Paul Hallas, RECCo Board Member
Firstly, congratulations on your recent appointment to the RECCo Board. What made you want to join the Board?
Thank you, I had my first Board Meeting on 2 March and it was great to get started.
There were several reasons for wanting to join the RECCo Board. The first is the incredibly important role which RECCo has to play. I struggle to recall a time when there has been so much media coverage of the retail energy market. Its effective functioning really matters – not just to industry participants but also to millions of energy customers.
I recall years of discussion about industry codes and their governance, particularly their complexity and the slow pace of change. So, a unified retail energy code is a very welcome step forward.
Finally, the more engagement I have had with RECCo colleagues – both Executive and the Non-Executive – the more I realise that I’m joining a great team. People and the way they work together are a vital ingredient of success.
How do you think your experiences so far will benefit the RECCo Board?
Continuing with the theme of people and teamwork, I hope that my experience will be a useful complement to that of other colleagues.
One aspect of that is my industry experience, having spent most of my working life in and around the energy business. Much of this was in strategy, commercial and regulatory roles – including many years in Centrica, which has always had a strong UK retail energy focus.
I also worked for 5-6 years in international business development and saw retail energy businesses operating in various parts of Europe and North America. I have a solid background in energy procurement and hedging – and we can all see how important those issues have been in driving recent retail market developments.
The other side of my experience is sitting on Boards, both as an executive within various Centrica subsidiaries and as a Non-Executive since the start of 2017. Every organisation is different, of course, but I’ve built a good appreciation of how Boards work, the issues they have to consider and the behaviours which contribute to Board effectiveness.
Alongside experience sits culture and ways of working. I like to think I am a calm, constructive team player and thoroughly independent, as the RECCo Board needs to be.
What do you think some of the key challenges and opportunities are in the retail energy market currently?
That could be quite a long list! The retail market turmoil of the last year or so is both well-known and unprecedented. It’s been good to see the recent market stabilisation proposals from Ofgem, but much will also depend on wholesale energy market conditions.
I can’t say when the market will turn, but I am sure it will at some point. With falling wholesale prices will come greater opportunities for retail switching and more favourable conditions for market entry - albeit subject to more regulatory safeguards than we saw in the past.
I also see a fundamental trend away from risky, low margin ‘supply only’ activities and towards a greater emphasis on service of various kinds. For example, most customers will need some ‘hand holding’ through the transition to lower carbon, whether it’s the use of smart energy-saving technology, the adoption of electric vehicles or the shift to new ways of heating our homes.
Digitalisation is another key theme and we’ve recently seen how innovative market participants have been able to capitalise on superior IT systems. This trend is only going to grow. Just think of market-wide half hourly settlement; it will bring many advantages, but also a huge amount of additional data to be marshalled effectively.
Then there are some thorny ‘old chestnuts’ (to mix my metaphors) and one of those issues is energy theft. I am pleased to see that RECCo is starting with a ‘drains up’ look at where and how it is taking place, as a basis for re-considering initiatives for tackling it.
Finally, what keeps you busy outside of work?
One part of the answer is family. Our youngest adult daughter is still with us at home, though she has plans to change that, and our little grand-daughter keeps us busy at least one day a week.
Living in London, we try to take full advantage of what the capital has to offer – local cinemas, theatre, galleries and so on. We are very fortunate to have so much choice. I can’t let this opportunity go by without mentioning that my home city football team is now in the Premier League again, after a very long absence. I don’t see them as often as I’d like, but I’m determined to get in one or two games before the end of this campaign!
