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.

The so-called green deal, a scheme established by the UK Government to improve energy efficiency in homes throughout the country, is destined for failure according to the Committee on Climate Change (CCC).

Intended to improve the energy efficiency of 14 million homes in England and Wales, the green deal represents the means by which the coalition can honour its pledge to become the ‘greenest ever’ government. The CCC, however, believes the scheme will only be capable of reaching between two and three million homes – just 14-21 per cent of expectations.

As with so many political promises, the green deal appears to have limited mileage – far less than promised by the UK’s greenest ever government, which presumably believes that extended use of the word ‘green’ to describe policy is sufficient to hoodwink millions of downtrodden voters.

Scheduled to commence in October 2012, the green deal should enable homeowners to pay for energy efficiency improvements in the home – such as the installation of cavity wall insulation – using specialist loans, repayments for which would cost less than the energy bill savings generated by the improvements. Whilst appearing to be a good idea in theory, the green deal serves to remove energy suppliers’ legal obligation to help customers improve energy efficiency in the home.

David Kennedy, the Chief Executive of the CCC, said: “The proposal is to take away that obligation and say, ‘let’s leave it to the market’. We think there is a significant risk in leaving it to the market, as that has never worked anywhere in the world and is unlikely to happen in the UK. We are talking about the transformation of the entire building stock of this country”.

Andrew Warren, of the Association for the Conservation of Energy, was pessimistic about the UK’s chances of improving domestic energy efficiency on a large scale following the predictions made by the CCC. Mr Warren said: “There is going to be a complete collapse in the insulation market. We will see an 80 per cent drop in cavity walls being filled”.

Warren further criticised the Government after it released a national carbon budget plan that claims all cavity walls and lofts in the UK will be insulated by 2022.

An energy efficiency programme has been launched in the US, which aims to achieve a 20% improvement in the efficiency of its buildings by 2020. 

Launched by President Barack Obama and former US President Bill Clinton, the Government will be investing $2 billion (£1.3 billion) into retrofitting federal Government and commercial office buildings.

More than sixty private organisations – including Nissan and GE – have signed up to the scheme and, as part of the Better Buildings Initiative launched earlier in the year, have agreed to  invest nearly $2 billion of their own money into efficiency projects, taking the total to $4 billion.

Speaking at the launch, President Obama explained how upgrading the energy efficiency of America’s buildings would not only create thousands of jobs and help reduce harmful carbon emissions, but it was also one of cheapest and easiest ways to save the country money.

“So today, I’m directing all federal agencies to make at least $2bn worth of energy efficiency upgrades over the next two years – at no up-front cost to the taxpayer,” he said.

Aside from improving energy efficiency through better insulation and more energy efficient heating, the Better Building Initiative should help businesses achieve savings of up to $40 billion (£25.6 billion) annually on their energy bills.

A new report has highlighted the enormous task the UK faces, if the country stands any chance of meeting its carbon emissions reduction targets through a massive ‘get Britain retrofit’ scheme. 

From now until 2050, one green makeover will need to be given every minute, otherwise the country will fail to meet its targets, reveals the Centre for Low carbon Futures report, which was compiled in conjunction with the Energy Saving Trust.

Given that around 45% of emissions come from existing buildings, of which 70% will still be standing come 2050, there’s no escaping the fact that getting Britain’s buildings retrofit is of the utmost importance.

According to the report, schemes like the Renewable Heating Incentive (RHI) and the Green Deal have gone some way to encouraging people to make improvements to the energy efficiency of their properties. However, in order to achieve an 80% cut in carbon emissions, more still needs to be done – and the urgency to do more and the challenge facing the built environment should not be overlooked

“Despite the best efforts to encourage households and industry to adopt low carbon solutions through regulation and incentive schemes, they are not achieving the step changes required,” explained Jon Price, director of the Centre for Low Carbon Futures.

Mr Price explained that a lack of knowledge and understanding of energy performance, coupled with the diversity of the country’s buildings would hinder the extensive retrofit plans because one size cannot fit all, as it were.

Government schemes like the Green Deal and the RHI are designed to encourage Britain’s home owners and businesses to become more energy efficient by implementing energy saving measures, such as installing energy efficient new boilers, cavity wall insulation, double glazing and green heating technologies like heat pumps and solar water heating. The Green Deal in particular should, in theory, totally revolutionise the energy efficiency of the UK’s housing stock.

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.

It is the season to be jolly, and with Christmas fast approaching, the nice folk at Glow-worm have been working faster than Santa’s little helpers to source top tips and advice to help us all enjoy a low carbon Christmas. 

The winter months are starting to set in, and with the expensive Christmas season just around the corner, we’re all looking for ways to help save energy and money.

To count down the days running up to Christmas, the team at Glow-worm have today launched their fun alternative Christmas advent calendar. From now until Christmas Day, instead of the traditional festive images or chocolate treats, you will be able to feast on a variety of fun facts and figures and energy saving tips.

If you want to cut your costs and do your bit for the environment in the process, it’s worth considering these energy saving tips:

• Reduce your carbon footprint – ditch paper cards and send friends and family an e-card instead.
• Make your own recycled Christmas decorations.
• Use LED fairy lights – they use much less energy compared to traditional ones.
• If you really want to go to town you could decorate the outside of your home, but use energy-saving solar powered lights instead. You’ll be saving money on your energy bills if you use the sun’s renewable energy during the day to light up your house at night.
• And last but not least, give your boiler the best present of all by making sure it’s had its annual winter check-up. A service will ensure you don’t wake up to any nasty surprises on Christmas morning – like having no central heating. We can’t imagine anything worse than a Christmas without any heating - except perhaps having to eat a plate full of sprouts!

There’s no time like the present – pardon the pun! Check out www.needanewboiler.com to unwrap today’s first energy saving treat.

A pioneering eco-village – a housing estate consisting of environmentally friendly properties located in the middle of nowhere – has failed to attract significant interest from private buyers, casting doubt over the commercial viability of greening Britain’s housing stock.

The eco-village, which is situated in Balvonie Braes, near Inverness, comprises 52 eco-friendly properties, of which 10 have been purchased under a co-ownership scheme and a further 10 have been occupied by housing association tenants. The remaining 32 properties have been put on the market for private sale.

Unfortunately, only four properties have sold since August, during which time the newly completed eco-village was put on display for public viewing, attracting thousands of people who were seemingly very keen on the idea of living in a purpose-built eco-home.

The properties built at Balvonie Braes offer several advantages, but perhaps none is more attractive to new buyers than energy efficiency. According to developers, some of the eco-homes can be heated for an entire year at a cost of £100 or less.

Energy efficiency is an important consideration for any prospective home buyer, not least because energy bills are expected to rise steadily over the next few years. Homeowners throughout Britain have employed various measures to control energy bills, which can be reduced by installing solar photovoltaic panels or cavity wall insulation. The homes at Balvonie Braes, however, include many environmentally friendly measures as standard.

So why are potential buyers looking elsewhere?

The issue might have little to do with energy efficiency and everything to do with price and location. Although situated close to the A9, the Balvonie Braes eco-village may be described as a little too remote for some buyers, whilst asking prices of around £300,000 for three-bed semi-detached properties is hardly representative of current market conditions.

Affordability and location are obviously more important to buyers than energy efficiency – and understandably so. The implications for developers and the local council, however, are potentially dire.

Highland councillor Roddy Balfour, who suggested the properties might not be as environmentally friendly as advertised, noted: “Exaggerated claims have been made about the design of the houses but the public have not wanted to buy any. Now we are stuck with these houses, which won’t sell”.

With the winter months fast approaching, energy consumers already struggling to meet the demands of rising gas and electricity costs are facing more worry when it comes to ensuring they stay warm and healthy this winter.

But for the most vulnerable members of society – the elderly and low income households – there is help at hand , thanks to a variety of schemes and incentives. One of which is the Government’s Warm Front Scheme.

Whether you’re in need of a new boiler to replace your old energy inefficient model, or would like to install loft insulation or cavity wall insulation, but cannot afford the up-front costs involved, the Warm Front Scheme can provide grants to householders who reside in poorly insulated or badly heated homes. If you’re eligible to benefit from the scheme you can apply for a grant of up to £3,500 or up to £6,000 if your property is not main gas connected.

“With the coldest months of the year fast approaching, there’s never been a better time for people on low incomes to pick up the phone and apply for a Warm Front grant,” advises Energy and Climate Change Minister, Greg Barker.

This year the Government has made more than £110 million available in funding, and another £100 million has already been allocated for 2012/13.

It’s estimated that around 90,000 people will take advantage of the Warm Front grant scheme over the next two years.

For more about the scheme, visit www.direct.gov.uk

Scottish Government Minister Alex Neil has pleaded for help from the UK in providing Scotland with a greener housing stock.

Mr Neil, the Cabinet Secretary for Infrastructure and Capital Investment, has urged the UK Government to exert its influence over the banking sector to free up greater capital for ‘green’ mortgages.

Ahead of a Greener Homes Summit on the 23rd November at South Lanarkshire College, Mr Neil said: “Helping increase the uptake of more energy efficient homes would be a massive step on the way to beating fuel poverty.

“The financial institutions are missing a trick. They need to look to adapting their products by introducing green mortgages. They should recognise that new technologies are key to energy efficient homes and a vital element in economic recovery”.

The Scottish Minister added: “Existing and prospective homeowners should be encouraged and supported to invest in new forms of technology and energy efficient measures – and lenders need to be part of the solution by providing suitable home loans”.

Following the credit crunch of late 2007, few lenders in Scotland provide mortgages in the absence of sizeable deposits – around 25 per cent in many cases. Whilst Mr Neil’s pleas are surprisingly optimistic considering the frugality of the current UK Government, which earlier this month managed to all but destroy the solar industry, providing environmentally minded homeowners with financial incentives does make a great deal of sense.

Head of Policy at WWF Scotland, Dr Dan Barlow, noted: “Green mortgages with favourable interest rates could act as a great incentive for homeowners to invest in measures such as insulation to make their homes more energy efficient and protect themselves from rising energy bills. It is high time that the banking sector stepped up its efforts to support us all to green our homes”.

Whilst Scotland calls for help from Westminster, homeowners on either side of the border can improve the energy efficiency of their properties by installing loft insulation and cavity wall insulation. During the coldest months, homeowners could also save money by installing the Condensate Trace Heater Kit (produced by Multifit), which protects condensate pipes from freezing – a common occurrence in the greenest Scottish homes.

Landlords seeking to make their properties more energy efficient are reminded that they are entitled to help under the ‘Landlord’s Energy Saving Allowance’ (LESA) scheme.

Available since 2004, LESA is a tax allowance of up to £1,500 per property for private landlords. But many landlords still remain in the dark over its existence.

LESA gives landlords the potential to improve their energy inefficient properties at no cost to themselves and in doing so, will help tenants to save money on their energy bills. Energy efficient properties can achieve a higher EPC (Energy Performance Certificate) rating, so for example by installing loft insulation, draught-proofing or cavity wall insulation, all these measures will increase the rental potential, making the property more attractive in an overcrowded rental market.

Implementing energy efficiency measures will also not only lower energy bills for tenants, but it should, in theory, help reduce rent arrears.

Under LESA, landlords are entitled to claim against money spent on:

• cavity wall insulation
• draught-proofing
• solid wall insulation
• loft insulation
• hot water system insulation (tank and pipe lagging)
• floor insulation.

For more information, landlords are advised to get in touch with their local tax office who will be able to advise them accordingly. It’s also worth visiting www.direct.gov.uk