manage their energy price through our flexible purchasing products or lock in their price through our fixed price products. We will provide all our customers with access to our high-quality online customer interface based on the Nuon Handelsplatform, where they can access information about their supply including their consumption and manage the purchasing of blocks of electricity,” says Hunt.

The essential quality of service
The initiative is led by BA Markets, among other things because of their knowledge and experience of operating within the UK market gained from their third party PPA business. The Origination team will lead the sales drive to UK customers and will start selling power under the existing supply licence held by Vattenfall Energy Trading GmbH.

Hunt and his team have been working since the summer of 2016 with the close support of BA Customers &  Solutions to get the arrangements in place that are needed for instance to get meter data, to adequately process requests from customers and to get the Nuon digital platform attuned to the British rules and regulations. In other words to provide the necessary quality of services that puts the customer in control of their energy supply and at the same time reduces Vattenfall’s costs to serve their customers, thus securing competitive prices.

A bridgehead to the future
“We created a  business that was in line with Vattenfall’s strategy of helping customers achieve their sustainability goals in an affordable way. The sale of electricity that we are launching now can be seen as the important and necessary starting point, but it may in the longer term serve as a bridgehead for other business areas to work with the UK customers with offerings such as energy efficiencies, on-site renewable generation and storage of electricity,” Hunt explains.

In a wider perspective, the approach will take the UK operation from sustainable production to include sustainable consumption. In Hunt’s eyes it can ultimately be an enabler for increased consumption of renewable energy in the UK where Vattenfall can contribute through the continued strong cooperation of all business areas.

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