Energy firm npower has added its voice in support for a more open and liquid energy market after rival Big Six supplier Scottish and Southern Energy announced that from Friday it would auction its energy.
SSE’s surprise move on Wednesday appeared to be a step away from other energy providers, selling it to any supplier rather than simply piping power solely to its own customers, and increasing the amount of energy it sells on the day ahead market.
But npower says that it has been acting in a similar way with part of its energy already.
Volker Beckers, RWE npower’s CEO said: “At RWE npower, we already separate our operations such that over 90% of the energy we produce is traded on open markets, including having a 20-30% market share of the day-ahead auction.”
He added: “An open and liquid energy market is a good thing for everyone – industry and customers – and it’s good to see other industry players acknowledging this and helping the market move forward.”
Consumer groups and analysts have also welcomed SSE’s shift in practice.
Frederik Dahlmann, energy analyst at Datamonitor said it was “a sensible first step towards increasing trust and transparency,” while Adam Scorer at Consumer Focus said it could make it easier for new players to enter the industry.