Concluding the 40-year utilities experiment: death spiral or rebirth

The rise of decentralised generation opens networks up to the risk of death spirals as increasing network costs are shared between fewer people, incentivising further consumers to pursue alternatives including home generation. In particular vulnerable customers are less likely to change their network usage and so may be left bearing the higher costs. To what extent are suppliers at risk of death spirals too? As more engaged customers switch suppliers, the cost to serve those who are left increases leaving poor consumers paying more for their energy and mushrooming bad debt in the sector.  Which death utilities death spirals present a real threat?   Are some a foregone conclusion? How can they be avoided and vulnerable customers be protected?

Speaker: Chris Harris, Head of Regulation, npower

Respondent: Catherine Mitchell, Professor of Energy Policy, University of Exeter

For more information on the Beesley Lecture Series 2019, click here.