Five million homes face 'shock' energy rise

SSE, the UK’s second biggest energy company after British Gas, said that from mid-October the price of an average annual dual fuel bill will rise from £1,172 to £1,274. Other companies are expected to follow suit

It came as Ofgem, the energy regulator, said the profit margins of profit companies were due to rise by almost 14 per cent.

Consumer groups and MPs said that the “shock” above-inflation rise will condemn cash-strapped families to a “winter of misery”.

The £102 increase will hit 3.3 million dual fuel households, while a further 1.7 million homes will also see sharp rises in their bills.

SSE said that it is “regrettably” raising the cost of gas and electricity by 9 per cent because of the rising cost of energy on the wholesale markets and increasing green taxes from the Government.

However the company’s announcement came as Ofgem, the regulator, said that the annual profit margins of Britain’s energy companies are likely to rise from £35 per customer currently to £40 by the end of November.
MPs accused SSE of profiteering.

“They are simply taking advantage of their customers,” said John Robertson MP, a member of the Energy and Climate Change committee.

Observers speculated that other energy companies could also raise their prices as the autumn approaches.

The price rise is a “hard blow” for consumers, said Audrey Gallacher, director of energy at Consumer Focus.

She said that people will be worried about “a run” of price rises by other energy companies. However there is “little evidence” that all suppliers need to follow suit.

Tom Greatrex, the shadow energy minister, said that hard-pressed families will be “astonished” by the increase.

“Unless ministers get to grips with spiraling energy bills, people will rightly think that this Government is completely out of touch with families and pensioners struggling to make ends meet,” he said.

Mr Robertson said that SSE, which made profits of £1.3 billion last year, was “irresponsible” for putting up its prices.

He said: “The fact is SSE energy barons have irresponsibly hiked its prices yet again, while lining their pockets with inconceivably huge amounts in profits.

“This Tory-led government needs to start putting people before business and do something about it.”

A spokesman for the Department of Energy and Climate Change said that the price hike is “obviously disappointing news for SSE customers”.

However he said that it is up to individual energy companies to explain their prices to their customers.

He said the price rise is “further evidence of the fact that world gas prices are the primary force driving up our energy bills”.

Richard Lloyd, executive director at Which?, called on the Government and Ofcom to reform the “broken” energy market. He said that prices need to be “properly transparent” and tariffs simpler.

Mark Todd, a director at Energyhelpline.com, described SSE’s rise as a “total shock”.

“A nine per cent increase is more than three times the price cut that SSE implemented last winter. Sadly, it seems that the energy market is back to its old ways of tiny price cuts followed by big price hikes.”

22/08/2012 - Telegraph.co.uk

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SSE Electricity And Gas Bills Soar By 9% - Or £102 Per Year

Energy group SSE has said it will increase tariffs by 9% on average in a move impacting around five million electricity customers and 3.4 million gas customers.

SSE, which will introduce the bill hike on 15 October, said it comes in response to energy price increases in wholesale markets, as well as rising costs of using the National Grid network.
The UK's second largest energy firm, formerly known as Scottish & Southern Energy, said it will cap bills following the October price rise until at least the second half of 2013.

SSE said the 9% rise, which applies across gas and electricity, will add another £8.53 a month on to the typical monthly direct debit, dual fuel customer - taking the average annual bill to £1,274.
The group committed in January to keeping household bills on hold until October.

Ian Marchant, SSE chief executive, said: "Unfortunately, the increases in costs that we have seen since making this pledge can no longer be absorbed and mean that we are unable to keep prices at their current levels beyond this autumn.

"An increase in our prices has therefore, regrettably, become unavoidable."
SSE, which trades as Southern Electric, Swalec and Scottish Hydro, said it had seen a 14% increase year-on-year in the average price in the wholesale market to secure gas for the coming winter.

The group also announced changes to simplify bills by introducing a new fixed standard charge of £100 per year per fuel and a single unit rate for energy
used.

It will offer fixed discounts off this price, which will see direct debit customers pay £40 less a year for each fuel, while prompt quarterly bill payers will get a £20 discount per fuel and those choosing paperless billing will get an extra £6 a year per fuel.

The group said it would ensure around 400,000 low-usage customers can remain on a no standard charge tariff if they wish, otherwise they could see their bills rise as a result of the changes.

SSE is the first of the "big six" to raise prices this year, but it is thought others might follow suit soon, with British Gas parent Centrica recently warning wholesale price rises may lead to higher bills this autumn.
Utility groups are also facing increasing costs of regulation and government-sponsored schemes, which are being passed on to customers.

Martin Lewis of MoneySavingExpert.com warned of a further energy price misery to come.

He said: "When one moves others follow, and over the next three months I'd expect to see similar announcements."

He urged customers to consider switching to better deals and said there were some good fixed rate deals on the market.

Richard Lloyd, executive director of Which?, called on the government to reform the energy market ahead of the expected raft of price rises.

He said: "We can't go through another winter with people worrying about their energy bills. The government and the regulator must reform our broken energy market.

"It's time for energy prices to be properly transparent and tariffs to be made simpler, so that consumers get a fair deal."

SSE's price rise comes after it reduced gas prices by 4.5% in March.
It last increased gas prices by 18% and electricity tariffs by 11% last September.

SSE's recent results showed its domestic supply operation made £271.7 million in the year to 31 March, although this was 21% lower than a year earlier.

Consumer Focus said that, following the October price rise, SSE will be by far the most expensive of the big six providers for the typical dual fuel tariff.
Audrey Gallacher, director of energy at Consumer Focus, said: "This price rise will be a hard blow for consumers in the current difficult economic climate.

"People will be worried about a run of price rises, but we see little evidence in the trends in wholesale prices or in the performance of companies that would justify all suppliers following suit."

22/08/2012 - huffingtonpost.co.uk

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Energy bills to soar by more than £300 a year because of obsession with wind power, report claims

Britain's 'obsession' with wind farms will push up family electricity bills by more than £300 a year, a report claimed today.

The Government's green energy plans for the next eight years are a £124billion 'blunder' that will hit every UK household, a senior British economist has also said.
In a stark warning Professor Gordon Hughes, who has produced a study on how wind energy will hit energy costs, said that British consumers simply cannot afford to subsidise wind power.

Prof Hughes is one of the UK's leading energy economists and works at the prestigious University of Edinburgh. He was also a senior adviser on energy and environmental policy at the World Bank.

By 2020 average electricity bills will be around 58 per cent higher - a £320 increase - just because of the flood of wind turbines planned for Britains's coastlines, fields and seas, he said.
Completing the gloomy picture, Professor Hughes believes for all the huge investment in wind farms Britain's greenhouse gas emissions may not even fall.

Wind energy provides almost 2 per cent of global electricity worldwide, a figure expected to approach 10 per cent by 2020, costing Britain an estimated £124 billion.
'The key problems with current policies for wind power are simple,' he said.

'They require a huge commitment of investment to a technology that is not very green, in the sense of saving a lot of CO2, but which is certainly very expensive and inflexible.
'Unless the current Government scales back its commitment to wind power very substantially, its policy will be worse than a mistake, it will be a blunder.
'The average household electricity bill would increase from £528 per year at 2010 prices to a range from £730 to £840 in 2020.'

The report has been published by former Chancellor Lord Lawson's Global Warming Policy Foundation.
Their study has been handed to the House of Commons Energy and Climate Change study for the Economics of Wind Power Committee.

Meanwhile, Professor Ian Fells, who is Professor of Energy Conversion at Newcastle University and an advisor the Commons and Lords, also said that windfarms are too costly.

Instead he claims that combined gas cycle plants could produce the same amount of green energy for £13billion – nearly 10 times cheaper than wind power.
'Wind energy is the most expensive way of generating renewable electricity,' he said.

'It will also cost jobs. We are already seeing some industrial firms packing up and moving abroad. The increasing price of energy is going to be the next big political problem.'
However, the Government was keen today to defend its green energy policies.
'Wind power is a homegrown, secure and sustainable source of energy with an important role as part of a balanced energy mix,' a spokesman said.

'Over-reliance on any one technology could have serious consequences for consumer bills. That’s why we want to see a diverse energy mix with renewables, nuclear, clean coal and gas all playing a part.'

07/08/2012 - dailymail.co.uk

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British Gas profits and bills rise

Profits at British Gas have risen by 23% to £345m as the return of the bleak British weather hiked household energy bills by £90 in the first half of the year.

Centrica, the owner of British Gas, said the £64m increase in operating profit in the six months to the end of June represented a return to normal trading after atypically warm conditions depressed profits last year. Nick Luff, Centrica's finance director, said the improvement in the bottom line had been driven by demand returning to "normal levels" among the group's 15.8 million British Gas customers. The profit increase equated to an increase of £90 on the average household bill over the period, to £614.

British Gas has warned of further increases in bills this year, after warning in May that wholesale gas prices were about 15% higher than last year while non-commodity costs – such as government levies and distribution costs – could add £50 to bills. Taken together, the cost increases could add £100 to bills over the next 18 months.

Sam Laidlaw, Centrica's chief executive, said British Gas still faced cost pressures that analysts say will result in further bill increases this winter. "The cost of gas is still higher for this winter than last winter," he said. British Gas, and its rivals, argue that their hands are tied on the issue of bills. British Gas says its average gas bill is dominated by the wholesale cost of the gas, accounting for 56% of the total, with 5% accounted for by profits. Critics of heating prices, from pensioners' groups to MPs and the industry regulator, argue that British Gas is quick to increase bills when wholesale prices increase but slow to reduce them when they fall.

Richard Hall, head of energy regulation at Consumer Focus, said: "Wholesale prices rose a little earlier in the year but are now falling and they are still a long way from their peak in 2008. We have long questioned whether drops in wholesale costs find their way through to household bills."

The British Gas figures were announced in Centrica's first-half results, which saw a 15% increase in operating profit to £1.45bn. Centrica's two biggest businesses are the "upstream" unit – oil and gas production as well as eight power UK power stations – and the "downstream" operation that provides energy to homes and businesses, where British Gas resides. Aided by three oil and gas field acquisitions in the North Sea for £1.2bn, plus higher wholesale energy prices, the UK upstream business saw operating profits climb by 28% to £682m.

On Wednesday Centrica announced that it is pushing ahead with plans to develop a North Sea gas project with a £1.4bn investment programme that will create 4,000 jobs. The Cygnus project, situated off the coasts of Norfolk and Hartlepool, is a joint venture with the French energy group GDF Suez. The announcement was spurred by the government's decision to award the gas industry a £500m tax break for shallow water gas fields.

Laidlaw added that Centrica's looming decision on whether to invest in British nuclear expansion with France's EdF had not been affected by the outbreak of hostilities between the Treasury and the Department for Energy and Climate

Change over green energy subsidies. The nuclear investment decision by British Energy owners EdF and Centrica is heavily dependent on how much financial support the government provides, through underwriting a minimum price for nuclear-powered energy. Asked about the departmental briefing war, Laidlaw said: "Our perception certainly is that it is not nearly as it has been portrayed in the press." On whether British Energy will push ahead with plans to build two new plants at Hinkley Point in Somerset, Laidlaw said: "There is still a lot of detail to be worked out." He added that EdF and Centrica still hoped to make a final decision on nuclear investment by the year end.

26/07/2012 - guardian.co.uk

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British Gas see's profits of £2million a day

British Gas was dubbed a ‘recession-free zone’ yesterday for scooping profits of £2million a day from its ten million customers who were forced to keep the heating on during months of dismal weather.

The company triggered a furious reaction when it said its profits for the first six months of 2012 had jumped by 23 per cent to £345million.

British Gas revealed it had made £64million more from its residential customers than during the first half of last year.
Unions accused the company, Britain’s biggest energy giant, of ‘sidestepping austerity Britain’.

Last night, British Gas ignored a clamour of calls to cut its rates, or to pledge not to raise them for the rest of the year, like some of its rivals, such as E.on.

In 2003, a typical family spent £530 a year on their annual ‘dual fuel’ bill, which includes gas and electricity.

Today the same family would pay £1,260 a year, despite using exactly the same amount of fuel, according to the watchdog Consumer Focus.

In May, British Gas’s parent company, Centrica, which revealed profits of £1.4billion, said wholesale energy prices for next winter had increased, warning the trend for tariffs ‘remains upwards’.

Audrey Gallacher, director of energy at Consumer Focus, said the ruthless tactics of profit- hungry energy giants had led to a major breakdown in trust with their customers.

Utility companies were suspiciously quick at passing on rising wholesale costs to consumers, but slow to drop prices when they fell, she said.

‘Hard-pressed consumers will be shocked to see such a big rise in profits when British Gas has been warning of the need for price increases,’ she
added.

‘The disconnection between profits and prices risks deepening consumer distrust over energy bills.’

Consumer Focus chief executive Mike O’Connor said the energy industry seemed to be ‘a recession-free zone’.

He said he would like to say to British Gas: ‘You’re making £2million every day of the week; I think it’s about time you gave consumers a break.’
But Sam Laidlaw, chief executive of Centrica, will not struggle to pay his energy bill, unlike many of his customers who are battling to cope with pay freezes, pay cuts or redundancy.

Last year, he scooped a pay package of £1.29million – and was also eligible for a discount of his energy bill of up to £684.

Last night, British Gas refused to reveal whether Mr Laidlaw took the staff discount, but said it had been scrapped this year.

Caroline Flint, the shadow energy secretary, said: ‘People will not understand why just a couple of months ago British Gas was threatening more price hikes this winter, while it has seen profits soar.

‘The public will be getting a raw deal if they are forced  to stomach even higher bills and bear the cost for investment  in our energy infrastructure, while the big energy companies get away with making more  profits and paying out more to their shareholders.’

Mike Jeram, head of business at the union, Unison, said: ‘British Gas seems to have sidestepped austerity Britain and passed the pain of the double-dip recession onto their domestic customers.

‘How can it be right that families across the UK are suffering from pay freezes, job cuts and struggle to pay their fuel bills, at the same time as the company is posting a profit hike?

‘We need strong regulation and government action to protect families and pensioners from profiteering.’

26/07/2012 – Dailymail.co.uk

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Nine in ten customers say gas and electricity statements are too confusing

Customers could have lost hundreds of pounds because household bills are too complicated for them to understand, researchers claimed today.
Utility firms are confusing consumers with energy, phone and water bills they cannot follow, a survey found.
Energy suppliers were accused of being the worst offenders, with 82 per cent of customers surveyed claiming they found electricity or gas charges more baffling than any other bill.

Eighty-six per cent of those questioned said energy bills were too complicated, with 76 per cent saying the statements used too much jargon and 71 per cent claiming they could not find the information they needed.
Worryingly, almost half of survey respondents said they feared they had lost money because an energy bill was too difficult to understand.
Comparison website uSwitch branded the quality of bills received by millions of households in Britain 'shocking'.

It said companies were guilty of sending bills and statements that were confusing, overly-complicated and full of jargon, leaving many consumers unable to tell whether there had been a mistake or not.
The study claimed confusing energy bills leave consumers vulnerable to issues such as overcharging or being on the wrong product or service for their needs.
Consumers were overcharged by £6billion on household bills last year and 95 per cent of cases were noticed by consumers themselves rather than the companies concerned.
However, the survey found companies were taking steps to improve bills, with energy suppliers leading the way.
Almost half of consumers said energy bills had become more customer-friendly over the 12 months.
A third of respondents said the same for home telephone bills and a quarter of those surveyed agreed that broadband and water bills were becoming easier to understand.
Ann Robinson, director of consumer policy at uSwitch.com, said: 'Consumers are spending thousands of pounds a year on household bills - the least they should expect is for them to be easy to understand.
'At a time when money is tight, households need to be able to account for every penny spent.

'Bills that leave them confused and potentially out of pocket are not worth the paper they're printed on.
'The difference in the quality of household bills is astonishing, with some sectors such as banking and personal finance leading the way in giving people clear and simple information that they can act upon.
'At the opposite end of the spectrum are energy suppliers.

'However, even here there is some good news with almost half of consumers saying that energy bills have become more customer-friendly in the last year.
'This is a step in the right direction as a well-written, clear and concise bill should leave consumers feeling empowered and in control.
'In the meanwhile, despite the difficulties, it's important that consumers continue to check their household bills carefully to ensure that they are not being overcharged and that they are on the correct deal or service for their needs.'

23/07/2012 - Dailymail.co.uk

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Households at risk of losing energy discounts

Consumer groups yesterday waned that government plans to offer fewer, simpler tarrifs will leave many people “much worse off” as energy companies scrap discounts and cheaper online deals.

The warning comes as the Prime Minister prepares to meet the bosses of Britain’s biggest energy companies to discuss soaring gas and electricity bills, which remain at near highs of £1,300 a year per household.

However, the Daily Telegraph has learned that major suppliers have already begun quietly removing their best tariffs from the market, including many “fixed” and online saver deals.

According to Uswitch, the price comparison website, hundreds of thousands of British Gas, E.On and EDF customers have seen the very cheapest bills rise by an average of £249 since September 2010, a third more than customers on standard tarrifs.

In a second blow for bill-payers Ofgem, the energy regulator, is trying to abolish discounts worth up to £130 for around 20 million customers on standard gas and electricity deals.

Four in five British homes are on these deals, qualifying for discounts if they have “dual fuel” accounts, settle bills promptly and opt for paperless billing.
Under current plans, customers on these tariffs would no longer get money off for any of these options.

They would also lose discounts for using energy at off-peak times, collecting loyalty points or low consumption rates.

The plans were drawn up by Ofgem, after the Prime Minister last year urged companies to “clear up their bewildering array of tariffs and special offers”.
Mr Cameron and Chris Huhne, the former Energy Secretary, suggested simplifying deals would lead more people to switch their supplier and ultimately save people money.

Since then, Ofgem has argued that scrapping discounts on standard tariffs will give a single clear rate that can be quickly compared across all suppliers.
However, it also acknowledges the loss of discounts risks “frustrating a significant number of consumers”.

The energy regulator’s own research admits it “could attract a backlash from people who could blame Ofgem for increasing their bills”.
The proposals have also been criticised by groups such as Consumer Focus, which argues the loss of existing discounts could leave some groups of customers “much worse off”.

Ian Peters, managing director of British Gas Energy, warns of “unintended consequences” if the plans are allowed to go ahead.
He said many customers would “immediately lose cash discounts” of almost £70 a year for online and duel fuel accounts.
Many could see further bill increases by losing prompt payment, off-peak or other discounts.

The Government is under pressure to encourage people to shop around for good deals, after the level of people switching supplier this year dropped to an all-time low.

It argues getting rid of loss-leading bargains could help small suppliers break into a market dominated by the “Big Six” – British Gas, E.ON, npower, Scottish Power, SSE and EDF Energy.
Millions of standard tariff customers set to lose their discounts could also be more likely to shop around for bargain “fixed price” deals from alternative suppliers.

However, many of the best discount deals have been withdrawn after companies responded to Mr Cameron’s calls for a simpler market.
A British Gas spokesman said scrapping some of its cheapest deals improved tariffs for the majority of customers.
“Whilst our current online products aren’t as discounted as they have been it also means that we have managed to keep costs down for the majority of our standard customers,” she said. “We think this is a fairer way to run our business.”

The proposals have also been criticised by groups such as Consumer Focus, which argues the loss of existing discounts could leave some groups of customers “much worse off”.

“There is a serious risk that the proposals could entrench the divisions between passive and engaged consumers,” Consumer Focus said.
The consumer group argues people who are not used to switching supplier will end up with higher bills as they will remain trapped on“restrictive and stagnant” standard deals.

Tom Lyon, an energy expert at uSwitch, said some good energy deals do still exist and people must be encouraged to shop around more.

“The fact is that the number of consumers switching has already plummeted to an all-time-low,” he said. “The market needs consumers to engage and consumers need an incentive in the form of attractive 'best buy’ deals to do so.”

A spokesman for Ofgem said the regulator is still considering the plan to scrap discounts for standard tariff customers under its Retail Market Review.

“In light of the consultation responses we have received, we are currently refining our proposals and this includes looking at issues around simpler tariffs,” he said. “We will publish our updated proposals before the winter.”

The Government said it “fully supports the direction of Ofgem’s retail market review” in favour of a simpler tariff structure and greater transparency.

06/07/2012 - telegraph.co.uk

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Android 'closing sales gap on Apple iPhone'

The impending launch of the Samsung Galaxy S3 was the single biggest rival device impeding the iPhone, but the 4S still accounted for nearly a fifth of all sales in June. The FT reported that this was down from a quarter at the beginning of March.

The newspaper suggested that anecdotal evidence from network operators also suggested that Apple fans, who are consistently the most loyal among manufacturers, were themselves waiting for a new version of the iOS operating system that is due in the Autumn.

The data from GfK said the S3 model took approximately 18 per cent of the market in its first week in June. It is set to launch in America in the coming days. However, GfK data does not include sales from Apple's shops or from its website. It also doesn't include corporate sales for any manufacturer.

GfK noted, however, that S3 sales had sent its predecessor, the S2, falling from 9 per cent of all devices to 6 per cent in the two months to mid-June.

As has been the case for some time, Samsung’s combined sales still outstrip Apple’s, standing at above 30 per cent, although that also accounts for popular models such as the large-screen Galaxy Note device and phones such as the Ace.

The Android operating system is also, overall, the most popular OS. It accounts for four out of ten smartphones in use, and more than half of all those sold. The majority of British phone users also now use smartphones.

03.07/2012 - Telegraph.co.uk

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Families waste £86 a year on electricity bills because they don’t switch off televisions and other gadgets

Families are squandering up to £86 a year on electricity bills by leaving gadgets on standby or plugged in but not in use, a study suggests.
Researchers calculated that not switching off computers, televisions and other electronic devices can account for up to 16 per cent of the average electricity bill.

But while we are happy to let electricity seep from our sets when not catching up with our favourite shows, it appears we also spend an average six hours a day glued to the box – an hour more than previously thought.

The study, by the Energy Saving Trust and two government departments, has revealed that Brits are wasting far more energy than previously thought, sparking a wave of concern among environmentalists and ministers.

Across the UK, households could be losing £1.3 billion by not fully switching off their various electronic devices.

The study, which closely monitored the electricity use of 250 homes, found that the households were spending between £50 and £86 on gadgets in a 'non-active' or standby state, equivalent to 9 per cent to 16 per cent of the average electricity bill.

The research also found that people were watching more television than previously thought, with the TV on for more than six hours a day rather than the previous estimate of five hours on average.

This could mean that the UK as a whole is watching 10 billion hours more TV a year than estimated, adding £205 million to electricity bills across the country.

The research, which only followed people who owned the home they lived in, also found single-person households were using as much, or sometimes more, electricity to run appliances for cooking and laundry as average families.

This could have 'troubling' implications for efforts to cut electricity use, if the trend towards increasing numbers of lone households continues, the report’s authors warn. Almost a third (29 per cent) of homes were one-person households in 2010.

The study also revealed UK households run an average of five and a half washes a week, and homes with a tumble dryer use it for four-fifths of laundry cycles rather than using outdoor washing lines or indoor drying racks.
Running a washing machine and tumble dryer costs on average £80 a year, not including the cost of detergents and fabric softeners.

And even more energy is used for keeping kitchenware clean, with households that have dishwashers using on average nearly double the amount of electricity on them than on washing machines, the report revealed.

Elsewhere in the home, families were spending an average of £35 on powering their computer use, with laptops much cheaper to run than desktop computers.

And households were spending around £68 on electricity for consumer electronics such as TVs, DVD players, hi-fis and radios, but those with the latest 'home cinema' style set-ups could be paying out more than £300 a year to power them.

Philip Sellwood, chief executive of the Energy Saving Trust (EST), said: 'It’s crucial that households across the nation can make informed decisions by having the right advice to help them reduce their energy usage and fuel bills.
'This research shows that there’s still more work to be done with consumer advice, product innovation and take-up of energy efficiency labelling.'

He said the EST was working through its Energy Saving Trust Recommended labelling scheme to help consumers spot the most energy efficient appliances.

The Government said it was working with the EU to make sure green energy labels are displayed on all new electrical appliances to provide clear and easily recognisable advice for consumers.

The Powering the Nation report revealed that the households studied were using around 10 per cent more than average UK energy use, even though they were homes where residents said they were careful about their energy habits.
Energy used to heat and power homes accounts for over a quarter of the UK’s carbon emissions.

Environment minister Lord Taylor said: 'As this survey shows we are using a lot more energy than previously thought.

'Manufacturers need to develop more energy efficient electrical products and help consumers save money and the environment.

'We can all do simple things like switching off our televisions, computers and other home electronics and save up to £85 on electricity bills each year.'
Energy and climate change minister Greg Barker said: 'Using energy more wisely in our homes will not only cut carbon but will also help save money on bills.

'But first we need to really understand how we use this energy in order to become more energy wise.

'This report provides vital insights into what is happening on the ground, highlighting the need for more energy efficient household electrical appliances and indicating which appliances contribute most to electricity demand at peak times.'

26/06/2012 - dailymail.co.uk

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British Gas has this week brought out a “radical” new bill design and a new tariff which it says will simplify charges for its domestic customers

British Gas has this week brought out a “radical” new bill design and a new tariff which it says will simplify charges for its domestic customers.

It comes as part of a government shake-up of the retail energy market, called the Retail Market Review, designed to make the sector better for customers.
The new tariff will be available to the supplier’s new customers. It offers a single unit rate for use alongside a fixed standing charge, removing the complex Tier 1 and Tier 2 tariff system.

British Gas says this will make it easier for customers to compare its tariffs with those of other suppliers.

Ian Peters, Managing Director of energy at British Gas said: “For most customers, energy bills are the single most important communication they receive from British Gas. They are the key to understanding exactly what’s been used, and what it’s costing.”

British Gas says all key information on bills will be visible in one glance, while it will bring in a comparison table on a new-style annual statements which tell customers how much they have spent on an existing tariff and if there is a cheaper one available.

This doesn’t quite go as far as others such as EDF which has promised to tell customers if they are paying £2 or more on their bills than with another supplier.

28/06/2012 - energylivenews.com

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British Gas launches bill for dummies

British Gas is the first energy provider to launch a new “billing for dummies” system, designed to help all customers understand what they have been charged for, and whether they would benefit from a cheaper tariff.

At the same time the energy giant is introducing a new charging structure, which will have a single unit rate and one standing charge, replacing the two-tier tariff system, which has made it difficult for many people to calculate how their meter readings relate to the amounts charged on their bill.

While this new charging system will only be available to new customers initially, all existing British Gas users will have the option to switch to it.
Existing customers may be automatically moved to the new charging structure if Ofgem, the independent regulator, rules that utility providers have to introduce simpler charging structures as part of it current Retail Market Review.

However, all customers though will benefit from the more transparent bills, which for the first time will show the meter readings on which this bill has been based, enabling people to quickly spot whether they have been over- or undercharged.

The new bill format will also show the savings that can be made by paying by direct debit or switching to another British Gas deal, as well as giving advice on energy efficiency and other ways to save money on gas and electricity bills. This new format should also make it easier for customers to compare costs with other suppliers.

Ian Peters, the managing director of energy at British Gas said: “At a time when household budgets are under immense pressure we want to make energy bills more useful moving form a document that just about how to pay to something that’s about how to save. We want to make it simpler for customers to find ways to take control of their energy use and help keep bills down.

“Over the past six months we’ve made several changes to the way our customers buy energy, to make it more simple, transparent and fair. The new bill and the new clear and simple standing charge tariff are important next steps for us and our customers.”

25/06/2012 - telegraph.co.uk

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Electricity bills to rise by £100 a year in energy reforms

Households across Britain will be charged around £100 a year more for their electricity bills under plans to build nuclear power stations and wind farms over the next 20 years, Energy Secretary Ed Davey has revealed.
Average electricity costs are set to increase from £573 currently to £669 by 2030, according to Government figures.

Introducing the draft Energy Bill yesterday, Mr Davey said bills had to go up, but the alternative – doing nothing – would mean bills would end up £200 higher.

However, critics have claimed that without the Government’s ‘carbon floor price’ – a tax that artificially raises the cost of electricity from gas and coal power stations – energy would actually be cheaper.

But Mr Davey said: “These reforms will ensure we can keep the lights on, bills down and the air clean.”

He warned that without the reforms, there could be blackouts affecting millions of homes in years to come.

Lucy Darch, the site’s director of energy, said: “We are facing an ‘energy trilemma’ where the Government is attempting to balance security of supply,a low carbon future and affordability.

“Something has to give and unfortunately at the moment the scales are tipping away from affordability.”

Lisa Greenfield, energy analyst, said: “The Energy Secretary has freely admitted household energy bills are on the rise.

“However, as a result of the increased investment in clean energy generation methods and reducing the UK’s reliance on imported gas, such increases would actually be four per cent lower than if the UK continued to be reliant upon global markets.”

Consumer Focus said a “fine line must be walked” on the balance of the Energy Bill.

Audrey Gallacher, director of energy, said: “With a hefty price tag attached to the changes to be made, consumers need to be assured that not a penny of the funding that comes out of their bills will be wasted.”

23/05/2012 - myfinances.co.uk

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Galaxy S3 - The Review

Samsung’s Galaxy S3 phone has been much promoted – it is, after all, the device that will compete with Apple’s iPhone 5, and carries in many ways all Google’s best hope for its Android operating system.

I had some time with the device before it was released, and now, the day before it launches, I’ve been able to spend several days living with it. Although there are some niggles, I like it now even more than I did before.

The two most striking things about the S3 are its enormous, gorgeous screen and its surprising – by which I mean adequate – battery life. HTC’s rival One X has an excellent screen too, but I prefer the 4.8” version from Samsung. Although it’s based on slightly older technology (Pentile Amoled rather than Super Amoled Plus), that detail shouldn’t get in the way.

In terms of battery, the 2,100mAh batter was the first I’ve used that was able to get me through a whole day, unplugged from about 7am to 11pm, albeit using WiFi rather than the network for much of that time. To do this in such a slim package is probably the S3’s biggest yet least glamorous feature.
Pick up the S3, and the first thing that strikes you is that it’s made of plastic – unlike the iPhone 4S, the S3 does not quite have that weighty feel, and some users will feel that makes it seem relatively cheap. It’s an issue of personal preference, but it’s not one that bothers me. The phone feels very solid, and I’ve not yet managed to scratch its glossy white plastic. The Pebble Blue model, which is very dark blue, is likely to be even less susceptible to that problem because of its metal-effect finish. Rounded corners make it easy enough to reach the top of the phone’s screen even when using it one handed, although people with small hands may struggle. I certainly wouldn’t want a bigger device to use as a phone. The popular Samsung Galaxy Note, however, suggests many people do.

The 8.55mm slim body features a volume button on one side and the power button on the other. But you can also wake up the phone with one of the S3’s flagship new features, S-Voice. This lets you control the phone with your voice, so you can record a phrase to wake up the phone, and four others to make it do other things – take a picture, for instance. In use I found this gimmick increasingly temperamental, but it is a fine demonstration of how voice interaction is going to play a bigger role. Samsung’s currently has more possibilities than Apple’s Siri on the iPhone, but I’ve found Siri to be slightly more consistent in performance. Either way, this is not a technology I’d yet consider ready for everyday use. Apple even calls Siri a beta product.

Once the phone is awake, again it’s the screen that is consistently striking. Instantly responsive in a way that many Android phones still struggle to be, it sits on top of a quad-core processor that is so powerful it can even play a video in a window on screen. This feature feels like it was built to show off the power of the phone rather than for a real use, but it certainly does the former very effectively.

Performance loading web pages is almost instant, and running apps, such as the exclusive Flipboard for
Android, the phone is probably the first I’ve used where you almost forget that you’re using a phone rather than a fully fledged computer. Images taken with the excellent, 8MP camera load quickly, for instance, and scrolling through them is fast as well.

That camera is much improved from the S2, although its face detection seems to be in need of a software update. Some reviewers have found problems with focusing in video mode, but I didn’t experience anything major myself.

The front-facing camera, meanwhile, is also used to detect when the phone is being looked at – that ‘Smart Stay’ feature stops the phone’s display from dimming when it’s in use. Although not completely perfect, this is an excellent addition that should become a standard feature on all new smartphones, patent wars not withstanding.

Another similar new feature is ‘Direct Call’ – if you’re looking at a contact, simply picking up the phone and putting it to your face will initiate a call. It’s useful, it works and again it feels like a future standard idea. S-Beam builds on Android’s Beam technology to send phones from one device to another, and it too feels like it’s setting a new, basic standard.

The overall interface on the S3 will be familiar to users of the 20million-selling S2, but it adds important extra features. Holding the home button now brings up the task manager while double-tapping it brings up S-Voice. Where the Galaxy Nexus dispenses with a menu button, retaining it on the S3 makes for easier access to useful features.

Perhaps the best example of these is the option to hide apps from the main menu; that means users can lose but not erase the apps that Samsung insists on installing, such as Video Hub, if they don’t use them enough. That's a small but lovely option.

Indeed, it’s that Samsung tendency to add a host of features that some users may suggest makes the S3 feel bloated – as I’ve used it, that has not been my experience. Almost all the new features, from Smart Stay to Buddy Photo Share, that sends camera images to the people in them, feel useful. Those that aren't, you can hide. Why the torch is labelled 'assistive light', however, is anybdoy's guess.

Performance that, to be honest, feels like it does not yet have the software to properly test it, a gorgeous, huge screen and good, clever additions make the S3 feel, to me, like the best Android phone on the market. HTC’s One X comes very close, but even iPhone users should take a look at Samsung’s latest, greatest offering.

29/05/2012 - Telegraph

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Energy 'will be unaffordable in three years' as bills soar

One in three households is likely to find gas and electricity costs have become unaffordable by 2015.

They have already seen bills more than double in the past eight years, according to consumer groups.

Further increases at the same rate could reach the tipping point of £1,582 in three years and £2,766 by 2018.

Ann Robinson, from uSwitch.com, which compiled the figures, said: ‘The UK is hurtling towards a cliff beyond which the price of household energy will become unaffordable.’

An estimated 6.5million people already live in fuel poverty, where they have to choose between paying for heating or for other daily essentials.
As bills climb further, three-quarters of families say they will have to ration energy and six in ten are likely to go without adequate heating, uSwitch.com estimates. ‘Time is running out – if pricing trends continue we will hit “crunch point” in less than three years,’ Ms Robinson added.

The predictions also do not include any extra costs added to bills by power companies investing in technology to make their fuels greener.
Maria Wardrobe, from fuel poverty charity National Energy Action, said: ‘It is time to utilise some of the revenues from carbon taxes and the increased revenue from VAT on bills to pay for a programme to protect the most
vulnerable.’

30/05/2012 - metro.co.uk

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British Gas owner Centrica warns of higher energy bills

Centrica, the owner of British Gas, has said that despite its recent cut in electricity prices, rising wholesale gas costs will make supplying energy to UK households more expensive this year.

It said gas costs would be 15% higher next winter, while other costs would add another £50 to the cost of supplying energy to the average home.

"The trend for retail energy costs therefore remains upwards," it said.
In January, British Gas announced a 5% cut in its standard electricity tariff.
Centrica said it remained on track to grow profits by 10% or more at its residential business, largely due to controlling costs.

It said average household gas consumption for the four months to April was up 1% on a year earlier, while electricity consumption was down 3%.

Earlier this year, Centrica reported flat profits following a "tough" 2011, which included a 30% fall in operating profits at British Gas to £522m.

11/05/2012 - BBC

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Millions of families are being overcharged for gas and electricity because of energy firm stitch-up

Five million families are being overcharged for gas and electricity by as much as £330 a year as the result of a stitch-up by energy firms.

The 'Big Six' energy firms are punishing long-time loyal customers with higher tariffs in order to subsidise cheap deals for new households.

At the same time, they are spending more time looking after their profits than improving efficiency and competing with each other in order to deliver lower prices.

As a result, families could be missing out on savings equivalent to £1.9billion by 2020, according to a study by the Institute for Public Policy Research.

The think-tank said the industry regulator, Ofgem, is not being tough enough with energy firms – British Gas, Scottish & Southern Energy, Npower, EDF, Eon and Scottish Power.

In theory, there are rules in place where energy tariffs should reflect the cost of supplying the customer. However, the IPPR said these are not being applied.
As a result, some of the firms are guilty of pushing loss-leader tariffs in order to win new customers, while

the money to do this comes from charging existing account holders more.
This tactic allows them to undercut any new energy firms that might want to enter the market, so minimising competition.

The IPPR said that in any normal market, which is operating properly, rival firms will try to squeeze out costs and improve efficiency in order to keep prices down.

However, it said there is no evidence that this is happening as far as the 'Big Six' are concerned.
The IPPR said: 'The Big Six energy companies are continuing to overcharge their existing customers to subsidise cheap offers.

'As a result some families are paying as much as £330 more than their neighbours to use the same amount of energy from the same company.

'Over five million people could be overcharged because tariffs are not cost reflective as required by Ofgem. So-called loss leading tariffs from the Big Six also prevent competition as smaller suppliers cannot compete.'
IPPR associate director, Will Straw, said: 'Our research adds to the growing body of evidence that competition is not working in the energy market.

'We are calling on the Big Six and Ofgem to demonstrate whether efficiency savings are being achieved in the energy market and whether consumers are benefiting from lower bills as a result, as we would expect if competition was working.

'We need more competition among energy companies so that households get a fairer price for their energy. Ofgem's previous attempts to reform the market have not delivered the changes needed. UK consumers cannot afford further delays in bringing down bills.

'Some of the Big Six are failing to offer consumers tariffs that properly reflect the true cost of energy. Some households are paying £330 more than their neighbours while millions are being overcharged.

'What's worse is that poorer and older households are the most at risk of being overcharged. Ofgem must crack down on firms found to be breaching their rules on cost reflectivity.

'Energy prices are a huge burden on UK consumers. Ofgem must act faster, bare its teeth and enforce its policies.'

Director of policy at the official customer body, Consumer Focus, Adam Scorer, said: 'This report raises a number of important questions about how competitive our energy market actually is and whether consumers lose out as a result.

'There are many improvements which can be made to this market, but a good start would be to ensure that smaller suppliers can compete with the Big Six on a level playing field.

'Customers also need to know that suppliers are really competing for their business by passing on efficiencies and wholesale cuts, as well as ensuring customer service is first rate. We need a market that serves everyone not just a minority of pro-active switchers.

'We have long held concerns that the energy market needs to do more to increase competition and demonstrate prices are fair. If suppliers are unwilling to do this, then we would call on Ofgem to intervene to ensure consumers are getting a good deal.'

30/04/2012 - Dailymail.co.uk

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David Cameron says wind energy must get cheaper

Households are currently paying record high fuel bills due to fossil fuel prices and ‘green taxes’.

Every energy company is obliged to generate a certain amount of electricity from ‘green’ sources like wind and the extra cost of this is passed onto consumers.

The so-called ‘Renewable obligation’ already adds around £20 to the average energy bill every year and this is expected to go up to more than £50 by 2020.

Mr Cameron said the ‘green taxes’ should come down.

“As costs fall so it is right that consumers should pay less in subsidies for new projects,” he said.

“We don’t just need greener energy – we need cheaper energy too.”
The cost of onshore wind is already falling and is now on a par with coal and nuclear, though it is still more expensive than gas.
There are already more than 3,500 turbines onshore in the UK and this is expected to increase as part of Government policy to more than double capacity.

Mr Cameron said energy companies must get the costs down further.
“We can get these costs down further. I really believe that more mature renewable technologies can be among our cheapest energy sources within years, not decades,” he said.

Mr Cameron’s first major speech on green issues for two years was welcomed by commentators in the energy sector.
It was seen as riposte to Tory backbenchers who have complained about the growth of wind power in the UK, while reassuring those in his party who fear that the cost of renewables is too much.

“Our commitment and investment in renewable energy has helped to make renewable energy possible,” he said.

“Now we have a different challenge. We need to make it financially sustainable.”

"The industry is far too busy counting all this money to worry about 'financially sustainability'. They couldn't care less; their boots are full or soon will be."

Richard Lloyd, executive director at the consumer champion Which?, said the Government - not just energy companies - need to work to bring down bills.
"We welcome the Prime Minister discussing green policies and the need to be financially sustainable, but once again the Government seems to forget it also needs to be affordable for consumers who are the ones left picking up the bill.

"Too many of the Government's green initiatives are ill-thought out and look set to be ineffective and costly - from the £11bn smart meter fiasco, the poorly planned Green Deal, the feed in tariff where costs have tripled and the carbon floor price that will push up fuel bills without incentivising investment.

"People tell us that soaring fuel bills are their number one financial concern, so as the country enters recession once again, we want to see policies that will encourage consumers to save energy and protect them from volatile future prices, but not at any price. The Government must offer consumers a fairer deal."

Dr John Constable, Director of the Renewable Energy Foundation, said the total cost of renewables to the consumer is £60 per annum and it could rise to more than £300 by 2020.
He was doubtful the falling costs of green energy will be passed onto the consumer.

"Income support to renewable electricity generators last year cost the consumer £1.5 billion, over half going to wind power, and by 2020 this will be around £8 billion a year," he said.

27/04/2012 - telegraph.co.uk

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27/04/2012 - Telegraph.co.uk

Britain at risk of gas and electricity 'squeeze' by 2015

Alistair Buchanan, chief executive of the UK’s energy regulator, said “tightness” in electricity supply could come at the same time as a “squeeze” on gas by the middle of this decade.

His remarks suggest household are heading for higher energy costs, even though they are already paying near-record gas and electricity bills of £1310 per year.

Speaking at a conference in Amsterdam, the energy chief admitted a squeeze on gas and electricity supply could cause “a very interesting issue on price”.

Energy bills are unpredictable because gas prices can be affected by anything from unrest in the Middle East to maintenance work on platforms in the North Sea.

However, there is a particular risk that prices will begin to creep up around 2015 because Britain is closing many of its coal-fired power stations to comply with European rules on pollution.

Gas-fired power stations will have to be built to replace the coal. But Mr Buchanan is concerned that gas may be increasingly expensive to import on ships from abroad, as countries around the world compete for supplies.

“That squeeze and tightness in electricity could come at a time when you’ve got a squeeze in the LNG [liquefied natural gas] market,” Mr Buchanan said.

Mr Buchanan suggested the situation will be made worse by the end of the decade due to delays in building nuclear power plants and wind farms.
Britain’s first new nuclear power station was meant to be built at Hinkley Point by 2017 to help offset the effect of closing coal stations.

However, it has been delayed until 2019 at the earliest partly because of new safety standards following Japan’s Fukushima nuclear disaster.
“Frankly if I took a vote in this room, I don’t think we’d see any hands expecting Hinkley Point nuclear station this side of 2020,” Mr Buchanan said.

“Rather than moving very quickly to a land of renewables and nuclear, we’re actually going to lean on gas a lot more.”
Tom Pering, energy analyst at Inenco, agreed that a problem is looming in around 2015 or 2016.

“We’re going to have to find something to replace coal or it is inevitable we will face higher prices,” he said. “Delays to nuclear will definitely prolong the duration of time that we have supply issues and we’ll have to find something in its place.”

Financial experts warned earlier this month that Britain is facing higher gas prices this winter as it becomes more dependent on supplies from abroad.
Gas production from the North Sea fell “precipitously” by 10 per cent last year leaving the UK more reliant on cargoes of liquid gas from the Middle East, according to the experts from Merrill Lynch.

There is increasing competition for these shipments from Asia, especially Japan, which is replacing many of its nuclear plants with gas-fired power stations after its atomic disaster last year.

18/04/2012 - Telegraph.co.uk

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One in four energy bills contains a nasty shock for gas and electricity customers

One in four energy bills contains a nasty shock for gas and electricity customers – because they turn out to be incorrect.

Perhaps that’s no surprise when there are 120 different energy tariffs on offer – and much of the utilities’ work in assessing bills or dealing with customer queries is done by computer or call centres in countries where English may not be the first language.

What is surprising, though, is that the energy companies’ mistakes are not always made in their favour. According to research by the comparison website uSwitch.com, more than one in three households have unexpectedly owed money to their energy supplier, following a discrepancy between an estimated bill and ‘real’ bill.

And the average amount owed following a billing discrepancy is £152 – a nasty shock for householders on a tight budget. Even those for whom such a sum might be small change may be irritated by the hassle of putting energy company mistakes right; this process usually takes just under two months.
No wonder there is widespread cynicism about energy companies and two in three customers cannot be bothered to switch, despite big differences between the cheapest and most expensive providers of gas and electricity.
For example, Moneysupermarket calculates that for a typical household, the cheapest online tariff is from First Utility (iSave v10) at £1,027 a year. The most expensive standard tariff is from Scottish Power at £1,349.

So, switching from the most expensive standard deal to the cheapest online deal would save £322. People who believe that rising global demand for gas and electricity mean costs must rise in future may prefer a fixed rate deal, where the initial saving is slightly lower; the cheapest among these is from npower (Go Fix 11) at £1,033.

Ann Robinson, a director at uSwitch.com, said: “Consumers are paying hundreds or even thousands of pounds a year on household bills – the least they should expect is for these bills to be accurate.

“Billing blunders can cause consumers to end up out of pocket, as well as wasting time and effort trying to get the issue resolved. The fact is that households have to deal with wildly varying standards when it comes to accurate bills, with some industries performing noticeably better than others and some consistently bumping along at the bottom of the class.

“The energy industry is worst for inaccuracy, ahead of banks, council departments, credit card companies and other utility companies – only the Inland Revenue trumps it for getting bills wrong.”

Still, we can all make mistakes. HM Revenue & Customs has been the taxman’s preferred monicker for several years now.

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