A partnership between Pre-Launch Seminar 20/21 May 2015

Agenda – what we will do today Brief explanation – What is it – Why it works – How the market works – What can your tenants save? – What’s in it for you – Other energy stuff

What is it? Southend Energy Partnership between OVO and SBC Fair pricing OVO provide mechanics SBC provide marketing and set tariffs

Why – the numbers bit Over half of Southend Residents can save money on their energy bills What each resident can save will depend on their current contract Most people are on a standard variable contract Only 1 in 10 people are on the best rates Savings could be around £200 each on average

Why – the technical bit Tariffs Each energy company can only have 4 tariffs in a region One has to be a standard variable tariff with no notice Variable tariffs are more expensive At end of contract Renew or Move If they don’t move, they go onto variable tariffs On average clients spend 8-10 years with an energy company Energy companies use loss leaders Cheap year 1 price Expensive prices for later years Southend Energy do not do that OVO have 90% renewal rate on low tariffs

Tariff structures – not always cheapest 1 year fixed Low standing charge 33% green (15% normal) 3% interest paid on credit balances No exit fees £934 for medium user £201 saving vs average Big 6 companies 1 year fixed 100% Green As 1 year fixed but 100% green £990 for medium user £145 saved vs average Big 6 companies Standard Variable Variable prices £1013 for medium user £122 saved vs average Big 6 companies Pre-payment Will use OVO main product at start Branded OVO £1173 for medium user £43 cheaper than average Big 6 companies

(b) Market position on 15/05/2015 Southend Energy’s headline tariff of £934 achieves 9 th place. Southend Energy’s variable rate is 4 th cheapest in the region and £104 cheaper than the cheapest Big 6 variable tariff on the market (SSE Standard Paperless Billing). Southend Energy Fixed 33% green Southend Energy Fixed 100% green Southend Energy Variable Start of Big 6 variable tariffs

As Landlords, what’s in it for you Tenant saves money Tenant can pay rent easier The energy partnership can provide ECO funding ECO funding can improve the building Improved building is worth more and saves tenant money If heating is improved, the building deteriorates less Improved heating often means better health for tenants who stay at work

Some energy opportunities ECO funding, insulation, boilers Floor insulation using robots Better hot water tanks Better heating controls may offer zoning Future projects may include solar

THANK YOU AND QUESTIONS