Prime Minister announces Covid-19 lockdown easing roadmap: What does it mean for energy suppliers?

The four steps

Step One

The first of the steps will be enacted on 29^th March and will finally allow families to see each other outside.

Outdoor sports will be allowed once more and the stay at home order will end. However, many restrictions will remain in place and office workers will continue to work from home where able.



Energy suppliers are unlikely to see much difference to their current situation at this point with the bulk of their workforce still having to work from home. Only emergency repairs etc will still be allowed.

Decreased industrial and commercial activity will continue to weigh on demand. Railways and airports are major consumers and lockdowns have had a significant impact on demand. The decline in demand has resulted in a decrease in overall revenue for energy suppliers which is one of the major factors for the rise in the energy price cap.

Also read: Energy Price Forecast 2021: Covid-19, Brexit and much more

Step Two

The second step will not come into effect any earlier than April 12^th and will see the opening of all non-essential retail and the reopening of public buildings. Indoor sporting facilities and gyms will also reopen.

Theme parks and other outdoor entertainment such as zoos will also be allowed to open to the public once more.

According to the Federation of Small Business, the challenges faced by the nation’s small businesses could result in up to a quarter going out of business if they do not receive support.

For energy suppliers, this will likely see an upsurge in demand from businesses and no doubt many issues regarding supplies and energy billing are likely to be raised.

With the energy price cap being hiked in April, suppliers could use this time as an opportunity to attract new customers.

Small businesses are at risk of defaulting on their contracts which could result in them being placed on out-of-contract rates where costs are typically 35% higher. 

For an average small business that would see them going from a rate of between 14.3p – 15.1p per unit to 19p – resulting in annual costs rising from between £828 ($1,100) to £1,280 ($1,700) overnight.

“The nation’s businesses are the backbone of Britain, but the pandemic is seeing many of them fighting for their survival. That’s why it is absolutely vital they do all they can to avoid any unnecessary costs. 

“We’re urging all firms who may be struggling with their energy costs to talk to their suppliers. By opening a dialogue then arrangements and allowances can be made. If businesses ignore the problem and default on their contract – then they’ll be immediately placed on a tariff where their costs rocket by over a third,” said Love Energy Savings CEO Phil Foster.

Energy suppliers should be prepared to deal with the reopening of their business customers and ensure their energy billing and other details are up to date and any assistance offered.

Dyball’s Customer Relationship Management (CRM) software can assist with this. Energy billing systems allow you to track usage of the energy you sell to consumers (e.g. gas and electricity) and then manage the billing process based on the usage data acquired. They also simplify and improve all billing activities, by delivering a wide range of features that enable full customisation.

Energy suppliers, therefore, benefit from bespoke software, which is tailored to their requirements. 

Also read: Energy Billing – How does it work?

Step Three

The third step will not come into effect until 17^th May at the earliest and will see social contact rules lifted.

Outdoor cinemas and theatres will reopen as will indoor cinemas and entertainment venues. Large sporting events will also be allowed but with restrictions placed on the number of attendees.

For energy suppliers, this step will likely see most restrictions eased as to where engineers can be used and will allow suppliers to step up their smart meter rollouts.

International travel could reopen in this step and energy demand from airports and railways will return, although it remains to be seen just how damaged the aviation sector is as a result of the pandemic.

Also read: Covid-19’s impact on smart meter installations revealed

Step Four

The final step which the government says will not occur any earlier than June 21^st will see the lifting of all legal limits on social contact being removed. By the end of July, every adult in the country will have been offered the first dose of the vaccine.

Energy suppliers should see demand increase back to pre-pandemic levels and with restrictions lifted the regulator will no doubt increase the pressure to get the smart meter rollout back on track.

Wholesale energy prices could continue to rise as economies open up and return to normality. During the lockdown, domestic consumption increased, and commercial and industrial consumption decreased, meaning that utilities had additional revenue from domestic use.

Challenges ahead

With the end of the lockdown within reach, energy suppliers have displayed their capacity to innovate in this time of need. Many suppliers have embraced digital transformation to manage their business and survive the challenges created by the pandemic.

One thing is certain, the energy supply sector has been changed forever. 

Further Reading

Energy Suppliers call for changes to electricity and gas levies

Scottish Power, Npower, EDF and Eon all announce energy bill hikes to maximum allowed by the Energy Price Cap

Energy Switching fell to lowest level since 2018 in January but Energy Price Cap hike likely to spur a rebound

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