Vattenfall is to become the latest European energy company to enter the UK’s business energy market with an offer to energy intensive firms, supplied by over 1GW of capacity from its UK wind farms.
The Swedish state-owned company has revealed plans to begin selling renewable power to British consumers for the first time, targeting high demand businesses with a combination of offers designed to lower costs and carbon emissions.
Anna Borg, Vattenfall’s new head of business area markets, said: “This is the first time that Vattenfall is making a B2B retail offering in the UK. We are able to do this because of our investment in British wind capacity since 2008. Our renewable electricity product will help our future business customers achieve their sustainability goals.”
The drive to build up interest from consumers in the new green energy product, known as FRESH - Flexible, Renewable Electricity, Supplied Honestly – will begin this month, with energy supply commencing on 1 October.
FRESH is available in a number of forms depending on the consumer’s engagement with their energy:
- Fix Energy prices are fixed for the course of the contract across an entire portfolio, with 15% annual tolerances available as standard to permit changes in consumption at the same price. All commodity, balancing, network and regulatory charges are covered by Vattenfall
- Flex Allows for consumers to fix all or part of their energy costs when they want. Same tolerances apply and the offer allows customers to purchase at wholesale market prices using base load or peak/off peak products via and online portal. The same costs as Fix are managed by Vattenfall.
- Flex Manager Consumers are in control of electricity purchasing for entire half-hourly metered portfolio. Sites can be added or removed from offer at any time, commodity prices can be managed by purchasing base load and peak load blocks at wholesale market prices and Vattenfall will purchase back any electricity not consumed.
- Flex Manager+ Similar offer to the Flex Manager but with consumers able to forecast their consumption requirement a day ahead. Vattenfall will pass through any costs of balancing consumption at system prices where this varies from forecasts.
These models allow for potential consumers to select the level of engagement in their own energy management, allowing for market trading and additional savings across their business.
Vattenfall has already built a strong presence in the UK’s energy sector investing £3 billion in both on and offshore wind since 2008. By supplying this renewable electricity to UK businesses, it joins the likes of French-state owned EDF, Germany’s E.ON and Npower and Spanish owned Scottish Power.