Archive for the ‘Energy Bills’ Category

75 per cent of Britons are ignorant to the savings potential of smart meter technology

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One of the leading energy suppliers in the UK has published research that suggests more than 75 per cent of Britons are ignorant to the savings potential of smart meter technology.

Claiming that 37 million people in Britain need to increase their ‘energy smartness’, E.ON also asserted that 60 per cent of energy consumers would use less electricity in the home if they were able to visualise the amount they use.

The figures were collected and analysed by E.ON’s Smart Metering Centre of Excellence, which only recently celebrated its first anniversary. The energy giant’s research suggests that the majority of Britons do not realise the benefits that can be derived from using smart meter technology.

E.ON’s Head of Customer Learning for Smart Meters, Jean Fiddes, said: “Technology is playing an empowering role in our lives and our research highlights [how] people are keen to extend this to their energy use”.

Ms Fiddes added: “Smart meters allow consumers to easily visualise their energy consumption daily, weekly and monthly, meaning they have increased transparency into their daily energy habits, providing accurate bills and greater management of their finances”.

Smart meters provide households with an opportunity to manage their energy consumption in a way that was never before possible. Representing electricity usage in bar charts, pie charts and other graphical depictions, smart meters highlight which appliances consume the most energy. By replacing energy-inefficient goods with more environmentally friendly substitutes, households can save money on their energy bills.

The devices also provide information on when energy is used. Few electricity tariffs stay the same throughout the day. Most suppliers charge more for energy used during the day, while off-peak consumption tends to be cheaper. Understanding energy usage in this way can help households save money on bills by encouraging them to change when they carry out energy-intensive tasks, such as washing clothes or running on a treadmill.

E.ON’s research also uncovered several surprising facts about the way men and women view energy usage. The study revealed that women are more likely to alter their energy usage if consumption could be visualised, while only half as many women as men want to install a smart meter at home.

Campaigners stage protest outside Centrica HQ

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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.

 

 

 

E.ON apologises after incorrectly billing customer for £78k

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Energy firm E.ON has issued an apology after sending an incorrect bill to a customer. Although clerical errors of this kind are far from extraordinary, the size of the mistake managed to attract the attention of the national media; indeed, the customer had been asked to pay £77,815.85 for gas supplied to a property in Peterborough.

The bill was sent to Neil McGregor-Paterson, head of Realitas Community Arts Centre. The charity typically spends around £30 a month on gas central heating, so Mr McGregor-Paterson was understandably surprised to receive an estimated bill of just under £900.

The charity worker explained: “They said because our previous payments had been estimated, we owed £876.43. We simply couldn’t afford that, so we turned off the heating and everyone was sitting around in their coats”.

Mr McGregor-Paterson became hopeful when he noticed an error on the bill. Charges had been applied for gas used before the charitable organisation had moved in to the property. Calling E.ON to explain the mistake, Mr McGregor-Paterson expected a resolution to the problem when the energy firm promised to review the bill.

Mr McGregor-Paterson said: “They sent people to take two new readings and I also had to give them three of my own over the phone”.

E.ON duly amended the bill, but not in a way that might have been expected.

“When the revised bill for £77,815.85 arrived I almost fell off my chair. Luckily I have a strong heart”, Mr McGregor-Paterson added. “It’s about time the electricity suppliers made reading their bills easier and with all their resources, get their readings right”.

E.ON amended the bill for a second time, issuing an apology to Mr McGregor-Paterson alongside a demand for £27.21.

The charity worker commented: “That was more like it. I have since worked out that it would have taken the charity 2,859 months to whack up a bill as high as £78,000 based on our usual gas consumption”.

Mr McGregor-Paterson’s ordeal is hardly the first time energy firms have erred on pricing. All energy users in Britain are advised to check their meter readings on a regular basis. It is also sensible to inform suppliers of new readings whenever necessary. Smart meters can be used to check that bills tally precisely with electricity usage.

Clean British Energy Campaign launched

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St. George’s Day marks the launch of a campaign which is calling on the Prime Minister to make the most of his first green speech to get behind a switch to clean energy. 

With increasing numbers of the British public recognising the need to switch from fossil fuels to clean green renewable energy, Friends of the Earth’s Clean British Energy Campaign – which has the support of Dragon’s Den star Deborah Meaden – is aiming to kick start an energy revolution.

In conjunction with the launch of the campaign, the charity has revealed the results of their latest poll which indicates 85% of the British public is in favour of renewable energy and believes the Government should be more supportive when it comes to the use of wind turbines and solar PV panels to help reduce our reliance on costly imported gas.

Commissioned by Friends of the Earth, the survey – which was conducted by YouGov – shows that almost 9 out of 10 people favour the use of wave, tidal, wind and solar power. Some 2,884 people were questioned and of those that participated just 2% backed the use of gas.

Commenting on the poll, Deborah Meaden said David Cameron really needed to listen to the public when it came to clean British energy and the use of green technologies.

“Gas, coal and nuclear are the technologies of the past. Our country has the skills and the talent to be world-beaters in the renewable energy technologies of right now. Friends of the Earth’s Clean British Energy campaign would switch the UK to home-grown clean power – we can’t afford not to.”

Craig Bennett, Friends of the Earth’s Director of Policy and Campaigns added that the public has spoken, expressing clear confidence in using the sun, sea and win for energy and that for the Government to pursue a costly dash for gas, which was forcing escalating hikes in fuel bills made no sense.

“David Cameron must back Britain by using his speech to kick-start a switch to clean British energy – it’s time to wave goodbye to costly fossil fuels and develop affordable power for the future,” said Bennett.

The Prime Minister is due to speak at the Clean Energy Ministerial on Thursday.

 

Barker Separates Green Deal Fact From Fiction

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As the Government continues to fine tune the details, the Minister for Energy and Climate Change has spoken out about the Green Deal in an effort to try and separate fact from fiction.

In an article published in the Guardian on Friday, Greg Barker discussed the myths surrounding the Government’s revolutionary home insulation initiative. The Energy and Climate Minister hit back at various media claims that the initiative won’t save people money.

Talking about the level of savings that homeowners can achieve, he said two different assessments would form part of the scheme, with one designed to take into consideration the customer’s average energy use, and another assessment which would delve into the way in which a household can maximize their achievable savings. Barker highlighted the fact that everyone would be able to make savings, and that people were free to take part in the scheme or not; the measures are not by any means compulsory, as some people appear to believe.

There certainly seems to be a lot of confusion about the Green Deal, with opinion divided over whether the initiative has the potential to be everything it claims to be. Many people believe it’s too big for its boots, and is more likely to fall flat on its face as opposed to fulfilling its full potential.

But the scheme, which is set to be introduced this Autumn, is clearly an important initiative – and one that will take a great deal of organisation if it is to be in any way a success. It will enable people to improve their badly insulated draughty homes, such as through installing double glazing, loft insulation or cavity wall insulation, but without needing to pay for the cost of the work up front.

 

Charity Which Helps Fuel Poor Celebrates Major Milestone

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The ScottishPower Energy People Trust is celebrating reaching a major milestone, having donated in excess of £10 million to organisations working at grass roots levels to tackle fuel poverty. 

The Trust, which was established back in 2005, aims to provide funding for not-for-profit organisations set up to help vulnerable families who fall into the category of fuel poor.

More than 200 community based projects have benefited from total funding worth £10,691,776, aiding 1.6 million people. To qualify for support through the project, families either live in poor housing, are on low incomes or have health issues.

Ann Loughrey, the Head of Corporate Social Responsibility at ScottishPower and The ScottishPower Energy People Trust Company Secretary, said they were “delighted” to have reached such a milestone and that the Trust is dedicated towards addressing and tackling fuel poverty issues.

“It’s a very stressful time for families, the elderly or any household, when they are spending more than 10% of their income on their fuel bills and we are endeavouring to reduce that stress for them by working with local organisations which can help them tackle their specific issues,” she added.

Funded by ScottishPower as well as through voluntary donations from various independent supporters, funding decisions are the responsibility of an impartial experienced Board of Trustees. The Trust provides funding directly to not-for-profit organisations who support families and individuals who are classed as fuel poor.

More often than not energy firms are slammed for not doing enough to help energy customers suffering from fuel poverty. But The ScottishPower Energy People Trust is doing its bit to help society’s most vulnerable people, such as young families, the disabled and the elderly, who – because they need to keep their homes warm – usually suffer the most when it comes to high heating bills.

For more information or to apply for a grant call 0141 568 3492 or visit The ScottishPower Energy People Trust website.

‘Big Six’ to Inform Customers of Lowest Available Tariffs

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The ‘Big Six’, the country’s six largest energy suppliers, will be made to tell their customers which tariffs are the lowest after the Government managed to secure what is set to be a landmark deal. 

Appearing on BBC Radio Five Live, the Deputy Prime Minster Nick Clegg took the opportunity to explain the Government’s plans. The specifics of the deal and how it will be implemented have yet to be revealed, but under the scheme energy firms will have to inform consumers on an annual basis about the lowest available tariffs.

Commenting on the deal yesterday, Nick Clegg said: “We need to get bills as low as possible. I know that many families are struggling with rising energy bills. We can’t control volatile world energy prices. But we can still help people get their bills down.

“So I can announce today that we have secured a landmark deal with the six big energy companies who cover 99 per cent of customers, to give customers a guaranteed offer of the best tariff for them.”

Around 70% of energy consumers on the wrong tariffs, meaning they are paying more than they need to. However, the majority of people still fail to switch to a more suitable tariff or move supplier, even though for some households it could cut their energy bills by as much as £100 a year.

From this Autumn, energy providers will have to contact their customers to offer them the best possible tariff to meet their needs. The same will apply when customers contact their supplier directly.

“We’re also working with energy companies to put special barcodes on energy bills. You’ll be able to scan them with your smartphone to get quotes and switch tariff or supplier in a matter of minutes,” said the Deputy Prime Minister.

“Plus we’re working with consumer groups to make it easier for people to club together and switch supplier. Consumers will be able to use their collective purchasing power to bring down bills,” he added.

For customers, when their contracts are due for renewal, energy firms will have to contact them in writing to advise them of how they can switch to a better deal. Pensioners and other vulnerable consumers who are susceptible to high electricity and heating costs will be contacted every six months.

On the whole Clegg’s announcement has been received warmly but the general consensus seems to be that these latest measures, however positive, are still not enough. With a recent report revealing that a shocking one in four energy bills are incorrect, the energy industry – and particularly the ‘Big Six’ - Audrey Gallagher, director of energy at Consumer Focus, emphasised how vital it was for the Government to do more when it comes to helping consumers tackle escalating energy costs.

Paul Steedman from Friends of the Earth said the Government was simply “papering over the cracks”.

 

 

One in Four Energy Bills Turn Out to Be Incorrect

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When it comes to unpleasant mail dropping through our letter boxes, gas and electricity bills must surely top the list of the most hated. And to rub salt into our wounds, it turns out that one in every four energy bills are actually incorrect. 

Nasty surprises are part and parcel of household energy bills. And the news that so many of them are wrong will only compound the negativity surrounding gas and electricity providers, who already suffer from tarnished reputations in an industry much hated for its escalating greed.

If you haven’t had a shock upon opening your gas and electricity bills then you’re likely to be in the minority. Most of us will, at some point, have had to endure the nasty surprise after being presented with a bill that seems to have one too many digits.

Research from popular comparison website uSwitch.com has revealed that more than one in three households have in fact unexpectedly been in debt to their energy supplier, owing money due to a discrepancy between an estimated bill, where the meter hasn’t been read, and a real bill. In these situations, on average households have owed just over £150.

In most instances, whether the mistake turns out to favour the energy provider or the consumer, it can be a hassle to put mistakes right. Given the fact that there are in access of 120 different energy tariffs available, most people – around two in three customers in fact – simply cannot be bothered to change their tariffs. Even though it could help them to save money, it seems the hassle factor prevents most from making the switch.

And that’s a shame, because the savings are there to be had. For example, according to Moneysupermarket.com the cheapest online tariff would see an average household pay £1,027 a year (with First Utility) compared to the most expensive standard tariff currently on the market which costs £1,349 (with Scottish Power).

uSwitch.com director Ann Robinson said that because customers were having to pay hundreds – and in some cases even thousands of pounds annually – accurate billing was a right not a privilege.

“Billing blunders can cause consumers to end up out of pocket, as well as wasting time and effort trying to get the issue resolved,” she said, adding: “The energy industry is worst for inaccuracy, ahead of banks, council departments, credit card companies and other utility companies – only the Inland Revenue trumps it for getting bills wrong.”

Aside from making sure your bills are accurately and regularly read, as opposed to estimated billing, there are a variety of ways in which you can cut down on your household energy costs. It’s worth considering implementing a few energy saving tips, which could include:

  • Installing a new energy efficient boiler
  • Turn down your central heating thermostat by 1°
  • Don’t leave electrical appliances on standby

Overcharging Energy Firms Could Be Forced to Compensate Customers

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Under new proposals Ofgem could start to force energy firms to compensate customers in cases of overcharging. 

In what is being described as a “beefed up” industry watchdog, the energy regulator would have the power to make energy providers pay compensation to energy consumers where they have been found guilty of overcharging. Enhanced powers will also enable Ofgem to demand compensation for mishandling customer complaints and mis-selling.

In situations involving a breach of licence Ofgem currently has the power to fine energy firms up to 10% of their turnover, with the proceeds going in to Government coffers. The proposals – part of a consultation launched by the Department of Energy and Climate Change today – could feature in the energy bill, which is due to be published later in the year.

The news follows a £4.5 million payout from EDF Energy who last month agreed to compensate customers for making misleading sales claims. As a result refunds of around £50 will be making their way to around 70,000 households. However, the compensation was paid voluntarily. Similarly, in October and November last year two of the “Big Six” – British Gas and npower – were fined £2.5 million and £2 million respectively due to mishandling consumer complaints. Energy firms receive rising complaints and under the new proposals payouts like these will be imposed and compulsory.

“Customers who have felt the detriment caused by energy firms’ mistakes should also feel the benefit of any fine the firm faces. Money should be going back into consumers’ pockets when they have lost out – not into the Treasury’s coffers, as is the case with fines now,” said Audrey Gallacher, welcoming the news. Gallacher is the director of energy at Consumer Focus.

The executive director of Which?, Richard Lloyd said Ofgem deserved to be given the same powers as its regulatory peers. “It has a duty to protect consumers and should be able to force suppliers to provide redress for customers, as other regulators do.”

Doubt Cast Over UK’s Ability to Meet Smart Meter Targets

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Sentec, one of the world’s leading suppliers of smart metering technology, has cast doubts over the UK’s ability to meet smart meter installation targets by 2015.

The British firm, which supplies smart meters throughout Europe and the rest of the world, has provided a ‘heat map’ to show how countries in the EU are progressing with the roll-out of smart meters.

The Electricity Directive requires all European Community countries to deploy smart meters in 80 per cent of homes by 2020. According to Sentec, Britain must do more if she hopes to meet this objective.

Explaining some of the difficulties facing energy and smart meter firms in the UK, Mark England, CEO of Sentec, said: “The deregulated structure of [the] UK market is uniquely challenging for rapid and coordinated action in a large-scale initiative like this and we believe that smart meter deployment in 65 per cent of UK homes by 2015 is not possible”.

Mr England admitted that there remains a “great deal of work still to do to finalise the technical and regulatory framework for smart metering”.

The figure of 65 per cent is based on predictions made by IMS Research, which also believes that smart meter penetration will reach 49 per cent of homes in France and 73 per cent of homes in Spain and Portugal.

Sentec’s heat map suggests some countries are not doing enough to roll out smart meter technology, which is designed to reduce energy users’ reliance on domestic electricity, thereby cutting usage and making bills more affordable. In Britain, smart meters can be used in conjunction with solar photovoltaic panels, which generate electricity for home use. Surplus energy can also be sold to the National Grid.

The heat map indicates that several countries in the north or west of Europe will exceed 70 per cent penetration by 2015, but Poland and Germany will struggle with around 30 per cent. The fate of smart metering in the UK is less clear.

Mark Baillie, of OpenText, anticipates a surge in smart meter implementation over the next few years. Mr Baillie estimates that smart meter readings on the continent will reach 130 billion a year when smart meters are deployed in 80 per cent of homes.