Npower was recently fined £2m by Ofcom for breaching the regulations that are set out to deal with customer complaints. The breach by Npower included them failing to record all the details required in relation to customer complaints as well as failing to give customers important details about the Energy Ombudsman’s redress service. This fine follows a similar one given to British Gas in July for a comparable breach of regulations and it has come to light that EDF energy is also being investigated.

It has transpired from Ofcom that there has been a huge rise in customer complaints with over 530,000 received this year. Statistics show this year (to the end of September 2011) that the most complaints were against British Gas who had 197,682 complaints (12.37 per 1,000), Scottish & Southern Energy with 106,444 complaints (12.1 per 1,000), EON with 60,798 complaints (12.16 per 1,000) and EDF Energy had 48,730 complaints (8.86 per 1,000).

It should be noted that a complaint is defined as a problem that hasn’t been dealt with or resolved by the end of the next working day from when it was made – and the reason for all these complaints? It appears to be along the common themes of being billed incorrectly, problems with getting through to the call centre and poor treatment received by the staff at the energy company.

It is no surprise then that consumers are becoming increasingly disillusioned with energy companies as it appears that they aren’t dealing with complaints satisfactory as well as having increased their energy prices. These increased prices during this economic recession means many households face a tough winter and a difficulty paying fuel bills which will plunge many households into fuel poverty.

It is therefore an ideal time for an energy company to start convincing consumers that they understand their plight, needs and complaints. Energy companies currently have a bad reputation and they need to start showing consumers that they can be trusted. It isn’t much for consumers to ask that energy companies comply with all regulations and standards, and look to their needs.

Interestingly, the industry regulator has suggested that new operators should be brought into the sector to help reduce ‘structural inadequacies’. Currently the smaller, lesser known energy companies are performing well and shaming the larger energy companies. Companies such as Ecotricity who had just 0.55 complaints per 1,000 are leading the way. So with a shake-up and additional competitors in the energy sector will this help ensure consumer welfare for all?

Guest Article by Sarah Wain

With fuel prices rising this winter it is important to monitor your energy usage to ensure you can afford the increased payments. And with a recent survey suggesting that 30% of households are prepared to go without heating for some periods this winter to save money, it is unsurprising that many households are looking to energy saving devices. From researching consumer opinion there appears to be three main energy saving devices that households currently use to help save money.

The first is a relatively new technology which is called an energy monitor. Energy monitors are aimed at helping households review their energy consumption by highlighting which appliances are using the most electrical power within their home. Energy monitors are therefore useful to keep an eye on energy consumption and to compare cost of appliances throughout the house. Energy monitors also help households realise the cost of leaving appliances on standby and how energy can be easily wasted. This has been quantified by the Energy Saving Trust who found that households that use these devices do indeed save energy with the majority of households saving between 5-15% per year once they own an energy monitor.

The second device used in homes to save energy is energy saving lightbulbs. Lightbulbs account for approximately 8% of a household’s fuel bill which could rise dependent on the number of energy inefficient lightbulbs that are used within a home. Therefore looking at ways to reduce and eliminate this inefficiency will save money quickly and easily as it is estimated that an average of £55 can be saved per year if a household uses energy saving light bulbs throughout their home.

The third device is energy monitoring sockets. These are similar to energy monitors but on a smaller scale. These individual sockets allow households to calculate how much singular appliances cost to run and how much energy is being used in real time. This then allows you to work out the energy consumption of individual appliances on an hourly, daily, monthly and yearly basis.

All these types of device allow you to analyse your energy usage. This combined with smarter thinking about your energy consumption will help you save money. Smarter thinking includes reviewing advice from organisations such as the Energy Saving Trust. For example, they currently state that by turning down the temperature of your house by 1C it could save you about £60 per year. So, combining this understanding with the above energy saving devices could really help to reduce your energy bill.

It is important though to remember that while these devices will help you keep an eye on your fuel bill this winter, the only way to truly save money in the long-term is to look at the efficiency in your home and ensure you have such factors such as loft insulation, double glazing, draught proofing and an energy efficient boiler.

Guest Article by Sarah Wain

The Energy Trust believe that a quarter of all UK homes have an energy inefficient boiler which is more than ten years old.

These energy inefficient boilers therefore mean that homes with these installed will be experiencing higher energy bills and polluting the environment with more carbon gas emissions.

If you have any concerns over the efficiency of your boiler then you should look into how you can tell whether your boiler is energy inefficient or not.

The best way to do this is by checking the efficiency of your boiler against the boiler efficiency rating that highlights how well your boiler works. Currently, the efficiency ratings are classified as follows (note: the higher the percentage the more efficient the boiler) –

A = 90% and above
B = 86% – 90%
C = 82% – 86%
D = 78% – 82%
E = 74% – 78%
F = 70% – 74%
G = Below 70%

To check the efficiency rating of your boiler you can look this up on the boiler efficiency database that is available on the SEBUK (Seasonal Efficiency Boilers in the UK) website. This database lists all the different types, makes and models of boilers and its aim is to identify the different efficiencies between boilers. The data is developed with boiler manufacturers and is updated on a monthly basis so the information that you deem from this research will be relevant and up-to-date.

The information on the SEBUK website is also used by the government to calculate Standard Assessment Procedure (SAP) ratings which is how they calculate the energy performance of houses.

Therefore, SEBUK is a very good way to gauge whether your boiler is efficient or not as well as being a method for comparing newer boilers and deciding whether you would be better off replacing your boiler if it has a low efficiency rating. The SEBUK website also offers a free online calculator to give you an approximate estimate of how much your annual fuel costs will be. Again, you should use this to compare against newer boiler types.

If you discover that your boiler is rated lowly on the chart then it is likely to be inefficient and you should consider replacing the boiler. Remember, boiler usage accounts for over 60% of what households spend on energy each year so changing from an energy inefficient boiler can make a huge difference to your household.

Guest Article by Sarah Wain

There are currently a number of grants that the government offer individuals and households to help them become more energy efficient and to help reduce their energy bills.

If you are looking for a particular scheme that helps you make heating and insulation improvements within your home then you should look to the Warm Front Scheme.

The Warm Front scheme is a government initiative that was re-opened in April this year and has been developed to help over 90,000 of the poorest households within the UK over the next two years. The chosen households will benefit from the ability of getting up to £3,500 worth of heating and insulation improvements for their home and if an individual lives where oil central heating or other forms of heating is recommended up to £6,000 can be received.

Typically the home improvement work that can be carried out includes loft insulation, cavity wall insulation, hot water tank insulation, draught proofing and gas and electric heating. A household that qualifies will not have to pay for the work as long as the grant fully covers the cost of the work undertaken. If not then the difference will need to be paid by the homeowner.

So how do you qualify for the Warm Front scheme? To be eligible then you need to be on an income-related benefit and living in a property that is deemed poor. By this it means that the property needs to be badly insulated and/or doesn’t have a working central heating system as well as having a Standard Assessment Procedure rating of 55 or lower (this is a residential energy rating scale). In respects to the income-related benefit that an individual needs to be on this includes those on pension’s credit, income support, jobseekers allowance and income-related support allowances.

If you therefore are looking for help in relation to heating and insulation improvements within your home and you meet one of the eligibility options outlined above then this could be the scheme for you.

If you are successful in your application then you will get a visit from a qualified Warm Front engineer who will assess your home and let you know what home improvements you can get from the grant. The work will then be scheduled and carried out on your property.

Schemes such as the Warm Front grant have been created to help households become more energy efficient therefore reducing individual’s energy bills as well as their carbon gas emissions. These types of schemes will benefit the environment and also help the UK achieve its targets for climate change, so if you reach the required criteria for this scheme then apply today and start helping the environment and save money on your energy bills.

Guest Article by Sarah Wain

It is recommended that you get your boiler serviced once a year to ensure that it won’t break down over the winter months and that it is as energy efficient as possible.

However, if something goes wrong and your boiler does develop a fault when you need it the most are you covered to get this fixed quickly?

That is when boiler insurance cover can come into its own as it gives homeowners peace of mind that their central heating system can be repaired quickly without having to phone around local companies to get quotes and then schedule the boiler to be fixed. But many people consider boiler insurance as a waste of money as it could be something that is never needed. These people feel it is better to run the risk and if a breakdown occurs they will pay for it out of their savings. Also, with the credit crunch hitting family spending and budgets the thought of paying for additional insurance cover that may not be required can seem uneconomical.

The main benefits of boiler insurance cover is that it firstly covers all your call-out charges, labour and parts, so is comprehensive in this manner. Secondly, the policies will often cover the annual servicing fees as well as providing safety checks. Thirdly, there are policies which can pay towards the cost of boiler replacement if the boiler is beyond repair.

However, there are also disadvantages of boiler cover. The main one is that you could take out the cover and never use it and therefore could spend a lot of money that could be utilised elsewhere. Also, with ad hoc servicing and repair it is understandable why individuals decide just to pay out rather than taking out a policy as it is estimated that the average cost of a service is £70 and a repair to a boiler is £200.

At the end of the day, the decision as whether to take out boiler insurance cover or just rely on ad hoc boiler servicing is a personal one that is swayed by the households’ personal finances. It needs to be a balance between whether it is felt that ad hoc boiler servicing is enough or if the boiler is old and prone to breakdown whether it needs some more robust cover. It is therefore up to you to assess the risk of the boiler breaking down and to make a judgement as to what is the best option.

There is no doubt that if you need to get your boiler fixed or replaced it will cost a large sum of money so paying a small amount each month won’t hit your pocket for one lump sum. However, insurance cover can be expensive as there are varying degrees of cover that can be taken out. For example, just covering the boiler and controls will be a lot cheaper than insuring the whole central heating system. Also, the make, model and age of your boiler will affect the monthly price that needs to be paid. And you will also need to find what the policy covers and whether a replacement boiler if required is part of the plan. If not, you could still be paying out.

Guest Article by Sarah Wain