UK energy news

Ofgem proposes reforms for greater transparency from energy suppliers

2012-02-02 13:50:12 +0000

Industry regulator Ofgem has made a number of proposals that could, if implemented, see the way in which energy suppliers publish financial information made more transparent, according to an article published by Stock Market Wire.

The proposals follow an independent review by BDO LLP and form part of a larger effort to make the information given to consumers much easier to understand.

Ofgem's proposal would, according to Stock Market Wire, entail:

- "Standardising how the companies account for generation accounting fuel costs to improve the comparability of the information they provide."

- "Ensuring that companies are using the same accounting standards and methodologies when producing their profit measures."

- "Proposing a checklist of functions to increase transparency on which ones are reported in the information."

Speaking about the proposals, Ofgem CEO Alistair Buchanan, stated: "Energy has got to become more open and transparent and our reforms will make suppliers' financial information much clear. The fact that independent accountants BDO have found suppliers' financial information to be fair and appropriate should also give consumers a degree of reassurance.

"Suppliers now need to build on this report and make the radical changes needed to restore consumer trust in energy suppliers. The real win for consumers will be when suppliers provide consumers with simple tariffs and clearer bills and annual statements as proposed by Ofgem."

Buchanan concluded: "There are clear signs that some suppliers are alive to this challenge and we are looking for full engagement by all supplier with our reform package."

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Scottish Power reveals success of customer payment switch

2012-02-02 13:50:16 +0000

Scottish Power - one of the United Kingdom's 'big six' energy suppliers - has today claimed that around 21,700 of its customers have switched to paying their bills via direct debit in the past three months, according to an article published by Utility Week.

By switching the way in which they choose to pay their bills, Scottish Power has estimated that customers could save around £4 million - a figure that represents a saving of £184 for each customer, per year.

CEO for Scottish Power, Neil Clitheroe, stated: "We continue to be committed to offering the best prices possible to all of our customers."

Scottish Power became the first of the UK's 'big six' energy suppliers to implement a double-digit increase to its tariffs - increasing electricity prices by ten per cent and gas prices by 19 per cent; coincidentally, the supplier was also the last to announce price cuts - of five per to cent to its gas tariffs - earlier this year.

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SSE expect profit growth despite loss of 50,000 customers

2012-02-01 12:50:12 +0000

Considered as one of the 'big six' energy suppliers, SSE has revealed that it expects a growth in profits, according to an article published by Scotsman.com.

The energy supplier remains confident despite the loss of around 50,000 customers during the last nine months of 2011, and the relatively mild winter enjoyed by many, which saw a much lower consumption of gas and electricity.

Analysts have forecast that the profit margin will increase by two per cent to £1.33 billion.

Commenting on the forecast, SSE's chief executive, Ian Marchant, said: "This financial year has been characterised by continuing economic uncertainty and ongoing challenges in global energy markets.

"That uncertainty and these challenges are likely to continue in the new financial year. Nevertheless, SSE remains on course to deliver further growth in the dividend and in adjusted profit before tax and I am particularly pleased with the continuing good progress in large capital projects."

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Fuel Poverty Action Group target energy suppliers with weekend of protests

2012-01-30 12:50:12 +0000

Protestors targeted the offices of energy suppliers over the weekend during a series of planned nationwide activities, according to an article published by the Independent.

Members of the Fuel Poverty Action Group organised a series of "Winter Warms Ups," which were carried out at the offices of EDF, E.on, British Gas, npower, Southern & Scottish Energy and Scottish Power - all members of the "big six."

The events were planned in the wake of rising gas and electricity tariff prices - something that forced millions across the United Kingdom into fuel poverty.

Fuel poverty is currently defined as the point at which energy bills cost a 10th or more than a household's income. Figures have shown that around 24 per cent of homes in the UK are in a state of fuel poverty - around 6.3 million households.

Elizabeth Ziga, a member of the Fuel Poverty Action, stated: "We want to challenge the big six energy companies which control 99 per cent of the energy industry and make record profits off our rising bills.

"Thousands die each year in the UK because they cannot afford to heat their homes, and hundreds of thousands die globally due to climate change. The Government is in bed with these companies, is doing nothing to deal with the poor quality of housing many of us experience, and to make matters worse has just cut the winter fuel allowance," she added.

Ms Ziga concluded, arguing: "We want warmth to meet our needs, not corporate greed. Community action can achieve this."

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npower look to meet demand of medium-sized businesses with new service

2012-01-27 17:50:13 +0000

Research, conducted by energy supplier, npower, has found that around 44 per cent of medium-sized businesses in the United Kingdom feel that current products don't meet their needs, according to an article published by freshbusinessthinking.com.

It was also found that rising gas and electricity prices were presented as a greater risk to the businesses surveyed than cash flow and security issues - only sales ranked higher on the list; 90 per cent also stated that they wanted tools that could help them have more control over their energy purchasing.

As a result npower has launched Direct Budget Management; designed to give businesses a greater amount of control over their energy purchasing.

Businesses simply produce a strategy beforehand, which npower stick to when buying energy for the business - meaning that purchasing always comes in on budget.

Head of product management and strategy, Jon Davies, commented on the company's research.

He said: "Our research shows there is a lack of products specifically for medium-sized businesses - so we are addressing this by being the first energy supplier to market with propositions directly targeted at this sector."

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