Surgo Construction Ltd (Surgo), one of the UK’s leading building contractors, has begun work on the £3.8 million redevelopment and refurbishment of Newcastle University’s Hatton Gallery. The Grade II listed gallery forms part of the University’s Fine Art department and is home to the iconic Merz Barn Wall by Kurt
Around 160 UK jobs will be secured after the delivery of a £131.5 million support contract for RAF Sentinel aircraft. The new contract to provide support for the aircraft for the next five years is expected to sustain around 120 jobs at RAF Waddington in Lincolnshire and 40 roles at
The Law Society and the City of London Law Society company law teams have published updated guidance* on the execution of legal documents using electronic signatures. Sarah Phillips, real estate associate with law firm of Irwin Mitchell LLP, reports. Given the wide use of electronic means for all things related
©EPA LafargeHolcim is on track to exceed its disposal target this year despite falling cement volumes and sales in most regions where it operates. The Zurich-headquartered cement company, created from a €41bn merger last year, has been struggling to cut costs and reduce debt amid a global cement oversupply and
2 July 2016 – by Paul Yandall Forty miles southwest of Seoul, Songdo International Business District sits like a sated siren. Built on land reclaimed from the tidal marshes of South Korea’s north west coast, the city, its glass towers now glistening in the sunlight, was designed to lure new
Landlords in the UK are concerned that the forthcoming Budget speech by the Chancellor of the Exchequer George Osborne could hold more bad news for their property investments. Some 66% feel there will be more bad news and a fifth are already planning to pull out of buy to let
Savills, on behalf of a private vendor, has brought to market Oakwood Lodge Park in the Elan Valley in Powys, Wales at a guide price of £1.895 million. The luxury lodge park, which is set across 19 acres (7 hectares) of land, comprises eight two bedroom and six three bedroom
RIBA Competitions is pleased to announce the launch of a competitive selection process on behalf of Islington Council for developing the St Luke’s Area. The site contains the Finsbury Leisure Centre, football pitches, a nursery and public space. The Council wishes to deliver an exemplary civic building that will be
Scotland’s “vibrant renewable sector” and “bold policy approaches” will take the country beyond the UK’s ambition on climate change and help deliver a 61 per cent reduction in emissions by 2030 from 1990 levels, the Committee on Climate Change (CCC) has said. In a new report – Scottish
©PA Choosing to pay a higher or a lower price for an identical product ought to be a no-brainer. Yet that is not how things work in practice in the UK’s gas and electricity market. Fifteen years on from the sector’s deregulation, a majority of retail customers have never —
Surgo Construction Ltd (Surgo), one of the UK’s leading building contractors, has begun work on the £3.8 million redevelopment and refurbishment of Newcastle University’s Hatton Gallery. The Grade II listed gallery forms part of the University’s Fine Art department and is home to the iconic Merz Barn Wall by Kurt Schwitters. It is set to reopen in September next year. Surgo was appointed after a competitive tender and interview process. Their brief is to refurbish the galleries, carry out internal area modifications and upgrades, renovate listed roof lights, install steelwork to carry new mechanical equipment, undertake some re-roofing works and create new meeting rooms and seminar areas. The work will be carried out in two phases – the first continuing until the end of October with phase two due to end mid February 2017. There will be some challenges ahead for Surgo’s team given that the Hatton Gallery is located within a tight site where only a small area for deliveries exists, which is further complicated by the need for shared access with another building contractor working on an adjacent site. Added to this, the Hatton is located on the delivery route to the Old Library Cafe, a building which is still ‘live’ from the basement up meaning existing services such as fire alarms and building services installations have to be maintained. Surgo director, Jeff Alexander, said: “We are delighted to be appointed to another Newcastle University project where we have successfully completed a number of projects. Our knowledge of working on ‘live’ tight sites, our listed building expertise and supply chain network combined to make us well qualified for our appointment to the Hatton Gallery. “Parts of the building are listed so there is a requirement for us to work with a conservation officer as well as with Tyne & Wear Archives & Museums in relation to the priceless and iconic Merz Barn Wall by Kurt Schwitters.”
Around 160 UK jobs will be secured after the delivery of a £131.5 million support contract for RAF Sentinel aircraft. The new contract to provide support for the aircraft for the next five years is expected to sustain around 120 jobs at RAF Waddington in Lincolnshire and 40 roles at Hawarden Airfield near Broughton, North Wales. The deal with Raytheon UK will provide the Sentinel aircraft with in-service support and maintenance, which means it will continue to meet the RAF’s operational requirements. With the ability to gather intelligence on enemy movements and track specific targets, the Sentinel is still an important part of the UK’s operations against Daesh in Syria and Iraq Minister for Defence Procurement, Harriett Baldwin, commented: “Sentinel aircraft provide vital intelligence to our Armed Forces, giving them the ability to make decisions that helps keep Britain safe, including on current operations against Daesh. “As part of our £178bn equipment plan, this contract is supported by a Defence budget that will rise every year until the end of the decade, meeting the NATO commitment to spend 2% of GDP on Defence. “This new support contract will sustain 160 jobs across the UK and demonstrates the very tangible benefits which Defence is bringing to the nation’s economy.“ Tony Douglas, chief executive officer of the MOD’s Defence Equipment and Support organisation, added: “This support contract demonstrates how we are working collaboratively with industry to sustain UK jobs and to ensure our equipment remains fit for purpose and continues to meet the needs of our military customers. “This contract was required to deliver on the decision in the 2015 SDSR to extend this key airborne surveillance platform, and I am delighted with the speed that the DE&S delivery team have worked with industry to negotiate this new contract, which is a testament to their drive, professionalism and delivery focus.“
The Law Society and the City of London Law Society company law teams have published updated guidance* on the execution of legal documents using electronic signatures. Sarah Phillips, real estate associate with law firm of Irwin Mitchell LLP, reports. Given the wide use of electronic means for all things related to commercial contracts this seems a good time to remind ourselves where the law stands on electronic signatures when used to execute commercial business contracts. Electronic signature can take many forms, for example using a stylus to sign a touch screen, pasting an image of a signature into a soft copy document or the typing of an individual’s name into a document in the relevant place. Under English law, simple contracts (i.e. those that are not deeds and which are therefore valid for 6 years) do not have to be in any particular form or even in writing and given that historically they could be formalised by the simple making of a mark, unsurprisingly an electronic signature can be used to make such a contract. Contracts made as a deed are valid for 12 years and these have to be in writing, executed and delivered. English law defines writing to include “modes of representing or reproducing words in a visible form” which is wide enough to include the representation of a contract on screen provided it is readable. Delivery of a deed will be deemed to have taken place upon execution unless a different intention can be shown. If the execution formalities require that a signature must be witnessed, this too can be accomplished by an electronic signature but the witness must of course have actually seen the first signature being inserted and be able to confirm whose signature it was. It is recommended that such witnessing should be by someone who is physically present at the location of the “signing”. The main issue with all signatures is that their validity may be challenged. The test for a valid signature is whether the mark that is in the appropriate place in the contract was put there to make the contract valid and with the intention of making it valid. Any challenge to a signature whether a “wet ink” one or an electronic one would therefore be treated by English law as an issue to be proved or disproved by evidence and the signature would be treated as valid unless sufficient evidence to prove to a court that it was not was produced. Where a document has been validly executed by electronic signatures, English law does not require a wet ink version to also be created and if parties have executed separate counterpart documents whether all electronically or a mixture of wet ink and electronic, an English court would accept either these documents as counterparts and/or a composite document incorporating all of the signatures. Beware if the parties to one of your contracts are in different legal jurisdictions because the law relating to electronic signatures varies from territory to territory. Make sure you obtain proper local legal advice in all relevant jurisdictions before agreeing to electronic execution. Finally, any issue that applies to a wet ink signature will also apply to an electronic one for example the capacity and authority of the signatory to bind their company to the particular contract should always be confirmed and if your contract is anything other than a straightforward commercial one, you should take advice to make sure there are no other formalities required that may preclude electronic signature. * The full Law Society guidance can be found at www.lawsociety.org.uk This article was published on 11 Aug 2016 (last updated on 12 Aug 2016). Source link
©EPA LafargeHolcim is on track to exceed its disposal target this year despite falling cement volumes and sales in most regions where it operates. The Zurich-headquartered cement company, created from a €41bn merger last year, has been struggling to cut costs and reduce debt amid a global cement oversupply and falling demand. Net like-for-like sales in the second quarter fell 2 per cent compared with the year before. More On this topic IN Companies Eric Olsen, the Swiss-French company’s chief executive, said focusing on pricing and cost-cutting was “delivering visible earnings momentum”, and he blamed problems in Nigeria, where plants were affected by gas shortages, for the muted performance. Without this, he said, adjusted operating earnings before interest, tax, depreciation and amortisation would have risen 13 per cent, rather than 6 per cent. “Nigeria is a high-growth market and we are adapting our plants to reduce our dependency on gas to restore supply and capture growth,” he said. Mr Olsen took over at LafargeHolcim in the wake of last year’s controversial merger of France’s Lafarge and Switzerland’s Holcim, which was dogged by internal power struggles and resulted in several changes of personnel at the top. Since the deal, its chairman Wolfgang Reitzle has been replaced by Beat Hess, a veteran Swiss corporate lawyer. Shareholder scepticism about the benefits of the tie-up have weighed on the company’s share price. It was above SFr75 ($77) when the deal closed in July last year and has fallen by more than a third since. On Friday the shares rose almost 5 per cent to SFr47.96. Since the economic slowdown that followed the financial crisis, the cement industry has been suffering from a global supply glut, which has put pressure on prices. In the second quarter cement volumes fell 3 per cent year on year on a like-for-like basis and LafargeHolcim said it expected demand to be sluggish, at between 1 to 3 per cent in 2016. In response, Mr Olsen, who believes LafargeHolcim over-invested in the past, is shifting the group’s business model towards lower capital spending and stronger cash flow generation. LafargeHolcim had promised SFr3.5bn of disposals in 2016. On Friday it said it would exceed that target in 2016 and increased it to SFr5bn by the end of 2017. The company has sold operations in fast-growing countries such as India, Sri Lanka, China and Vietnam to meet the goal. “These transactions, all secured at good conditions, also help us to streamline and simplify our operations, and allow us to maximise synergies,” said Mr Olsen. Despite the divestments, some of which have yet to close, net financial debt in June was unchanged on March at SFr18.1bn. There was a small improvement in its maturity and average cost, and LafargeHolcim said it expected debt to fall to SFr13bn by March 2017. The company had delivered SFr404m of the projected SFr1.1bn of savings from last year’s merger, it said. Second-quarter profits, measured by operating ebitda, rose 10.5 per cent year on year — despite cash flow from operating activities falling by a fifth. In the first half of the financial year, operating ebitda was flat on the year before although in the second quarter it was up 6 per cent on a like-for-like basis to SFr1.7bn. Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link
2 July 2016 – by Paul Yandall Forty miles southwest of Seoul, Songdo International Business District sits like a sated siren. Built on land reclaimed from the tidal marshes of South Korea’s north west coast, the city, its glass towers now glistening in the sunlight, was designed to lure new residents and businesses with an irresistible mix of high technology and eco-living. It aims to become nothing less than the world’s first truly smart city. Now, eight years since ground first broke on Songdo’s construction, it is almost three-quarters complete. It has around 70,000 residents and the $40bn, 1500-acre development looks to be making good progress on meeting that lofty ambition. But it didn’t start off that way. In a world where rocketing population figures, housing shortages and urbanisation are rife, new cities have been billed by many as one solution to the problem – particularly in China where there is the space to build whole new settlements without much of a second thought. But tales of resulting, uninhabited ghost towns are commonplace – evidence that, unless done right and meticulously planned, the success of new cities is by no means a forgone conclusion. So how exactly did Songdo turn its fortunes around after a rocky start? And what lessons can be learned to avoid costly mistakes in the future? Planning for success Planning for the super high-tech Songdo development, which is majority owned by New York developer Gale International, began 15 years ago in 2001 with construction beginning in 2004. The first residential schemes were completed in 2009. In the years that followed, it endured the indignity of having its near-empty streets sniggered at by critics lining up to question whether the city was really so smart after all. What use was a sophisticated pneumatic refuse system that sucked rubbish directly from your kitchen if there was nobody around to peel potatoes? Then, in 2014, everything started to change thanks to the opening of three foreign university campuses. “After more than 15 years of planning and development, we are just now seeing the social fabric truly mesh with the built environment,” says Stan Gale, chairman and chief executive of Gale International. Global Real Estate link button“A variety of factors played into Songdo hitting its stride and achieving a ‘critical mass’ of residents and urban activity. Certainly having more than 25,000 university students is helpful.” But if these students have proven to be such a vital ingredient to the success of the city, why were they not there when the city was ready to take residents in 2009? “It is simply not possible to build everything simultaneously, much less in a ‘perfect’ order,” says Gale. The scheme focused first on its large public facilities, such as the 100-acre Central Park and the 781,000 sq ft Convensia Convention Center. The residential element was another primary focus with funds from sales used to back commercial development. “Timing is important, yes,” says Gale. “But so is patience, a financing plan that enables construction to proceed in a phased approach, and a strong belief that you are putting the right pieces in place.” One size fits all? For Songdo, the student cohort was the spark that helped bring the city to life. But every new city is different and a strong education offering alone is no guarantee of success. On the south-eastern edge of Egypt’s Cairo, New Cairo started coming out of the ground a decade ago. Spread across a vast 70,000 acres, the plan was to create a wealthy, sustainable city of more than 4m residents to help relieve pressure on old Cairo’s straining infrastructure. It houses numerous educational institutes including The American University in Cairo’s new campus, the German University in Cairo, Future University in Egypt and the Canadian International College. Yet, to date, only a few hundred thousand people have moved to New Cairo. “They can’t get many people to live there because your average Egyptian just can’t afford to,” says David Sims, an urban planner based in Cairo and the author of Egypt’s Desert Dreams: Development or Disaster? Poor planning, a lack of investment, and a development process hijacked by politics have contributed to the faltering development of around 23 new towns across Egypt, says Sims. “There’s a complete disconnect,” he says. “They build public housing but it remains largely vacant because the average Egyptian doesn’t have a car to travel from these new towns and there’s no public transport. Where are they supposed to work?” Bearing in mind that new cities are being built in various regions across the globe with different requirements, inhabitants and infrastructures, the key is making sure there is a need beyond accommodating people. Even as population figures spiral, people have to want to live somewhere. All the content from this weekís magazine, including this article, is available in the new app. Staying connected But equally, there are common elements crucial to the future of these cities. An efficient, well-used public transport system is a key component. In Songdo, a new high-speed train system will soon be shuttling people to Seoul in only 30 minutes. “The impression is that Songdo is a utopian place that works because of the technology there,” says Juliette Morgan, a partner at agent Cushman & Wakefield in London and head of property at Tech City UK. “Actually, Songdo became occupied because of its education offerings, its rapid transit system, and the ease of access to the city. Those are very fundamental requirements.” The desire to learn, the ability to access the city and to move around it – as well as public transport, about 25 kilometres of cycle lanes are planned for Songdo – appear to have done more to attract residents than the myriad of hi-tech features built into the city. “I don’t know anyone
Landlords in the UK are concerned that the forthcoming Budget speech by the Chancellor of the Exchequer George Osborne could hold more bad news for their property investments. Some 66% feel there will be more bad news and a fifth are already planning to pull out of buy to let this year, according to new research by property crowd funding platform The House Crowd. It suggests that property investors feel increasingly under attack, with legislation such as the EU Mortgage Credit Directive and increase in stamp duty on buy to let properties coming into force. Over 70% of those surveyed believe that these changes will have a negative impact on their investments, with smaller investors set to be hit hardest by ever tightening profit margins. 43% feel that the government is trying to squeeze small investors out of the market altogether. Over half, 54%, of landlords indicated that they do, however, support tighter regulation from the Bank of England to clamp down on rogue landlords. Despite sentiment towards traditional buy to let turning sour, it appears that investors still view bricks and mortar as the best way to secure their futures. The UK wide survey found 33% still prefer to invest their money in property as it is a tangible asset. It also found that 38% think landlords need to be looking at smarter ways to invest while 57% think buy to let will remain a strong option as there is a continued housing shortage in the UK. ‘With house prices continuing to rise and the property market outperforming the FTSE, bricks and mortar presents a strong investment option,’ said Frazer Fearnhead, chief executive officer of The House Crowd. ‘Despite this, new legislation is making buy to let ever less accessible for the small landlords who want to invest in something sensible and tangible to secure their futures. As many of the landlords surveyed identified it’s time for beleaguered investors to be looking at their options,’ he pointed out. ‘February was our strongest month yet, as investors turn to property crowdfunding to achieve the returns that property offers minus the stress and risk of being a landlord. Times are hard for the UK’s small property investors but it’s time to adapt, not despair,’ he added. BOOKMARK THIS PAGE (What is this?) Source link
Savills, on behalf of a private vendor, has brought to market Oakwood Lodge Park in the Elan Valley in Powys, Wales at a guide price of £1.895 million. The luxury lodge park, which is set across 19 acres (7 hectares) of land, comprises eight two bedroom and six three bedroom Norwegian style lodges with planning permission for a further two dwellings, subject to consent. Also on site is Oakwood House, the owner’s accommodation, which includes five bedrooms and a private garden. Situated in the heart of the Welsh countryside, Oakwood Lodge Park is just two miles to the east of the market town of Rhayader. Easily accessible, the property offers a rural base from which to explore the picturesque Elan Valley, with its wildlife reserve, lakes and mountain walks, making it a popular tourist location. Richard Prestwich, associate director in the leisure team at Savills Chester, comments: “Oakwood Lodge Park provides an excellent opportunity to purchase a well established and profitable business, which has the potential for future asset management and is operational all year round. The high quality accommodation combined with the excellent location and top local attractions mean the park is never short of visitors.” Source link
RIBA Competitions is pleased to announce the launch of a competitive selection process on behalf of Islington Council for developing the St Luke’s Area. The site contains the Finsbury Leisure Centre, football pitches, a nursery and public space. The Council wishes to deliver an exemplary civic building that will be designed and built to serve local people. It will be unique: bringing together leisure, childcare, healthcare and local energy production under one roof. Much needed affordable homes, some market sale homes and improved public space will be provided on the rest of the site. The anticipated construction cost is anticipated to be in the region of GBP £49m for the overall scheme. Islington Council wishes to appoint an experienced design team capable of developing an exemplary set of proposals that delivers the Council’s ambitions within the site’s constraints and opportunities. The appointed design team will also be expected to engage and excite the local community in the development of proposals for the new civic building and the rest of the site. Cllr James Murray, Islington Council’s executive member for housing and development, said:“This is an exciting and ambitious project to deliver leisure, health and childcare facilities under one roof, as well as new council homes for local people. Good public buildings and well-designed council homes improve people’s quality of life. We want the new buildings to be high quality so they can serve the local community in St Luke’s in the 21st century. Through the design competition we will also make sure that local people and people who use our services are involved at the earliest possible stage of the project.” An equal honorarium of £7,500 (+VAT) will be paid to each of the five design teams short-listed to participate in the tender and design concept phase of the competition. All short-listed proposed designs will be exhibited at a public exhibition, where members of the local community will have the opportunity to comment on them. It is the intention that the successful design team will be appointed by the Council to develop detailed designs leading to submission of a planning application. It is anticipated that should planning permission be obtained and development of the site proceeds, the architect may be asked to supervise the build out of the development. This may involve novation of the appointment to the successful constructor / developer. In the first instance, Expressions of Interest are invited in accordance with the requirements set out in the Pre-Qualification Questionnaire available from the London Tenders Portal at: https://www.londontenders.org The deadline for submissions is 14.00hrs (BST) on MONDAY 19 October 2015. – Ends – Notes to Editors: Islington Council – Members of the public can find further information about the design competition and the wider redevelopment of the site on Islington Council’s website – www.Islington.gov.uk/stlukes Please ensure RIBA Competitions are credited when mentioning the above competition. Competitions deliver exciting buildings and projects. They drive up quality, stimulate creativity and innovation and generate a range of options improving choice. RIBA Competitions is the Royal Institute of British Architect’s unit dedicated to organising architectural and other design-related competitions. For further details visit www.architecture.com/competitions Posted on Monday 14th September 2015 Source link
Scotland’s “vibrant renewable sector” and “bold policy approaches” will take the country beyond the UK’s ambition on climate change and help deliver a 61 per cent reduction in emissions by 2030 from 1990 levels, the Committee on Climate Change (CCC) has said. In a new report – Scottish emissions targets 2028-2032 – the CCC says the Scottish Government should maintain its high-ambition pathway towards emissions reductions of at least 80 per cent by 2050, by taking strong action on national decarbonisation. CCC chair Lord Deben said: “Scotland is leading the UK in its ambitious approach to tackling climate change and is to be commended for doing so. There is a lot of positive action already underway in Scotland, driven by both its vibrant renewable sector and its bold policy approaches. This must now be accelerated. “New policies will be required to meet these ambitious but achievable carbon objectives. With these actions Scotland can continue as an example to the rest of the UK in its approach to address climate change.” Heat and transport Scotland has made good progress in emissions reduction to date – in 2013, emissions had fallen by 38 per cent on 1990 levels, putting the country on track to exceed the 42 per cent target by 2020 set in the Climate Change (Scotland) Act. The Scotland Act calls on emissions reductions that go beyond those in the UK Act, which has a target of reducing emissions by 34 per cent by 2020, from the same 1990 baseline. The CCC’s recommended emissions target for Scotland in the 2028-32 timeframe continues along that more ambitious trajectory, putting the country on track for an eventual reduction of at least 80 per cent by 2050. Specifically, the CCC says strong action will be required in a number of key areas, including: – Low-carbon heat in about 30 per cent of homes by 2030, with widespread uptake of heat pumps, low-carbon heat networks, domestic insulation and energy efficiency measures. Low emission vehicles comprising about 65 per cent of new car and van sales by 2030. Afforestation involving 16,000 hectares per year of new forest planting. Electricity decarbonisation to reduce emissions from 220 gCO2/kWh to below Scotland’s legislated target of 50 gCO2/kWh. Commenting on the new report, Jim Densham from campaign group Stop Climate Chaos Scotland said: “The advice from the UK CCC describes a rapid transition away from fossil fuels towards a clean, renewable energy future. This means by 2030 electric cars need to be the vehicle of choice; renewable heat must be common place across our buildings and all our homes energy efficient. “This is a massive opportunity to not only cut emissions but also deliver new jobs in sectors like home insulation and renewable energy across Scotland, improve public health, create investment in new industry and help tackle fuel poverty. “This is a powerful reminder that all political parties need to step up action on climate change and commit to policies in line with the Climate Change Agreement all Scottish party leaders signed up to last year.” Holyrood calling Ahead of the Scottish elections on 5 May, a recent YouGov survey revealed overwhelming public support for the continued development of clean energy over fossil fuels and nuclear. The results showed that 70 per cent want more renewable sources such as wind, solar, wave and tidal to be supplemented with a strong policy environment. WWF Scotland director Lang Banks recently told edie of his hope that the upcoming election will see the major parties set out an ambitious green agenda.“In 2015, Scotland missed yet another annual climate change target underlining the need to ensure we do much more address carbon emissions from other sectors including our homes, businesses and transport,” Banks said. “In the run up to May’s Holyrood election, we’ll be particularly keen to see each of the political parties set out their plans for tackling climate change that will create jobs, improve health and reduce inequality.” A version of this news story originally appeared on edie.net Source link
©PA Choosing to pay a higher or a lower price for an identical product ought to be a no-brainer. Yet that is not how things work in practice in the UK’s gas and electricity market. Fifteen years on from the sector’s deregulation, a majority of retail customers have never — at least, not to their knowledge — switched to a different power supplier. Most sit for years on a default tariff that can cost them several hundred pounds more than the cheapest deal on offer. The six suppliers that serve 90 per cent of the market have been happy to exploit the apathy. They lure new customers through cheap tariffs that rank well on price comparison websites — subsidised by the higher default rates, which even bargain hunters tend to pay for a few months when fixed-term deals expire. This dual market is especially unfortunate, because the poorest customers — whose gas and electricity bills represent almost 10 per cent of household spending — are the least likely to seek out the best prices. This is the situation exposed by a long-running investigation by the competition authorities — whose proposals Ofgem, the energy regulator, is now seeking to implement with a package of measures it describes as a “watershed” for the industry and consumers. The watchdog is rightly proposing an interim cap on tariffs for customers on prepayment meters, who are offered a more limited choice and may be unable to switch supplier if they have a poor credit history. But Ofgem has not acted on earlier proposals to cap prices for the market as a whole. Instead, it plans to run trials of various ways to prompt, prod and pester people into switching. These range from simple interventions, such as stipulating how energy suppliers present the options when they bill customers, to a more controversial proposal to create a database of customers who consistently pay over the odds, who would then, unless they opted out, receive offers from rivals. Ofgem’s cautious approach is probably the right one for now. Regulating prices for all customers would be tantamount to admitting that the market had failed. It could also, in practice, lead to a convergence of prices around the cap — as has been seen with UK universities, who almost all charge students the maximum fee permitted. Competition in the gas and electricity market clearly leaves much to be desired at present, but it is not at all clear that prescriptive regulation would achieve a better outcome. Indeed, Ofgem is proposing to scrap a recent rule limiting suppliers to offering just four tariffs. This was meant to make billing simpler but it simply led to the withdrawal of cheaper deals and stifled innovation with little benefit. Moreover, any regime put in place now will to an extent be a temporary one. By 2020, all 26m UK households are meant to be equipped with smart meters. There are still technical hurdles to overcome, but once in place, smart meters should make billing more transparent, because suppliers will be able to measure actual consumption, rather than issuing estimates based on infrequent meter readings and typical customer profiles. It is to be hoped that customers will also start to care more about their energy bills, when they can track how much power they are using in real time. Beyond the benefits to their own pockets, there is a wider public interest in making people more responsive to price signals — variable pricing should be a tool to help the UK achieve other goals on energy security and climate change. Policymakers should be wary of measures that invite a deluge of marketing. But testing out new ways to nudge people into taking a more active interest would be worthwhile. Copyright The Financial Times Limited 2016. You may share using our article tools. Please don’t cut articles from FT.com and redistribute by email or post to the web. Source link