Armed with a giant spoof energy bill, dozens of Greenpeace campaigners have staged a protest today outside Centrica’s head office in a move designed to highlight the plight consumers face over “rip off” energy bills. 

Protesting against high energy costs which they say are fuelled by rising gas costs, around 65 protesters blockaded the road leading up to the company’s head offices in Windsor, Berkshire earlier this morning. Angered by what they say is Centrica’s reliance on “expensive, imported gas” the protesters.

Rather than investing in clean green renewable energy, Greenpeace say that Centrica, who own British Gas, is in fact responsible for keeping energy consumers hooked up to expensive gas when it should be investing in energy efficiency. And that instead of supporting renewables and energy efficiency the company, they claim, has in fact lobbied the Government to support gas in the energy mix. The Greenpeace volunteers used the protest as a means of highlighting the need to get off the roller coaster that is gas prices and to do more to bring energy bills under control once and for all.

According to the environmental group, while average home heating and electricity bills rose by £150 last year – and rising gas prices was solely responsible for £100 of that increase – subsidies for renewable energy projects are responsible for just £25 in the case of an average energy bill.

“Centrica is ripping us off. The bills that they are sending out are soaring, and that’s because Centrica uses too much expensive, imported gas,” said Greenpeace campaigner, Lawrence Carter.

“If Centrica instead invested in clean, cutting-edge renewable energy and energy efficiency, they would help to bring both household bills under control and to tackle climate change,” he added.

Officers from Thames Valley police were called to attend the disturbance.

Following news that fuel poverty could be claiming around 7,800 lives in Britain each winter, the big six energy firms have reported substantial pre-tax profits.

Analysis carried out by Consumer Focus has shown that Centrica, the parent company of British Gas, made £2.1 billion last year. French-owned EDF, meanwhile, accrued £1.7 billion from its activities in the UK. Scottish Power reported an even £1 billion, while npower made £526 million.

Director of Policy and External Affairs at Consumer Focus, Adam Scorer, said: “These results show the energy industry is virtually recession-proof. Consumers will be baffled about how such healthy profits are being made despite a big dip in energy use over the mild winter”.

Consumers perhaps ought not to be baffled. Although the relatively mild winter did allow many households to turn down their thermostats for a time, the cost of electricity and gas central heating was increased by each of the big six suppliers before the arrival of the colder weather. Only after temperatures rose did energy firms promise to pass on a proportion of the savings made by cheaper wholesale fuel prices, which had fallen at various points last year.

The problem of fuel poverty makes the position of energy firms, which as private companies are duty-bound to generate substantial profits, seem all the more pernicious. According to the University of Ulster’s Professor Christine Liddell, a little under 8,000 people in the UK die as a result of fuel poverty every year – far more than the 2,700 cited by Professor John Hills in a government -commissioned report last year. The problem might even be much worse than Professor Liddell fears, as the Office for National Statistics recorded 25,700 excess winter deaths in England and Wales alone in 2010.

Speaking last month, director of Transform UK, Ed Matthew, said: “These figures are horrifying. You can’t call yourself a developed country and allow this many people to die from living in cold homes”.

As the big six energy firms continue to generate substantial profits from customers who cannot all afford to keep their homes warm in winter, questions will continue to be asked about whether privatised energy is a suitable fit for the British people.

British Gas, one of the UK’s leading energy suppliers, has offered to pay £50 to any person who refers a “vulnerable” individual for free cavity wall and loft insulation from the firm.

The incentive is being implemented as part of a wider campaign to improve the energy efficiency of households across the UK. If more homes in Britain were adequately insulated, the nation would be on target to meet its carbon emissions target.

Improved domestic insulation would also benefit energy consumers, who could expect to save as much as £310 a year by installing loft (£175) and cavity wall insulation (£135).

In order to avail of the offer, the person who is referred to British Gas must qualify as a vulnerable individual. This means that the candidate is either a pensioner (aged 70+) or in receipt of certain benefits – namely Attendance Allowance, Child Tax Credits, Council Tax Benefit, Disability Living Allowance, Disablement Pension, Housing Benefit, Income Support, Income-based Job Seeker’s Allowance, Income-rated Employment and Support Allowance, State Pension Credit, War Disablement Pension or Working Tax Credits.

To be eligible for free home insulation from British Gas, candidates on qualifying benefits must earn less than £16,190 per annum. If the candidate meets these criteria, the referrer will receive a £50 payment. After the insulation work has been carried out, the beneficiary will also receive a payment of £50.

At a time when energy suppliers are squeezing every penny out of customers, driving many into fuel poverty, the referral incentive offers at least three benefits: the £50 cash payment; the free installation of cavity wall and loft insulation; and that neither person involved in the referral need buy their energy from British Gas.

Commenting on the incentive, Jon Kimber, British Gas New Energy’s Managing Director, said: “With household budgets stretched we know that people are looking at ways to save money. £1 in every £4 spent on heating is wasted due to poor insulation, so energy efficiency can have a massive impact”.

British Gas is not the first energy supplier in the UK to offer an incentive of this kind. Southern Electric offers £25 in high-street vouchers, whilst E.ON offers a £100 cash bonus to struggling households.

An undercover investigation into tariff switching has revealed that many of the UK’s leading energy suppliers are guilty of misleading customers over prices.

The investigation, which aimed to establish whether switching tariffs between suppliers offered any financial rewards, was carried out by consumer group Which? earlier this month.

Requesting quotes from supermarket-based sales teams, Which? discovered that representatives for the suppliers often gave inaccurate or misleading information. One sales team quoted a saving of up to £142 for switching tariffs, but Which? later calculated that the majority of customers would be worse off by a figure of between £39 and £311 if they went ahead with the switch.

The consumer group believes that many of the sales teams base their calculations on a best-case scenario, in which the interested customer is assumed to be on a standard tariff with his current supplier. Standard tariffs are almost always the most expensive, but even when the sales teams were given the name of a cheaper tariff only half revised the original quote.

Clearly, supermarket-based sales teams can be accused of misleading customers if they knowingly provide them with inaccurate information to encourage their switching suppliers.

A second investigation by Which? revealed that two of the big six energy suppliers – British Gas and E.ON – did not always inform customers of the cheapest tariffs when asked directly over the phone. In supermarkets, only two out of thirteen sales teams told customers that more competitive deals were available elsewhere.

Which? Executive Director, Richard Lloyd, said: “It’s simply not good enough for energy salespeople to be quoting misleading individual savings to people who sign up to switch in supermarkets.

“It’s little wonder that trust in the energy sector is so low. We want the energy suppliers to build confidence among consumers that switching is both simple and worthwhile”.

The investigation suggests that the alleged profiteering of energy firms may be even more extensive than initially suspected. At a time when the cost of electricity and gas central heating is unaffordable for millions of households in the UK, energy suppliers should at very least be expected to provide customers with accurate figures and helpful information.

The six leading energy suppliers in the UK – British Gas, E.On, Npower, Scottish Power, EDF and Southern & Scottish Energy – have been targeted by the Fuel Poverty Action Group amid growing concerns over domestic fuel bills.

The organisation staged several so-called ‘Winter Warm-Up’ protests outside offices belonging to the firms, which are accused of profiteering at a time when millions of Britons are being forced to choose between food and warmth.

The Winter Warm-Ups have arrived at a particularly opportune moment, as Britain braces itself for what the Met Office has promised to be the coldest week of the winter thus far. So what better way to encourage the big six energy firms to lower their tariffs than to stand out in the cold holding placards and banners over the weekend?

If the protesters wanted to be noticed they perhaps ought to have organised the demonstrations during weekdays, but no doubt their point has been made.

The organisation’s Elizabeth Ziga explained: “We want to challenge the big six energy companies, which control 99 per cent of the energy industry and make record profits off our rising bills”.

Ziga makes an excellent point, of course, but what can be done?

British Gas made a record profit of £742 million in 2010 but is expected to announce current end-of-year profits in the region of £566 million. Despite cutting electricity prices by 4.5 per cent from the end of March, British Gas seized the opportunity to increase the cost of gas by 18 per cent and the price of electricity by 16 per cent in 2011. Since the summer of last year, however, wholesale gas and electricity prices have fallen by 31 per cent and 28 per cent respectively. Wholesale savings are not, therefore, being passed on to consumers.

British Gas claims to have lost as many as 1,800 customers per day since raising tariffs last year, but where can customers go? Short of generating their own energy, customers can only switch from one supplier to the next – and all the suppliers have been accused of profiteering. Households can reduce their reliance on the suppliers to an extent by installing solar photovoltaic panels, double glazing, loft and cavity wall insulation and smart meters.

In a month known for its doom and gloom, energy customers might be feeling a little less of the January blues, with the announcement that several big energy firms are to cut their energy costs. 

On Wednesday, EDF Energy became the first of the “Big Six” energy providers to cut energy costs, by announcing a 5% drop in its average gas prices. While electricity prices will remain unchanged, from 7 February customers will see the reduction come into force. Just two months ago the company had increased their gas prices by 15.4 percent%

“We know customers are finding it difficult, particularly during winter. So I am pleased we have been able to make this announcement now and help our customers at a time they use more gas,” said Martin Lawrence, EDF Energy’s managing director of customer supply.

Increasing the pressure on their counterparts to make similar cuts, British Gas followed suit by announcing plans to implement their own reductions, cutting its standard electricity tariff by 5% with immediate effect. The move will see 5.3 million of its customers benefit from a saving of around £24 on their average annual electricity bills. The company, which has no plans to bring down its gas prices, said the reduction will make them the cheapest for electricity.

The announcement comes just six months after British Gas customers had to endure a massive 18% increase in gas bills, whilst electricity costs were hiked by an average 16%.

“We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down,” commented Ian Peters, Managing Director for Energy.

Energy suppliers came under fire last year for hiking their prices, given the falling cost of wholesale energy. Consequently, they have faced mounting pressure from consumer groups and the Government to pass on the reduction to customers by cutting their energy costs.

Hot on the heels of EDF and British Gas, Scottish and Southern Energy (SSE) will be cutting 5% off their gas prices from 26 March, resulting in an annual saving of around £28 annually for its 3.4 million customers. While Npower has also bowed to pressure and confirmed plans to cut gas prices by 5% from 1 February.

Disappointingly, none of the aforementioned energy providers have announced plans to implement duel fuel cuts. E.On and Scottish Power have yet to make similar price cuts, although with four out of the six major suppliers dropping their prices it’s only a matter of time.

For British Gas, EDF, Npower and SSE, the move is no doubt designed to try and improve their reputations, which are at an all-time low. But for most customers such minuscule reductions will have little impact on their central heating and household energy bills.

Quite simply, it’s a case of too little, too late.

British Gas has seen its customer base drop by a staggering 200,000 as a backlash of the recent increases in their energy prices, the firm has revealed.

Over the summer, energy providers – including all of the “Big Six” - raised household energy bills by an average of 16% for electricity and 18% for gas.

They blame higher wholesale energy costs for the need to increase their tariffs, particularly wholesale gas costs, which are 26% higher this winter than last according to Centrica,the firm’s parent company.

The news comes just days after British Gas announced plans to cut around 850 service jobs as a means of reducing costs. In a statement, the company said: “Household budgets are stretched, customers are looking for maximum value for money and if we are going to remain competitive and offer the best prices for our customers, we need to reduce our costs.”

More and more householders are becoming better clued up when it comes to implementing energy efficient home improvements – whether it be fitting double glazing, cavity wall insulation or making sure the loft is properly insulated.  Improving home insulation to reduce energy consumption will have a knock on effect on the sale of electricity and gas, as will spells of milder weather.

Centrica saw a 17% decrease in residential gas usage in the first ten months of 2011 compared to the previous year. However, the company still managed to make £272 million during the first six months.

The plight of a pensioner in Skipton has highlighted one of the many discrepancies of the privatised energy market.

Pamela Barton, a widow living on Brougham Street, Skipton, has this month received an energy bill of £2,843.41 – a final demand for payment that includes current usage and arrears.

The bill was issued by E.ON, which has been receiving £42 per month from Mrs Barton since 2007. Unfortunately, the regular payments made by Mrs Barton have not been enough to clear her account, which continues to grow as her energy usage exceeds £42 in value each month. Mrs Barton has now resorted to candlelight to save money on electricity and gas central heating.

Mrs Barton said: “My pension is only £120 a week – I just can’t afford to pay all this. I’m just getting deeper into debt. I’m keeping the lights and gas off as much as I can. I sit with something warm around me and use a candle.

“I’ve even thought about selling the house. I’ve cried about how it could have come to this”.

Mrs Barton’s plight is one that is shared by many thousands of other energy consumers in the UK. Fuel poverty is a growing problem in the country and efforts to ensure the most vulnerable households can afford adequate energy appear to be failing.

Highlighting an apparent disparity of the energy market in the UK, whilst Mrs Barton, a fuel-poor pensioner and widow, struggles to afford enough energy to light a room or heat a stove, Stoke-on-Trent City Council has announced a deal with British Gas that aims to provide help for low-income households.

Under the deal, British Gas will invest around £3.6 million to improve the energy efficiency of 785 private and council properties in Northwood. Energy efficiency measures include installing solar PV panels, loft insulation, draught proofing and new condensing boilers. The measures should ensure that households in the area are able to save hundreds of pounds on annual energy bills.

Unless similar help is afforded to households in Craven, Mrs Barton may be spending her Christmas by candlelight.

According to the results of a British Gas survey, half of those under 40 are clueless when it comes to servicing their homes for the winter.

The last two harsh winters seems to have highlighted a lack of knowledge when it comes to preparing our homes for severe weather conditions. The survey of 2,200 adults aged between 18 and 40 has revealed that 50% of people under the age of 40 are nowhere near clued up about the effects of winter.

More than half of the survey’s participants can’t bleed a radiator, while three quarters of those surveyed are in the dark when it comes to checking the water pressure on their central heating boiler. Perhaps not quite as surprising, a massive 90% admitted to not knowing how to thaw a condensate pipe.

The British Gas report highlights a generation who still regard snow and freezing weather as a bit of a novelty.  Between the late 1970s until the mid 2000s, climate data shows that during this time the UK experienced mild winters compared to those of recent years.

To help households cope with extreme harsh winter conditions, British Gas says householders need to get into the habit of servicing their homes on a regular basis, in a similar way they service their cars. The energy provider has put together a series of how-to guides, which appear on its YouTube channel, designed to talk people through common, easily solvable issues.

The channel includes a guide to bleeding radiators, as well as a step-by-step guide to thawing a condensate pipe. Check them out at www.youtube.com/britishgas

It’s saying something when a qualified accountant struggles to calculate the cost of a domestic energy bill, but that was exactly what happened during the latest Which? investigation.

Which? asked members of the public to calculate the cost of a domestic energy bill, taking the information from a range of energy providers’ websites, including British Gas, Southern Electric and Eon. But only one person was able to undertake the task successfully.

In fact, apart from a company director, every single one of the 36 people who took part in the investigation got the calculations wrong – and that included an accountant.

“People tell us they want to be able to check they’re paying the right price for their energy, and when even an accountant struggled to calculate a bill, it shows it’s far too complicated,” commented Richard Lloyd, executive director of Which?

An Ofgem spokesman said they welcomed the research, adding that following their own investigation they were already proposing radical action to reduce the number of confusing and complex tariffs.

“There are currently around 400 tariffs available and we are proposing new rules which will pare down the number of standard tariffs suppliers can offer, making it much easier for customers to pick out cheaper energy deals,” said Ofgem.

The Which? test was overseen by a mathematics expert from Edexcel. Keith Pledger, chairman and head of the mathematics exam board said most A-level maths students would find the calculations difficult and that it was “unrealistic to expect the public to be able to find the best deal when faced with such complex tariffs.”

As the cost of electricity and gas central heating continues to rise, Which? has launched the Affordable Energy Campaign. The consumer rights campaigner is calling on the energy regulator Ofgem to stamp out excessively complex tariffs in favour of a simpler format across the board.