Mixed reports on energy prices
February 25, 2009 at 12:30 pm
There have been conflicting reports lately about whether energy bills are likely to come down and when that will happen. This follows a refusal by the executives from the UK’s major energy companies to put a likely date on when they would slash their fees.
Some companies, including British Gas and SSE (Scottish and Southern Energy), have put their fees down recently or are planning to put them down soon. Meanwhile other big energy players, including EDF, Scottish Power and E.ON, are being far more cautious.
However, despite the welcome news that we should be paying less in the future, one executive has come out and claimed that this is not the case. According to the BBC, Ian Marchant, the chief executive of SSE, which will be dropping its bills in March, has said that by the summer of 2010, energy prices will be 10% higher than at present if the other companies refuse to put their prices down.
He also stated that he “would have expected us to see another round of decreases” during the year, but that “objective analysis suggests that this might not happen.”
It is true that the wholesale prices for energy have gone up considerably, and some of the companies claim that they have held off raising their prices in line with wholesale prices.
But Ian Marchant was bemused that the other companies had not put their prices down already. The other big energy companies simply claimed that they would be looking into it, but no date has yet been set.
And all the while, as fuel poverty spreads across the country, people are simply hoping that by the time next winter arrives they can look forward to some cheaper prices to counteract the misery of the winter we’ve just had.
Top tips to cut your bills
February 19, 2009 at 1:25 am
With the recent cold snap and rise in fuel prices, here are some tips to reduce your bill this winter:
- Insulate your walls by having cavity wall insulation fitted.
- Invest in a jacket for your hot water tank.
- Make sure you use the timer on your central heating system and boiler so that you do not heat the house at times when you and the rest of the family are out.
- Put on a jumper and turn the thermostat down a notch.
- Fit draught excluders to windows and doors.
- Invest in double glazing so that you do not lose heat through draughty ill-fitting windows.
- Don’t waste energy on stand-by power – switch off appliances at the mains.
- Laptops use far less energy than desktops so when replacing your PC think about switching to a laptop.
- Use energy efficient programmes on dishwashers and washing machines.
- Only use the washing machine and dishwasher for full loads.
- Clean the filter in your tumble dryer after using it.
- Where possible, wash your clothes in cold water.
- Defrost the freezer regularly.
- Do not overfill the kettle.
- Buy thick lined curtains to avoid heat loss through the windows.
- Bleed radiators regularly.
- Use low energy light bulbs.
- Turn off exterior decorative lights.
- When replacing domestic appliances, be aware of the energy rating.
- Hang your washing out to dry when possible rather than using the tumble dryer.
- Don’t waste energy heating water for a bath – have a shower instead.
- Shop around for the best energy deals and take advantage of online tariffs.
As UK freezes is 10% enough?
February 10, 2009 at 3:01 am
As temperatures plummet and the Met Office kindly informs us that it has so far been the coldest winter for thirteen years, many consumers are becoming increasingly worried about the cost of keeping warm.
A recent web poll conducted by moneysupermarket.com has found that 78 per cent of those surveyed are finding it difficult to pay their fuel bills, and 17 per cent say they cannot afford to heat their homes. Scott Byrom, Utilities Manager at the online comparison site, said: “Whilst encouraging, the recent 10 per cent price cut from British Gas is little relief for those struggling to make ends meet. After the unprecedented price hikes to both gas and electricity bills last summer consumers will need to see further reductions before they can afford their bills.”
Last year, British Gas consumers suffered huge price rises to their gas bills of 15 per cent in January and a whopping 35 per cent in July. By the end of the year, all utility companies were facing criticism and pressure from government ministers because they were maintaining high tariff rates even though wholesale gas costs, which are linked to the price of oil, had fallen steadily. Ed Miliband, Secretary of State for Energy and Climate Change, urged companies to pass these savings on to customers, and British Gas responded by cutting its standard gas tariff by 10 per cent from the 19th of February 2009.
This reduction has been described as “likely to be too little and too late” by Ann Robinson, Director of Consumer Policy at uSwitch.com, coming as it does towards the end of winter. Gordon Lishman of Age Concern has called for further cuts across all tariffs to be made in order to avoid the continuing struggle on behalf of the very poorest pensioners to pay their fuel bills.
However, Consumer Focus, the energy watchdog, was more upbeat in its assessment of the price reduction, describing British Gas as “courageous” in doing the right thing, and pledging to keep the pressure on other companies to follow suit.
