Public are prepared to pay more for green energy
July 26, 2007 at 2:42 am
Green energy is in vogue, but how many of us would be happy to see our household energy bills rise in order to safeguard the environment? The answer is most of us, according to research commissioned by gas and electricity regulator Ofgem.
The research, published last week, surprisingly suggests that even consumers who are unconvinced about the causes and effects of climate change would shell out. This group would pay up to £15 extra per year to help reduce carbon dioxide emissions. Keener, greener types would be willing to spend £50 to £100 on top of their current bills to support CO2 reduction programmes.
Ofgem Chief Executive, Alistair Buchanan, said, “Household emissions account for nearly a third of Britain’s emissions so it is vital that customers are willing to shoulder some of the burden of tackling carbon emissions.”
Although they may not be aware of it, many consumers are already helping to protect the environment through schemes such as the Renewables Obligation (RO) and Energy Efficiency Commitment (EEC). The RO and EEC generate revenue to encourage further renewable electricity generation, and promote household energy saving practices. The RO accounts for about 2% of household energy costs, set to rise to around 5% by 2015.
Most UK consumers, according to the study, feel that industry should make a major financial contribution when it comes to energy issues. Respondents felt that climate change could not be effectively addressed by householders alone. Many realised that small energy-saving measures could make a huge difference when taken collectively. However, most also believed that government, business, suppliers and customers needed to work together to achieve success.
The UK's obsession with energy wasting gadgets
July 19, 2007 at 4:08 pm
The Energy Saving Trust has published a report wittily entitled ‘The Ampere Strikes Back’. This pun-laden document argues that we are entering a new ICE (information, communication, entertainment) age, which is responsible for much of the carbon footprint that many people associate with climate change.
Our consumer society’s fetish for the latest in high-tech gadgetry is increasing every year; the report estimates that by 2010, 45% of domestic electricity usage will go towards ICE, using the equivalent of fourteen average sized power stations. This will cost the consumer over £4 billion a year, an incredible £607 million of which going on items left on standby.
Modern equipment uses much more electricity than the old equipment, despite the increasing consumer awareness of carbon emissions and climate change issues. A new high definition, 103 inch plasma screen TV has a power rating of 1.5kw, the equivalent of 25 light bulbs or 3 traditional cathode ray tube sets. As most people still fail to turn off the main power supply rather than leaving the set on standby, the energy usage remains high even when the item isn’t in use. An average household spends around £500 a year on new gadgets.
To compound matters, the old equipment that the new gadgets replace are rarely scrapped or put out of use completely, instead being given to children or put into spare rooms, where they are left on standby, adding to the problem. Some households could shave up to £50 a year from their bills simply by ignoring the standby function and completely removing power to the appliance.
Edward Hyams, Chairman of the Energy Saving Trust commented, “If we go on as we are, the amount of energy we consume in the home on entertainment equipment will rise inevitably and cost us more money and take us backwards on climate change.”
New model TV’s are just an example, and the tip of the ICEberg (I’m just getting into the spirit of the report!). Some of the main categories they identified were:
- Home Entertainment including TVs, DVD players, games consoles and audio equipment. The UK buys more of this than any other European country. We spent £5 billion in 2005, which is projected to rise to £6 billion by 2010.
- Information In 1982, only 3% of people owned a PC. Now many households have several. They have encroached more and more into our everyday lives; we can now do our shopping, banking and socialising on the internet. Of course, while we are cruising on the ‘information superhighway,’ we are using electricity, and when we omit to turn off our PCs afterwards, we only increase the strain.
- Mobiles With an average of 2.5 mobiles per household, the usage of this relatively new gadget is also on the increase. Some people recharge their phones every night, even when it isn’t necessary.
The other factor due consideration is the demographic structure of our population. There are more single people living alone now than ever before, and the number is set to increase. This increases per capita energy usage, as people living together share items such as TVs, PCs and other more essential appliances such as cookers and lighting.
Trials of ‘smart’ electricity meters to take place soon
July 18, 2007 at 10:26 am
In a recent development, electricity authorities in the United Kingdom have decided to install ‘smart’ electricity meters in homes. These new meters will be installed in 8,000 homes across the British Isles. This move will allow homeowners to monitor, in real time, the effect of running energy-guzzling appliances on their electricity bills. It is hoped that this change will allow people to view for themselves the costs of needlessly operating appliances.
Smart meters have a number of key features designed to make monitoring of energy consumption easier.
Energy consumption is displayed in a manner that can be easily understood by consumers. Data is displayed in terms of price rather than kilowatt hours.
Consumers will be able to monitor which of their appliances are likely to be consuming the most energy using the smart meter. Homeowners will be able to access readings via the internet.
Smart meters may be remotely supervised by the energy supplier who receives readings automatically. This precludes the need for manual monitoring and estimated bills.
This program has received wholehearted support from the British government and is part of their plan for a greener Britain. According to the Business and Enterprise Secretary, John Hutton, “Changing consumer habits is vital (in order to) cut our energy use and reduce the impact of climate change. Smart meters provide the cutting edge technology to enable this to happen. The results of the trials will provide invaluable evidence to support the future rollout of displays and smart meters; helping to cut consumer bills and cut our carbon emissions.” In order to achieve these goals, the government is to provide energy companies with a £10 million grant.
However, there are a number of concerns as to whether the proposed move will have a desirable effect on energy consumption. The benefits in terms of cost-saving and efficiency increases are unlikely to be apparent immediately. According to a survey by www.energy-retail.org.uk, many consumers “are not energy aware.” Only 3% of those polled said they would be willing to alter their behaviour with the introduction of smart meters. Furthermore, it appears rather ironic, as one commentator put it, that “Britain is choosing to treat the problem of too many gadgets with even more gadgets.” In addition there are worries over standardization. Suppliers are currently concerned about the problems which may arise if a consumer chooses to switch to a different electricity provider. The smart meters do not come cheap and there are fears that homeowners may be left ‘stranded’ if meters used by one electricity provider are not compatible with the monitoring system employed by another supplier. According to Luke Nicholson, creative director for www.moreassociates.com, the firm manufacturing smart meter prototypes, “There is not going to be a one-size-fits-all meter.” However, he argues, “There should be a simple protocol every manufacturer has to adhere to that allows different pieces of kit to talk to each other.” There is thus no doubt that many issues remain which need to be resolved before these meters can become the norm across the UK.
Further information on how the change could affect you can be obtained from the organizations www.energywatch.org.uk, and www.energyfuture.org.uk.
Large numbers of consumers not paying their electricity bills
July 18, 2007 at 10:02 am
According to a recent survey by the consumer research and price comparison website,
www.moneysupermarket.com, a large number of British consumers are failing to pay their electricity bills. The website estimates that there are some 3.1 million people across the country who have refused to pay utility bills in recent months whilst a staggering 2.2 million have left properties without making outstanding payments for gas and electricity consumption. In addition there are thousands of consumers across the country who do not receive bills from electricity providers despite consuming energy. As moneysupermarket.com’s Paul Schofield notes: “Our research uncovers the reality of millions of ‘ghost’ customers who have slipped through the net, whether through deliberately keeping a low profile or just being lost by their supplier.” Occurrences of bill-dodging are particularly common amongst younger users who tend to move home frequently and usually live in urban areas.
However, there is also evidence to suggest that some consumers are failing to pay their bills because of confusion-related reasons rather than because they are deliberately trying to avoid payment. The moneysupermarket.com survey revealed that one in ten London residents faced this problem. If you find yourself in this situation, it is necessary to ensure that the issue is dealt with immediately. Otherwise, as Schofield notes: “You could be landed with a hefty bill for unpaid energy usage.” If you are moving home, it is important to maintain records of previous meter-readings as complications could arise after a significant period of non-payment. In addition, it is wise to settle your bill now, when utility charges are relatively low rather than during the winter months, when oil and gas prices tend to be higher.
Once you have paid all outstanding bills, there is no reason why you should not change your utility provider. Given the large number of deals available, significant savings are possible and shopping around for the best one is highly recommended.
New atomic reactor will help power Britain
July 13, 2007 at 1:56 pm
With fossil fuels in limited supply, the UK government is determined to develop alternative sources of energy in Britain. However, as recent developments demonstrate, government attention appears to be focusing on nuclear rather than renewable energy. Britain has now moved a step closer to the construction of new nuclear power stations after four large corporations, Westinghouse, Toshiba, General Electric and the Canadian company, AECL won the government’s approval for their reactor designs. This is the first stage in a long process likely to culminate in a new nuclear reactor being constructed in Britain. With the new Prime Minister, Gordon Brown, voicing his support for the development of atomic power in Britain, there is even the possibility that a further seven reactors may be constructed in future years. Indeed, Mr. Brown stated that the United Kingdom’s energy interests were “best safeguarded by building a new generation of nuclear power stations.” Once the reactors have been built, reactor constructors will join together with utility providers to generate electricity. A number of providers, including EDF, which operates London Electricity, have voiced interest in the venture.
However, there are doubts as to whether these energy initiatives will lighten the current burden on Britain’s power stations. Construction of nuclear power stations is not likely to be complete for several years, with the pressure on current electricity generation facilities rising in the meantime. Whilst the large corporations vying for the right to construct the proposed nuclear power plant are likely to earn large profits if their bids prove successful, those that fail to win the contract will undoubtedly lose out. Needless to say, constructing a nuclear reactor is a very expensive process. Sources to the Daily Telegraph have suggested that “the cost of the reactor design pre-licensing process could be as much as £10m.” Many of the components required must be pre-ordered and the cost of these parts is likely to be several hundred million pounds.
The effects of nuclear power on the environment are not immediately evident. Greenpeace has voiced concerns about the proposed nuclear power plants. In February, the organization won the right to demand a legal review of the government’s proposals, questioning in particular the overall merits of nuclear power. This is aside from the harmful effects on local communities of locating a nuclear power plant in the area. However, supporters of nuclear power suggest that such fears are unfounded, citing a number of American, European and Canadian studies which found no evidence to indicate an increased risk of contracting cancer among those living near nuclear power stations. There is, however, the ever-present threat of attack from terrorists who tend to regard nuclear facilities as a prime target. And as the Chernobyl disaster demonstrated, accidents can have a catastrophic effect on the environment and local communities. As such there is little doubt that this issue will remain controversial for many years to come.
