SSE reduces number of gas and electricity tariffs

Energy company SSE has slashed the number of tariffs it offers and launched a price-comparison tool to help customers choose the cheapest deal for their needs.

The energy supplier, which is the second largest in the UK and provides gas and electricity to consumers through Southern Electric, Hydro and Swalec brands, and an online arm called Atlantic, said this was "the most significant change" it had ever made to its range.

SSE customers can now choose from four core products: two fixed-price deals and two variable-rate deals, one offering a discount on the standard tariff to customers who are prepared to tie in for two years. Once price differentials for paperless billing and other options, such as free energy-usage meters, are added, SSE is effectively offering 15 different tariffs, instead of the 68 that were previously available.

The company said that by offering four core tariffs, and then allowing customers to refine their options, it was making it easier for them to find the best product for their circumstances. To help customers shop around quickly, it has introduced a price-comparison tool to its website. Customers who input just their postcode can see how much each of the four tariffs will cost for the average energy customer. They can then refine this by answering five questions about their usage, meter, payment and billing options, and choosing any additional features such as Argos points, or green-energy options.

The change follows the launch of a 10-point plan to rebuild consumers' trust in energy suppliers, announced by SSE in October 2011. This saw the firm commit to offering all of its tariffs to both new and existing customers and change the way it buys energy on the wholesale markets.

Alistair Phillips-Davies, generation and supply director at SSE, said buying energy had become too complex: "Energy customers want choice, but most customers have a straightforward set of requirements and when they look at the products offered by an energy supplier it should be easy for them to find out which is the best deal for them.

"In October, SSE committed to end the complexity that surrounds tariffs and significantly reduce the number of tariffs it offers. That is exactly what we are doing and I believe this is the most significant change SSE has ever made to its product range."

Phillips-Davies said existing customers could stay on their current deals but the company hoped to migrate them onto new deals by the end of the year.

He said that while most would be able to get a similar tariff to their current one, "a small rump" of customers may prefer to stay put. These could include those who currently have deals without standing charges, which SSE has scrapped in anticipation of them being stopped by the energy regulator Ofgem.

The move comes as Ofgem reaches the end of a consultation on how to improve the energy market for consumers, which includes proposals to simplify tariffs. British Gas and EDF have already reduced their product ranges, but the regulator could eventually force the companies to offer a single standard tariff, alongside other deals that would run on fixed terms.

SSE said this approach would be detrimental for consumers, who would only be able to sign up to money-saving deals such as Economy 7 for limited periods and would have to remember to re-sign up afterwards.

Audrey Gallacher, director of energy at Consumer Focus, said customers were "often bewildered" by the complexity and number of energy tariffs on offer and this could form a major barrier to people switching to a better deal. She said:
"SSE's moves to address this problem are welcome. A simplified range of products should hopefully make it easier for people to understand and compare rates. It is also good to see the firm end the unfair practice of customers buying face-to-face and over the phone being denied the cheapest deals."

However, Gallacher said customers would only be able to make informed choices if they were able to make comparisons across the whole of the industry. "Ofgem is currently consulting on proposals to simplify tariffs and it is essential that these reforms deliver if customers are to engage more with this market," she said.

Ann Robinson, director of consumer policy at price switching website uSwitch.com, said: "This is the direction that Ofgem wants the market to move in so it will be really interesting to see how SSE's customers react and whether it does give the market the boost that Ofgem is hoping for."

22/02/2012 - Guardian

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

Reduce Comparison Claim Back PPI

Huge profits have been made from banks selling controversial payment protection insurance (PPI). At Reduce Comparison we aim to claim refunds on policies that have been mis-sold.

It has been revealed that lenders selling  payment protection insurance could be making a return on their product of around 980%, a huge return on a policy that cost them very little to initially provide.

Since payment protection selling began, banks have been making billions in profits. The cover is hugely expensive to policy holders, especially as the cover is limited to those that can actually use it. In many instances those who have the policy will be unable to claim when they need to, and only then will they find out they have been paying for something that they never qualified for.
The purpose of PPI is to cover the repayments of loans, mortgages and credit cards if the customer suffers a loss of income due to sickness, accident or unemployment.

Because PPI is highly profitable, banks mis-sold it in many ways because it benefited them to do so. PPI has been mis-sold in numerous ways, such as; adding it to the loan without asking, selling it to someone with a medical history or advising that the loan enquirer would be more likely to receive the loan if they also took out the insurance. Here at Reduce Comparison we want to help those of you who have been paying for a service you didn’t need, want or ask for. Payment protection insurance is an add-on product, and if you don’t need it, you shouldn’t have it.

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

British Gas profits fall to £522m due to mild winter despite huge hike in energy prices

British Gas today reported a 30 per cent slide in profits to £522million in the past year - despite putting up bills by a quarter since 2010.
The energy giant claimed mild a spring and autumn had led to a drop in household gas consumption by more than a fifth and a 4 per cent cut in electricity use.

But research by a consumer group showed the main reason people had gone without heating was the massive cost of energy, rather than the weather.
British Gas hiked its prices in December 2010 and again in August 2011 by 24.9 per cent or £256 in total, pushing its average household bill up to £1,286 a year.

It has since cut its electricity price by 5 per cent or £26, after losing 97,000 customers over the course of 2011.
Despite the fall in profits by a nearly a third in its household energy arm, parent company Centrica still reported a 1 per cent increase in operating profits to £2.41billion.

The company's upstream gas and oil exploration business saw profits jump 33 per cent, thanks to higher wholesale gas prices on world markets and good production performance.

Elsewhere, the fall in profits was clawed back through residential services such as boiler repairs, where profits were 10 per cent higher at £264million.
Shadow energy secretary Caroline Flint said: 'People will be shocked that when millions of families are struggling with their energy bills, big energy companies like British Gas are enjoying huge profits.

'By letting the energy giants get away with this, the Government is showing it's out of touch and completely unable to stand up to powerful vested interests in the energy industry.
'Our energy market needs a complete overhaul, but David Cameron can only fiddle at the margins because he's too close to vested interests to stand up for working people.'

British Gas blamed lower household energy consumption on milder winter weather, but other research indicated that hard-pressed consumers were willing to brave the cold rather to keep bills down.

Centrica shares closed at 293.5p on the London Stock Exchange yesterday, valuing the business at £15.2billion.
Adam Scorer, director of policy and external affairs at Consumer Focus, said the results showed that the energy industry is close to recession-proof.

'Healthy profits are still being made despite a big dip in consumption over our mild winter this year.'

He added that consumers needed to be assured that the price they pay is continually fair, and that the competitive energy market is working in their interests.
'British Gas happens to be the most open of all the big six firms. But as long as the market is not felt to be fully transparent, consumers will continue to question every price rise, every profit statement and every explanation as to why bills are so high.'
According to a survey from uSwitch.com, 71 per cent cited the high cost of energy as the main reason they have gone without heating this winter, compared to just under a quarter who said weather was the main reason.British Gas claims it has invested £1.80 for every £1 it has earned over the past five years. Its dividend for shareholders increased 8 per cent to 15.4p a share.

Chief executive Sam Laidlaw said it had been a tough year, 'both for Centrica and our customers', but that the company was still making the investments 'on which Britain's energy future depends'.

23/02/2012 - Dailymail.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

British Gas profits keep energy market reform on the agenda

Centrica has defended household energy prices as the group reported annual pre-tax profits of £2.4bn, with growth in its oil and gas exploration business offsetting a slump in earnings at its British Gas arm.

Despite a balmy 2011 pushing down revenues at British Gas, Centrica was still able to make a profit of around £50 a household from its residential unit. Group pre-tax profits rose 1% in 2011, Centrica said on Thursday, with contrasting fortunes at its two biggest operations. Operating profit at its "upstream" operation, one of the largest gas producers in the North sea, climbed by a third to £1bn. The "downstream" operation, dominated by energy provision for 10m UK households, saw the British Gas residential outfit report a 30% fall in operating profit to £522m.

However, household bills remain the subject of scrutiny from the media and the energy watchdog, Ofgem, which has raised the threat of intervention if reforms including changes to tariffs do not work. Sam Laidlaw, the Centrica chief executive, said higher household prices last year were offset by lower usage due to mild weather - reducing the average bill by £37 compared with 2010. He added that British Gas's "honest conversation" campaign was attempting to alter perceptions of the major energy suppliers in the UK, dubbed the "big six", who control 99% of the domestic market in the UK. Last August, British Gas raised electricity prices by 16% and gas prices by 18%, although it has subsequently cut electricity prices by 5% while leaving gas prices unchanged.

"We need to raise public awareness as to what is on the bill and why bills go up, and that is driven by global wholesale prices." Laidlaw added.

Centrica backs its argument by pointing to wholesale gas prices for next winter, which are 15% higher than for 2011. Nonetheless, a perennial criticism of energy companies is that when wholesale prices climb they are quick to raise tariffs, but are slower to cut them when the wholesale market retreats.

He added that the British Gas campaign will "remind people that actually we have the highest rate of [household] switching [to another supplier] of any market currently in Europe". This week another big six supplier, French-owned EDF, said earnings at its UK arm rose 8.5% to £1.6bn in 2011.

Laidlaw also questioned the probable impact of Ofgem proposals, published this week, to force the big six to auction a quarter of the energy they generate. Ofgem hopes that selling this energy on the forward market, which guarantees supplies for months and years, will help smaller players compete by protecting them from short-term fluctuations in energy prices. Laidlaw said that Centrica already sells "a lot" of the energy that it produces on the open market, but is nonetheless a net buyer of electricity because of the scale of demand from residents and businesses. "As Centrica, we are a net buyer of electricity, so we are in a similar position to the smaller companies." However,
Ofgem's attempts to reform the market are backed by the government, with the new energy secretary, Ed Davey, welcoming the "momentum that is building behind badly needed reforms of our energy market".

Reiterating the argument that energy firms need large profits to secure UK energy supplies - Centrica spent £246m on North Sea oil fields this week - and meet climate change goals, Laidlaw added in a statement: "2011 was a tough year, both for Centrica and our customers. But the strength of our integrated business and balance sheet means we've been able to take the lead in helping customers through these difficult times, as well as delivering growth and making the investments on which Britain's energy future depends." Adjusted earnings, which account for Centrica's 40% corporate tax rate, rose 3% to £1.3bn.

23/02/2012 - guardian

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

British Gas offers £50 insulation incentive

British Gas will pay £50 to anyone who refers "vulnerable" family members, friends and neighbours for free loft and cavity wall insulation from the company.

Referrers will receive the sum for every individual on qualifying benefits whose details they pass on, with no limit to the number they can refer. Those who qualify must be on pension credit, certain income-related benefits or receiving child tax credit, and have an income of less than £16,190.

The referred customer will also receive £50 once the installation has been carried out, in addition to the money they will save on their bills following insulation.

Neither the referrer nor the beneficiary need to buy gas or electricity from British Gas to take part in the scheme, but the firm is also offering free insulation to all new and existing energy customers.

It takes less than a day to insulate a home, according to British Gas. Loft insulation is a thick material rolled on to the loft floor, while cavity wall insulation is filling squirted into the gap between your exterior and interior walls. Loft insulation can save households up to £175 a year on their heating bills, and cavity wall insulation can save up to £135.

Yet nearly half of Britain's homes are not insulated adequately, according to the Department of Energy and Climate Change.

Jon Kimber, managing director of British Gas New Energy, said: "With household budgets stretched we know that people are looking at ways to save money. £1 in every £4 spent on heating is wasted due to poor insulation, so energy efficiency can have a massive impact."

Customers interested in taking up the offer should call the British Gas insulation team on 0800 975 1195, when a free survey will be arranged at a convenient time for the customer. Calls must be made by the customer who is having the insulation installed, and they should give the details of the person who referred them.

Other companies are also offering incentives to encourage people to accept free insulation: E.ON pays £100 to households that have insulation installed, while Southern Electric will give a high street voucher worth £25 to anyone – not just customers – who take up their offer of free insulation.

Such incentives may go some way to helping those suffering from an "energy postcode lottery", revealed in research by Energyhelpline.com.

It shows that the gap between those paying the most and least for their energy has widened by more than 50% in the past year to £92.

Those in the west of the UK are paying more for their gas and electricity than those in the east, with consumers in Merseyside and north Wales having the highest energy bills in the country. A typical customer there will pay £1,373 a year – £82 more than those in the East Midlands and £92 more than people living in north Scotland.

Consumers in the West Midlands have the second highest annual bills, typically £1,333, with those in central and south Scotland close behind (£1,329).

Mark Todd, director of Energyhelpline.com, said: "It appears there is a band of higher prices sweeping across the country from Birmingham to Holyhead that is cutting deep into people's pockets.

"It is difficult to explain these variations, other than the fact suppliers charge what they feel they can get away with. Often the disparities arise because loyal customers stick to the same suppliers and these areas become profit hot spots. Switching supplier is the best way to send a message that higher prices will not be tolerated."

21/02/2012 - guardian.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

The end of rip-off fuel bills? Energy watchdog threatens to force big firms to cap prices

Fuel bills are set to be slashed after energy watchdog Ofgem told Britain's six biggest suppliers to overhaul their tariffs or face a mandatory cap.
The watchdog said it wanted to see 'downward pressure' on prices from the 'Big Six' EDF, E.on, British Gas, Southern, Scottish Power and npower after concerns customers are being ripped off.

Bills have doubled to £1,250 a year since 2002, with 5.5million households facing fuel poverty, in which they spend 10 per cent or more of their income on power.

Now Ofgem have ordered energy firms to make changes to confusing and expensive tariffs or endure tougher sanctions, which could include the first price controls in ten years, according to The Independent.

But the savings could come a little too late for families already choosing between heating and eating.

The watchdog said: 'Parliament has given us the task of trying to create an effective market where competition is the downward pressure on prices

'We think that's the way to go, although we haven't ruled out regulation, particularly for more vulnerable customers, if our reforms don't work.'This could also involve an inquiry by the Competition Commission, which could break up the dominance of the Big Six firms, who control 99 per cent of the market.

The news comes after EDF provoked outrage yesterday by revealing a huge surge in profits at a time when families are struggling to pay bills.

EDF said its operating profits rose by 8.5 per cent last year to almost £1.6billion. This is the equivalent of £427 for each of the 3.7m UK households to which the French-owned company supplies gas and electricity.

The rise came despite the ‘Big Six’ firm’s overall revenues falling by 8 per cent – as it sold less energy due to the milder winter.

Experts said the company was able to boost its profit margins because falling wholesale energy prices were not passed on in full to customers.

Consumer groups criticised the profits bonanza at EDF at a time when millions of families struggle to afford their energy bills.

Audrey Gallacher, director of energy at Consumer Focus, said: ‘EDF Energy’s UK profits have risen despite lower energy use in the milder winter.
‘This will leave many customers wondering whether energy prices can, and should, be cut further.

‘We need successful, profitable companies. But consumers need to know that big profit margins are not being made needlessly at their expense.
‘The issue is not how much money is made over one year. It is whether the market is working as a whole, pricing is fair, and if suppliers are providing enough transparency.’

The company’s statement yesterday said there had been ‘lower gas volumes sold to residential customers due to particularly mild weather’.
As a result, its sales dropped by 8 per cent to £7.1billion in 2011 – but this did not stop its operating profits rising by 8.5 per cent to £1.58billion.

EDF Energy was the first of the ‘Big Six’ to announce a price cut in January, reducing gas prices by 5 per cent and triggering a domino effect among competitors. But wholesale costs had fallen by 9 per cent.

And the cut followed two price rises last year. The larger was in November when electricity prices rose by 4.5 per cent and gas by 15.4 per cent.
EDF's announcement of its financial results comes days before Centrica, owner of British Gas, will publish its results.

In 2010, profits at British Gas reached an all-time high of £742million and the figures for last year are expected be around £550m, a 25 per cent fall.
Ofgem, blasted the ‘Big Six’ as ‘greedy’, ‘bad’ and ‘lazy’ in a damning report published last March.

The industry was found guilty of manipulating prices by putting up tariffs quickly when wholesale prices rise, but delaying passing on reductions.
Yesterday consumer group Which? said there was ‘an unstoppable tide of public opinion’ demanding more affordable energy.

Ofgem’s figures showed how the industry’s average ‘dual fuel’ bill for both electricity and gas was only £885 in 2008. EDF Energy’s current average was £1,129, it said.

Richard Lloyd, executive director of Which?, said: ‘When people see energy suppliers announcing increased profits despite a mild winter, they’re bound to question whether they’re paying a fair price.

‘Millions of people are struggling with the cost of living.’

EDF Energy said: ‘We have a strong track record for consistently delivering some of the most competitive standard energy prices on the market – and crucially offering these during the times of year when people use the most energy.

‘In 2010, one of the coldest winters in living memory, we froze our prices. Last year, we were the last of the major suppliers to raise our prices and did so by the lowest amount.’

In a recent interview with this newspaper, EDF chief executive Vincent de Rivaz said he was doing everything he could to restore ‘trust’ between his company and its customers.

During a one-hour conversation, he used the word ‘trust’ no fewer than 61 times.

Wholesale prices peaked last autumn and fell throughout the winter, which led to energy giants finally announcing price cuts in January.

17/02/2012 - Dailymail.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

British Gas owner stokes profit anger

The backlash against the “big six” energy providers will intensify this week when British Gas-owner Centrica announces a profit leap in the face of growing fuel poverty and high utility bills. Centrica is expected to unveil a group operating profit of about £2.5bn for 2011 on Thursday, up four per cent on 2010, according to consensus analyst estimates.

It comes against a backdrop of growing fuel poverty, with more than 5.5 million UK households spending at least a tenth of their disposable income on gas and electricity. Audrey Gallacher, director of energy at Consumer Focus, said: “Many consumers are struggling to afford high energy bills and are concerned over whether pricing is fair. Customers will be confused further by firms announcing healthy profits.”

Centrica, whose chief executive is Sam Laidlaw, is expected to say on Thursday that its British Gas residential unit, which supplies about 10 million households in the UK, saw its profits decline by about a quarter in 2011, to around £550m.

The division was hit last year by a combination of very warm weather and growing austerity. It was also squeezed by rising wholesale gas prices, which reduced the profits made by its gas-fired power stations and actuallypushed them into a loss between April and August last year, before they hiked their prices. However, while the rise in the price of wholesale gas squeezed one part of Centrica, another part – its oil and gas exploration and production unit – benefited from the increase.

Although the British Gas residential supply arm reported a decline in profits, its services business – which repairs boilers and plumbing and insures against their damage – is forecast to see its profit increase 12 per cent to £269m. Including flat profits at the business supply and services division, British Gas overall profits are expected to fall by a more modest 14 per cent in 2011, according to analysts.

Some believe that the big six energy companies have come in for an unfair hammering in recent months. Dominic Nash, an analyst at Liberum Capital, said: “I sometimes feel that utilities are unfairly blamed for high energy prices. A combination of high gas costs and government initiatives have led to costs rising beyond their control.”

19/02/2012 - Independent.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

Outrage as energy giant EDF's profits hit £1.6bn (that's £427 for each household)

One of Britain’s biggest energy companies provoked outrage yesterday by revealing a huge surge in profits at a time when families are struggling to pay bills.

EDF said its operating profits rose by 8.5 per cent last year to almost £1.6billion. This is the equivalent of £427 for each of the 3.7million UK households to which the French-owned company supplies gas and electricity.

The rise came despite the ‘Big Six’ firm’s overall revenues falling by 8 per cent – as it sold less energy due to the milder winter. Experts said the company was able to boost its profit margins because falling wholesale energy prices were not passed on in full to customers.

Consumer groups criticised the profits bonanza at EDF at a time when millions of families struggle to afford their energy bill, with many choosing between heating and eating.

Audrey Gallacher, director of energy at Consumer Focus, said: ‘EDF Energy’s UK profits have risen despite lower energy use in the milder winter. ‘This will leave many customers wondering whether energy prices can, and should, be cut further.

‘We need successful, profitable companies. But consumers need to know that big profit margins are not being made needlessly at their expense.

‘The issue is not how much money is made over one year. It is whether the market is working as a whole, pricing is fair, and if suppliers are providing enough transparency.’

The company’s statement yesterday said there had been ‘lower gas volumes sold to residential customers due to particularly mild weather’.

As a result, its sales dropped by 8 per cent to £7.1billion in 2011 – but this did not stop its operating profits rising by 8.5 per cent to £1.58billion.

EDF Energy was the first of the ‘Big Six’ to announce a price cut in January, reducing gas prices by 5 per cent and triggering a domino effect among competitors.

However, wholesale costs had fallen by 9 per cent.

And the cut followed two price rises last year. The larger was in November when electricity prices rose by 4.5 per cent and gas by 15.4 per cent.

The profits announcement comes after Britain’s energy regulator, Ofgem, blasted the ‘Big Six’ as ‘greedy’, ‘bad’ and ‘lazy’.

In a damning report published last March, the industry was found guilty of manipulating prices by putting up tariffs quickly when wholesale prices rise, but delaying passing on reductions.

Yesterday consumer group Which? said there was ‘an unstoppable tide of public opinion’ demanding more affordable energy.

Ofgem’s figures showed how the industry’s average ‘dual fuel’ bill for both electricity and gas was only £885 in 2008. EDF Energy’s current average was £1,129, it said.

Richard Lloyd, executive director of Which?, said: ‘When people see energy suppliers announcing increased profits despite a mild winter, they’re bound to question whether they’re paying a fair price.

‘Millions of people are struggling with the cost of living.’
EDF Energy’s announcement of its financial results comes days before Centrica, owner of British Gas, will publish its results.

In 2010, profits at British Gas reached an all-time high of £742million but the figures for last year are expected to show a 25 per cent fall to around £550million.

EDF Energy said: ‘We have a strong track record for consistently delivering some of the most competitive standard energy prices on the market – and crucially offering these during the times of year when people use the most energy.

‘In 2010, one of the coldest winters in living memory, we froze our prices. Last year, we were the last of the major suppliers to raise our prices and did so by the lowest amount.’

In a recent interview with this newspaper, EDF chief executive Vincent de Rivaz said he was doing everything he could to restore ‘trust’ between his company and its customers.

During a one-hour conversation, he used the word ‘trust’ no fewer than 61 times.

Wholesale prices peaked last autumn and fell throughout the winter, which led to energy giants finally announcing price cuts in January.

17/02/2012 - dailymail.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

Angry energy customers lured back with free gas

Rising energy bills have caused tens of thousands of households to switch their gas and electricity accounts from one of the ‘big six’ suppliers to a smaller, cheaper supplier in recent months. According to website Uswitch.com, 35,500 households switched from a big to a small supplier in January alone, a ten-fold increase on last September.

Now in a bid to lure lapsed customers back, some of the large energy companies are offering households cash incentives worth over £100 to return.

British Gas, the UK’s largest energy company with 15.9 million household accounts, is offering £125 of free gas to former customers who have recently moved to a rival supplier. Under the terms of the offer, the amount would be knocked off a customer’s bill if they returned to British Gas and remained for a year.

Meanwhile Npower, another of big suppliers, is working on a plan to offer a “monetary” reward to lapsed customers who return, a spokesman said.

MPs questioned how the companies, who claim to operate on low margins, can afford to pay such incentives, which together could amount to million of pounds of free energy.

The big six companies have argued that household gas and electricity prices are so high because the cost of energy on the world markets has increased.

Last year British Gas said that it made profit of just £24 after tax from a typical dual fuel customers

However Fiona O’Donnell, MP for East Lothian, said that the cash payments “raise questions” over whether the energy firms’ profit margins are as squeezed as they say they are.

Tom Greatrex, MP for Rutherglen and Hamilton West, said that the payments are another example of “predatory pricing”.

Martin Lewis, founder of Moneysavingexpert.com, said that the payments show the financial benefit of switching supplier.

“If you change yourself from a customer who is taken for granted to a customer who is on the move, you get a financial dividend,” he said.

A British Gas spokesman said that the offer of money was “not unusual” in the energy sector, however she said that the figure offered varies.

“We have a range of cash back offers which our customer service agents can use at their discretion as time-limited offers to attract customers,” the spokesman said.

Other big six companies such as SSE, EDF said that they do not offer financial incentives for customers to return.

06/02/2012 - telegraph.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

Eight in ten households ration gas use

Meanwhile three-quarters of households – amounting to almost 20 million homes – have gone without heating at some point over the winter months to keep energy costs down, according to Uswitch.com. This is five million more households than last winter.

The price comparison site said that the “shock” rise in rationing reflects consumers’ concerns at the 21 per cent increase in gas and electricity bills last year. Although prices have started to fall, the company said that households are still feeling the pinch.

Ann Robinson, director of consumer policy at Uswitch.com, said that the only saviour for many consumers this winter has been the “exceptionally mild weather”.

“This has allowed many to cut back, turn down or switch off without feeling the full brunt of winter cold. But what happens next year?” she said.

Caroline Flint, the shadow energy and climate change secretary, criticised the UK’s large energy companies for pushing prices up so strongly last year.

“When the energy giants are enjoying record profits, it is completely unacceptable that three out of four families are turning down their heating because of cost.

“This Government is out of touch with families struggling with the cost of living,” said Ms Flint.

She said that rather than standing up to the so-called Big Six companies, the Government is simply telling consumers that they are to blame for not shopping around enough.

“Labour is calling in the energy firms to guarantee that those over 75 will be placed on the cheapest tariff for their gas and electricity. For the long-term, we need fundamental reform to make our energy market work in the public interest,” she said.

03/02/2012 - Telegraph.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

Scottish Power claims success as customers switch to cheaper tariff

Scottish Power claimed today that its letters to customers telling them to switch to direct debit are bearing fruit, with around 21,700 customers changing tariff in the last three months.

The company estimated those customers would save about £4 million as a result, which would equate to a saving of around £184 per customer per year.

"We continue to be committed to offering the best prices possible to all of our customers," said CEO Neil Clitheroe.

Figures released last year by parent company Iberdrola showed that in the nine months to September, Scottish Power recorded a five per cent drop in gas customers, from 2 million to 1.9 million, and a three per cent drop in electricity customers, from 3.3 million to 3.2 million. It is not clear whether those losses were wholly attributable to price rises announced in June.

The company was the first of the big six companies to announce double digit increases last year, hiking gas prices by 19 per cent and electricity prices by 10 per cent from August 2011. It was the last to announce a price cut of five per cent for gas this year.

01/02/2012 - utilityweek.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!

SSE sees increased profits as energy usage falls

The supplier said its customers had used 8.3pc less electricity and 26.6pc less gas in the nine months to the end of 2011, compared with the same period in 2010.

Yet the wet and windy end to 2011 - in place of the snow and cold of 2010 - helped the company's hydro-electric schemes and wind farms, with electricity output from renewable sources increasing from 3.2 terrawatt hours (TWh) to 5.3TWh. It also had extra capacity in operation.

SSE, which increased gas prices by 18pc and electricity by 11pc last summer, said it had lost 50,000 customers in the nine-month period. In January it announced a 4.5pc gas price cut, to come into effect at the end of March.

Output from coal-fired power plants rose 2.9TWh to 10.7TWh, but from gas-fired stations fell by 4.4TWh, to 18.6TWh. After a "sustained period of low 'spark' spreads" - margins on gas-fired plants - SSE will close two stations for maintenance from March.

SSE expected profits for the year to March 31 to grow at a similar level to the past three years, when it has been between 1.5pc and 3pc. It expects a full-year dividend of about 80p a share.

Ian Marchant, SSE chief executive, said "uncertainty and challenges in global energy markets" were likely to continue. SSE shares rose 14p - 1.16pc - to £12.23.

01/02/2012 - telegraph.co.uk

Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!