Having come under fire from opposition parties – most notably the Liberal Democrats – the incumbent Labour Government has finally announced revisions to its proposed feed-in tariffs (FITs). The tariffs are available to any household, business or community that generates electricity from various renewable sources, such as solar panels and wind turbines.

Essentially, this means money is paid to those who produce so-called ‘green’ power which can be fed back into the National Grid. Secretary of State for Energy and Climate Change, Ed Miliband, claimed the new feed-in tariffs demonstrate Labour’s ambitiousness in bringing small-scale low-carbon electricity generation online. Predictably, however, the proposed feed-in tariffs have attracted strong criticism on a number of fronts.

The new feed-in tariffs offer fixed prices for a set period of time. In terms of numbers, retro-fitted solar photovoltaic panels (PV) will attract the highest feed-in tariff of 41.3p/kWh, whilst micro-wind turbines will be subject to a tariff of 34.5p/kWh. According to Mr Miliband, the plans “represent a significant level of ambition and are comparable to countries that are leading in this area”; in fact, Mr Miliband also claimed a typical domestic installation of a 2.5 kilowatt peak photovoltaic system would earn the household £900 each year and save £140 on its annual electricity bill. Whilst these numbers may seem appealing, there remains a degree of uncertainty as to how realistic they are, which clouds the issue of return on investment. Based on Mr Miliband’s £900/year prediction, the ROI is likely to fall somewhere between 5 and 8%, which is considerably short of the Renewable Energy Association’s target of 10% (which happens to be the typical level in Germany).

Perhaps the most contentious issue surrounding the Government’s new feed-in tariffs is that of its ambitiousness in terms of overall production; indeed, despite the increased tariffs, Mr Miliband has stressed the aim to produce 2% of the country’s electricity via small-scale low-carbon systems (or ‘microgeneration’) by 2020 remains unchanged. Campaigners claim that a 6% output is realistic, which may appear insignificant but is actually the equivalent of two Sizewell B sized nuclear power stations. Therefore, it would seem microgeneration is not a top priority for the current Labour Government.

British Gas have today announced it’s cutting its standard gas prices by an average of 7% – this makes British Gas the cheapest electricity and gas supplier at time of writing. Customers can sign up online to British Gas WebSaver 6 online tariff or choose the standard tariff. The full announcement released this morning is as follows:

BRITISH GAS CUTS STANDARD GAS PRICES BY AN AVERAGE 7% – IS NOW THE CHEAPEST GAS AND ELECTRICITY SUPPLIER THROUGHOUT BRITAIN

British Gas, the largest residential energy supplier in Britain, has today cut its standard gas prices by an average 7%.

The price cut, which will benefit 8 million households, takes effect immediately and makes British Gas, on average, the cheapest supplier of standard gas and electricity right across Britain – no matter which way customers choose to pay. The change will save the average gas customer £55 a year.

This is the third time British Gas has cut prices in the past 12 months – cutting a total of £187 off the average annual dual fuel bill.

Last year, the company cut both standard gas and electricity prices by an average 10%.  The electricity price reduction in May 2009 made British Gas on average the cheapest supplier of standard electricity across Britain; it has remained unchallenged by any major supplier in this position ever since.

Today’s price cut means the company is now also the cheapest major supplier of standard gas at average consumption – and therefore of dual fuel – right across Britain.

Announcing the gas price cut, British Gas Managing Director, Phil Bentley, said:

“At British Gas, we know household budgets are stretched, and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills.

“I’m pleased we’re able to offer our customers some extra help with this gas price cut – and that we’re able to do this while it’s still winter, allowing our customers to really feel the benefit.

“This latest price cut means that, no matter where you live in Britain, British Gas is offering on average the cheapest standard gas, electricity and dual fuel prices – beating all other major suppliers.

“But, at British Gas, we know that cutting prices is just part of the picture in helping our customers cut their fuel bills; we’re also doing more than any other supplier to help our customers use less energy.  As well as cutting prices three times in the past year, we have been helping our customers improve their energy efficiency and cut their energy use by 7%.”

British Gas has also removed the price ‘differential’ for gas pre-payment meter accounts.  This means British Gas’ pre-pay gas customers are now paying, on average, the same for their energy as customers who pay by cash or cheque.  British Gas has, for some time, been working to become more efficient, improve customer service and cut costs for its pre-pay customers.

Since the UK Government announced its Boiler Scrappage Scheme, which provides homeowners with £400 vouchers (one per household) to replace their existing G-rated boilers with A-rated alternatives, the plan has attracted praise and criticism in equal measure.

On the one hand, the Boiler Scrappage Scheme has been lauded as the answer to the nation’s domestic energy efficiency problems (at least where homeowners and central heating systems are involved) whilst, on the other, the scheme has been derided as too costly, impractical and largely pointless. Although opinion is usually divided on any measure introduced by an incumbent government, the Boiler Scrappage Scheme is coming under increased fire as its finer points are picked apart and analysed in detail. Therefore, it comes as quite a disappointment to the Government the scheme is now beset by extensive delays.

The organisation responsible for the administration of the Boiler Scrappage Scheme, The Energy Saving Trust, claimed last week its operations have been overwhelmed by an unexpectedly high demand from homeowners who wish to avail of the scheme. As of Monday last week, the trust had received some 160,000 calls in response to the scheme, which had been converted to approximately 36,000 applications. Unfortunately, there are only 125,000 vouchers available under the Boiler Scrappage Scheme, so it is somewhat obvious the trust would have been hit by a deluge of calls and applications in its earliest operative months. Nevertheless, whilst the Energy Saving Trust failed to anticipate such high demand, it has already implemented measures to ensure its backlog of applications is cleared.

A Spokesman for the Energy Saving Trust said: “People applying now should expect to receive their vouchers within 10 days. People who called earlier have not been forgotten about. The call centres are working their way through logged calls in chronological order”. The trust has also stated it has doubled the number of staff in its call centre to cope with the increased demand. Fraser Winterbottom, Chief Operating Officer, Energy Saving Trust, added the trust was some “three or four days behind” schedule, but would soon return to normal service.

The recent spell of Arctic cold weather may be a forgotten memory for most – even if there is still a chance that the adverse weather will hit the UK again before the winter is over – but for others the period of snow, ice and freezing temperatures continue to cause problems.

According to a survey conducted by Which? Switch, approximately 65% of people have given more attention to their winter energy bills, whilst 38% – almost 4 out of 10 people – are worried about whether they can actually afford the bill. Furthermore, 14% of people surveyed admitted they had dipped into their savings – or, more worryingly, those of their children – to ensure they were able to pay for the increased demand of gas and electricity, whilst 18% of people had made other financial sacrifices, such as cancelling gym membership, in order to meet the increased fuel costs.

It has also been made clear over the past couple of weeks heat loss in homes and offices has become a major factor of the inflated fuel bills. Research undertaken by Faithful & Gould, part of the Atkins Engineering Design Group, has suggested an additional £1.2 billion of heat was lost during the two-week period that saw the UK gripped by extreme cold in comparison to a normal or average winter. This figure, which is based on 26 million homes and 2 million offices in the country, is likely to cause deep concern amongst those who have been campaigning for improved insulation and more energy efficient central heating systems.

The steps required to resolve the problem of heat loss can only be addressed by improving the energy efficiency of homes and offices. Achieving this is by no means a secret, as the Government and Energy Saving Trust have long been lauding the virtues of loft insulation, cavity wall insulation and double or even triple glazing. Furthermore, replacing old boilers with more energy efficient condensing boilers and technologically advanced heating controls can reduce the amount of fuel used to heat a home which could result in an annual saving of £235 according to the Energy Saving Trust.

The UK Government’s Boiler Scrappage scheme was released under the guise of helping to improve energy efficiency in the home. Although there is no evidence to suggest the scheme is unable to achieve this aim, there are growing concerns that, aside from assisting the environment and lowering energy bills (at least to a certain extent), the scheme will fail to attract interest from the majority of financially ‘poor’ households.

In fact, according to one of Britain’s best known plumbers, Charlie Mullins of Pimlico Plumbers, the Boiler Scrappage scheme is likely to prove more costly over time, which is especially critical for the country’s less wealthy customers.

Approximately 125,000 were thought to be able to take part in the Boiler Scrappage scheme, which offers customers a cash incentive of £400 for replacing their older, less efficient central heating boilers (it must be G-rated – i.e. has a pilot light) with more modern and energy efficient varieties (specifically, the condensing boiler). Unfortunately, replacing conventional boiler systems with condensing boilers can sometimes prove problematic in so much as they often need to be located in a different area of the home due to regulation changes and or physical differences in plumbing requirements. This process can prove to be a logistical nightmare in many cases and usually involves greater installation costs. As such, the £400 voucher to replace an old but functional boiler at a cost ranging between £1,000 and £2,500 already constitutes a poor financial incentive to make the change.

Another concern raised by the scheme, which has so far attracted interest from 16,000 or so households in the country, is the newer, more energy efficient condensing boilers are not as reliable as the outmoded conventional models. According to Charlie Mullins, older boilers would typically last up to 15 years or longer before requiring repair or replacement. In the case of new condensing boilers, however, Mullins argues his plumbers often find themselves replacing newer models after just 3 to 6 years. As reported in the Guardian, Mullins argued that the scheme could prove to be “financial madness” for many homeowners.

In a report published on Wednesday, experts at the Royal Academy of Engineering ridiculed a trend that many homeowners had thought would help save the planet (or at least its human inhabitants). According to the report, the installation of so-called ‘eco-bling’ devices such as solar panels and wind turbines does not sufficiently contribute towards reducing carbon emissions.

In fact, the Royal Academy of Engineering has claimed that installing eco-bling will make virtually no impact on the UK Government’s carbon emission targets, which aim for an 80% reduction by 2050. Although new homes built in the UK must be zero-carbon by 2016, this does nothing to address the myriad old homes in the country that heavily pollute the atmosphere with carbon emissions.

The author of the report, Doug King, who is a professor of Building Engineering Physics at the University of Bath, described eco-bling as “unnecessary renewable energy [devices] visibly attached to the outside of poorly-designed buildings” and went on to claim the installation of solar panels and wind turbines offers a “zero-sum approach”. Professor King’s report is based on the view that although it may be fashionable to install eco-bling in an otherwise environmentally unfriendly home, it does little to address the real issue that is the environmentally unfriendly home itself; indeed, as King argued, “if you build something that is just as energy-hungry as every other building and then put a few wind turbines and solar cells on the outside that addresses a few per cent of that building’s energy consumption, you’ve achieved nothing”.

The Royal Academy of Engineering’s report will leave a bitter taste in the mouths of homeowners who had laboured under the apparent misconception solar cells and wind turbines contributed more favourably to the environment. Of course, the substantial argument of the report does not heap criticism on renewable energy devices so much as it criticises their use on energy inefficient homes. The crux of the report is that, in order to achieve the Government’s lofty carbon emission targets, more must be done to improve the energy efficiency of existing homes. Installing solar cells and wind turbines, it would seem, is unlikely to do the job.

The cold start to 2010 in Britain and much of Europe has shown how challenging a change in weather can prove to be in terms of cost to the economy. The freezing conditions that were coupled with heavy outbreaks of snow caused havoc throughout the UK, with school closures, transport chaos and health and safety problems causing misery to millions of people.

Unfortunately, whilst the snow and ice have thawed in most areas of the country, more cold weather is expected to hit Britain before the winter ends. As many people have discovered during the most recent cold snap, it is essential that domestic central heating systems are kept in good working order so that the adverse weather can be endured.

According to Marks & Spencer Home Insurance, there was a 200% rise in home emergency calls relating to water damage during the recent cold spell. Much of this damage was caused by the ice, which inflicted significant damage upon central heating pipework. Unprotected or exposed pipes were naturally the worst hit, as the freezing conditions caused cracks and leaks. Where a leak is found, it is generally advisable to turn off the mains water supply (there will be an internal stop valve located in the house – usually a kitchen or downstairs bathroom – or an external stop valve outside the home), drain the cold taps, then the hot taps and, most importantly, call out a trustworthy plumber. It is also advisable to turn off central heating boilers assuming that they do not run on separate water systems.

Of course, it is far better to prevent such leaks by ensuring that water pipes and tanks are adequately insulated, whilst it is also worth carrying out loft insulation not least to protect against freezing temperatures. Old boilers ought to be replaced under the Government’s Boiler Scrappage Scheme, as in addition to providing more efficient and cost-effective energy the new replacement boilers will usually offer frost protection mechanisms. It is also advisable to take out a home emergency policy that insures against central heating and plumbing problems, such as those provided by Aviva, Churchill, Cover Direct, British Gas HomeCare and Homeserve.

It is common knowledge domestic fuel bills have risen substantially over recent years and the trend is set to continue as new energy initiatives are set to be subsidised by consumers. It is also well-known wholesale fuel costs have dropped during this period, which means savings have not been passed on to consumers.

The UK Government has also urged the British public to conserve energy wherever possible in order to satisfy short-term carbon emission targets (this may also have something to do with decreased fuel supply and limited reserves). Unfortunately, after experiencing one of its coldest winters in more than half a century, domestic energy consumers in the UK are expecting record high energy bills this month.

According to experts, the average energy bill for January will hit £200 this month, as consumers have been forced to crank up their central heating thermostats in order to survive the Arctic weather. With no clear sign the adverse weather is going to improve over the coming weeks, it is possible the problem will be further compounded before thermostats can be turned down a notch or two. Although isolated cases are far worse for some than others, such as 60-year old Tony Stamford’s upsetting situation – he suffers from cerebral palsy, diabetes and is partially deaf yet has been left without central heating for 3 months as Basildon Council awaits a new boiler – it would seem most people are experiencing similar problems that require certain remedies.

In this exceptional period of high fuel bills and cold weather, it is worth remembering there are a number of measures in place that help people make their homes more comfortable and affordable. Homeowners in England can take advantage of a Government grant of up to £3,500 to improve the heating and insulation in their homes. Similar schemes exist in Northern Ireland, Wales and Scotland, where up to 10,000 more families are also due help through the Scottish Government’s Energy Assistance Package. Homeowners can also take advantage of the UK Government’s boiler scrappage scheme, whilst people who fall behind with their fuel bills can sometimes receive emergency grants or loans from The British Gas Energy Trust.

Climate change is a real and present danger, with current predictions estimating potentially irreversible climate change may occur within a matter of decades. As such, green or eco-friendly measures are constantly being developed, assessed and implemented to create a world in which man no longer acts as the catalyst of his own demise. In terms of altering the effects of global warming, such measures must be adopted by entire populations if any real benefit is to be derived from them.

Therefore, taking steps to address the eco-friendliness of homes is important when viewed in the wider context of the war against global warming. Although cars, aeroplanes and even cattle emit significant quantities of so-called greenhouse gases each year, the typical UK home also chips away at the Earth’s protective ozone layer; in fact, British homes make up 25% of the nation’s emissions. One of the most effective ways in which homes can be made greener is to invest in adequate insulation, which includes loft insulation, cavity wall insulation and double glazing or even triple glazing – doors can also be more effectively sealed in order to combat draughts.

Smart Meters will be common installations throughout homes in the UK by 2020 but, for those who do not wish to wait that long, energy monitors and readers can be purchased that show the usage of electricity in the house, which will help guide consumers on where and how best to conserve energy. Free monitoring tools such as the British Gas EnergySmart meter are useful for providing more detailed analysis. Homeowners are also advised to cash in their older boilers for brand new shiny models under the Government’s new boiler scrappage scheme, whilst other measures that can be employed include purchasing water butts for the garden to store non-potable water, installing dual flush lavatory systems and replacing old shower heads with water-saving alternatives.

According to a recent report in the Guardian online news service, The Crown Estate has announced the names of nine winning organisations that had been bidding for windfarms that are set to produce some 25GW of electricity for domestic use. The bids were tendered as part of the UK Government’s new £75 billion programme to construct thousands of offshore wind turbines around Britain, which are hoped to go some way towards solving the country’s green energy requirements.

The winning bidders (in no particular order) comprise E.On Climate and Renewables UK, Centrica Renewable Energy, Moray Offshore Renewables Ltd., SeaGreen Wind Energy Ltd., the Forewind Consortium, Siemens Project Ventures and Mainstream Renewable Power, Eneco New Energy, RWE Npower Renewables and East Anglia Offshore Wind Ltd.

Much speculation has centred on the capabilities of wind power as a means of addressing the nation’s renewable energy aspirations. Undoubtedly, it is crucial that Britain continues to strive towards producing green energy initiatives in order to secure a healthier future not just for itself but also the world; indeed, climate change is a very real problem that is starting to position itself as a threat to modern living.

According to PM Gordon Brown, the nine licences issued to the aforementioned organisations will provide a “substantial new platform for investing in UK industrial capacity” and that the “offshore wind industry is at the heart of the UK economy’s shift to low carbon and could be worth £75 billion and support up to 70,000 jobs by 2020″.

With dwindling supplies of oil and gas – oil production from the North Sea is currently being outstripped by demand and Britain reportedly has just eight days worth of gas in storage compared to France and Germany’s four months or so – and an ever-increasing hole appearing in the ozone layer, there is arguably no greater time than the present to invest in green energy technologies. Whether the UK Government’s strategy to source 15% of its total energy needs from wind power by 2020 is ambitious enough or even realistic enough remains to be seen.