As spring springs, 2013 is already shaping up to be an interesting year to head up a major energy supplier. Paul Massara took up post as chief executive of Npower at the start of January. This was shortly followed by the surprise leak that Phil Bentley was to step down as managing director of British Gas, amid rumours he had fallen out with Centrica chief executive Sam Laidlaw. Ian Marchant of SSE announced his departure the same month.
Centrica is bringing across Chris Weston, the head of its US retail business Direct Energy, to take over from Bentley in July. Weston’s previous stint at the head of British Gas Business will stand him in good stead to sharpen up the firm’s business retail and services arm.
Starting at the same time as Weston – but with more of a run-up to the top job – is Alistair Phillips-Davies at SSE. He has been deputy chief executive since last year and will be familiar with the agenda.
Keith Anderson of Scottish Power and Tony Cocker of Eon UK are on their way to being old hands in comparison, with one year and 18 months under their respective belts. Meanwhile, Vincent de Rivaz has clocked up an impressive 11 years at EDF Energy. His 35-year career with EDF has taken the Frenchman around the world, but he is settled enough in the UK to count Prince Charles as a friend.
All six have a common cause in rebuilding customer trust in the sector while bills go up. They must explain to the public where their money goes and how it helps to fit the industry for the future. And they have to simplify their tariff offerings in line with Ofgem’s Retail Market Review.
However, there will be many areas where their different backgrounds and priorities come into play.
Massara and Phillips-Davies have both come in with customer service pledges. One of Massara’s first acts as chief executive was a bold promise to take his company from the bottom to the top of a Which? customer satisfaction ranking by 2015. Not to be outdone, SSE announced a £20 customer service guarantee.
Due to differences in structure, the six bosses have varying degrees of involvement in network and generation businesses. Weston is exclusively responsible for retail and energy services. Massara too, since his predecessor Volker Beckers’ role has now been split: Massara heads up RWE Npower the retailer; RWE Npower’s generation interests now sit within a new pan-European business RWE Generation. That may help Weston and Massara appear on the customer’s side, as when Massara spoke out recently against writing “a blank cheque to pay for new power stations” – in particular, nuclear.
Both also happen to be coming across from North America – Massara from Canada and Weston from the US – and will perhaps bring with them that continent’s famous customer service ethic.
Those who cover generation could benefit from a more holistic view, on the other hand. They must grapple with the issues of Electricity Market Reform, the Energy Bill and investing in assets as well as customer concerns.
Phillips-Davies comes from a generation and supply background and should be comfortable with that part of his new remit. He will also cover SSE’s regulated networks businesses.
Anderson is chief executive of Scottish Power Renewables, as well as chief corporate officer for all Iberdrola’s UK businesses. He is flanked by Frank Mitchell at the head of the network arm and Neil Clitheroe on conventional generation.
It falls to veteran De Rivaz to front the highest profile generation project of the moment: EDF’s proposed Hinkley Point C nuclear power plant. It is not a task you would hand a novice. De Rivaz is as well qualified as anyone to pull it off.
Scottish Power: Keith Anderson
Chief corporate officer since February 2012
CV
Anderson is chief corporate officer for Scottish Power, with responsibility for the Iberdrola Group’s activities in the UK. He also retains his role as chief executive of Scottish Power Renewables. Prior to joining Scottish Power, Anderson worked at major financial institutions including The Royal Bank of Scotland and Standard Life, and did a spell as a management consultant with Ernst & Young.
Agenda
Now Iberdrola has officially denied rumours of a Scottish Power networks sell-off, Anderson will want to cement Scottish Power’s position as the jewel in Iberdrola’s crown. He will start by spending the record £1.3 billion Iberdrola is planning to invest in the UK this year: 47 per cent will be in networks and just over 40 per cent in renewables – the latter enabled by a supportive Scottish Government.
He says
“Our view is that the most important thing for the UK government to focus on is gas and renewables” (The Times, 15 February)
British Gas: Chris Weston
Managing director from July 2013
CV
Weston was managing director of Europe for One Tel when it was bought out by Centrica in 2001. He has been with the company ever since and done stints as head of British Gas Business, British Gas Services and, since 2009, Direct Energy in North America. Previously, he worked for Cable & Wireless and served seven years with the Royal Artillery. He has a PhD in Quantitative Finance from Imperial College London.
Agenda
As head of the UK’s biggest energy retailer, Weston will be called on to defend its profits to an inevitably hostile media. He will want to keep the profits coming in the face of tightening regulation and thereby stay on the right side of Centrica chief executive Sam Laidlaw. He will also want to boost the flagging business services arm, which reported a 9 per cent dip in profits in 2012.
He says
“Like most people, you’re probably looking for ideas about how to save on your monthly energy bill and to find ways to become more green. You’ve come to the right place.”
(Message to Direct Energy customers, 2012)
RWE Npower: Paul Massara
Chief executive officer since January 2013
CV
Massara joined RWE Npower in 2011 as chief commercial officer, coming from Toronto-based private equity business Genesis Capital Corporation, which he founded. Prior to that, he spent ten years with Centrica in North America. He has a Masters in Corporate Finance from London Business School.
Agenda
Npower finished last of the big six for customer service in a recent Which? survey, with a 39 per cent satisfaction rate. One of Massara’s first acts on appointment was a pledge to go to number one by 2015. He has also spoken out against the possibility of generous terms for new nuclear generation.
He says
“We believe UK customers should not be made to write a blank cheque to pay for new power stations.” (Statement, 20 February)
SSE: Alistair Phillips-Davies
Chief executive officer from July 2013
CV
Phillips-Davies joined SSE’s predecessor company Southern Electric in 1997 and stepped up to the board as energy supply director in 2002. He became generation and supply director in 2010 and was appointed deputy chief executive in 2012. Prior to joining SSE, Phillips-Davies worked for HSBC and Natwest.
AGENDA
Phillips-Davies is not expected to make major changes when he takes over from Ian Marchant. However, he has already shown a more open approach to publicity. He gave up a staff energy discount that had got his predecessor stick from the media. He also announced a £20 customer service guarantee.
He says
“Some of them (our rivals) probably deserve . I think we deserve it less.” (Telegraph, 10 February)
Eon UK: Tony Cocker
Chief executive officer since 2011
CV
Cocker came over to head up Eon UK from the group’s Dusseldorf-based energy trading arm, where he was chief executive for three years. That followed 11 years with Eon UK in senior roles including managing director of the trading and generation businesses and head of corporate strategy. He joined the energy firm from brewery business Bass. He has an MBA from IMD in Lausanne and a BA and D.Phil in mathematics from Lincoln College, Oxford.
Agenda
Cocker is particularly akeen to promote Eon’s simplified tariff structure and speaks passionately about restoring customer trust. His company has made an enthusiastic start on its smart meter rollout and he will want to keep that momentum going. Upstream he will have to confront the closure of significant coal-fired plant such as Kingsnorth under European rules. He will want to keep a close eye on renewables investments, particularly the world’s largest windfarm, the London Array (see p22).
He says
“We’re looking at all activities to make sure we’re being as simple and transparent as we can. To help us hold up a mirror to ourselves.”
(The Times, 7 January)
EDF Energy: Vincent de Rivaz
Chief executive officer since 2002
CV
De Rivaz joined EDF in 1977 as an engineering graduate fresh out of the Ecole Nationale Supérieure d’Hydraulique de Grenoble. He served as executive vice president of the Far East from 1985 to 1991, developing nuclear, thermal and hydroelectric generation and transmission projects primarily in China. This was followed by three-year stints heading up the hydropower and international divisions respectively. He became deputy chief financial officer in 1999 and head of strategy and finance the following year. He was awarded a CBE last year.
Agenda
The item that overshadows all others is striking a deal with government over the guaranteed power price and risk-sharing arrangements for new nuclear. When that is thrashed out, De Rivaz must secure investment.
He says
“I believe we can reach an agreement with the government which will transparently display the economic viability of new nuclear, and which can underpin a robust business case for investors.” (Telegraph, 20 January)
This article first appeared in Utility Week’s print edition of 15th March 2013.
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