Quarter of Brits set to alter heating
December 24, 2008 at 11:34 am
Over the past few months, in the light of the global financial crisis, we have all been doing everything we can to save a few pennies. The results of a recent survey conducted by moneysupermarket.com have shown that Brits are now looking to their energy consumption in an attempt to save money. Twenty five per cent of households in the United Kingdom are planning on turning down the heating, with approximately 750,000 planning on not using heating at all this winter.
This figure may seem extraordinary but it pales in comparison to the other statistic revealed by moneysupermarket.com. The company found that nearly ninety per cent of the British households surveyed were planning some strategy or other in an attempt to reduce their ever-increasing energy bills. The utilities manager at moneysupermarket.com, Scott Byron, revealed that the “unprecedented hikes of forty seven per cent for gas and twenty nine per cent for electricity” have caused Brits to take “decisive action”. However, Byron also revealed his concern at the news that many people were considering not using heating at all. He believes that this could have devastating consequences, particularly for elderly people or young children.
Other measures currently being considered by homeowners in a bid to save money include turning off electrical items which are usually left on standby and unplugging electrical items, including mobile phone chargers, which are not being used. Approximately fifteen per cent of those surveyed revealed that they were planning on wearing more layers of clothes to keep them warm through the winter.
Power companies risking legal action
December 24, 2008 at 11:32 am
Despite the falling wholesale prices for oil, it seems that the power companies are going for the Scrooge rather than the Santa approach this Christmas. Due to the surge in the price of oil earlier in the year, bills rose by an unprecedented 40% across the country. However, although the power companies were so efficient at putting their bills up, now that the price of oil has fallen again so drastically, we are still waiting for them to reduce the cost of their bills accordingly.
The power companies have said that they are going to cut bills by £500 million for the customers who have been overcharged but apparently they are nowhere near this figure, with the energy regulator Ofgem saying that only £305 million has gone through already.
Ofgem has now said that it might refer them to the Competition Commission unless the major power companies agree to new licenses which would set about putting an end to unfair prices.
Ed Miliband, the Energy Secretary, is also not amused by their antics. He recently said that although some improvements had been made, he was “prepared to consult on legislation” if Ofgem’s actions didn’t work out.
The Deputy Leader of the Labour party, Harriet Harman, also got involved, saying that the power companies must “treat all consumers fairly”. She also threatened that “we will change the law to force them to do it”.
These were blunt words indeed, but it is good news that the government is getting involved. People are being hit particularly hard this winter and unfair bills are simply one step too far. Action should be swift, and we will wait to see how the energy companies respond.
Factory closures reduce demand for electricity
December 24, 2008 at 11:31 am
Last month brought some good news for British energy consumers. The National Grid revealed that the prospect of numerous factories closing this winter will reduce the national demand for electricity, which will in turn minimise the threat of Britain’s power supplies being disrupted. The National Grid has found that many sectors in industry are starting to reduce their energy use as they are forced to cut production as a result of reduced demand.
Whilst this reduced demand is obviously bad for the industries in question, it does mean that power generators will be able to meet the demand in Britain more easily than before. It has also eased fears that the nation could face power supply shortfalls, which could have resulted in blackouts during bad weather.
Such a fear was initially prompted by the loss of several nuclear and coal-fired power stations which occurred earlier this year. The power stations desperately needed repairs and energy experts were anxious about the long-term effects of the closures.
Some of the factories set to close this winter include Bentley, which employs almost 4,000 people in the Crewe region. The Bentley factory will be closed for the majority of December and will only re-open in the middle of January. Furthermore, the car and van factories belonging to Vauxhall located in Merseyside and Luton will close for a few weeks over the festive period.
It is not just the motor industry which is seeing factory closures. The large brick maker, Hanson, has already closed several factories, including one situated near Leeds and one located in Bedfordshire.
E.ON to cut electricity prices
December 22, 2008 at 10:30 pm
A couple of weeks ago it was announced that E.ON, the energy supplier, will cut the price of bills for some of its customers. Certain customers who are currently with the company on an electricity-only basis can expect to see a reduction in the prices they are currently paying for energy. The parts of the country which will see the benefit of reductions are the North West, the east Midlands, and specific areas in east England. Customers living here who do not use a mains gas supply can expect to see a decrease of approximately fourteen pounds after the changes are introduced by the energy supplier.
A spokesman for Ofgem revealed that this is a “step in the right direction” and is very “good news for customers”. This commendation came despite the fact that the fourteen pound figure is forty-one pounds less than the recommended figure from Ofgem announced recently. The regulator sent out a warning to the energy supply industry a couple of months ago, since it was worried that many consumers in the United Kingdom were not seeing the positive side of competition in the sector since they did not have dual fuel. Competitive prices on dual fuel deals were therefore remaining unavailable to them.
The news from E.ON is likely to receive a mixed reception. After all, at this time of global financial doom and gloom, any extra money no matter how small the sum is, will go down well with consumers. However, the news also leaves a slightly bitter taste in the mouth, with consumers feeling that the energy supplier could do better.
Homeowners to get free electricity?
December 15, 2008 at 5:03 pm
At a time when we all seem to be paying through the roof for our electricity, the news that homeowners could be handed free energy has come as music to the ears of many. After all, think of all the extra mince pies you could purchase with the money saved on ever-increasing energy bills! However, the free electricity is not just being handed out randomly. It will only be provided to individuals willing to move to a new housing development in Somerset.
The new development is located near to the River Yeo and has been named Chudleigh Mill. For those homeowners who decide to relocate, free electricity will be available for ten years. This free energy will be provided by a state-of-the-art hydroelectric generator which uses water from the river to generate a clean source of energy.
The developer behind the new scheme has also been honest about the downside to the offer. However, thankfully, this downside is negligible: residents will only ever receive a tiny bill, if they receive one at all, since the generator takes care of ninety-five per cent of energy costs, if not more. It will be able to provide approximately 20 kilowatts of power to the houses each hour.
The man in charge of the development in Somerset, Geoff Grant, who works for TST Properties, believes that the prospect of “using renewable energy […] is appealing”, especially at a time when people are becoming “concerned about rising prices”. Chudleigh Mill as a development is generally eco-friendly, with other features including a rainwater recycling tank and structures made from sustainable materials.
Scottish Power pledges to cut prices
December 3, 2008 at 4:32 pm
A couple of weeks ago Scottish Power announced that it was set to reduce the prices it is currently charging its residential customers for energy. These price cuts will be introduced as soon as possible, as long as wholesale costs continue to fall steadily and the winter season does not bring any nasty shocks to the industry as a whole.
The chief executive of Scottish Power, Nick Horler, revealed that the company will still need to see a “period of sustained reductions” with regards to wholesale costs but he hopes that it will be able to slash prices in the not too distant future. Energy companies have been coming under increasing pressure recently to cut the prices they are charging consumers across the United Kingdom. The government has certainly made its voice heard recently, with Ed Miliband, the energy minister, joining in with the pleas for companies to make reductions soon.
However, gas companies believe that they are being unfairly victimised, particularly in the media, and have revealed that they are truly trying to provide their customers with the best deal. However, because gas companies buy gas in advance, price falls which may appear relevant at any given moment can take months to have an impact upon the companies and subsequently, the consumers.
The alternative to this pattern is to charge customers a fee which is based on the wholesale price of the previous month but Nick Horler believes that this pattern exposes consumers to the volatile market, which is ultimately very unfair.
