Thursday 5 September 2013

DONG Energy Sales to sell power to industrial energy users

DONG Energy Sales UK is branching out from gas supply to sell power to big industrial energy users, it announced today.

After mooting the idea last summer, DONG Energy Sales has finally brought out the new dual fuel tariff to tempt customers in the UK’s industrial and commercial (I&C) market.

Formerly owned by Shell under the name Shell Gas Direct, the firm which supplies around 11% of the UK’s I&C gas market was boughtby energy firm DONG last summer for £30million.

At the time Lars Clausen, DONG’s Executive Vice President of Sales and Distribution told ELN the UK would become the Danish parent company’s “number two” territory.

Under its new electricity offering, DONG Energy Sales says customers can choose which parts of their power supply contract are fixed and which are flexible and any wanting to include renewables as part of their energy mix can fix the exact proportion, from 0% to 100%.

This renewable energy is all directly traceable to DONG Energy's wind farms which is believes will be a big selling point.

The company has trialled its power supply with UK manufacturer Steelite, which uses 2.6 million therms of gas a year at 13 kilns on one site in Stoke-on-Trent and 12 gigawatt hours (GWh) of power.

Mike Hogg, Managing Director of DONG Energy Sales said: “Our vision is to provide sustainable, affordable energy and this new offering helps make this vision tangible to businesses.  It is the perfect complement to what is already a well-run and high performing business in the I&C gas market.”

A spokesperson told ELN the company wanted to avoid "overly restrictive and complex" power supply tariffs to help businesses with their energy management strategy.

They added: "Each monthly bill contains a detailed breakdown of all costs within the contract, enabling buyers to fully understand their energy costs."