Natural gas storage scheme increases UK storage by 15%
September 24, 2010 at 1:41 pm
Natural gas storage in the UK has just been given a major boost following the approval of a new scheme. The Saltfleetby onshore gas site in Lincolnshire will be converted into a gas storage site, with a capacity of 800 million cubic tonnes of natural gas.
To put this volume into perspective, it will increase natural gas storage capacity in the UK by 15%.
It was originally planned to be up and running by 2011, but the public inquiry to approve the new scheme delayed the process somewhat. The storage facility is now expected to be functional by 2013.
Charles Hendry, the energy minister, said that the project “will provide the UK with new and much-needed gas storage.” He highlighted that the government has made ensuring gas supplies a priority due to the country’s dependency upon gas imports. He also suggested that more gas storage was planned for the future.
The project will be managed by Wingas Storage, which will convert the onshore gas field into an underground storage facility. Currently the site is the biggest onshore gas field in the country.
The aim is to store compressed gas 2.3 km below ground when demand is lower, and then when demand for gas becomes higher it can be extracted and used by consumers.
However, despite the huge increase in natural gas storage as a result of the new site, critics have highlighted the fact that it is only a start, and that even a 15% rise only increases our capacity by a couple of days due to the UK having one of the lowest storage levels in Europe.
87% pay too much for their energy
September 17, 2010 at 4:07 am
The vast majority of energy customers across the country are paying too much, according to price comparison site uSwitch.com, who revealed that a massive 87% of energy customers are not taking advantage of cheaper deals to be found online.
Only 13% of customers are currently wily enough to seek out cheaper deals for their energy online, and it’s not just a few pennies here and there that they are saving; uSwitch.com states that the extra amount of money the millions of households are paying for their energy by sticking to the most expensive tariffs stacks up to a massive figure of £2.2 billion.
It seems that price guarantee plans (which are taken out by 7 million households across the country) and pre-payment meters (which account for 2.6 million gas customers and 3.8 million electricity customers) are the worst deals for customers. uSwitch.com has revealed that those people on standard plans pay about £300 more a year than other customers with online tariffs, despite the fact that annual statements have now been changed to be clearer so customers can choose the best deals.
The director of consumer policy at uSwitch.com, Ann Robinson, said that between 2008 and 2009 only a million households had switched to cheaper online deals.
She said that, although the market is competitive, not enough people are taking advantage of cheaper deals, and urged householders to “move to dual fuel, pay by direct debit and sign up to an online plan so that they can start to enjoy competitive prices straight away”. She also said that Ofgem needs to do more to help get the message through to customers that they can take advantage of more competitive bills.
Ignorance over fuel poverty means social tariffs ignored
September 3, 2010 at 12:23 pm
The energy industry has said in the past that it estimates that there are around 5 million in fuel poverty in the UK, fuel poverty being defined as having to pay more than 10% of income on energy bills. This data has come largely from statistics regarding the number of households on social tariffs.
However, research from moneysupermarket.com has revealed that many of us do not know what fuel poverty is and are not therefore taking advantage of the social tariffs available. The actual figure of households suffering fuel poverty could therefore be much greater.
At times of economic crisis we all need to ensure that we are on the most beneficial tariff, but it is of particular concern that the most vulnerable groups are unaware of the help they could be receiving.
Fewer than 1 in 20 surveyed could define fuel poverty, 15% thought you had to be in a worse position than is in fact the case and another 15% did not know. 26% said that they had not thought of moving to a social tariff although they would probably be eligible.
Social tariffs are designed to provide affordable deals for the most vulnerable groups who simply cannot afford conventional deals. All six big energy companies provide social tariffs although the deal varies from company to company as do the criteria to qualify. For more details of what is available see here.
For those in financial difficulty there are other steps which can be taken to minimise energy bills and moneysupermarket.com advises the following:
#Turn down the thermostat
#Do not leave appliances on stand-by
#Invest in thick curtains and insulation – you may be eligible for a grant for insulation
#Do not heat rooms which you do not use
#Buy draught excluders
#Invest in double glazing if possible
#Have a shower rather than a bath
#Use energy-saving light bulbs
