Green Quadrant Sustainable Power Utilities 2011 (UK)

Published: 08 March 2011

26 pages, 13 figures

Executive Summary

Regulation, stakeholder expectations and rising costs are driving firms to increase investment in energy efficiency and renewable energy. Traditionally customers have limited their interaction with power utilities to their energy supply contract, but as utilities increase investment in their energy services capabilities, they are better positioned to offer both sustainable supply and demand management services. The Green Quadrant report provides a detailed and fact-based comparison of 13 power utilities in the UK. The analysis is based on interviews with 15 customers across eight industries, supplier responses to a 33 point questionnaire and detailed supplier interviews. The analysis finds that four power utilities – Centrica, EDF Energy, E.ON Energy and RWE npower – lead the market for sustainable power utilities, because of their strong capabilities across sustainable service lines, their willingness to innovate, and their mature organizational sustainability programmes. The report explains which questions buyers should ask when shortlisting power utilities in order to reveal their sustainability capabilities.

TABLE OF CONTENTS

STATE OF THE MARKET FOR SUSTAINABLE POWER UTILITIES
Regulations Drive Fundamental Change In The UK Power Sector

BUYERS FOCUS ON ENERGY SUPPLY RATHER THAN ENERGY SERVICES
Firms Face Challenges That Require A Robust Carbon And Energy Strategy
Customers Invest In Energy And Carbon Management Initiatives Universally
Customers Are Reluctant To Procure Energy Services From Utilities
Customer Demand For Energy Management Solutions From Utilities Is Growing
Sustainability Complements Price When Buyers Shortlist Suppliers
Sustainability Performance Does Not Directly Translate Into Purchase Intentions

GREEN QUADRANT® SUSTAINABLE POWER UTILITIES (UK)
Green Quadrant® Methodology
Evaluated Firms: Selection Criteria
Evaluation Criteria For Sustainable Power Utilities
Four Suppliers Lead The UK Sustainable Power Utilities Market
Five Suppliers Have Specialist Capabilities In Renewable Energy Supply
Four Power Utilities Need To Improve Their Sustainability Capabilities

SHORTLISTED SUPPLIERS MUST SUPPORT SUSTAINABILITY PLAN
Add Four Questions To Enhance Green Energy RFPs
Add Eight Questions To RFPs To Test Demand Management Capabilities
How To Assess A Power Utility’s Sustainability Performance

TABLE OF FIGURES

Figure 1. Power Utilities Position For A Low Carbon Future
Figure 2. UK Legislation Drives Emission Reductions For Business And The Public Sector
Figure 3. Carbon And Energy Management Is A Key Sustainability Issue
Figure 4. Customers Prioritize Energy Efficiency Investments
Figure 5. Customer Demand For Energy Management Services Will Grow
Figure 6. Energy Price Is Very Important When Shortlisting Suppliers
Figure 7. Customers Associate Suppliers With Sustainability Offerings
Figure 8. Size Not Sustainability Dominates Buyers’ Purchasing Decisions
Figure 9. Capabilities Criteria For Sustainable Power Utilities
Figure 10. Momentum Criteria For Sustainable Power Utilities
Figure 11. Green Quadrant® Sustainable Power Utilities (UK)
Figure 12. Capability Scores For 13 UK Power Utilities
Figure 13. Momentum Scores For 13 UK Power Utilities

ORGANIZATIONS MENTIONED

Centrica, Barratt Developments, BES Commercial Electricity, BizzEnergy, BMSi, British Broadcasting Corporation, British Sugar, CarbonSystems, Dalkia, Department for Environment, Food and Rural Affairs, Department of Energy and Climate Change, Diageo, Drax, Ecotricity, EDF Energy, Electricity4Business, Electricity Plus Supply, EnerNOC, Environ, Enviros, Energy and Building Management Solutions, E.ON Energy, First Utility, Flexitricity, Gazprom Marketing and Trading Retail, GDF Suez UK, Good Energy, Green Energy UK, Hara, Haven Power, Inenco, Johnson Controls, LoCO2 Energy, Marks & Spencer, Matrix, McKinnon & Clarke, National Grid, Newnova Group, NIFES, Ofgem, Opus Energy, Ovo Energy, Power Efficiency, RWE npower, Scottish and Southern Energy, Scottish Power, Siemens, SmartestEnergy, Spark Energy, Tesco, Total Gas and Power, Unilever, United Utilities, WSP Environment & Energy.