Stepping into the unknown

Predicting the future direction of the UK energy market is tough but Grace Rothery is determined to maintain Gazprom’s position as the UK’s leading gas supplier

Like every other market sector in the UK, the energy market is walking into the unknown. Predictions made at the beginning of the year on energy prices, number of suppliers, and patterns of use have been blown out of the water.

Grace Rothery believes it’s impossible to say what the effects of the pandemic will be on the market. The head of retail at Gazprom Energy, told EiBI: “If businesses continue to be closed or scaled back, and if people continue to work remotely, either temporarily or on a more long-term basis, then demand in the non-domestic sector will continue to reduce and prices will be affected in different ways. For example, we might expect wholesale prices to drop but infrastructure and/or transportation costs could go up.”

In addition, she believes pressure will mount on suppliers and TPIs. “We may also see smaller, independent suppliers go out of business in the next few months if they don’t have the financial backing and stability to survive when customers cannot afford to pay their bills,” she commented. “This essentially means customers will have less choice when it comes to selecting their energy provider. The TPI market could also change and we have already seen a number of TPIs forced to take action including putting staff on furlough as a result of their core customer base (SMEs) being affected by closures.”

Rothery is determined that the company’s first priority is to maintain its position as the leading gas supplier in Great Britain. She says the company has been supplying more gas than any other supplier since 2017. “There are a number of factors that have led us to this position,” she comments. “As a company, everything we do has a focus on our customers, and we believe in the value of having an in-depth understanding of the challenges our customers face.”

What sets the company apart from its competitors is its knowledge and overall attitude, Rothery believes. “Energy regulations are constantly changing so keeping on top of them may be challenging. However, our passion for doing what’s right for the customer means that we excel in this area. We actually embrace change, working hard to innovate, adapt and react quickly and to a high standard with successful outcomes.”

This desire to keep Gazprom at the top of the suppliers’ league stems from Rothery’s unorthodox route to her current role. Having qualified as a solicitor a couple of client secondments attracted her to practising law in house. “I was drawn to this as I enjoyed applying the law to help achieve and exceed business goals and this spurred me on to make the move in-house to Gazprom Energy. During my time here, I have led our Legal & Regulatory teams before transitioning to my current role in 2018.”

As the UK slowly begins to emerge from the pandemic, emphasis will be turning onto whether the UK will be placing a greater emphasis on environmental issues. “We have seen environmental issues temporarily deprioritised as businesses fight for survival,” Rothery comments.

“However I doubt this will be a long-term change unless government targets are adjusted accordingly. As long as companies need to comply with environmental regulations and meet emissions targets, reducing consumption and pollution will continue to be a priority in the future. We may see further government intervention to encourage investment in renewables because the business case for doing so at the moment is greatly impacted by the rock-bottom price of oil and other fossil fuels.”

A new focus on environmental management does not mean that Gazprom has any intention in veering from its core business and into providing energy services. “In the short to medium term, we are focused on providing a great customer experience for gas and electricity supply,” states Rothery. “We encourage our customers to engage with industry experts that specialise in energy management and other services because we believe in the ‘best-in-breed’ model, rather than Gazprom Energy acting as a one stop shop.”

Rothery is convinced that energy will become one of the biggest overheads for businesses and customers are increasingly seeking to gain better control over their monthly outgoings. “For smaller consumers, the desire for accuracy will become even greater,” she adds. “This will lead to estimated bills to become a thing of the past and the harnessing of new technology to help manage energy consumption. Customers of all sizes will also be demanding greater transparency which will put more emphasis on the provision of data and make this a core part of an energy supplier’s service.”

Rothery also believes that decentralisation will continue to play an important role in the energy market of the future. “This will evoke new and innovative approaches to supplying and buying energy that are more flexible and autonomous,” she adds. “We are going to see an increase of organisations investing in onsite generation so this indicates that power purchase agreements (PPAs) will become increasingly popular and significantly important in coming years.”

PULL QUOTE

‘We have seen environmental issues temporarily deprioritised as businesses fight for survival’