UK energy news

Research reveals UK energy bills up by as much as £250 per household

2013-05-21 11:50:14 +0100

New research has shown energy companies have pushed up power bills by as much as £250 per household in the UK.

The information, unearthed by shadow energy secretary Caroline Flint, revealed industry mark ups have gone up 39% in the case of electricity and 69% in the case of gas in the last ten years.

For the average household the mark up has led to a £91 increase on domestic electricity bills and around £165 on a typical gas bill.

Shadow energy secretary, Caroline Flint, put the blame firmly at the doors of energy company fatcats, blaming them for driving up power bills.

She said: "They always blame rising global energy prices for putting up people's bills, but these figures show they've been increasing their profits on the back of spiralling energy bills for hard-pressed households.

"If they won't treat customers fairly, the public deserve tough action. Labour would create a tough new energy watchdog with the power to force firms to cut prices when the cost of energy falls."

However, a spokeswoman for the industry body, Energy UK, argued the mark up figures were not such a simply case of black and white.

The spokeswoman said: "The percentage difference is actually less now. And the proportion of bills made up of electricity and gas is falling. Other elements include network charges and the rising cost of government schemes."

Many energy companies are participating in the government's Green Deal, in essence a loan for customers to fit items such as energy-efficient boilers or wall insulation into their homes in order to make it greener and cut down the amount paid on energy bills.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.

First Utility boss: Energy bills soon higher than mortgage repayments

2013-05-21 10:50:11 +0100

The boss of a major UK gas and electricity supplier has warned energy bills could overtake the amount homeowners pay on their mortgages in the next five years.

First Utility's Ian McCaig made the claims in light of new research from his firm which suggests the average UK dual-fuel bill has risen 8.5% - seeing consumers fork out as much as £1,420 a year on energy payments.

According to the research, if bills continue to follow the same trend, consumers could be paying out as £3,761 a year on their energy supply by 2025 - a figure higher than the current mortgage repayments in Stoke-on-Trent, before continuing to soar to figures above the average level of mortgage repayments in Liverpool by 2029.

First Utility chief executive, Ian McCaig, said: "If things continue as they are, or even get worse, for some consumers in some parts of the country we will see energy bills overtake many other bills we have traditionally thought were the biggest items of non-discretionary spend.

"In fact, given that interest rates are low and look like staying that way it could easily be the case that over the next five to 10 years we'll see energy bills even overtake mortgage costs for some consumers."

In spite of its boss's warning on energy prices however, First Utility itself has been guilty of recent price increases, announcing it is set to hit customers on its leading tariff with an 18.6% rise in June as the firm scraps its iSave 12 dual fuel tariff, moving customers instead to its more expensive iSave Everyday tariff.

This is bad news for many energy consumers as First Utility has proven to be a popular alternative to the 'Big Six'.

Last year, it launched a pilot scheme in which customers could sign up for energy efficiency SMS alerts whereby customers would receive a text notification if they were using higher-than-normal amounts of energy.

The text would include information urging them to turn down thermostats on boilers or other such measures aimed at improving energy efficiency in the home.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.

Ed Davey: 84% of energy consumers may be missing out on best deals

2013-05-20 12:50:25 +0100

The Government is looking to encourage more people to switch to different energy providers in order to cut down on energy bills and save money.

According to energy secretary, Ed Davey, switching energy suppliers could save UK homes as much as £158 a year: However, 84% of households have failed to capitalise on such opportunities, with only 16% switching between March 2012 and March 2013.

Mr Davey, said: "When consumers are feeling the pinch, it's not right that 84% of households, including the most vulnerable, are put off switching or engaging in the energy market.

"Fundamental to overcoming this is Ofgem's reform of the retail energy market. This will make the market simpler and fairer, and we're using the Energy Bill to make sure these reforms are not delayed or frustrated."

As part of Ofgem's impending shake-up of the energy industry, energy firms will have to cut down the number of core tariffs to four as well as making energy bills more easy to understand: Something the UK Government is backing through its Energy Bill.

Other important proposals include customers being automatically switched to a firm's cheapest variable rate tariff at the end of their fixed rate deal and the provision of £900,000 towards a new Big Energy Saving Network scheme aimed at offering advice on switching providers, the various tariffs offered and what government support is available to help people keep their homes heated while cutting down energy bills.

Mr Davey added: "I'm dragging energy bills into the 21st Century by requiring suppliers to include electronic information that will help millions compare and switch at the swipe of their smart phone.

"I want to turn the non-switchers into savvy switchers"

As well as this push to get people switching to better deals, the government also has its Green Deal in full swing.

Working alongside the UK's energy firms, the scheme offers consumers a way of making their home more energy efficient through what equates to a loan. Under the scheme, customers can look at getting a replacement boiler, or alternatively look into wall or loft insulation and other such measures designed to improve energy efficiency.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.

Ofgem can soon force energy firms to compensate victims of mis-selling

2013-05-20 11:50:31 +0100

New powers will be handed to Ofgem in order to force energy giants to compensate any customers who have fallen foul to miss-selling.

The UK energy regulator will be granted the extra powers to compensate consumers duped by rogue selling as well as fining any power supplier found guilty of such illicit practices.

At present Ofgem has its hands tied in some aspects; the regulator can fine energy companies found guilty of breaching their licence conditions by as much as ten per cent of their turnover, however any money generated from fines simply goes straight to the Treasury, not the consumers involved - unless the firms elects to compensate its customers directly.

The news comes around a month after 'Big Six' energy firm SSE was hit with a staggering £10.5m fine by Ofgem for a 'prolonged and extensive' period of mis-selling.

SSE has offered to pay £1.5m to customers following the scandal, but with 11,000 people lodging claims for compensation, each victim would receive as little as £65 on average.

In a similar incident last year, EDF has fined £4.5m as a result of certain doorstep salespeople being found guilty of exaggerating financial savings available to consumers. As a result EDF agreed to pay £3.5m to 70,000 'vulnerable' customers.

Consumer Futures policy director, Adam Scorer, said: "It's a victory for the consumer. Mis-selling has been a stain on the energy market since the introduction of competition.

"While the situation has got better, the recent history casts a long shadow. We fully supports Ofgem getting greater powers to benefit customers rather than the Exchequer when issuing fines."

Ofgem had previously released a document following the incident involving EDF discussing the issue of consumer compensation in which it stated: "Ofgem does not have the power to compel companies who are found in breach of their licence conditions to provide redress, including compensation to customers but it is seeking such powers from government.

"If granted, these powers would strengthen Ofgem's ability to take more targeted action against companies who have breached their licences, including directing funds to customers where appropriate."

SSE is just one of the UK energy providers involved in the government's Green Deal scheme. Through the Green Deal energy consumers can seek a loan, which they pay back as part of their energy bills, on a range of items designed to improve the energy efficiency of their home, including wall insulation, boilers and even the fitting of solar panels.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.

Sources claim a deal is close at hand in EDF nuclear plans

2013-05-17 11:50:29 +0100

The will it won't it saga of EDF's proposed nuclear power plant site looks to have taken another new twist according to reports.

This is Money has reported sources close to the matter have informed them 'the mood music has changed' on negotiations, with a deal now expected in the next couple of weeks.

In a frantic few months which has seen EDF's original partner, British Gas owner Centrica pull out of the deal, EDF Energy chief Vincent de Rivaz threaten to leave the UK if talks collapsed, and a general uncertainty of whether the talks between the Government and energy firm would finally reach a peaceful resolution, it has now emerged a deal could happen in the next two weeks.

The main sticking point between the two parties going forward was how much the Government would pay EDF in return for the power generated. With a huge £14bn worth of money stencilled in for the development at Hinkley Point, Somserset, EDF is after reassurances from the Government.

It has now emerged EDF is likely to receive a 'strike price' of between £93 and £96 - as it is believed the firm had been holding out for from the start.

The Government had hoped to agree upon a lower rate, but it now appears it has finally come to an agreement with EDF over the higher figure.

Under such an agreement, if the amount charged for the energy went over that specified, EDF would pay money back to the Government, with the reverse happening in the opposite case.

EDF Energy is part of the Government's Green Deal. Since the end of January, customers have been able to sign up the scheme in order to receive the equivalent of a loan on items to improve the energy efficiency of their home. This includes the fitting of new boilers, solar panels and wall insulation among other things.

Latest gas and electricity news brought to you by UK Power - the energy price comparison site.