ONE of Britain’s biggest power firms raked in nearly £2,500 of profit EVERY MINUTE last year – as charities revealed record demand for help from people with energy debts.
E.ON announced it made almost £1.28billion in the UK – with more than £300million of that coming from customer bills.
It takes to a massive £4.6bn the profit haul announced by four of the biggest energy firms, which also include EDF, npower and Centrica, in recent weeks.
The boss of E.ON’s UK arm, Dr Tony Cocker, insisted the haul was “fair” but urged households to brace themselves for even higher prices in the future.
The warning came as the Money Advice Trust revealed its National Debtline had seen a huge jump in calls from people struggling to pay energy bills.
Advisors handled more than 27,000 enquiries last year – which is a 2,000% increase from the 1,212 it dealt with during 2004.
Since then, energy bills have gone through the roof, plunging millions of people into “fuel poverty”. Joanna Elson OBE, chief executive of the Money Advice Trust, said: “It is a serious problem that so many people will be wondering whether they can afford to boil the kettle or turn on their heating.”
E.ON, which supplies 4.8 million homes, confirmed UK profits from its supply arm fell 7.8% to £304m last year despite the firm increasing gas bills by 18.1%.
The German-owned supplier was one of the last to pass on lower wholesale costs earlier this year, cutting electricity prices by just 6% – the equivalent of 8.5p a day during the next 12 months.
Defending the profits, Dr Cocker told Your Money: “We make a 2% profit margin. Compared to any other retail businesses that is fair.” He also claimed the firm invested more than it made from generation on a gas-fired power station, offshore wind farms and gas storage.
E.ON reported a group loss of £1.6bn for 2011, following a £5.2bn profit in 2010 after the German government shut several nuclear power plants.
15/03/2012 - dailymirror.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Thursday, 15 March 2012
Wednesday, 14 March 2012
Energy giants pocket £168 a second despite big dip in power use and wholesale prices
A forensic probe into the complex accounts of energy firms has uncovered the true scale of the profit they make from UK customers — a whopping £168 a second.
Analysis of the four big firms which have so far reported their results show how they made £5.3billion in 2011. While this was a fall on the previous year, it came as wholesale prices tumbled, firms were hit with big fines, and homeowners used less energy.
Meanwhile, firms have continued to be criticised for mis-leading sales, baffling tariffs and unfair pricing. Last year, British Gas was fined £2.5million and npower £2million for poor handling of customer complaints. Adam Scorer, director of policy and external affairs at Consumer Focus, says: ‘These results show the energy industry is virtually recession-proof. ‘Consumers will be baffled about how such healthy profits are being made despite a big dip in energy use over the mild winter.’
The big energy suppliers all report their annual profits at this time of year. But comparing their performance can be problematic, as four of the big six are based in different European countries. They also state the profit made from different parts of the business in different ways, and often bundle up the performance of several parts of the business together. From this summer all the suppliers will be forced to state their results in a way which makes them easier to compare, under new rules from regulator Ofgem.
Money Mail asked an analyst at Consumer Focus to pick apart the results of those reported so far: British Gas, French-owned EDF, German npower, and Spanish-owned Scottish Power. E.ON reports its results today and Scottish & Southern Energy in May.
The analysis showed that last year Centrica, British Gas’s parent company, made £2.1billion pre-tax profit from its UK businesses. EDF made £1.7billion from its UK customers, npower £526million and Scottish Power £1billion. This profit doesn’t just come from selling gas and electricity to homes and businesses, but also from generating and selling it on at a mark-up, and lucrative cross-selling of products such as boiler maintenance and solar panels.
The £5.3billion they made in 2011 is down on the £6billion for 2010 for these four firms. But this is not because of cutting prices — rather UK homes and businesses have been switching off their heating during the mild and late winter last year, and trying to cut back on soaring bills. British Gas says households used 21 per cent less gas and 4 per cent less electricity in 2011 compared to the year before. And despite a fall in the cost of wholesale energy (what it costs to make electricity and gas), savings have not been passed on to consumers.
Mark Todd, at comparison site Energyhelpline, has calculated that since September wholesale gas costs have fallen by 10 per cent and wholesale electricity has fallen 13 per cent. This could have led to a 7 per cent fall in gas bills and a 9 per cent fall in electricity bills had savings been passed on. Instead, tariffs were cut by only 2 per cent on average — netting the firms an extra £80 a year per customer.
Figures from Ofgem reveal how bills have climbed by more than a third since 2008, with the average combined annual gas and electricity bill now £1,325. Despite tough action to clamp down on mis- selling, firms are still being allowed to persuade baffled homeowners to switch to tariffs which fail to save them money.
Which? executive director Richard Lloyd says: ‘Our latest customer satisfaction survey shows that trust in energy companies is lower than in banks. This is a direct effect of low levels of customer service, confusing bills and complex tariffs.’ Recent research by Which? uncovered salesmen in shopping centres and supermarkets routinely exaggerating the benefits of moving suppliers.
They quoted annual savings of between £20 and £142, whereas customers would actually be between £39 and £311 worse off. It tested salesman in Marks & Spencer (tied to SSE) and Sainsbury’s (tied to British Gas), as well as from EDF Energy and E.ON.
Crucially, the salesmen based savings quotes on the assumption the customer was on a standard tariff. This inevitably showed a saving, but customers who are on cheaper tariffs would be left worse off by switching. If you want to switch, go to a comparison website such as Moneysupermarket or uSwitch armed with the exact name of your tariff and your annual consumption. This is available on your annual statement.
Many homeowners are also being caught out by billing tricks, such as using daily ‘standing charges’ or higher charges on the first units they use. This ensures anyone cutting back on their energy use — as happened last winter — pays the highest charge per unit for as much of their energy as possible. And the billing maze does not end here. Many firms have a discount for customers paying by direct debit. But this discount may not be credited to accounts until the 12th month — meaning the supplier benefits immediately, but you have to wait a year. If you switch before then, you don’t get the discount.
Christine McGourty, director of trade body Energy UK, says: ‘£200billion is required in the UK to replace ageing power stations and energy companies are investing heavily in reliable, low-carbon energy supplies for the future.
‘Energy companies recognise that the cost of energy is a pressing concern for many households and are spending £250million this year to help two million of their customers who are most in need.’
14/03/2012 - Dailymail.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Analysis of the four big firms which have so far reported their results show how they made £5.3billion in 2011. While this was a fall on the previous year, it came as wholesale prices tumbled, firms were hit with big fines, and homeowners used less energy.
Meanwhile, firms have continued to be criticised for mis-leading sales, baffling tariffs and unfair pricing. Last year, British Gas was fined £2.5million and npower £2million for poor handling of customer complaints. Adam Scorer, director of policy and external affairs at Consumer Focus, says: ‘These results show the energy industry is virtually recession-proof. ‘Consumers will be baffled about how such healthy profits are being made despite a big dip in energy use over the mild winter.’
The big energy suppliers all report their annual profits at this time of year. But comparing their performance can be problematic, as four of the big six are based in different European countries. They also state the profit made from different parts of the business in different ways, and often bundle up the performance of several parts of the business together. From this summer all the suppliers will be forced to state their results in a way which makes them easier to compare, under new rules from regulator Ofgem.
Money Mail asked an analyst at Consumer Focus to pick apart the results of those reported so far: British Gas, French-owned EDF, German npower, and Spanish-owned Scottish Power. E.ON reports its results today and Scottish & Southern Energy in May.
The analysis showed that last year Centrica, British Gas’s parent company, made £2.1billion pre-tax profit from its UK businesses. EDF made £1.7billion from its UK customers, npower £526million and Scottish Power £1billion. This profit doesn’t just come from selling gas and electricity to homes and businesses, but also from generating and selling it on at a mark-up, and lucrative cross-selling of products such as boiler maintenance and solar panels.
The £5.3billion they made in 2011 is down on the £6billion for 2010 for these four firms. But this is not because of cutting prices — rather UK homes and businesses have been switching off their heating during the mild and late winter last year, and trying to cut back on soaring bills. British Gas says households used 21 per cent less gas and 4 per cent less electricity in 2011 compared to the year before. And despite a fall in the cost of wholesale energy (what it costs to make electricity and gas), savings have not been passed on to consumers.
Mark Todd, at comparison site Energyhelpline, has calculated that since September wholesale gas costs have fallen by 10 per cent and wholesale electricity has fallen 13 per cent. This could have led to a 7 per cent fall in gas bills and a 9 per cent fall in electricity bills had savings been passed on. Instead, tariffs were cut by only 2 per cent on average — netting the firms an extra £80 a year per customer.
Figures from Ofgem reveal how bills have climbed by more than a third since 2008, with the average combined annual gas and electricity bill now £1,325. Despite tough action to clamp down on mis- selling, firms are still being allowed to persuade baffled homeowners to switch to tariffs which fail to save them money.
Which? executive director Richard Lloyd says: ‘Our latest customer satisfaction survey shows that trust in energy companies is lower than in banks. This is a direct effect of low levels of customer service, confusing bills and complex tariffs.’ Recent research by Which? uncovered salesmen in shopping centres and supermarkets routinely exaggerating the benefits of moving suppliers.
They quoted annual savings of between £20 and £142, whereas customers would actually be between £39 and £311 worse off. It tested salesman in Marks & Spencer (tied to SSE) and Sainsbury’s (tied to British Gas), as well as from EDF Energy and E.ON.
Crucially, the salesmen based savings quotes on the assumption the customer was on a standard tariff. This inevitably showed a saving, but customers who are on cheaper tariffs would be left worse off by switching. If you want to switch, go to a comparison website such as Moneysupermarket or uSwitch armed with the exact name of your tariff and your annual consumption. This is available on your annual statement.
Many homeowners are also being caught out by billing tricks, such as using daily ‘standing charges’ or higher charges on the first units they use. This ensures anyone cutting back on their energy use — as happened last winter — pays the highest charge per unit for as much of their energy as possible. And the billing maze does not end here. Many firms have a discount for customers paying by direct debit. But this discount may not be credited to accounts until the 12th month — meaning the supplier benefits immediately, but you have to wait a year. If you switch before then, you don’t get the discount.
Christine McGourty, director of trade body Energy UK, says: ‘£200billion is required in the UK to replace ageing power stations and energy companies are investing heavily in reliable, low-carbon energy supplies for the future.
‘Energy companies recognise that the cost of energy is a pressing concern for many households and are spending £250million this year to help two million of their customers who are most in need.’
14/03/2012 - Dailymail.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Friday, 9 March 2012
EDF Energy to pay record £4.5m penalty for misleading claims on selling gas and electricity tariffs
EDF Energy is to repay £4.5million to households after an Ofgem investigation found evidence customers were not always given an accurate estimate of the savings they could make by switching.
The gas and electricity supplier agreed to pay the penalty – which includes £3.5million to vulnerable customers – after the regulator found it had not always provided customers with complete information and exposed some customers to the risk of mis-selling due to 'weaknesses' in its sales process. This included the way it communicated direct debits and annual consumption estimates on bills, as well as failures made by telephone sales staff when trying to get customers to sign up to new products. The accuracy of such information is crucial if customers are to effectively switch supplier and save money.
Under normal circumstances when an energy firm pays an Ofgem fine the money is paid to the government.
Ofgem stressed that the penalty being paid by EDF Energy was not a 'fine' – this is because the £4.5million is being invested back into helping vulnerable customers.
Around £1million will be paid to Citizens Advice to help the charity with Energy Best Deal programme, which helps support vulnerable customers.
The remaining £3.5million with be paid to EDF Energy’s most vulnerable households – in the form of £50 bill refunds to 70,000 customers who currently receive the Warm Home Discount or pension credit.
The regulator said that the firm had accepted its mistakes in its sales process and quickly attempted to rectify its problems – if it had not it may have faced a higher penalty.
Martin Lawrence, managing director at EDF Energy, said 'We’re obviously disappointed that we failed to live up to the high standards that we expect of ourselves. 'As soon as the issue was identified we immediately took action to satisfy ourselves that we’re fully compliant. We want people to be confident that, when they buy from EDF Energy, they are getting fair prices and consistently clear and simple information.'
Yesterday This is Money revealed that EDF Energy is worst rated major energy firm for customer complaints despite reducing grievances by 14 per cent in the final quarter of 2011, according to an industry league table.
Consumer Focus – who compiled the data – said that the 'company still have a long way to go to full resolve customer service issues associated with the its change in billing systems.'
Ofgem’s senior partner in charge of enforcement Sarah Harrison, said: ‘EDF Energy has done the right thing by stepping forward and recognising there were weaknesses in its sales processes. 'The firm also took the initiative to correct these problems during Ofgem’s investigation. This is an important step forward and demonstrates a commitment by EDF Energy towards re-establishing consumer trust which we welcome.'
Last year npower was forced to pay a £2million fine after Ofgem found that it had been mishandling complaints.
Ofgem said that it is continuing its investigations into Scottish Power, Scottish & Southern Energy and npower.
09/03/2012 - Thisismoney.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
The gas and electricity supplier agreed to pay the penalty – which includes £3.5million to vulnerable customers – after the regulator found it had not always provided customers with complete information and exposed some customers to the risk of mis-selling due to 'weaknesses' in its sales process. This included the way it communicated direct debits and annual consumption estimates on bills, as well as failures made by telephone sales staff when trying to get customers to sign up to new products. The accuracy of such information is crucial if customers are to effectively switch supplier and save money.
Under normal circumstances when an energy firm pays an Ofgem fine the money is paid to the government.
Ofgem stressed that the penalty being paid by EDF Energy was not a 'fine' – this is because the £4.5million is being invested back into helping vulnerable customers.
Around £1million will be paid to Citizens Advice to help the charity with Energy Best Deal programme, which helps support vulnerable customers.
The remaining £3.5million with be paid to EDF Energy’s most vulnerable households – in the form of £50 bill refunds to 70,000 customers who currently receive the Warm Home Discount or pension credit.
The regulator said that the firm had accepted its mistakes in its sales process and quickly attempted to rectify its problems – if it had not it may have faced a higher penalty.
Martin Lawrence, managing director at EDF Energy, said 'We’re obviously disappointed that we failed to live up to the high standards that we expect of ourselves. 'As soon as the issue was identified we immediately took action to satisfy ourselves that we’re fully compliant. We want people to be confident that, when they buy from EDF Energy, they are getting fair prices and consistently clear and simple information.'
Yesterday This is Money revealed that EDF Energy is worst rated major energy firm for customer complaints despite reducing grievances by 14 per cent in the final quarter of 2011, according to an industry league table.
Consumer Focus – who compiled the data – said that the 'company still have a long way to go to full resolve customer service issues associated with the its change in billing systems.'
Ofgem’s senior partner in charge of enforcement Sarah Harrison, said: ‘EDF Energy has done the right thing by stepping forward and recognising there were weaknesses in its sales processes. 'The firm also took the initiative to correct these problems during Ofgem’s investigation. This is an important step forward and demonstrates a commitment by EDF Energy towards re-establishing consumer trust which we welcome.'
Last year npower was forced to pay a £2million fine after Ofgem found that it had been mishandling complaints.
Ofgem said that it is continuing its investigations into Scottish Power, Scottish & Southern Energy and npower.
09/03/2012 - Thisismoney.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Wednesday, 7 March 2012
Npower profits up by 34% to £313 million
Energy supplier Npower has announced a 34 per cent increase in annual profits for its UK business.
Profits increased to £313 million from £232 million in a year when it announced big price increases for both gas and electricity. It defended the level of profit saying it represents “just” £4.17 a month per customer account.
On the 1st October, Npower raised gas prices by 15.7 per cent and electricity by 7.2 per cent. It subsequently cut gas prices by five per cent from the 1st February 2012.
Npower supplies six million UK customers and is owned by German utility company RWE.
The company says profits increased due to efficiency improvements, higher cost savings and income from power generation assets.
Volker Beckers, RWE npower CEO, said: “In these difficult times, we recognise that many people are concerned about rising energy costs, which is why it’s essential we continue to make strong investments in much needed, new energy infrastructure as these will help to reduce the UK’s exposure to volatile energy prices, while also making a valuable contribution to economic growth.”
The company highlights its investment in securing affordable power for UK consumers in the future and says its total investment in the UK since 2009 (£3,419m) is now more than npower’s combined profits since 2006 (£2,045m).
It points to a recent £1 billion investment in a gas-fired power station in Pembroke which will be commissioned this year. It also opened a similar power station in Staythorpe last year.
The announcement comes a week after a new report was published by fuel poverty expert Professor Christine Liddell of the University of Ulster that suggests deaths from cold weather in the UK are three times higher than the government had previously estimated.
A recent survey by uSwitch revealed that 98 per cent of people in the UK believe gas and electricity bills should be exempt from VAT. It is currently charged at five per cent.
07/03/2012 - myfinances.co.uk
Profits increased to £313 million from £232 million in a year when it announced big price increases for both gas and electricity. It defended the level of profit saying it represents “just” £4.17 a month per customer account.
On the 1st October, Npower raised gas prices by 15.7 per cent and electricity by 7.2 per cent. It subsequently cut gas prices by five per cent from the 1st February 2012.
Npower supplies six million UK customers and is owned by German utility company RWE.
The company says profits increased due to efficiency improvements, higher cost savings and income from power generation assets.
Volker Beckers, RWE npower CEO, said: “In these difficult times, we recognise that many people are concerned about rising energy costs, which is why it’s essential we continue to make strong investments in much needed, new energy infrastructure as these will help to reduce the UK’s exposure to volatile energy prices, while also making a valuable contribution to economic growth.”
The company highlights its investment in securing affordable power for UK consumers in the future and says its total investment in the UK since 2009 (£3,419m) is now more than npower’s combined profits since 2006 (£2,045m).
It points to a recent £1 billion investment in a gas-fired power station in Pembroke which will be commissioned this year. It also opened a similar power station in Staythorpe last year.
The announcement comes a week after a new report was published by fuel poverty expert Professor Christine Liddell of the University of Ulster that suggests deaths from cold weather in the UK are three times higher than the government had previously estimated.
A recent survey by uSwitch revealed that 98 per cent of people in the UK believe gas and electricity bills should be exempt from VAT. It is currently charged at five per cent.
07/03/2012 - myfinances.co.uk
Tuesday, 6 March 2012
Axe the VAT on our energy bills, say 98% of Brits
UK consumers are backing calls for the Government to axe VAT on household energy bills, new research shows.
A resounding 98 per cent of people think the tax should be scrapped, according to a survey by uSwitch.com.
The move would see energy zero-rated for VAT, the same as water, taking an estimated 250,000 households out of fuel poverty and saving the average consumer £60 a year, the comparison service said.
More than half of consumers polled by the switching site said they would use the potential saving to keep warm in winter, while others said they would be able to stop rationing their energy use.
Many would look to invest the money saved into making their homes more energy efficient which would help reduce their bills even further, the research indicates.
But while the move would undoubtedly help UK consumers, it seems the Government might not be able to help even if it wanted to, uSwitch warned.
According to HM Revenue & Customs, under EU agreements the UK can retain zero-rates that were in place on January 1, 1991, but cannot introduce new zero-rates or extend existing ones.
Ann Robinson, uSwitch.com’s director of consumer policy, said: “If the Government wants to give householders respite from the high cost of energy it will have a battle on its hands.”
Household energy was previously zero-rated in the UK, but this was stripped away as part of the 1993 Budget.
06/03/2012 - myfinances.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
A resounding 98 per cent of people think the tax should be scrapped, according to a survey by uSwitch.com.
The move would see energy zero-rated for VAT, the same as water, taking an estimated 250,000 households out of fuel poverty and saving the average consumer £60 a year, the comparison service said.
More than half of consumers polled by the switching site said they would use the potential saving to keep warm in winter, while others said they would be able to stop rationing their energy use.
Many would look to invest the money saved into making their homes more energy efficient which would help reduce their bills even further, the research indicates.
But while the move would undoubtedly help UK consumers, it seems the Government might not be able to help even if it wanted to, uSwitch warned.
According to HM Revenue & Customs, under EU agreements the UK can retain zero-rates that were in place on January 1, 1991, but cannot introduce new zero-rates or extend existing ones.
Ann Robinson, uSwitch.com’s director of consumer policy, said: “If the Government wants to give householders respite from the high cost of energy it will have a battle on its hands.”
Household energy was previously zero-rated in the UK, but this was stripped away as part of the 1993 Budget.
06/03/2012 - myfinances.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Monday, 5 March 2012
Energy bills to rise for a decade, British Gas boss warns
Phil Bentley, the managing director of British Gas, said the gas and electricity prices will rise for years to come because of green taxes and cost of upgrading the National Grid.
Between £80 billion and £100 billion of investment is needed to upgrade the National Grid and other power networks in the UK over the next decade, meaning higher bills for millions of householders.
Meanwhile the cost of green energy tariffs and taxes could also add around £140 to the average household bill over the next eight years. While he did not put a figure on what the total rise will be, the increase could be several hundred pounds.
Mr Bentley said: “People will have to pay more per unit [over the next 10 years] and they are therefore going to have to be more diligent in saving energy."
He called for a “sensible debate” about people’s financial priorities.“How many people are saying to Vodafone ‘I want a discounted tariff because I can’t afford a mobile phone’? That’s what we [offer].
“People will pay their Sky bill before their energy bill… There has got to be a sensible debate about it,” he said.
Last year, the average dual fuel British Gas bill was £1,024.
Mr Bentley said that investment in nuclear energy could push bills up further, while Government plans to simplify household tariffs could have the “unintended consequences” of removing cheap deals from the market.
His warnings come after British Gas raised its prices by 17 per cent last year, leading to accusations of profiteering at a time when household budgets are under pressure.
However Mr Bentley said that the company has profit margins of just 5 per cent and added that people needed to re-assess what is important.
Mr Bentley said that he would welcome a Competition Commission inquiry into household energy prices if it “cleared the air” and took no longer than three months.
02/03/2012 - TheTelegraph.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Friday, 2 March 2012
British Gas exec berates energy industry’s “lack of innovation”
Speaking at Mobile World Congress in Barcelona, Jones said the UK energy industry needs to be “turned on its head” if it is to reduce carbon emissions by 34% to meet targets set by the government.
He added: “Energy is not typically a sector you associate with innovation, it’s a pretty settled industry, a bit like healthcare, but there is a massive opportunity in this space.”
British Gas predicts that this is set to change, estimating the energy sector will invest £200bn in innovation in the next decade to work on technology such as smart meters and services that help consumers visualise their energy consumption.
Jones said: “There are some really interesting nuggets of problems that need to be solved in the energy industry, especially when it comes to reducing energy wastage. Mobile technology has been effectively applied to telecoms and even the automotive industry, but we just don’t have as much attention applied to the energy industry.”
British Gas set up an emerging technologies group to drive innovation at the company, which is currently working on upcoming launches such as a mobile app that helps customers schedule when their heating comes on, remotely.
The company is also trialling heating apps that can use pattern recognition, room occupancy, current weather and a customer’s personal location to automatically control their heating settings.
Jones said: “For us, innovation is all about making the home more comfortable. It’s important to offer services that aren’t just about electricity and gas but about how comfortable you are and customers should be able to interact with their home in any way they wish – whether it be through a phone, TV, the oven or a stick-on flexible interface to take around with you.”
Further innovation will also help the utilities sector increase brand engagement, Jones said. Currently consumers only spend about 30 seconds per month thinking about energy and 187,000 people change utilities providers every week, British Gas claims.
02/03/2012 - marketingweek.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
He added: “Energy is not typically a sector you associate with innovation, it’s a pretty settled industry, a bit like healthcare, but there is a massive opportunity in this space.”
British Gas predicts that this is set to change, estimating the energy sector will invest £200bn in innovation in the next decade to work on technology such as smart meters and services that help consumers visualise their energy consumption.
Jones said: “There are some really interesting nuggets of problems that need to be solved in the energy industry, especially when it comes to reducing energy wastage. Mobile technology has been effectively applied to telecoms and even the automotive industry, but we just don’t have as much attention applied to the energy industry.”
British Gas set up an emerging technologies group to drive innovation at the company, which is currently working on upcoming launches such as a mobile app that helps customers schedule when their heating comes on, remotely.
The company is also trialling heating apps that can use pattern recognition, room occupancy, current weather and a customer’s personal location to automatically control their heating settings.
Jones said: “For us, innovation is all about making the home more comfortable. It’s important to offer services that aren’t just about electricity and gas but about how comfortable you are and customers should be able to interact with their home in any way they wish – whether it be through a phone, TV, the oven or a stick-on flexible interface to take around with you.”
Further innovation will also help the utilities sector increase brand engagement, Jones said. Currently consumers only spend about 30 seconds per month thinking about energy and 187,000 people change utilities providers every week, British Gas claims.
02/03/2012 - marketingweek.co.uk
Are you looking to switch energy supplier? Check out the Reduce Comparison Gas & Electricity Comparison Service now!
Subscribe to:
Posts (Atom)