Energy bills in the UK increasing at twice the rate of France
November 28, 2008 at 1:44 pm
Concerns have once again been raised over continental energy companies negatively affecting the finances of consumers in the UK. Figures released a few week ago show that energy bills in Britain have increased at more than twice the rate of European countries including Germany and France.
The figures were released by the Organisation for Economic Co-operation and Development and the precise statistics show that gas and electricity prices in Britain have risen by almost thirty per cent during the last year. France boasts an increase of just fourteen per cent, whilst Germany’s figure stands at just over twelve per cent. Consumers in the UK will not be consoled by the news that Norwegian customers have a slightly higher level of energy inflation, since Norway is the only country with higher figures than Britain.
The chief executive of Consumer Focus, Ed Mayo, believes that the UK has a lot to learn from its European counterparts. He stated that whilst “the UK has a relatively free market”, there now seems to be widespread “freedom to raise prices with impunity”. He stated that the European countries boasting low figures in the statistics released by the Organisation for Economic Co-operation and Development are obviously “doing more to keep their prices down” and the UK needs to follow their lead.
Despite mounting anxiety over these latest figures, the Energy Retailers Association has insisted that other countries in Europe are not trying to rip off British consumers. Furthermore, a spokesman for the association was keen to remind people across the UK that they have “enjoyed historically very low prices compared to Europe and indeed the rest of the world”. However, this reminder will come as no consolation to homeowners struggling to cope with increasing energy bills this winter.
Technology show excites British public
November 19, 2008 at 2:35 pm
A couple of weeks ago at an exciting technology show in London energy issues suddenly became cool. We have all felt bored at times by constant lectures about saving energy and making sure we switch off the lights as we leave a room and never even consider leaving the television on standby overnight. However, a small group of gadget makers was keen to show that saving energy can be both interesting and innovative.
One gadget which caught the eye of many at the show was a wireless electricity consumption monitor. This small gadget allows homeowners to see how much power they are using at any moment during the day. The device is called the ‘Wattson’ and has been designed by DIY Kyoto, a company based in London. It measures how much energy is being used before calculating the cost of this consumption per hour.
At approximately £100, the gadget does not come cheap. However, it could be a very handy tool for homeowners. If more power than average is being used, the device starts to glow red. Conversely, if the household is using a sensible amount of energy, it will glow blue. The device is designed to take the complexity out of saving energy. The lights system provides an immediate assessment of a household’s electricity usage, so that changes can be made straight away if needed.
Solar-powered gadgets also attracted an audience at the show. Solio, an American company, has designed a charger which converts each hour of sunlight into an hour’s worth of iPod use. Alternatively, a twenty-five minute phone call can be made on this amount of solar energy.
Research shows that households are capable of reducing electricity use
November 13, 2008 at 9:38 am
Research carried out by Matthew White and Peter C. Reiss for the RAND Journal of Economics has revealed some surprising results. White and Reiss decided to examine how quickly households are able to alter their electricity use when energy prices increase and decrease rapidly. The results show that during times when electricity prices are high, the average household is able to dramatically reduce its energy use. However, when prices begin to decrease again, energy use simply returns to the previous levels.
The research was conducted in California, with White and Reiss examining energy use in thousands of households across the state. In 2000, these households suffered from dramatic energy price increases. When electricity prices were at their peak, the average household managed to cut its energy use by approximately 13% within a sixty day period. Approximately 35% of all the households researched managed to reduce their monthly use of electricity by more than 20%.
However, when electricity prices began to fall, the households reverted to their previous levels of energy consumption within a 30 day period. The research is worrying because it shows that people can dramatically cut their energy use relatively easily, but the only motivation for them to do so is financial.
The research also showed that public campaigns which provide information about how to lower electricity bills really do have an impact. Whilst these campaigns were being run, the average household managed to reduce energy use by approximately 7%.
BizzEnergy under threat of administration
November 6, 2008 at 2:05 pm
The largest independent supplier of energy in the United Kingdom has announced that it may slip into administration after failing to refinance its debts adequately. BizzEnergy is currently flirting dangerously with administration, and if it cannot find a solution this week, 160 jobs will be put at risk.
The energy supplier has employed KPMG to carry out an auction and is still hoping to find a buyer. The signs do not look good though, especially since Electricity 4 Business suffered a similar fate recently.
The two independent energy suppliers have been hit hard by the surge in wholesale electricity prices seen this year. They provide power on fixed contracts which can often lead to heavy losses. Derek Myers, who works for an energy retail exchange, has revealed that independent suppliers have been placed into jeopardy as a result of the “extent to which prices in the wholesale electricity market increased, and then doubled again”.
However, regardless of the eventual fate of BizzEnergy, the threat of administration and the events surrounding Electricity 4 Business have once again raised doubts as to the competitiveness of Britain’s energy-supply market, which has long been dominated by the big six utilities.
BizzEnergy has been amongst those who have voiced their concerns about competition. The company, along with Welsh Power, has condemned the recent purchase of British Energy by EDF. They claim that this purchase will further consolidate the generation market and make it increasingly hard for small players to compete. The head of Welsh Power, Alex Lambie, even went so far as saying that the takeover is a complete “stitch up”.
