The UK Government has received a timely boost from German engineering company, Siemens, which plans to develop a new wind turbine plant in Britain. Aside from the obvious environmental benefits such a project would likely deliver, the new wind turbine is expected to generate hundreds of jobs locally.

Siemens has claimed that it will invest over £75 million into the development, which adds to the German company’s existing UK projects, which include a global centre for offshore grid connections in Manchester and a wind power training centre in Newcastle. This news is of particular importance to the UK economy, not least because it secures hundreds of jobs as mentioned above but also in that it demonstrates the UK’s ability to compete internationally in the green energy sector.

It is hoped that the new Siemens wind turbine plant will create around 700 jobs directly, in addition to 1,500 or more indirectly. The plant should also help local organisations and national energy suppliers reduce the costs of certain green energy initiatives, the savings from which may trickle down to consumers. News of Siemens investment in the UK green energy sector was made within days of GE’s plans to invest £100 million into the industry, thus creating some 2,000 jobs. Although these projects constitute a step in the right direction as far as the country’s climate change objectives are concerned, fears persist that Britain is not doing enough on the environmental front; in fact, according to the highly respected Professor James Lovelock, there is no longer time to save the planet.

Claiming in a recent interview that mankind cannot change the effects of global warming, the 90-year-old Professor Lovelock stressed: “We’re not really guilty. We didn’t deliberately set out to heat the world”. The Professor also reasoned climate change is unlikely to fit any convenient models, so hopes of effectively monitoring and reacting to the environmental situation is ultimately futile. Professor Lovelock further argued that renewable energy technology, such as the kind to be invested in the UK by Siemens, makes perfect economic or business sense, but is not based on “good practical engineering”; in conclusion, the Professor believes that humanity’s attempt to save the planet is a “lot of nonsense”.

Since its launch in January this year, the UK Government’s Boiler Scrappage Scheme for England has received mixed reviews. Green energy campaigners have, generally speaking, been in favour of the scheme, which enabled eligible households in the UK to receive a £400 voucher to put towards replacing their energy inefficient G-rated boilers with considerably more efficient A-rated systems.

The £400 voucher was matched by the leading energy companies, including British Gas Boilers, who offered to fix and install the new A-rated boilers provided they were purchased through the company. The combined saving generated by the Boiler Scrappage Scheme and energy partner deals totalled £800, which caught the attention of many households.

The Boiler Scrappage Scheme was also hit by a series of delays, which meant many customers had to wait weeks to receive their vouchers. Nevertheless, it is widely accepted that upgrading a central heating system from a G-rated boiler to an A-rated boiler can save over £200 on annual energy bills, so a short delay in receiving the voucher is unlikely to have affected many households in the long-term. Regardless of the merits of the scheme, one thing is now clear: the Boiler Scrappage Scheme is over, as all 125,000 vouchers have been taken by households across England.

Speaking about the scheme’s closure, Energy and Climate Change Minister, Lord Hunt, announced: “The scheme’s been a great success and is already helping people cut down on their fuel bills. An ‘A-rated’ energy-efficient boiler can help save around £200 a year off fuel bills and reduce emissions. The scheme has also provided a much needed boost to England’s plumbers and boiler manufacturers, helping to sustain work for the 130,000 installers and up to 25 UK-based boiler manufacturers throughout the economic recovery”. Despite its relative success – in terms of being ‘sold out’ within three months and helping to reduce greenhouse gas emissions – the Department of Energy and Climate Change has stressed that it has no plans to introduce a similar scheme in the near future.

Owned by the German company, RWE, Npower boasts around 6.5 million customers in the UK; however, despite its popularity, one of the country’s biggest energy suppliers has worked its way to the top of a league of shamed utility companies. In a study of 8,000 people compiled by Which? consumer group, Npower was named as Britain’s worst utility company – an accolade that is punctuated by reports of “abject” customer service.

Although energy companies tend to attract criticism from consumers, especially off the back of the country’s worst winter in decades, it is difficult to escape the conclusion that the so-called ‘big six’ suppliers – British Gas, EDF Energy, E.ON, Scottish & Southern Energy, Scottish Power and Npower – do little to avoid customer dissatisfaction.

Recently, in an apparent move to placate a public that had been growing increasingly frustrated by the rising cost of energy prices, the leading energy suppliers announced gas price cuts of up to 9%, however, the cuts were considered to be too shallow to cause any significant impact on the depth of fuel poverty in Britain. Equally, the energy suppliers attracted criticism by addressing price concerns with a ‘pack mentality’, which all but precludes competition in the domestic energy market. Likewise, the big six are expected to introduce higher tariffs over the coming months, despite the fact that wholesale fuel costs remain relatively low. As such, it is not difficult to see why Npower, which earlier this month reduced gas prices by just 7% (after increasing electricity rates by 14% six months beforehand), has attracted the wrath of its customers.

According to the Which? study, only 27% of Npower’s customers were considered to be satisfied with the service they received from the energy giant, which suggests that a massive 73% of customers are dissatisfied. A spokesperson for Npower said: “Our aim is to see our customers happy, not just satisfied – and we’ve been working really hard to make customer service the focus of our company”. The Which? study also revealed that British Gas scored a satisfaction level of just 37%, whilst Scottish & Southern Energy attracted a 50% satisfaction score.

The short answer to the title question is a resounding no: smart meters cannot directly save customers money. In fact, the installation of smart meters in households that have previously spread out the costs of their energy usage through monthly direct debits may see their bills rise initially; smart meters, first and foremost, provide accurate billing, so certain months of the year are likely to be subject to higher than usual costs – especially where previous payments were based on estimated consumption.

In consideration of the UK Government’s objective to install smart meters in all homes across the country by 2012, the meters will become an integral part of calculating energy costs, which, until recently, had been anything but efficient.

At present, First Utility is the only private company offering smart meters to UK households; although, major energy suppliers such as British Gas EnergySmart and Npower are expected to roll out their own smart meters in the near future. Until availability increases, First Utility will continue to struggle to meet the demands of its rapidly growing business. Nevertheless, the company is still considered to be so far ahead of its rivals it would take a catastrophe of one kind or another to derail its market dominance any time soon. In response to accusations that First Utility is failing on the customer service front, the company’s Chief Executive, Mark Daeche, said: “We have been a victim of our own success. However, we are expanding staff numbers and I expect to sign the new lease for new offices in the next few weeks”.

Although some people appear to believe fuel bills will drop significantly as soon as smart meters are installed, the truth could not be any more different. In order to enjoy savings on fuel costs, households must learn to read and adapt to the information provided by smart meters on domestic energy consumption. A spokesperson for Npower commented: “If I gave you a smart meter now you wouldn’t save a penny. It’s about encouraging you to interact with it and that’s what energy companies need to be doing. The benefits will only come when you start paying attention to it”.

The major energy companies in Britain have long been accused of milking customers for every penny, so it came as a refreshing surprise when E.ON announced earlier in the month they would be giving a little something back to the public.

Unfortunately, that little something proved not to be the profits generated by low wholesale fuel costs and high domestic energy prices; although, E.ON will lower its gas prices by 6% to consumers in the UK as of 31st March. Instead of implementing a more substantial price cut, E.ON elected to give away free energy saving devices to News of the World readers, which may not seem all that beneficial in a broad sense but actually constitutes a superb opportunity for customers.

The energy saving devices are worth more than £30 and, according to E.ON, could help towards combined energy savings of £9 million per year nationwide. E.ON has produced a number of energy saving devices over recent years in a bid to improve energy efficiency in homes throughout the country. News of the World readers received coupons in the paper last week, which can be exchanged for three of E.ON’s energy saving devices at participating Sainsbury’s stores, of which there are estimated to be more than 500 in Britain. The three energy saving devices include an automatic switch-off plug and a showersave device. The plug works by automatically switching off electrical equipment when not in use, whilst the showersave device regulates temperature and water flow to reduce utility bills.

Commercial Director of E.ON’s retail business, Jim Macdonald, said: “At E.ON, we’re always looking for innovative ways to help people save energy in their homes. This collaboration with the News of the World is a hugely exciting step for us. It provides a great opportunity for people who might not see themselves as particularly ‘green’ to try these devices and see how easy it can be to save energy”. The move to offer free energy saving devices to the public is the latest in a series of green energy schemes by E.ON, who teamed up with the News of the World as part of the media giant’s popular ‘Go Green & Save’ campaign.

In an era of economic hardship, the rising cost of fuel bills has become a major concern for the average household. Britain’s leading energy providers, which include British Gas and E.ON, have been accused of raking in profits generated by cheaper wholesale fuel costs.

Unfortunately, the major energy suppliers have argued against passing on cheaper wholesale fuel costs to customers and have instead suggested domestic consumers must brace themselves for even greater fuel bills over the next decade. Nevertheless, high fuel bills have attracted widespread criticism and a negative public reaction, so a number of suppliers have taken steps to reduce prices in the short-term.

British Gas, for example, recently cut its gas prices; although, shortly afterwards, the energy giant increased the cost of its HomeCare policies, which are subscribed to by around 4.5 million customers. In a move to copy British Gas, German-owned E.ON, which has around 5.5 million customers in Britain, also reduced its gas prices – albeit on a decidedly small scale. In fact, E.ON has cut its gas prices by a paltry £3.50 a month and refuses to make any reductions for its electricity customers. As one national tabloid noted, the £3.50 monthly reduction is equivalent to a pint of beer and a bag of crisps, so the cuts are unlikely to save any household from fuel poverty; although, ironically, they may help to reduce bills further by keeping pub-loving customers out of the house for longer at weekends.

E.ON’s gas cuts will average £42 over the year, which is not a substantial saving but may be sufficient enough to make a small difference to customers whose finances are strictly controlled. However, the reduced gas prices are thought to be available to only a third of E.ON’s customer base in Britain, which is equivalent to approximately 1.9 million customers. Energy expert for the Consumer Focus watchdog, Robert Hammond, commented on the so-called pack mentality of the leading energy firms. Mr Hammond added: “It speaks volumes that this announcement is remarkably similar to ones made by E.ON’s competitors”. British Gas recently dropped its gas prices by £55 per year, whilst Scottish & Southern Energy offered a £30 annual saving.

According to the biggest manufacturer of central heating equipment in the UK, Worcester Bosch, the move towards so-called microgeneration is likely to trip over red tape currently restricting the availability of new certified installers of renewable energy equipment.

Microgeneration refers to a governmental scheme designed to encourage millions of UK households to produce their own electricity through various green methods. Such methods include the use of solar panels, heat pumps and wind turbines, which can all produce clean renewable energy in the domestic context. Recent measures introduced by the UK Government aim to fix the feed-in tariff available for households producing green electricity and selling it back to the National Grid.

Specifically, from next month onwards, a fixed rate of up to 41p a kilowatt hour will be available for households that have installed roof-mounted solar panels, whilst up to 34.5p a kilowatt hour will be available for households that have installed wind turbines or windmills. These tariffs will be made available to Britain’s 26 million or so households; however, early adopters of domestic renewable energy equipment will miss out on the new rates, which has resulted in widespread criticism of the Government. Nevertheless, the new tariffs are designed to encourage more people to install renewable energy equipment at home, so rewarding early adopters of the technology is not a key concern for the Government.

Other than the early adopter argument, there would seem to be very little reason why the new feed-in tariffs will not prove a major success; however, according to Worcester Bosch, the scheme may face a more practical set-back unless the route to becoming a certified renewable energy equipment installer changes. In the UK, under the Gas Safe scheme, there are approximately 120,000 registered gas engineers, whereas there are only 500 or so certified installers of renewable energy equipment. As the Head of Sustainable Development for Worcester Bosch, Neil Schofield, pointed out training to qualify under the Microgeneration Certification Scheme (MCS) is “expensive, onerous and full of red tape”. Although the MCS is useful in weeding out cowboy engineers, it would also appear to represent a major disincentive for gas engineers wanting to work in the microgeneration industry.

On Tuesday, the UK Government proposed legislation that would enable homeowners to take out loans worth thousands of pounds in order to meet its ambitious environmental targets. Under the legislation, homeowners would take out loans against their homes to install loft insulation, cavity wall insulation or solar panels.

As any such loan would be fixed against the home itself rather than the individual who took it out, if a homeowner moves out of the house he or she would not be liable to repay the outstanding balance; indeed, the loan would continue to be affixed to the house, so any new owner would inherit its annual charge.

Although the requirement for a person who was not party to the original credit agreement to continue repayments on it is likely to prompt much discussion in the legal sphere, the question of whether or not it will have any impact on the future housing market remains to be seen; in fact, it would probably only be a good thing, as new homeowners could enjoy savings on domestic energy bills as a direct result of increased efficiency through insulation and an alternative clean power source in solar energy.

The issue of domestic energy bills in the context of the Government’s carbon emission targets is becoming a cause for concern across the country. Although most people are not opposed to environmentally friendly measures, the majority of households are becoming increasingly conscious of their domestic energy bills in light of the economic downturn and recent cold weather.

Following news that the major energy suppliers in the UK are posting record profits without passing wholesale fuel savings on to consumers, many households are concerned that fuel bills will endure rise after rise throughout the coming decade. It is expected that around 60% of the estimated £18.6 billion cost of the Government’s green energy measures will be passed on to consumers through the major energy suppliers. The latest green legislation proposed by the Government plans to use finance from retailers such as B&Q and banks such as the Co-op in order to provide the loans to homeowners, which may be available from 2012 onwards.

The calls for more energy efficient central heating systems have sounded for quite some time now. In light of the burgeoning environmental problems and rising cost of domestic fuel bills, homeowners are faced with the realisation that something needs to be done to address the inefficiency of houses in the UK.

According to research compiled by the Nationwide Building Society, however, the vast majority of Britons do not want to abandon the comfort and convenience provided by existing central heating systems. Therefore, greater time, effort and money must be spent on ensuring that houses are made more environmentally friendly. Double glazing, loft insulation and cavity wall insulation are typical examples of the more basic measures that can be undertaken by those who aim to improve energy efficiency in the home.

The UK Government’s Boiler Scrappage Scheme is another energy saving measure that can be employed by homeowners, as it offers each eligible household a £400 voucher that can be put towards the cost of replacing a G-rated boiler with a significantly more energy efficient A-rated model. The Boiler Scrappage Scheme’s £400 offering has been matched by most of the leading energy providers in the UK, including British Gas, so customers can potentially save up to £800. However, whilst all of the aforementioned measures can make a significant impact on improving the energy efficiency of homes, it may be advisable to replace the traditional radiator central heating system with one that is decidedly more energy efficient and convenient: underfloor heating.

According to Ian Mills of the Underfloor Heating Manufacturers Association, Britain has it all wrong so far as radiator central heating systems are concerned. Mr Mills argued: “In Germany, it’s extremely rare to find a home without underfloor heating and the situation is similar in Scandinavia”. Nationwide research suggests that British homes are the least energy efficient in Europe and are responsible for 27% of the nation’s carbon emissions. Replacing a radiator central heating system with underfloor heating may appear to be an unnecessarily expensive option, but the potential savings on fuel bills and carbon emissions have made it a distinctly more attractive solution.