Monday, July 4, 2011

The "Green Deal" is a big deal for Merchants!

Well, "Another fine mess you have got me into" (Oliver Hardy)
Two competing conferences, one week apart, and the BMF claiming (BMN April 2011) to be the only organisation interested in helping merchants enter the low carbon future? Is there any hope for us?
Well yes, the BMJ Merchant Focus (April 2011) conversation expressed some of the challenges that lie ahead in this new energy efficient world. And having identified the problems we can at least start to consider the solutions.
The green energy centre (supported by Unimer) began briefing MPs and ministers at DECC from early summer 2010, and Unimer has backed up the efforts by financially investing in the green energy centre, a company that seeks to equip merchants with the "how" of getting into this low carbon market. Others may be doing the same but they are just not visible yet. I do not mean to be disingenuous about the BMF, but play fair, others are working on it as well. We all have our own competing interests and agendas but the Green Deal and the low carbon future do need an agreed industry strategy, not one set by one group without consultation. Let's be realistic, merchants have been publicly on the government's radar as a solutions provider since October 2010, it is now late April/early May 2011 so the industry needs to address "how" to give the government that solution and PDQ.
Should we wait to organise the response in June 2012? To précis some of the challenges identified.
  1. To ensure fuel security the government is pushing us all towards an electrical energy dominated macro supply (nuclear, biomass, wind, solar, wave).
  2. B&Q, Sainsbury's, Tesco, energy companies are actively entering "our" market.
  3. Green Deal, Feed in Tariff (FIT), Renewable Heat Incentive (RHI) have or will happen.
  4. Are merchants, independents especially, really fleet of foot at this macro level?
  5. This new low carbon future will create a huge and ongoing market.
  6. Mis-selling, consumer confidence, accreditation, trust, where are we?
  7. Merchant structure, lightside v heavyside, can it service this market?
  8. Why should the public or installers use a merchant with all of these other competitors gearing up? What is our added value or USP?
  9. What is our strategy?
I disagree in large part with the BMF's solutions as being in the interest of merchants. A solution yes, but not for merchants. That is my opinion. The BMF is doing sterling work in keeping the merchants in the minds of politicians, but it is commercial organisations that create commercial solutions and that is what is needed and that is also what the government is looking for. The government may be talking to B&Q among others, not The British Retail Consortium.
Can we leave it until next year's conference(s) to air our differences? Or should interested parties from the merchant industry, including the BMF, come together well before then to agree the commercial approach, or not as the case may be? It's good to talk.
Lorcan Anglin Managing Director green energy centre

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