1. The UK Energy Sector Through the eyes of an independent domestic supplier Ramsay Dunning Co-operative Energy

2. Topics Who I am, Who Co-operative Energy is UK Energy Market domestic gas, electricity Challenges Ahead Opportunities ahead 2

3. Who we are Co-operative Energy – Supplier of Gas, Electricity to domestic properties in the UK – Created by Midcounties Co- operative – Trade under National co-operative brand 3

4. Key Achievements to date July 2010 Midcounties Board agree to create Co- operative Energy December 2010 first customers go on supply April 2011 granted exit from controlled market entry May 2011 announce Co-operative Energy to the general public July 2012 exceed 50,000 customers and no longer classed as a small supplier July 2014 customer numbers exceed 200,000 4

5. UK Energy Market Regulated by OFGEM Policy by DECC Big Six domination (declining) Political Policy to meet Trilemma – Security – De-carbonisation – Affordability 5

6. Electricity Increasing renewables Govn’t led price support mechanisms Potential generation gap Balancing challenges with increased renewables 6

7. Gas Increasing dependence on imports Fracking – Global price/supply implications – UK potential implications 7

8. Challenges Ahead Trilemma – Security – increasing dependence on imported gas – electricity potential shortfall – Decarbonisation – pace/cost of move to renewables, commercial CCS – Affordability, domestic (voter) home, commercial for UK economy v low energy cost nations – Pace of political and technological change – If either gas or electricity scarce, domestic takes priority 8

9. Opportunities ahead Renewables, Commercial CCS, Linking renewables to controllable generation Increasingly open wholesale markets Location Collaboration, linking above, a) protect investments, b) exploit potential profits 9