Andersen Consulting has come up with a high-voltage plan to help London Electricity face the challenges that the New Electricity Trading Arrangements (NETA) will bring in November.
London Electricity is determined to be at the forefront of innovation in all aspects of the utility industry, demonstrated by its recent partnership with Virgin to create the new Internet-based Virgin Energy. It wants to capitalise on the new trading arrangements, passing on any price reductions it may bring to customers.
Andersen will lead the implementation and integration of a new software system, designed to manage the risk the new trading arrangements will bring.
London Electricity’s general manager, Energy Purchasing & Risk Management, Guy Buckenham, said: “NETA is one of the major challenges facing our business this year. Ensuring we have the systems in place to make this happen is critical.”
Pat Mills, a partner in Andersen Consulting’s European Utility Practice said: “We are delighted London Electricity has chosen us to help it prepare for NETA. We have already started the implementation and are confident London Electricity will be ready for the start of the new market.”
The NETA process was started in October 1997 when the Government asked Office of Electricity Regulation (OFFER) to consider how a review of electricity trading arrangements might be undertaken. In July 1998, the then Director General of Electricity Supply (DGES) proposed new arrangements for the wholesale trading of electricity in England and Wales.
The Utilities Bill, announced in the Queen’s speech on 17 November 1999, will give the Secretary of State for Trade and Industry the power to alter the generators’ licences to introduce the NETA regime. It is the Government’s intention to introduce the new arrangements from 21 November 2000.
The objectives of the reforms are to drive electricity prices down further and to increase the level of competition in the market.
Andersen Consulting has more than 65,000 people in 48 countries.
London Electricity’s integrated supply business in London and the south west supplies electricity to 3.3 million customers – 3 million residential customers, 2,400 large energy users and 200,000 smaller businesses. The company also has around 250,000 gas customers in London and the south east.
Its generation interests include the 790MW combined cycle gas turbine power station in Sutton Bridge, Lincolnshire.