For many within the energy industry, MEUC and Don McGarrigle have been closely intertwined over the past three decades. Now, as Don marks his third, and final, retirement from MEUC, we invited him to reflect on his remarkable journey through the changing landscape of the UK energy markets, his longstanding involvement with the organisation, and the people, challenges and opportunities that shaped both his career and MEUC itself.
I joined MEUC in 1991 as the Energy Buyer for Castle Cement, now Heidelberg Materials, although my move into energy buying came about by accident. I had originally joined the cement industry as a project electrical engineer, but when recession hit in 1990 and expansion plans were shelved, I found myself looking at the impact electricity privatisation would have on the business instead.
We survived through those early days by taking risks that today would have any serious risk manager running for cover. Energy contracts tied to the Half-Hourly spot market were one such strategy, delivering huge benefits in the early years, especially for end users, particularly cement works, which had flexible loads. Peak prices could be avoided daily and provided customers with a very attractive ‘bath tub’ load profile, something highly desirable to the new supplier competitors then evolving.
Tenders were usually sent to seven or eight contenders and seven or eight responses were usually received. A far cry from today’s market, where timing is much more important than competition and many large consumers are now reluctant to change suppliers, instead looking out for market troughs and quick response times. MEUC meetings regularly debated the merits of fixed and spot-market contracts as the industry evolved.
The bubble burst in the mid-1990s as the market expanded and peak prices became punitive for companies without load flexibility. Around the same time, MEUC itself went through difficult times when the then management team had a difference of view with the owner. Many members left the organisation to form a rival customer forum, but some remained loyal and tried to change policy from the inside. It was during this period that I was elected Chair of the Electricity Group while Eddie Proffitt chaired the Gas Group, a partnership that became known as the ‘Eddie and Don Show’ for well over a decade.
MEUC quickly earned a reputation for being ahead of the curve. Demand-side bidding and frequency response activities allowed members to play an active role in security of supply while generating additional revenue from flexible operations. MEUC has always been at the forefront of new initiatives. We had representatives on most industry panels, and this benefitted both members and the individuals themselves.
Being an MEUC member enhanced my career both as an engineer and as an energy buyer. Following redundancy, I moved into consultancy work while maintaining my involvement with MEUC. Later, I stepped down as Chair of the Electricity Group to train as a self-supporting vicar, while continuing to work as an energy adviser and price reporter. I hope my weekly market summaries proved useful and that I was able to give buyers some steer of where I thought prices might move in the following week. Always a dangerous strategy, but this was exactly the information I needed when I was an active energy buyer. I must admit, I got it right some of the time!
I attended the MEUC’s Spring BUU Live at the IET offices in Savoy Place. I hadn’t been to an MEUC conference for many years and was encouraged by the turnout, the buzz, the quality of the discussions and interactive Q&A sessions. The atmosphere was a far cry from the days of yore when suppliers were banned from discussion sessions, consultants were not welcome at all, and questions were planted in the audience by the chair.
In the early days, the emphasis was on encouraging members to do their own purchasing, with MEUC supporting quietly in the background. Nowadays suppliers, consultants and end users all sit around the same table, which makes for much healthier debate and co-operation.
Next year MEUC celebrates 40 years in operation. For an organisation built largely on hard work and commitment rather than assets, that is quite an achievement and a testament to the vision of Andrew Bainbridge. For around 35 of those years, I have been involved both as a member and as part of the organisation.
Retirement now awaits and I can confirm I will not be writing a book on the highs and lows of the UK energy industry — this article will simply have to do instead. I have been blessed throughout my career that opportunities always seemed to appear just when life looked challenging. MEUC has been a huge part of those opportunities, and I will remain eternally grateful to everyone in the management team, both past and present, for allowing me to play a part in its story. I am already looking forward to the 40th anniversary celebrations.