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

If you are looking at ways to save money on your fuel bill then one of the easiest and quickest ways is to review your current energy provider and consider switching either your supplier or tariff to get a better rate.

How To Switch

Firstly, you need to do some research into the best supplier and tariff for you. The best way to do this is to look at some online comparison websites that allow you to compare the different energy prices and services online. This will detail all the suppliers and tariffs available and allow you to compare all the available rates.

You can also visit the individual supplier websites or call them to gain a better understanding of what they offer, as well as talking to sales people from energy providers who often come to your door or can be found in local shopping centres. It is also worthwhile letting your current supplier know that you are thinking of leaving them as they often will discuss and renegotiate the deal that you are on. However it is also important to note often the best deals are only available online as some tariffs will not be available to those who phone up for the offers.

Thinking Of Switching? Get In Fast!

The best advice at the moment, if you are worried about your electricity bill, is to find a cheap fixed tariff. But you have to be quick because many energy suppliers have a maximum subscription volume which, once met, means they pull the tariff.

So Many Tariffs, So Little Time

Most suppliers offer a variety of tariffs, which include:

• Electricity Economy 7

This basically means you pay a lower amount during the 7 hour night period.

• Online Tariffs

These tend to be the cheapest as suppliers try to incentivise people not to call and handle their accounts online. You generally have to provide your own meter readings and pay your bills online. However, be warned if you forget to provide a reading you run the risk of receiving a hefty estimated bill which can be annoying.

• Dual Fuel

You can obtain discounts for using one supplier for both gas and electricity. All the major suppliers offer this tariff which is useful if you want to make life easier.
 

• Fixed Tariffs

These are fixed for a set period normally a year or two but sometimes more. At the moment these seem to be the safest bet. As the market changes over the mid to long-term the benefits could be lost if prices fall.

There are a few other tariffs which offer benefits of their own depending on your usage and when you need to use the most electricity. Before signing up to a new supplier you should think about your current usage and find out which tariff will best suit your needs, especially if you have a large family or work from home. When comparing the different tariffs make sure you know how much energy you currently use by looking at a previous energy bill that you have received. Also if you have a dual energy supply then look at whether it is better to have the same supplier for gas and electricity or a different one providing each service.

Next you need to consider how you want to pay your bill as often savings can be made this way. Many companies charge you extra if you choose not to pay online or via direct debit, so this is a key consideration. Also when you get a quote then make sure whether this includes VAT as this is an extra expense that you may not have budgeted for.

Cutting Your Electricity Bills

What many people don’t realise is prices are different all over the country. Specific suppliers that once held a monopoly in a region often charge more. If you are using a local supplier you could save money by going with someone else.

It’s Not Always About Price

For the elderly or disabled it is not always about the price because some big suppliers offer special services which are helpful to those that need them. For example, N-Power offers a unique password service so customers can identify employees, which is great for security. They also offer Braille bills and you can even arrange for your bills to be sent to another address.

Finally when you have all the information and have made a decision about which supplier and tariff to use you can start the switching process. This process can take 4-6 weeks after your request so this may be something you will need to factor in.

Remember that at no point will you be without gas or electricity during the switching process, so there is no better time to switch if you are thinking of doing so. Your chosen energy provider will do all the work in switching your current supply and the only difference that you will experience is a change in the company name that sends you your bill.

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

With the recession hitting our household pockets hard we are increasingly looking at ways that we can save money.

One way in which we can save money is by becoming more energy efficient in our homes and looking at ways in which we can reduce our gas and electricity bills. Detailed below are ten tips that I recommend you undertake if you are serious about saving energy around your home and therefore decreasing your energy bill.

Tip 1 – Use energy saving lightbulbs

All homes should replace their old lightbulbs with energy savings ones. This is because they can use up to 80% less electricity while still producing the same amount of light. It is also important that lightbulbs are switched off when they are not in use as this is a huge waste of electricity.

Tip 2 – Insulate your loft and cavity walls

Insulation is a very effective way to save energy within your home and is very easy to implement. Most of a home’s heat is lost through the roof and therefore loft insulation is considered the easiest way to save money. Even if you use your loft as a room or for storage there are different types of insulation material that can be used regardless of how you use this space. Cavity wall insulation should also be considered as this is another way to retain heat within your property. The insulation sits between the gaps between the walls in your home and stops heat escaping or cold air coming in.

Tip 3 – Ensure you have no draughts

Ensuring that your home has no draughts means that less heat will be lost throughout your home. The most common areas in houses where draughts occur tend to be the windows, doors, chimneys and floor boards. By employing draught proofing measures it will mean that heat will be retained better within your home and ensure you won’t have to heat your home for longer than necessary.

Tip 4 – Use your heating controls correctly

By using your heating controls correctly you can save energy as you will have full control over the temperature of your home. It will therefore be important to use such controls as the programmer and room thermostat. The programmer or timer will allow you to time when the heating comes on and goes off and you can look to the most energy efficient way to use this. Also, it is important to understand the thermostat control and your desired temperature. Remember, by turning your thermostat down by 1 degree you could save at least 10% on your heating bill.

Tip 5 – Have double glazing fitted throughout

Double glazing can be expensive to install but is one of the best ways to ensure that heat is retained within a home as old window frames and doors will let out a lot of heat from your home and cold air in. If window frames are old and there are many gaps then it will be best to replace them with double glazed windows to ensure these gaps are eliminated and the heat that you are paying for is retained within your home.

Tip 6 – Replace an old or outdated boiler

An old or outdated boiler should be replaced with an energy efficient boiler as this is an effective way to save energy. It is assumed that boilers over 15 years old are the ones that are at most need of being replaced as these require more fuel to run. By replacing an old boiler with a modern boiler it is estimated that they use 30-40% less fuel and this is a huge cost saving for a household.

Tip 7 – Buy energy efficient appliances and use them appropriately

If you need to replace an appliance in your home then you should do so by replacing it with an energy efficient one. When you purchase the appliance you will notice that it will be given an energy efficient rating ranging from A-G with A being the most efficient, so it is important to look out for these ratings. Also, you should look at how your currently use appliances and ensure you are using them to their full potential. This means ensuring a washing machine and a dishwasher has a full load before it is put on as this will ensure the best use of energy. It should be noted that even though these appliances do have half load options this will use more than half the load energy of a full load.

Tip 8 – Consider water consumption and usage requirements

To save energy as well as water usage in your home then consider the way that you use water. For example, you will save energy by switching from having a bath to using the shower. You should also consider fixing any leaking taps as well as insulating hot water tanks as these are all measures that are cheap to fix but could save you pounds off your bills per year.

Tip 9 – Review energy providers’ prices annually

Many people look to switch their energy supplier regularly as they swap and move to the best deals on the market. This type of action should be considered as all the energy providers will be competing to gain your business as well as competing against each other in the packages that they offer. It is also relatively straightforward to switch companies these days as they do the groundwork for you, so it is important that you consider shopping around.

Tip 10 – Assess your energy usage habits

Finally, it is important to assess your habits and how you use energy within your home. When you are using the gas, electricity or water in your home you should consider whether you are being wasteful. Useful questions to ask yourself would be “am I boiling more water in this kettle than I need?” or “could I wash my clothes in the washing machine at a lower temperature?” as these will help you reassess your actual needs and will help reduce your overall energy consumption.

Guest Article by Sarah Wain

The tough recession that we are currently in has meant that there has been a sharp price rise in the cost of heating our homes with all of the top energy companies increasing their gas and electricity prices.

Even though this is not good news for consumers, does this credit crunch period we are experiencing effect the environment in a positive or negative way?

At the start of the year The Guardian newspaper reported on a dramatic fall in greenhouse emissions and cited the recession as being the main reason behind this fall. However these findings were in relation to industrial and business output and mainly the construction and transport sectors as these were hit the hardest by the recession.

But, what about individual household emissions? The Guardian felt that households were stubborn and that their greenhouse gas emissions remain high. The reasons behind this were the growth in population as well as the growth in single homeownership. There are also other factors which I feel come into the equation such as people are not going out as much during the credit crunch leading to a greater usage of plasma televisions and computers, therefore increasing home energy consumption and usage figures.

It is also felt that households are often not encouraged enough to think about the environment. And with the Energy Saving Trust who were specifically set-up to help households think about the environment having their funding cut in half by the government, it is little wonder households aren’t getting the message.

However, these recessional times have forced the government to consider the environment and our energy usage especially as there are predetermined climate change targets for the UK to reach. The Green Deal which is going through parliament at present is the main driving force being introduced by the government to try and revolutionise energy efficiency. The scheme aims to offer households energy saving improvements throughout their homes. The cost will be paid for upfront by private firms however the money will be recouped through the household’s energy bill. It is assumed that the energy saved will more than pay for the cost of these improvements.

Therefore, does the credit crunch effect the environment in a positive or negative way when looked at in relation to households? In theory it should be good thing as it should be assumed that people will have less disposable income and will be looking at active ways to reduce their expenditure. However, this is not the case. Even though individuals may reduce the amount they spend on luxuries such as car trips and holidays therefore reducing some gas emissions, they are reluctant to change their household energy usage and budget. This is because many people feel that this is a luxury and a comfort that they should try and retain for a healthy and happy household during the credit crunch.

Guest Article by Sarah Wain