What will Lockdown 2.0 mean for UK Energy Suppliers?

Working from home returns for most

Smart Meter rollout

This time smart meter installations will be allowed to continue as long as safety guidelines are followed.

With national restrictions being reimposed, many energy suppliers will still be able to offer their customers smart meters.

Fulcrum and other smart meter installers will continue to install smart meters during the second lockdown, so the smart meter rollout programme will continue.

Engineers however will not be able to enter properties they are due to visit where the residents are self-isolating or where social distancing measures are impossible to follow.

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

A long haul 2.0?

The Prime Minister has been adamant that this second lockdown will end by December 2^nd to allow families to reunite for the Christmas festivities. However, we’ve all heard these ‘promises’ before.

The first lockdown was supposed to end three weeks after it commenced on March 23^rd but did not end until July 4^th. This time with the onset of winter and the likelihood that the NHS will come under strain from annual illnesses as well as Covid-19 it’s a good bet that this lockdown will go on far longer than what has been announced. Some forecasters have even worriedly predicted that it may not end until the spring.

Businesses will need to be prepared for the long haul and not expect to be back to the office or post ‘lockdown 1 normality’ anytime soon.

Thankfully, technology such as SaaS platforms allows energy suppliers to do most of their operations remotely from offices and services such as Dyball’s CRM software and Managed Services allow suppliers to continue to provide regular service and operate as normal despite the lockdown restrictions.

Also read: Ofgem to introduce new rules to help customers struggling with energy bills- what does this mean for energy suppliers?

Economic Fallout

Many energy suppliers were and still are concerned over rising bad debt amongst consumers. Fears had mounted as a result of the ending of the government furlough scheme at the end of October. However, these have been eased somewhat due to the scheme being extended throughout the second lockdown.

Ofgem and the government also recently announced a swathe of support for consumers struggling to pay their energy bills this winter.

Despite the continuation of the furlough scheme many thousands of people have lost their jobs and this second lockdown is likely to be catastrophic for the hospitality and retail sectors. November is typically the strongest month of the year for retail sales due to Christmas but now this in jeopardy and the negative impacts on the UK economy have yet to be revealed.

Also read: Energy price cap extended to the end of 2021 to support struggling consumers

B2B Energy Supplier challenges

B2B energy suppliers will once again face challenges and will need to put in place measures to protect themselves and minimise their exposure to the risks presented by the new lockdown.

Many customers, already feeling the strain as a consequence of the first lockdown will need added support and increased flexibility to pay off their energy bills.

B2B energy suppliers will also see the income from their customers decline sharply as offices and factories are once again forced to close. 

Further Reading

Tesla to launch new energy tariffs

Three energy suppliers receive Final Orders from Ofgem for unpaid Renewable Obligations Payments

Utilita to pay £500,000 for overcharging customers

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.