The £10million scheme is set to improve the energy efficiency of these homes, with free energy assessments and home improvements designed to save them up to £250 a year on energy bills.

Speaking about the new initiative, British Gas’ managing director Phil Bentley said, ‘Improving energy efficiency in our homes is the quickest way to cut our bills and lower carbon emissions. And this initiative will particularly help our most vulnerable and hard-pressed families’.

Under the scheme, all British Gas’ customers over the age of 70 or on benefits should be eligible for the scheme.

To ensure the right households get the assistance they need, British Gas will work with charities like National Energy Action, Scope, the Royal National Institute of the Blind (RNIB) and the Money Advice Trust to ascertain who is most vulnerable.

All 50,000 households will get a free energy assessment which includes energy efficiency advice and tips on how to save money. There is also a free home insulation survey. Those who qualify will go on to receive their free energy makeover, which includes insulation and energy saving devices like standby savers electricity monitors.

Although the scheme is due to end on 31st December, British Gas expects to have completed it by mid September.

To find out more about the scheme, visit the British Gas website, britishgas.co.uk.

Sources:
http://www.energychoices.co.uk/british-gas-to-give-50000-households-free-energy-makeover-260710.html
www.britishgas.co.uk/
www.which.co.uk/
http://www.energyefficiencynews.com/i/3255/

The numbers paint a gloomy picture; with 1.1million electricity and 0.8million gas customers now in official energy debt. The number of customers who have had to arrange debt repayment plans with their energy suppliers has also increased, with a rise of 19% of these in electricity and 18% in gas.

There’s also a rise in the average amount of energy debt being repaid, from £256 to £277 for electricity, and from £209 to £287 for gas.

Ofgem’s figures exclude customers who are not yet on a debt repayment plan, however research done by uSwitch.com reveals 5.5million households who are also in energy debt. uSwitch.com found the average debt to be around £132, which is 5% higher than 2009, and a staggering 16% higher than 2008 where this amount was £114.

There is also a sharp increase in the number of pre-payment meter customers, with 3.8million now for electricity and 2.6million for gas. Debt recovery is the main reason for this, because energy suppliers in a bid to get their money have installed more pre-payment meters, putting more customers on them.

uSwitch.com’s director of consumer policy, Ann Robinson warns, ‘These statistics are a sign of a far bigger malaise and raise a huge question mark over the ongoing affordability of our energy. Ofgem’s numbers are damning enough, but they completely overlook households that owe money to suppliers but are not on an official repayment programme.’

She added, ‘Our research shows that 5.5million households owe money to suppliers. When you start to look at both groups side by side you start to get a true sense of the size and scope of the issue we face over affordability.’

To help, Ofgem recently brought pre-payment meter prices in line with standard cash and cheque prices, however given the rise in pre-payment customers and the fact that they are still expensive, uSwitch.com does not feel this is enough for struggling customers.

Robinson said, ‘I would urge suppliers to talk to struggling households about their most competitive plans before moving them to a PPM. Although not suitable for all households, online plans are around £300 a year cheaper than being on a PPM – a big saving for those who are worried about paying their bills.’

Sources:
http://www.easier.com/74662-energy-debt-statistics-uswitch.html

What renewable energy options are available?

Households have a few choices, all are designed to make the home more environmentally friendly and cut the cost of energy bills.

Solar Power

A popular choice these days, and easy to get hold of and install. Solar power is completely natural, and emits zero carbon which makes it the greenest renewable energy option.

It works using solar panels to harness the sun’s energy to produce energy to heat water or even produce electricity. To work, solar panels require daylight so even if it is cloudy or overcast they will still produce energy. They are usually installed on the roof of a home, but whereabouts is crucial to maximize their productivity. For instance, installing them directly in the shade or under a large tree would limit the amount of energy generated.

Although the initial cost of installing them may be slightly tough on the wallet, once in, solar panels require little maintenance. Plus they will cut energy bills considerably as well as making a huge difference to your home’s carbon footprint.

Wind Turbines

According to studies, the UK has around 40% of Europe’s total wind energy. But we currently use less than a percent of this to generate our electricity. Wind energy is 100% natural and free, and because we have an abundance of it we can use it to cut our energy bills and our carbon emissions.

Many people think wind turbines are huge devices which require lots of space in order to work, but these days there are various compact versions ideal for the domestic market. Where you situate your wind turbine is essential, because wind energy increases with height, so the higher it is the more electricity it will generate.

Wind turbines work by harnessing the power of the wind to generate electricity for a home, so once yours is installed you will save considerably on your bills.

You could save even more by connecting to the National Grid, where you will receive money for the excess electricity your wind turbine produces. To find out more about this, visit the energy advisory website energysavingtrust.org.uk.

Heat Pumps

These are designed to pump heat from one place to the next. There are a few types available, and all are designed to lower your carbon footprint and save money on your energy bills.

Types of heat pump:

Ground Source

This cleverly works by using pipes under your garden to absorb heat from the ground and pump it to your radiators for heating and your taps for hot water. It’s also a good choice if you have under-floor heating.

You can also expect a constant heating supply, because beneath its surface the ground has a constant temperature, even during the winter months. A ground source heat pump works in a loop, which tends to be a pipe buried in your garden. Water and antifreeze is pumped around this loop by the heat pump, which along the way absorbs heat from the ground. The system requires electricity to work, which means it is not 100% carbon free; however the heat extracted from the ground is constantly being renewed naturally.

A ground source heat pump is pricey, with some of the more sophisticated systems costing up to £6,000 to install. They will however lower your carbon emissions by around 540kg per year.

Air Source

These work by drawing energy from the air to use for heating up a home and providing hot water. These can work even when temperatures are as low as minus 15 degrees, but like ground source heat pumps do require electricity to run.

They are easier to install than their ground source counterparts, but are not as effective. They will reduce your energy bills, and because they run on electricity they reduce your need for gas.

Water Source

These tend to be the most efficient. Here energy is absorbed from a body of water, like a stream. This is only suited if you have access to running water which makes them a limited domestic choice.

For further information about renewable energy options, visit energysavingtrust.org.uk.

Source:
http://www.energysavingtrust.org.uk/cym/Generate-your-own-energy/Air-source-heat-pumps

The issue came to light during an Ofgem review of reforms recently undertaken by the energy market. Ofgem has yet to name the two suppliers in question, but has called for them to provide a detailed explanation fast.

Ofgem’s request for a speedy account is the first part of its process, and should the responses provided by the energy suppliers be inadequate, it would lead to a formal investigation which could result in a fine. It would only be at this latter stage when Ofgem reveals the names of the energy suppliers involved.

Energy suppliers were recently in the news for charging customers varying amounts depending on where they live. Ofgem launched reforms to help combat this so called ‘postcode lottery pricing’.

Ofgem’s senior partner of sustainable development, Sarah Harrison said, ‘We do have concerns over some premiums and have made it clear to the two suppliers concerned that we will take action if the differentials cannot be justified.’

Sources:
http://www.which.co.uk/news/2010/07/two-energy-suppliers-in-charging-probe-219174
http://www.energychoices.co.uk/two-big-six-energy-firms-are-overcharging-customers-010710.html

The plans were revealed by Climate Change Secretary Chris Huhne during his speech at the Economist UK Energy Summit. Huhne promised a £90 billion investment into the new energy efficiency drive, saying it would create thousands of jobs because 14 million wasteful homes would receive home energy efficiency improvements, like insulation.

The overall aim would be to cut the amount of energy households are using, reduce their energy bills and lower carbon emissions. Under the new scheme, energy companies, local authorities and even high street retailers will be given up to £6,500 towards insulating millions of homes classed as the most energy-wasteful.

The new initiative does not require householders to pay anything, because the money spent on improving their homes will be claimed back from the money saved in lower energy bills.

Huhne told the Summit this will help the UK’s economic recovery. He said, ‘The market is big. There are up to 14m homes in the UK which could benefit. We are working on the package for each home, which could unlock tens of billions of spending over many years.’

He added, ‘Energy saving is the cheapest way of closing the gap between demand and supply, yet it is the Cinderella of the energy ball. At the moment, we may as well be burning £50 notes outside our front doors.’

The new Green Deal will also provide extra help for vulnerable households, like those in fuel poverty or living in hard to heat homes which do not have cavity walls. The onus would be put on energy suppliers and local authorities to provide this additional support.

The government also wants the home improvements to be done by independent installers as well as the big firms like British Gas and EDF. Huhne stressed, ‘A competitive market will provide best value and confidence in products for the customer.’

Sources:
http://www.confused.com/news/household/energy/huhne-to-launch-green-homes-deal-2251285931
http://www.talktalk.co.uk/money/guardian/news/2010/06/24/chris-huhnes-efficiency-drive-to-turn-wasteful-houses-green.html?page=2
http://www.thisislondon.co.uk/standard/politics/article-23848593-chris-huhne-14-million-homes-could-benefit-from-green-deal.do

The same research revealed a 6.5% decrease year on year in the amount of oil produced during the same period. It highlighted just 4.3 million tonnes of oil produced between January and March of this year.

Other notable findings included an overall decline in the average household expenditure on energy over 2008 and 2009. The figures showed a 6.2% decrease in the amount people spent on gas, and a 1.9% reduction in electricity.

These numbers were also supported by the recent 2010 BP Statistical Review of World Energy, which highlighted it as the first decline in the amount of energy used since 1982. Speaking of the decline, Iain Conn, chief executive of Refining & Marketing said it was a rare event, and consumption levels were on the rise again.

He said, ‘The world needs to invest today to be able to deliver the energy supplies that will be needed in the future.’

According to EDF Energy and the Energy Futures Lab at London’s Imperial College, the UK currently lies sixth out of ten of its neighboring countries when it comes to sustaining energy supplies.

On a positive note, the UK is first where saving energy is concerned. Over 70% of those surveyed had invested in loft insulation.

Sources:
http://www.uswitch.com/news/utilities/energy-consumption-declining-19860258/
http://www.uswitch.com/news/utilities/recession-reduced-energy-consumption-study-shows-19831635/

Nine fixed price energy tariffs from some of the ‘Big Six’ energy suppliers are due to end in the next few days. These are:

British Gas’ Price Promise
Scottish Power’s Capped Price Energy July 2010
EDF’s Annual Fix V3
E.ON’s Price Protection 18, Fixed Price 3, Energy Saver V5 &V6

Although these competitive tariffs are all due to expire, price comparison websites are urging customers on them to act fast, because switching online could save them up to £348 on their annual bill.

Complacent customers may well end up being transferred to a standard priced tariff by their energy supplier. Moneysupermarket.com’s utilities manager, Scott Byrom said, ‘In the worst case scenario, a provider could automatically swap customers across to its standard tariff meaning a potential increase of as much as £165 a year.’

The sure way of avoiding this automatic transfer to a standard tariff, would be for customers to review and switch tariffs six weeks prior to their fixed rate tariff expiring.

Energychoices.co.uk’s marketing director, Chris Eagle advises customers who still have time to find and swap to a better deal to, ‘…make sure you compare energy prices to ensure you’ve got a competitive online deal’.

He added, ‘If you haven’t switched away from receiving paper bills, now is the time to do it as there are great savings to be made’.

‘Lastly, get the timing right for your switch to ensure you don’t face an exit fee from your current deal, but get the right tariff in place now, and you’ll be set for the winter.’

Sources:
http://www.moneysupermarket.com/c/press-releases/new-month-new-rules/0009691/
http://www.energychoices.co.uk/beware-being-moved-onto-a-poor-energy-deal-230610.html

The new tariff is a sure way of securing a good deal, because whether energy prices go up or down, British Gas will still give you a 6% discount.

Websaver 8 replaces their acclaimed Websaver 7 tariff, and is available to new and existing customers who pay by direct debit and manage their accounts online. It is not available to pre-payment customers, and a cancellation fee applies.

The new tariff has been welcomed for giving customers a secure price for many months ahead. Energy comparison website Energychoices.co.uk’s marketing director, Chris Eagle said, ‘This new British Gas tariff is offering a discount 17 months into the future, which will give new customers the security of knowing they won’t be on the receiving end of the worst of any fuel price increases’.

He did advise some caution though saying, ‘…this isn’t the cheapest tariff in the UK, so if you want to get the best energy deal for the next winter, you should compare energy prices to find the best deal for your usage level and region’.

Sources:
http://www.britishgas.co.uk/products-and-services/energy/our-products/websaver.html
http://www.energychoices.co.uk/partner-ns~guk-energychoices.co.uk/british-gas-websaver-8-promises-6-per-cent-discount-180610.html

Npower has enlisted ex-player Dion Dublin to help promote the new Football Saver tariff; now the cheapest offline dual fuel tariff on the market. It beats the competition by promising £90 less than the equivalent energy tariff from Scottish & Southern Energy, and £68 lower than British Gas’ standard monthly direct debit prices.

Keeping with the football theme, it supports local clubs by giving customers who sign up a £45 voucher towards a new kit.

Npower’s managing director of customer markets, Guiseppe Di Vita said, ‘We’ve scored on both fronts with the free £45 voucher to be spent at club stores, maybe toward the new season’s football shirt, and with the cheapest direct debit offering available offline to average customers’.

Some energy comparison websites are reminding customers to consider all their options before signing up. Chris Eagle from Energychoices.co.uk said, ‘This tariff may be suitable for you if you are a medium user of gas and electricity. But you should still shop around as all prices depend on how much energy you use and where you live.’

He added, ‘You should also be aware that the Football Saver deal is an offline tariff, and that the best energy savings tend to be with online tariffs and if you pay by direct debit’.

Eagle recommended comparing energy prices online to find the best deal.

For further information about your energy consumption level, read our article ‘How to determine your energy usage group’.

Sources:
http://www.easier.com/72834-npower-football-saver-energy-tariff.html
http://www.energychoices.co.uk/partner-ns~guk-energychoices.co.uk/npower-football-saver-energy-tariff-offers-7percent-discount-170610.html

What is the role of Ofgem?

Ofgem regulates all the gas and electricity suppliers in the energy market, and promotes fair competition between them.

Its strategic plans have been put together following consultation with its stakeholders, and its powers have been granted by the Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998 and the Enterprise Act 2002.

It keeps an eye on the prices customers pay for their energy bills, and is responsible for putting together reports on competitive activity between energy suppliers.

Ofgem also conducts regular reviews of processes energy companies have for customers to switch suppliers. To keep suppliers in check, it issues and modifies licenses, sets price boundaries and gives out penalties when there has been misconduct.

Its role is also to ensure the energy networks (suppliers who buy gas and electricity for their customers) get sufficient funding.

It has a strong stance on climate change, and encourages all players in the energy market to improve their standards on the environment. It also helps them find ways to make these changes.

How is Ofgem made up?

Ofgem was formed in the UK, and the Authority governing it combines executive and non-executive members as well as a non-executive chair. Its members offer a range of expertise with backgrounds from finance, social policy and environmental work.

Energy suppliers are obliged to pay a license fee to Ofgem, but this does not affect the way it is run or the decisions it makes. Ofgem’s aim is to help energy customers, and it does so by deriving and implementing measures to improve the gas and electricity market.

How Ofgem helps customers

Because Ofgem’s main priority is making sure energy customers like us are offered choice and value, it helps by looking out for our interests. Without Ofgem, the chances of customers getting a fair deal on gas and electricity prices would be much slimmer.

It also protects customer’s interests by regulating the way energy suppliers try to stop their customers from switching elsewhere, and it prevents them from sending out misleading information.

If customers have a complaint or just want further information, Consumer Focus who are the gas and electricity watchdog, should be contacted. Consumer Focus works closely with Ofgem to ensure processes are followed correctly by energy suppliers and their customers are being treated fairly.

Sources:
http://www.ofgem.gov.uk/About%20us/Pages/AboutUsPage.aspx