Protect your profits against the ever rising price of gas and electricity by using our free, expert, no hassle service.

2011

Miss deadline and your energy bill is doubled

Small businesses are facing price increases of up to 100 per cent when their annual energy contracts come up for renewal. Suppliers are hitting firms with huge price increases when their contracts run out if they fail to cancel their agreement and move to a different supplier beforehand. While domestic consumers are being hit with average price increases of about 20 per cent, a doubling of rates on renewal is not uncommon for small businesses. Worryingly, many find themselves trapped in these costly new contracts because they are unaware that there is only a small period when they can give notice.

A survey of 750 small firms by Make it Cheaper found only half knew they had to terminate their contract within a certain period. If firms fail to notify a supplier in time they can be automatically rolled over to a one-year contract or longer at a far higher rate.

Financial Mail has long warned of the practice of rollover contracts, used by suppliers to tie firms in at high rates. In January, energy watchdog Ofgem introduced limited safeguards for micro-businesses - those with fewer than ten employees and a relatively low turnover. It said that any rollover contract could run for no more than a year. The changes also require suppliers to give microbusinesses clear written details of their contract. More important still, suppliers now have to send businesses a statement of renewal at least two months before their contract ends, detailing when and how to give notice. The Mail on Sunday 09.10.2011

 

Doorstep Tricks

Consumer Focus says many people are being persuaded to sign up to expensive deals by doorstep or telephone salesmen. Ofgem is already investigating Scottish and Southern Energy (SSE), along with Scottish Power, npower and EDF, over their doorstep selling practices.

Last month, SSE, was found guilty on two counts of taking part in misleading selling practices following a trial at Guildford Crown Court bought by Trading Standards. SSE is now appealing against the decision that its sales script was 'likely to deceive'. The script, seen by Money Mail, shows salesmen were told to say: 'We've had a print-out this morning of energy customers who maybe be paying an expensive tariff and unfortunately (taps customers address into handheld device), it looks like you might be one of them.'

In fact, salesmen have no idea how much households are already paying for their gas and electricity. These salesmen typically earn between £10000 and £20000, but thay can double their salaries by earning commission. SSE says the script was used in February 2009 and is not used any more. 'We are confident that our sales processes continue to be fair and responsible,' a spokesman says. Daily Mail 15.06.2011

 

We must stop pandering to climate scaremongers

Politicians and Whitehall mandarins are pandering to global warming 'alarmists' and consigning Britain to a future of inflated fuel bills and economic misery, the former head of the Civil Service warned last night. Lord Turnball - who served Tony Blair as cabinet secretary from 2002 to 2005 - accused MPs and civil servants of failing to challenge the 'climate change consensus'. He suggested that by blindly following the green agenda, the government had hit hard-working families with a range of costly policies.

Lord Turnball also pointed out that 'by and large humanity has prospered in the warmer periods'.

'It is regrettable that the UK Parliament has proved so trusting and uncritical of the (global warming) narrative and so reluctant the question the econmic costs being imposed in pursuit of decarbonisation,' he said.

'I am also disappointed that so many of my former colleagues in the civil service seem so ready to go along unquestioningly with the consensus. Daily Mail 09.06.2011

 

Energy prices to double every five years

EON recently became the latest of the big energy suppliers to put its prices up. Electricity will go up 9 per cent and gas by 3 per cent on 4th February. They join the ranks of the major enrgy companies to have announced rises in the past couple of months. However, we also got some news we weren't expecting at all. It turns out that this is the thin end of the wedge.

Get free money saving guides:-

Long term rises

City energy analysts think that this is the beginning of a long term rise, which they predict could mean energy prices double every five years. There are a number of reasons behind this. The firs is simply that we're not going to have fossil fuels forever, so energy companies are investing heavily in alternative energy such as solar, wind and nuclear power plants. These are comparatively expensive ways of producing energy and you'll never guess who is going to end up footing the bill for it...

Meanwhile there are a number of infrastructure projects which are going to cost us dear, perhaps most famously the installation of smart meters, which will tell you how much enrgy you use, so you can learn how to cut back. Sadly that is going to be a very pricey lesson and of course, lets not forget the drive for profit. Despite the energy firms blaming rising wholesale prices for increasing tariffs in the last few years, the margin between what they pay for energy and what thay charge has risen over 200 per cent in the last two years. Sarah Coles 12.01.2011

 

2010

Npower joins in rise in prices

Following in the footsteps of British Gas, ScottishPower and Scottish and Southern Npower is set to increase both electricity and gas tariffs from the 4th of January by 5.1%This would leave only Eon of the big six suppliers who have yet to announce an increase. 13/12/2010

 

British Gas Announce Price Hike!

 Around eight million British Gas domestic use clients will face higher gas and electricity bills from the 10^th of December as the energy supplier price rises. Household bills for energy will increase by an average of 7% from next month. The increases apply to customers on standard and variable tariffs.

British Gas blamed rising wholesale prices and said it had been forced it to increase tariffs, but vowed not to apply the increase to the company's 300,000 most vulnerable customers, such as the poorest pensioners.

Just last month utility giant Scottish & Southern announced a similar increase. SSE said it would put up its gas bills by 9% from December 1st.

Other suppliers are expected to follow suite. KB 12/11/2010 

 

We'll open a nuclear power station every 18 months, says Tories

One new nuclear power station would be opened every 18 months under a Conservative blueprint to avoid the first widespread electricity blackouts since the 1970's. Shadow energy spokesman Greg Clark told the Daily Mail there would be 'no limit' on the expansion of nuclear power under a Tory Government. 'In the past we haven't been entirely clear - this is a very clear statement that we are in favour of nuclear power,' he said.

Mr Clark said he intended to allow energy firms to open at least one new nuclear plant every 18 months, starting in 2018, to help plug a looming power gap. Daily Mail 19.03.2010

 

2009

£500 each for tide and wind power

Households will be paying £500 a year to subside wind turbines and tidal power stations by 2025, the energy regulator warned yesterday.

Almost a third of the average domestic fuel bill will be siphoned off to fund the construction of renewable energy sources and other Government green initiatives, according to Ofgem chief executive Allistair Buchanan. He told MPs that the levy was necessary to fight global warming and leave the country 'a nicer place to live for our children and grandchildren'.

The average household now pays around £100 a year - 9 per cent of a typical £1100 fuel bill - in green subsidies. The money is used by power firms to comply with Government initiatives designed to meet its target of generating a third of the country's power from renewable sources by 2020. But Mr Buchanan warned that costs of switching to a low-carbon economy will mean higher bills, which he said could soar between 14 per cent and 60 per cent over the next decade. He told the House of Commons Energy and Climate Change Committee that green subsidies will make up to 30 per cent of those higher bills by 2025.

'It is absolutely incumbent on us to represent clearly to consumers what it is costing them, so they fully understand what the cost is to make Britain a nicer place to live in for our children and grandchildren,' he said. Daily Mail 03.12.2009

 

Fuel bills 'to soar in the next few years' 

Families should brace themselves for steep rises in their fuel bills, Britain's energy regulator warnes last night.Ofgem boss Allistair Buchanan said he feared a crisis in Russian gas supplies would 'push up prices' in the next few years.

Mr Buchanan said he feared bills could climb even higher due to Europe's growing dependence on gas supplies from overseas, mainly Russia.

The country's giant Gazprom accounts for a third of western Europe's gas imports. The regulator's research shows Europe could be affected by shortfalls of 41billion cubic metres by 2015, equivalent to two-fifths of Britain's annual consumption.

This is largely because delays are expected to six projects aimed at delivering higher output, such as the giant Shtokman field in Russia's Barents Sea. Daily Mail 10.11.2009  

 

Watchdog Publishes Results

Earlier this month energy watchdog Ofgem published the results of its 18-month investigation into the market for businesses and consumers.

Ofgem has proposed restricting but not banning - the ability of suppliers to roll-over customers to a fixed-term contract when their existing contract ends.  It has also called for third parties to develop new codes of practice to encourage best practice in the sector.

Business minister Baroness Vadera said: 'Small businesses are facing significant pressure and are rightfully concerned about reducing their costs.  It is critical that businesses protect their interests and shop around for an energy supplier that will providee the best value for money.'- The Mail on Sunday 30/08/2009

 

2008

67,000 pounds electric shocker

A Hotel owner has received a 67,000 pounds electricity bill the power company underestimated his usage for at least a decade! Keith Makepeace’s family has run the Soar Mill Cove Hotel in South Devon for 30 years, but he now faces making staff redundant to pay the bill. He said: “We don’t have the resources to come up with this, It’s going to affect the number of staff we keep.” An EDF Energy spokesman said: “Because estimates were used to calculate bills, a significant amount of electricity has been used and not paid for.” – The Daily Mail 07.09.2008

 

Now Millions face a 29pc power bill rise

 

Adam Scorer, campaigns director at the Independent watch-dog Energywatch said: “The brakes have failed on the energy market. The results are calamitous.” This is the second price increase from both companies this year. SSE – Britain’s second largest supplier and owner of Southern Electric, Swalec and Scottish Hydro Electric – last put up its prices in April when electricity bills rose 14.2 per cent and gas went up 15.8 per cent.   E.On’s last increase was announced in February. It put gas charges up 15 per cent and increased electricity bills by 9.7 per cent.

The Company’s energy supply director Alistair Phillips-Davies said: “The world is experiencing an energy shock of a kind not seen since the early 1970’s, but which is likely to have more profound and lasting consequences.   Graham Bartlett, managing director of E.On’s retail business, said: “I’m very aware of the effect that today’s announcement will have on our customers and I recognize that this is a very though time for everyone. This is not an easy decision to make and we’ve tried to keep these increases as low as possible while protecting as many of our customers as we can.” Last month, British Gas announced a swinging 35 per cent rise for gas bills and 9 per cent for electricity, with rival EDF upping bills by up to 22 per cent. Wholesale gas prices rose yesterday – to reach 109p per therm up from 104p – following the closure of the Norwegian North Sea pipeline. – The Daily Mail 26.08.2008

Ann Robinson, a Director of Consumer Policy, has a stark warning for customers! – “The days of cheap energy are over. We are seeing the largest ever increase in household energy bills in one year. We are potentially looking at a 61% increase in total this year. – An energy price alert from uSwitch 02.08.2008

 

Soaring energy prices prompts sector downgrade

 

The impact of the soaring costs of gas and electricity prices on managed pub operators has prompted a leading City Analyst  to downgrade his profit forecasts for the sector. Panmure Gordon’s Douglas Jack said the Punch Taverns had confirmed its estimated electricity and gas prices for 2009 were likely to be between 30 per cent and 50 per cent higher than this years’ figure. As well as hitting utility costs, distribution costs would also be adversely affected, Jack said. – The Publican 09.06.2008

 

Utility Prices Increases Explained

 

Unfortunately the price of gas and electricity has risen in recent months which have impacted the price energy suppliers are able to offer. The big 6 have highlighted the fact that wholesale prices have surged since February last year, with gas prices rising by 117% and electricity prices by 90% over the period. But why has this happened? It is true that wholesale prices had fallen from highs seen in early 2006 but they began to rise again in about February 2007. A variety of factor4s have been at play. Most of our gas still comes from the North Sea, but production has been declining faster than was expected. As a result, the UK has had to import more of its total gas supplies. Meanwhile, the wholesale prices of gas which is linked on the continent to the price of crude oil – has been driven higher by record oil costs, which this week broke through the $117 a barrel barrier. Meanwhile, rising coal prices have made producing electricity at coal-powered plants more expensive. The companies also cite a doubling in their spending commitment to reach government carbon emission reduction targets. And as European firms turn to the UK’s more liberalized market for supplies as a cheaper alternative to that offered in mainland Europe, this has also driven up UK wholesale prices. – Market Update 25.04.2008

 

Surge in price of oil sees record one-day leap in power costs

 

Oil, Gas & Electricity prices hit fresh records yesterday, raising fears that the global economy is becoming “destabilised”. At one stage, the price of a barrel of oil topped $117 leading to record one-day increases in the wholesale cost of gas and electricity. The increases will be passed on to consumers, piling more pressure on families already struggling with soaring utility and food bills. - The Daily Mail 22.04.2008

 

Nuclear firm takeover “may send energy bills soaring”

The potential foreign takeover of nuclear firm British Energy could send energy prices soaring, ministers were warned yesterday. The Government is selling its 35 per cent stake in the company, which owns Britain’s nuclear sites. French firm EDF and the German-owned RWE npower are in the running to snap it up. Last night, the consumer group Energywatch said if a foreign company takes control, it would “almost certainly” lead to a rise in energy prices. Electricity prices have shot up by 70 per cent in the past three years, and the reduced competition resulting from the nuclear sell-off would lead to further price increases, Energywatch said. – The Daily Mail 12.04.2008

 

Sales Staff suspended by Npower

NPOWER yesterday suspended 17 staff after claims that its sales staff use dirty tricks to attract new customers. Bosses said they were starting an investigation into the accusations made by a reporter working undercover at the energy firm. Some salesmen falsely told customers they would save money by switching to Npower, while others claimed they were from the “electricity board”, the Sunday Times report said. – The Daily Mail 07.04.2008

 

Message from a leading suppliers economics and planning department – electricity prices will soar!

Why is this? This is British Energy’s latest position with their reactors at Hartlepool and Heysham. They are both off-line at present and following the latest inspections which discovered “corrosion” in wires on the boiler units to the reactors; there is no projected date for production to recommence. In fact, there is not even a projected date for when they might be able to give a possible restart date. As it stands they are out of action indefinitely and almost certainly for the remainder of the winter. This drop in electricity production will of course have a negative impact on the electricity market in the next few months. – Energy Update 16.11.2007