It’s ‘Warmer Winter’ package promises not to increase prices over the winter months, discounts to households on a low income, flexible payment options and free home insulation.

The package also includes a customer mailing to help ensure they are getting the most possible rewards and benefits, and a ‘tariff checker’ enabling them to check they are on the right energy deal.

British Gas, like the rest of the ‘Big Six’ energy suppliers has already increased its prices. It announced in August, it would raise gas prices by 18% and electricity prices by 16%; however the ‘Warmer Winter’ initiative is designed to help households by keeping their heating costs as low as possible.

The package is set to help around 1.5 million households on a variable rate tariff through the tough winter period where the cost of living has already rocketed. These customers will be given peace of mind their energy prices will not go up during this time.

British Gas’ managing director, Phil Bentley said, ‘With rising energy prices, hard-pressed households need extra help this winter. Our ‘Warmer Winter’ package is a £100 million commitment helping British Gas customers get the best value for money in keeping their energy bills as low as possible.’

He added, ‘We want our customers to be confident they are on the right deal for them. That’s why we’re ensuring everyone benefits from the discounts and rewards available.’

British Gas says it is offering the ‘broadest eligibility criteria’ for the new Warm Home Discount Scheme this winter; it will replace the existing cheaper social tariffs offered to vulnerable households by suppliers. According to the energy giant, any eligible customers who apply before January 2012 are guaranteed to receive £120 towards their winter electricity bill.

It will also continue its free home insulation offer until 31st March 2012 which gives households loft or cavity wall insulation worth £200, and give its direct debit customers more flexibility by allowing them to set and manage their accounts.

Source:
http://www.britishgasnewsroom.co.uk/2011/10/british-gas-announces-new-package-of-measures-to-reduce-winter-bills/

The plans were agreed at an energy summit held at Number 10 yesterday. Prime Minister David Cameron summoned the chief executives of all the ‘Big Six’ energy suppliers, and representatives of the industry regulator, Ofgem and consumer groups to talk about rising energy bills.

Cameron said, ‘So this is about the government, about the Citizens Advice Bureau, about the organisations, all working together to help people to keep their energy bills down.’

At the summit, Cameron stressed to all parties that taking measures like sending letters was ‘absolutely vital’ for families already struggling to make ends meet with inflated food and fuel costs, because they simply could not afford to be stung by even higher gas and electricity bills.

The meeting showed the government’s determination to tackle the issues raised by the opposition leader, Ed Miliband at the recent Labour Party conference. He spoke of the energy market being too rigid, and recommended energy suppliers spend their massive profits on cutting household bills. In his speech, Miliband quoted Ofgem’s figures which showed the profit per average customer had risen from £15 in June to £125 for energy suppliers. The numbers were disputed by the energy firms.

The key measures agreed yesterday included, letters to be issued to around 8 million homes advising them they could save £100 by switching from a quarterly payment plan, 4 million letters to vulnerable households advising them they are eligible for free insulation, a programme to help people switch to a better deal and a report by Ofgem completed by the end of the year which recommends how to improve practices and create more transparency in the market.

Cameron said, ‘We are making energy companies be competitive. They’re permanently being watched by Ofgem to make sure it is a competitive market, and we are making them make their energy available so that others can come in and provide customers with a good service.’

He added, ‘We’re also writing to millions of customers today to encourage them to shop around to get the cheapest possible deal they can for their energy.’

Before the summit, Cameron vowed he would ‘read the riot act’ to the ‘Big Six’ energy suppliers and reveal an action plan to help desperate households struggling to pay their bills.

Early this week, Energy and Climate Minister Chris Huhne spoke of the recent energy price hikes. He said, ‘At the moment we’ve had some very big increases in electricity and gas prices, principally because of the very sharp increases in prices on the world markets.’

He added, ‘But consumers are not powerless. They can save up to £200 by switching, and that’s absolutely key to try and help them make the market more competitive, because the best guarantee that you’re getting value for money is to have more people bidding for your business.’

Huhne also said he was working closely with Ofgem to decrease the number of complex tariffs on the market. ‘I’m determined that we have a much clearer, fairer and much more competitive retail market so consumers can switch more easily with simpler tariffs and get better deals, and so we get new entrants into the market and that’s what we’re doing with the electricity market reform to bring new competition into the market.’

Cameron said he would ensure the ‘Big Six’ – British Gas, Scottish Power, SSE, EDF, nPower and E.ON – inform their customers about the amount they could save by switching to a better deal. He aimed to get this information on domestic energy bills to customers within weeks. He also wanted to free or subsidised insulation to be offered to all vulnerable homes this winter.

A Downing Street spokesperson said, ‘The Prime Minister wants to play a central role in sorting this out. He is determined that the big six energy companies do more to ensure that consumers don’t pay over the odds.’
Source:
http://www.dailymail.co.uk/debate/article-2050304/David-Camerons-energy-summit-Green-taxes-icy-outlook-all.html?ito=feeds-newsxml

Vulnerable families are currently eligible for cheaper ‘social tariffs’ from energy suppliers; however these will be replaced by a Warm Home Discount scheme this winter. This new initiative, which will also be managed by energy suppliers, will provide households in fuel poverty with £120 towards their energy bills.

The BBC however has raised concerns this week that not all households who should receive this funding will get it. This is because some of the eligibility criteria for the Warm Home Discount scheme will be left up to the energy suppliers’ discretion which could mean some struggling households miss out.

Under the scheme, pensioners who currently receive a credit towards their heating costs will be given the £120; however other households who are classed as fuel poor should also be given the cash according to the government. The decision to help these other households will be left to the suppliers, and how many they will help will depend on how many customers they have.

Consumer watchdog Which? spoke to all of the UKs ‘Big Six’ energy suppliers apart from E.ON, to find out how many vulnerable customers were going to allocate funding to under the Warm Home Discount scheme.

In response, nPower said it was planning to assist around 90,000 of its customers, which included pensioners and those on certain benefits. British Gas planned to help all its vulnerable customers, including those who were on an annual income lower than £16,190 and spending 10% or more on their gas and electricity bills, pensioners and customers who were claiming specific benefits.

Scottish and Southern Energy said it did not know how many customers were eligible yet as it was too early, however it currently has around 210,000 customers on its social tariff Energyplus. Scottish Power was also unsure, but said all customers receiving certain benefits would definitely be helped, but it will put a cap on the number who can qualify. EDF Energy is set to help around 45,000 of its customers and E.ON is yet to respond.

James Tallack from Which? said, ‘With social tariff being phased out in favour of the Warm Home Discount, it’s essential that all of the fuel poor get the help they need under the new programme.’

He added, ‘If you qualified for your suppliers’ social tariff, you should be eligible for the Warm Home Discount. While it’s encouraging to see companies like British Gas giving reassurances that no eligible customer will lose out, with over six million households in fuel poverty this issue is too important to leave to the discretion of individual suppliers.’

British Gas’ managing director, Ian Peters said in an interview with the BBC that ‘no eligible customer’ will be left short. He said, ‘If they apply before the end of January for the first year, then I would have every confidence that they would get £120. I will guarantee we’ll pay them.’

Consumer champion, Consumer Focus also welcomed British Gas’ move but echoed Which?’s call for the other ‘Big Six’ suppliers to do more.

Source:
http://www.bbc.co.uk/news/business-15217004

According to the Energy Saving Trust, our love of devices like plasma TVs, tumble dryers, computers and games consoles also means the UKs target for carbon reduction on domestic appliances will be missed by around 7 million tons.

The target was set by the government in 1990, where it pledged to cut carbon emissions by 34% by 2020. However the study revealed by 2009, the average home had 3.5 times more appliances and gadgets than 1990.

The figures are causing a stir, because even though we are living in an energy conscious age, our gadgets mean we are using more electricity than we did 5 years ago.

The research called, ‘Elephant In The Living Room’ was done by Dr Paula Owen who said, ‘Our love affair with domestic gadgets and gizmos has to change. Just because you have bought an efficient appliance, doesn’t mean you can use it carelessly and never switch off.’

The gadgets which use the most energy are big plasma TVs, fridge freezers and tumble dryers; most of which can be found in the majority of today’s households. The study also found the falling number of devices which were powered by disposable batteries contributed to the increase in energy usage.

It went on to recommend if each home was to replace its washing machine, dishwasher and fridge with a more energy efficient model, it would save households around £585 million on energy bills.

Dr Owen said, ‘Our domestic choices and behavior in our homes can make a bigger impact than people think.’

She added, ‘We need to ask ourselves is that ice-maker in the fridge a necessity? Do I need to leave those chargers on the whole time? Do I need a 50+ inch TV screen?’

The research revealed there is much more households can do to cut their electricity bills and carbon footprints, and that it is not all just about using energy saving lightbulbs.  A change in buying behavior and cutting energy wastage in the home was vital.

It did however highlight an improvement from 2006, when government legislation banned things like patio heaters. However from 2009 the pattern changed; the main reason was the rise in popularity of computers and their accessories. In 1985 only 13% of households had a computer, but by 2009 this increased to 75%.

People are also choosing bigger appliances, like American style fridges, or massive plasma TVs to get a home cinema experience. And despite these being built with efficiency in mind, the bigger they are the more electricity the burn.

The way they use these must change in order to cut carbon emissions and energy bills.

Source:
http://www.guardian.co.uk/environment/2011/oct/03/energy-bills-emissions-rising-says-report?newsfeed=true

Results from a recent survey by price comparison website uSwitch.com, found the record breaking prices come at a time when 3 in every 10 households say they are struggling to pay their energy bills.

The survey of 2,300 people also revealed 8 out of 10 households would need to ration their heating to afford it. A uSwitch.com spokesperson warned, ‘Britain is on the brink of an affordability crisis when it comes to household energy.’

The £1,000 barrier was broken earlier this week when energy giant Scottish Power withdrew its online dual fuel tariff which had an annual energy bill of £990. This raised concern from Energyhelpline.com, who said the so-called ‘cheapest’ energy tariffs were no longer available under £1,000.

Mark Todd from Energyhelpline.com said, ‘The cheapest energy tariffs keep getting axed and now there are no tariffs costing under £1,000 a year for an average home.’

He added, ‘This is the first time that has been the case and emphasises in stark terms how bills are reaching historic levels.’

The cheapest deal on the market now is EDF Energy’s Discount Plan v5, which has an average annual dual fuel bill of £1,024.

Over the past few months all of the UKs ‘Big Six’ energy suppliers have increased their prices, and some have made double-digit hikes. All have blamed the rising wholesale costs of energy and some global events including the recent nuclear crisis in Japan, and the problems in the Middle East.

There is however some good news; fixed-rate energy deals are also on the rise, and Energyhelpline.com are recommending households sign up to one now in time for winter.

Todd said, ‘Tariffs aren’t likely to get any cheaper as winter sets in so consumers should sign up to a fixed-term deal or a cheap internet tariff now if they want to save on bills this winter.’

Source:
http://www.guardian.co.uk/money/2011/oct/05/cheapest-energy-deal-double-digit-increases?newsfeed=true

Gas prices are set to rise by 15.4% and electricity by 4.5% from November 10^th. EDF’s news means all the UKs major energy providers have increased their tariffs ahead of the coming winter; British Gas, Scottish Power, nPower, E.ON and Scottish and Southern Energy have all announced price hikes over the last few months, some as much as 18%.

EDF Energy said its decision was made ‘reluctantly’, but it could not delay a price rise any longer. It blamed the rising cost of wholesale energy and network costs for the increase.

In a statement, EDF Energy’s chief executive Vincent De Rivaz said, ‘We have absorbed rising wholesale energy, network and other costs as long as possible but must reluctantly now pass some of these through to consumers.’

The news is a bitter blow for millions of households who are already being hit by the rising cost of living.

The price hikes have sparked an industry review by market regulator, Ofgem. Who is investigating the pricing structure of all the ‘Big Six’ providers; it is using BDO forensic accountants to provide an independent view of whether suppliers are playing down their profit numbers so they can increase their prices.

Vincent De Rivaz said, ‘We recognise there remains a widespread lack of understanding and suspicion of the industry as a whole, among the public, customers in general, politicians, regulators and others.’

He added, ‘It is important this perception is addressed. The energy challenges Britain faces are far too important and can only be addresses in a world with trust, open dialogue and mutual understanding.’

He also apologised for the recent billing issues, where 100,000 EDF Energy customers had been overcharged over a period of seven years. A fault in the company’s automated telephone meter reading system was blamed for the error.

Mr De Rivaz urged Ofgem to help rebuild consumer confidence in the industry, and said, ‘If a Competition Commission inquiry is necessary to build trust, then it is a step that should be taken.’

Source:
http://www.utilityweek.co.uk/news/news_story.asp?id=195873&title=EDF+hikes+prices…+and+has+’nothing+to+hide’+from+Competition+Commission
http://www.dailymail.co.uk/news/article-2037682/Millions-face-higher-fuel-bills-EDF-pushes-gas-bills-15.html?ito=feeds-newsxml
http://www.bbc.co.uk/news/business-14928311

The selling of energy on doorsteps has recently raised much concern from MPs and consumer groups, who claim it is misleading and unfair to consumers. They argue the majority of deals sold in this manner have left consumers worse off, or baffled by the way they are made up. Many households also found this sales technique outdated and felt pressured into making a decision there and then.

This has led to industry regulator Ofgem’s ongoing review of four of the ‘Big Six’ suppliers’ doorstep sales techniques. These are, Scottish Power, EDF Energy, Scottish and Southern Energy and nPower.

Jim Poole from EDF Energy said, ‘We understand that the majority of customers do not want to be sold energy on their doorstep via unsolicited calls, so today we have suspended this activity while we review the channel.’

In his statement, Poole said the decision was ‘part of EDF Energy’s commitment to listen to its customers’. He did not however rule out resuming this practice at a later date. The suspension will affect around 300 employees who will undertake a consultation process while EDF Energy reviews its doorstep sales practices.

Consumers prefer other ways of looking for the latest best energy tariffs; searching online using price comparison websites is a popular choice, and many also prefer to receive advice face-to-face. EDF Energy confirmed consumers will still be able to talk to their energy representatives via pre-arranged appointments or at retail shows.

EDF Energy’s move has been welcomed by the Trading Standards Institute; Ron Gainsford, Chief Executive said, ‘This is great news for consumers who for too long have been pressured and tricked in their own homes to make ill informed and costly decisions about their energy provision.’

Consumer champion, Consumer Focus believes doorstep sales are ‘clearly not working for many consumers’. Its director of energy, Audrey Gallacher said, ‘Hundreds of thousands of people have switched to a worse deal on their doorstep’

‘Consumers don’t want or need cold call energy sales that make them feel pressured to switch at the door and don’t offer the best rates.’

Instead she advised, ‘We would urge all consumers to think twice before they buy on the doorstep, shop around for the best deal, and take time to think things over before making a final decision.’

Source:
http://www.energychoices.co.uk/partner-ns~guk-energy_choices/edf-energy-suspends-doorstep-sales-080911.html

The smart meter ‘no selling, just installing’ pledge was set up by Which? in July, because it feared energy companies would see it as an opportunity to use hard sales techniques and sell their energy tariffs while installing the meters.

Under the government’s £11 billion plan, 53 million smart meters are set to be installed in around 30 million homes and businesses from 2014.

To date, only smaller energy suppliers have signed up to the Which? campaign, these include First Utility, OVO, Co-operative Energy, Good Energy, Utility Warehouse, Spark Energy and Ecotricity.

nPower is the first of the larger players to join the pledge, and has agreed not to incentivise its employees fitting the smart meters to selling additional service or tariffs during the process.

Which? has welcomed the move and calls for the remaining energy giant to follow suit. Richard Lloyd from Which? said, ‘We’re pleased that nPower is acting in the best interests of its customers by signing up to our promise of ‘no selling, just installing’. We urge the rest of the major suppliers to do the right thing and sign up.’

He added, ‘As consumers are expected to foot the bill for the smart meter roll out, its crucial energy companies focus on installing them safely and efficiently, and not on the hard sell.’

A recent poll by Which? revealed only 25% of consumers regarded energy suppliers as trustworthy, which is 5% lower than the banks that came in at 30%.

CEO of RWE nPower, Volker Beckers said, ‘We want to continue to build a trusted partnership with customers and think that the Which? challenge is a great way of displaying our commitment, sending a clear signal that we’re focused on delivering a quick, efficient and safe smart meter installation to customers.’

nPower’s commitment has been welcomed by consumer watchdog, Consumer Focus; its director of energy Audrey Gallacher said, ‘People often feel pressured to buy when sold in their home, so this step sends a clear message that nPower wants to act responsibly to make the roll-out work for their customers. We would urge other suppliers to follow suit.’

Source:
http://www.energychoices.co.uk/npower-signs-up-to-which-smart-meter-promise-140911.html

Despite this week’s government figures showing almost 300,000 completed home insulation measures like loft or cavity wall installations over the past three months, the completion rates need to be doubled to meet the targets.

The government’s Carbon Emissions Reduction Target (CERT) was reset last summer, where it committed to installing home insulation in 3.5million homes by December 2012. Meeting this target will mean the current rate of around 100,000 homes per month must double to 200,000. The rate at which the most vulnerable households, like those in fuel poverty receive their insulation measures will also need to rise considerably, from 5,000 to 18,000 a month.

The latest figures reveal as a result of all the recent insulation projects, 58% of UK homes to now have the right level of loft insulation and 58% have adequate cavity wall insulation. A recent report from industry regulator Ofgem, however raises concerns that the installation rates for home insulation have slowed down over the past 12 months.

Huhne warned the numbers prove energy suppliers are at risk of missing the December 2012 target, and failure to meet it will result in fines of 10% of their turnover.

Huhne said, ‘These stats show that energy companies need to pull their finger out and get on with offering even more energy saving help to British households.’

He added, ‘The companies have made good progress to date and we want them to succeed but they are going to have to accelerate their lagging rates if they’re each going to hit their targets by the end of next year.’

This is not the first time Huhne has put pressure on the ‘Big Six’ energy suppliers. Recent price rises have led him to urge consumers to shop around for a better deal, and he has encouraged people to take up free and subsidised home insulation from these providers.

Huhne said, ‘More than £100 can be knocked off your bill if you get your loft lagged and cavity walls filled, and thanks to tough government targets for the Big Six energy companies, consumers can get free or discounted insulation.’

Source:
http://www.energyefficiencynews.com/policy/i/4451/
www.decc.gov.uk/en/content/cms/statistics/energy_stats/en_effic_stats/en_effic_stats.aspx
www.ofgem.gov.uk/Sustainability/Environment/EnergyEff/CU/Pages/CU.aspx
www.ofgem.gov.uk/SUSTAINABILITY/ENVIRONMENT/ENERGYEFF/Pages/EnergyEff.aspx

To meet the UK’s carbon emission targets, the government wants all homes to be fitted with smart meters by 2020, and British Gas is set to install them in 10 million of its customer’s homes. Other energy providers including nPower and EDF Energy have also announced plans to provide the devices to their customers.

British Gas’ touch screen devices have been specially developed by Landis+Gyr, the smart metering market leader. They are small, portable and easy to connect to smart electricity and gas meters. Their functions include the capability to show how much energy a household is using in real time, and how much it is costing.

With these clever gadgets, households will be able to monitor their gas and electricity usage every hour, day, week and year. To help manage their energy consumption, they can set themselves energy targets, know when they are using too much electricity and find out which of their appliances are costing the most to run.

Households using smart meters will also benefit by no longer receiving estimated bills, which means they will only pay for the energy they use.

Dean Keeling from British Gas said, ‘We want people to understand the energy they use and make informed choices about when to use it and save it. The new smart meters and energy displays are the foundations for doing this. That’s why we’re rolling other these user-friendly, sleek display units to British Gas homes.’

The data captured by the smart meters will also help determine things like whether a household needs to consider better home insulation, or a boiler upgrade. British Gas hopes this information will help customers make the right energy efficiency decisions.

Keeling added, ‘It can very quickly be used to deliver brilliant insight to the consumer to say ‘you don’t have enough insulation in your home’, or ‘your central heating system is costing a fortune.’

‘It helps us deliver insight to the consumer which they can trust, and we know is accurate. Ultimately for us that helps us build a better business.’

Environmental groups including Greenpeace have welcomed the smart meter program; they say ‘Smarter use of energy is one of the biggest differences we can make, rather than just thinking about new ways of generating more energy. It will go some way to helping the UK meet its carbon emission targets.’

The British Gas customers included in the smart meter program will be given two devices – one for gas and one for electricity. Wireless technology will enable data transmission from and to British Gas’ central system, so things like tariff prices can be displayed.

British Gas is planning to offer more sophisticated control functions which can be used via smartphones.

Source:
http://www.easier.com/94309-touch-screen-energy-displays-british-gas.html