That’s easier said than done, however, given the baffling complexity of energy company accounts. When Ovo chief executive Stephen Fitzpatrick told a recent select committee hearing “we’re all trying to find out where the money is going, but you never get to find it”, he wasn’t kidding. A glance at the recent segmental statements from Ofgem shows just how futile the exercise of comparing energy company accounts with one another or other sectors can be. For example, SSE was tipped to report a loss in its domestic supply business this week, as Utility Week went to press, but given that the larger part of its 2012/13 profit was made in its generation business, this might not be quite the hit it first seems.
Doing the right thing isn’t enough to rebuild public trust: companies need to be seen to be doing the right thing as well. This means explaining how and where the business makes its money, and in a way that a layman can easily understand. In the water sector, Ofwat has cottoned on to this with its recent guidance on corporate governance and transparency. Water companies would do well to follow its advice to the letter as the “cost of living” campaign widens to include water bills.
Meanwhile, across the pond, Google has stuck another toe in the water of energy, with an $1.14 million cash injection for energy management start-up Building Robotics. The company helps businesses manage and control their energy use: supplying that energy is not a million miles away. Could the internet giant be moving closer to an energy supply play? One thing’s for sure: right now, UK customers would welcome it with open arms.
Ellen Bennett, Editor