As temperatures plummet in the UK this week, central heating systems across the country are working overtime to keep people warm. But for an alarming number of households the cold winter months means more financial misery.

Glow-worm – one of the UK’s leading boiler manufacturers – recognises the financial strain turning up the heating poses,  particularly for the most vulnerable members of society, and is offering some good to help tackle high energy bills this winter.

Cranking up the heating during the cold winter months uses the largest proportion of energy most households will use throughout the entire year, so it stands to reason that to get the best out of your hard-working boiler is needs to working to optimum performance.

“Accurately sizing a new or replacement boiler is very important.  But it’s also very important for homeowners to ensure their whole heating system is working as efficiently as possible,” explains Glow-worm’s Commercial Director, Pippa Wibberley.

“This may mean new or replacement radiators, controls, under floor heating or even investment in renewable technology,” she added.

An efficiently running system means not only will you not be wasting energy, but you won’t be wasting money either, which will help to reduce your fuel bills.

To get the most from your central heating system, Glow-worm has a few top tips, which includes:

• Programme your heating system to operate when you need it most – it’s the most efficient way to heat your home – rather than leaving it on low all day.

• Utilise systems with intelligent controls to set your heating and hot water, such as Glow-worm’s Climapro₂ wireless programmable room thermostat, which can be used as part of a heating system containing a cylinder.

•  Consider installing thermostatic radiator valves.  And if you’re not using a room, save energy – and money – by turning off the radiator valve.

• Treat your central heating system to an annual maintenance check by a Gas Safe Registered engineer.

• And last but not least, remember to get your boiler serviced regularly by a Gas Safe Registered engineer.

For more information about Glow-worm’s products visit www.glow-wormheating.co.uk

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.

Scottish Power and E.On have joined Britain’s leading energy suppliers in announcing price cuts for domestic tariffs.

After British Gas, Scottish & Southern Energy, npower and EDF Energy made public their intention to reduce gas or electricity tariffs for domestic customers, E.On and Scottish Power followed suit by announcing a 6 per cent drop in electricity prices and a 5 per cent reduction in gas prices respectively.

So far this year, only Scottish Power and British Gas have reduced gas prices, whilst the four other leading suppliers sought to lower electricity tariffs as the country emerges from what has proved a relatively mild winter.

Critics have been quick to blame energy suppliers for taking advantage of consumers over the winter period; indeed, the big six suppliers in the UK have long courted criticism for failing to pass on savings in wholesale fuel costs to end users – a strategy that has undoubtedly contributed to Britain’s appalling fuel poverty record. Have energy suppliers finally turned the corner?

Perhaps not. Each of the big six suppliers introduced price hikes late last year.

Both E.On and Scottish & Southern Energy increased gas tariffs by 18 per cent and electricity tariffs by 11 per cent in September 2011, meaning that consumers are still paying far more for energy than they were this time last year (in fact, E.On twice raised tariffs last year, when a 3 per cent gas and 9 per cent electricity price hike was imposed in February). Few people would regard a 20 per cent increase and 6 per cent drop over 12 months as a good deal, yet the suppliers appear keen to stress the value and fragility of the cuts.

Dr Tony Cocker, Chief Executive of E.On, warned: “Whilst we’re pleased to pass on this recent slight fall in wholesale prices, most experts agree that global energy prices will continue their long-term rise”.

Households in England and Wales can help to reduce their dependence on gas central heating by implementing energy saving measures such as loft insulation and cavity wall insulation. Double glazing also ensures a more environmentally friendly home, whilst solar panels can be installed at a cost to further reduce fuel bills.

A committee of MPs has warned that an initiative to introduce smart meters to homes across the UK could end up costing domestic consumers more money unless efforts are made to regulate energy suppliers.

Casting doubt on energy suppliers’ capacity to pass on savings to consumers, the committee noted that the domestic energy market in the UK is hardly the most competitive, suggesting natural market conditions would be insufficient to protect consumers. Which? has also called for the Government to adopt a more hands-on approach to the task of rolling out smart meters to at least 80 per cent of households on the grid – a legal requirement under European Community (EC) directives.

The European Community Task Force for the Implementation of Smart Grids into the European Internal Market states that “Member states shall ensure the implementation of intelligent metering systems that shall assist the active participation of consumers in the electricity supply market in line with… the electricity and gas internal market directives”.

The MP committee has questioned whether the existing framework for implementing the directives is sufficient to “assist the active participation of consumers”. In other words, would energy savings from smart meters actually be passed on to consumers? Chair of the committee, Margaret Hodge, is uncertain.

Ms Hodge said: “Consumers will have to pay suppliers for the cost of installing and operating smart meters through their energy bills and no transparent mechanism presently exists for ensuring that savings to the supplier are passed on. The track record of energy companies to date does not inspire confidence that this will happen.

“The Government is relying on competition in the market, but, as has been previously reported by Ofgem, the energy market does not currently operate as an effective competitive market”.

Smart meters can help energy users save money by highlighting appliances and systems that consume the most electricity, thereby shaping usage habits and purchases (such as replacing an energy inefficient central heating boiler with one that uses gas and electricity more economically). If consumers are required to pay for the implementation of the EC directives, however, it is entirely possible that households will end up paying more money on energy bills in the short-term.

With the announcement that E.On is to cut their customers’ electricity bills by 6%, Scottish Power remains the last one standing to drop energy prices after EDF Energy, British Gas, npower and SSE all confirmed price cuts last week.

For E.On’s 3.7 million electricity customers, the drop will come into effect from 27 February. With no one implementing a dual fuel cut, the energy provider’s gas prices will remain unchanged.

According to E.On – now the fifth of the “Big Six” energy firms to instigate cuts to either gas or electricity tariffs – around 75% of the households it supplies will benefit from a reduction in their average annual bill of around £31.

Thanks to falling wholesale energy prices, energy companies have been facing increasing pressure to pass on reductions to customers.

“Whilst we’re pleased to pass on this recent slight fall in wholesale prices, most experts agree that global energy prices will continue their long-term rise,” commented E.On UK’s chief executive, Dr. Tony Cocker.

Dr Cocker added that as one of the UK’s largest energy providers, E.On is committed to providing financial advice and support to its millions of customers, including helping them to benefit from energy efficiency measures such as loft insulation and cavity wall insulation.

“Over the coming months we will continue to help our customers to monitor their energy use and control their bills so they become energy fit,” he added.

The cuts will take a customer’s average annual dual fuel bill to £1,159 which would make E.On’s standard tariff the third cheapest after npower and EDF Energy.

It seems Scottish Power’s customers will have to wait a little bit longer to hear whether they will be in line for similar price cuts.

Are you struggling to pay your energy bills? Are you too scared to put your central heating on? If the answer is yes, then help is at hand thanks to Big Energy Week. 

Citizens Advice, in conjunction with energy suppliers, consumer organisations and Government agencies, has today launched Big Energy Week, a campaign designed to offer money saving help and advice to consumers looking to reduce their energy bills.

To back the launch of the campaign, Citizens Advice has revealed the findings of a recent study, which claims two in five people are worried that they will not be able to pay their next energy bill. The study revealed that 43% of people fear being unable to find the funds to pay their next fuel bill, while one in two of the survey’s participants said the rising cost of their energy bills would be a strain on their finances.

Last year the charity dealt with more than 95,000 fuel debt problems. Chief executive Gillian Guy said every day they were called upon to help people who simply cannot afford to pay their fuel bills, thanks to prices hikes which put even more pressure on finances when money is already tight.

“We’re worried that some people are struggling unnecessarily because they’re not on the best deal, live in homes that hemorrhage heat or are not getting all of the financial help available to them.”

Running from 16 – 21 January, Big Energy Week aims to highlight the measures consumers can take, which will help them save money and cut back on their energy cost, including:

• Keep on top of your bills – by working out how much your spend on your fuel bills, you’ll be able to budget to cover the costs.
• Search around for the best deal – according to the CA a household could save up to £200 annually by switching suppliers
• Implement energy efficient home improvements, such as cavity wall insulation, installing a new energy efficient boiler or fitting loft insulation. Check to see if you are eligible for a grant – such as the Warm Front scheme in England – to help insulate your home.
• Other energy saving measures, such as turning your thermostat down by one degree and making sure you don’t leave appliances on standby will help to reduce your energy costs.

If you are struggling to pay for your fuel bills, contact your energy supplier straight away. They should be able to offer you affordable repayments and may even be able to offer assistance when it comes to insulating your home.

For more information please visit the Big Energy Week website

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.

A family from Barrowford, Lancashire, has described the difficulties faced in securing financial assistance to pay for central heating bills.

Mr and Mrs McDonald-Noble were left with little option but to seek help when their young son, Nathaniel, was diagnosed with Cri du Chat Syndrome, a genetic disorder that causes his body to struggle with even slight changes in temperature.

Severely disabled both mentally and physically, Nathaniel is unable to properly regulate his body temperature, meaning that his parents are forced to keep the family home warm on a constant basis. Whilst most households are learning to use central heating more sparingly in an age of increasing fuel poverty, Mr and Mrs McDonald-Noble have no alternative but to keep the heating up high for 24 hours a day.

Despite help being provided for low-income families, Mr and Mrs McDonald-Noble both work and do not qualify for most means-tested benefits that are made available to other households. The high cost of gas is proving a significant drain on the couple’s resources, however, which is why help has been sought to pay the bills. Unfortunately, help has not been forthcoming to date.

Mr McDonald-Noble explained: “We have to keep the house really warm for [Nathaniel] and winter is an especially difficult time. He gets cold and can turn blue quite easily, just coming out of the bath and things like that.

Since Nathaniel was born our heating bills have doubled. There is help available, but just getting to what’s available is really difficult. The whole system is a minefield with no clarity on what is or isn’t available”.

Pendle Borough Council has promised to look into the possibility of providing a special grant for the McDonald-Noble family, despite the fact that Nathaniel receives Disability Living Allowance. The salient point to note from the couple’s struggle is not only that help from local government and energy companies can be difficult to obtain but that some families cannot afford to save on heating.

Although most households can survive comfortably with reduced reliance on heating, Nathaniel’s parents must do all they can to ensure a warm environment for their son, which could be made more affordable by installing loft and cavity wall insulation to limit heat loss.

Discussing a plight affecting millions of households in England and Wales, Save the Children has claimed that childhood conditions such as Asthma may be caused or made worse by fuel poverty.

According to the charity, 45,280 families in Wales are eligible for the Warm Homes Discount, the UK Government’s latest initiative to increase the affordability of energy for homes throughout Britain. The problem highlighted by Save the Children is that many people do not realise they are eligible for the £120 discount, which was designed to help around 800,000 families.

Save the Children also argues that many families simply do not know how to claim the discount, meaning that the problem of fuel poverty is not being effectively tackled by government.

Head of Save the Children in Wales, James Pritchard, said: “It’s unacceptable that so many of Wales’ poorest families who need help heating their homes this winter will get nothing because energy companies have not put up nearly enough money.

“Without this help the choice for parents is stark: cut back on food, get into debt or risk their children’s health because they can’t afford to keep them warm”.

Mr Pritchard makes a compelling argument, but his concerns are likely to fall on deaf ears as the UK Government continues its drive to cut public spending. Energy companies, meanwhile, despite enjoying record annual profits, are hardly forthcoming in providing sufficient help for the most vulnerable households.

A household is deemed fuel poor if it spends 10 per cent or more of its income on energy. Following another economically turbulent year, millions of households in the UK could be described as fuel poor. If Save the Children is right in its assessment of the situation, fuel poverty could be doing far worse damage to children than previously thought; while proving a financial struggle for many parents, the high cost of electricity and gas central heating could be indirectly ruining the health of thousands of children.

Christine McGourty, the Director of Energy UK, which represents energy firms in the country, argued that the Warm Home Discount scheme had been adequately advertised to customers. Mr Pritchard, however, believes the problem is not one of promotion; instead, he believes the initiative has been “massively underfunded”.

Statisticians at Manchester University have produced a set of calculations that proves what most people in the UK already know: the big six energy firms have been profiteering for years.

The cost of domestic energy is a serious concern in the UK, where millions of households are described as fuel poor, which arises when a household spends 10 per cent or more of its income on electricity and gas central heating.

Energy firms such as British Gas and E.ON have been increasing domestic fuel bills for years, usually citing the ever-increasing cost of wholesale fuel prices as justification for the rises. According to statisticians at Manchester University, however, whole sale fuel prices rarely correlate with the increases charged by energy firms.

Dr Nathan Green of Manchester University said: “There is a clear trend and this shows a widening gap between the price consumers pay and the whole cost paid by the energy companies.

“When you take into account seasonal variation, random fluctuations and the time lags between wholesale costs rising and retail prices following, there is never a time at which the energy companies are losing money”.

The gap between wholesale fuel costs and domestic prices has long proved a source of frustration for consumers. Wholesale prices tend to spike rapidly before returning to standard rates. Domestic prices, however, increase rapidly in response to wholesale spikes, but tend to fall much slower. When wholesale prices fall, energy firms are notoriously slow to pass on the savings to consumers.

Although this point has been known for some time, Dr Green’s calculations put into figures what already had been expressed in words by disgruntled consumers, concerned charities and an outraged but ultimately toothless energy watchdog.

According to Dr Green, the big six energy firms were charging an average £1.93 per 100 kilowatt hour more than the wholesale price in early 2004. This figure jumped to more than £4.00 by 2010, falling only to £2.73 in the summer of 2011, shortly before energy firms sought to increase bills even further. Lobbyists have since vowed to end energy firms’ shameful profiteering.

In the meantime, households can reduce domestic energy bills by installing loft insulation, cavity wall insulation and the latest energy efficient boilers with new thermostatic controls.