Energy industry regulator Ofgem has announced that it has launched “misselling” investigations into four of the UK’s largest energy suppliers. The four named are nPower, Scottish power, Scottish and Southern Energy, and EDF Energy.

The investigation concerns whether the four energy suppliers are complying with new regulations after a recent Ofgem probe.

What’s more, Ofgem has established a “Hotline” with Consumer Direct, so that any customers with examples, or evidence of misselling can tell their woes. The number to reach this service is 08454 04 05 06. Customers are being urged to call if they are at all concerned about the sales tactics of the four energy companies when negotiating energy contracts. This might include face-to-face dealings, or by telephone.

Ofgem is keen to review any evidence of misselling.

The regulator is throwing its weight around after its recent retail market probe and tougher obligations placed on energy suppliers.

The Ofgem Senior Partner, Markets, Andrew Wright, said:
“Suppliers have existing obligations to detect and prevent misselling and new licence conditions were brought in following our probe to further increase protection for customers. We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action.”

It was last October when the new Ofgem obligations were introduced. It meant that the energy suppliers had to be more proactive in the prevention of misselling to customers face-to-face and over the telephone. Key were the conditions that if the companies were selling face-to-face, then they are obliged to provide their customers with an estimate before any agreements, or contracts are signed. Furthermore, most customers should get a comparison of the supplier’s offer with their current deal.

Ofgem acknowledged at the time that these newer obligations were tougher than those used within the general consumer protection law, but argued that the importance of the issues raised in energy deals were such that it warranted tough sanctions.

Both Ofgem and Consumer Focus have also published a leaflet with has been designed to give consumers helpful advice and guidance when it comes to dealing with energy suppliers.

Ofgem goes on to say that just because they have launched the investigations, does not mean to say that all, or any one of the four energy suppliers involved has either broken a condition of the new rules, or has broken the law.

The regulator has had to fine companies before following similar investigations. In 2008 nPower was stung for £1.8 million and £2 million was levied on London Electricity (which is now part of EDF Energy) in 2002.

Should Ofgem get upset with one of the companies supplying the UK market, it has the power to levy a financial penalty of up to 10% of the company’s total turnover.

Such a fine would make a sizeable dent in any one of the four energy suppliers named by Ofgem in this latest investigation.

Guest Article by Neil Camp

Solar panel costs are set to come down if new figures from British Gas are to be believed.

British Gas reckons that the roofs of UK homes could earn upwards of £7 billion, with individual houses earning from between £600 and £1,000, effectively slashing the solar panel costs. The cost of buying a solar panel could, they believe, be completely made back by using the solar panel itself, making this piece of technology certainly worth a thought.

The report believes that over 12 million households are in fact equipped with roofs that would benefit from solar panels. Once fitted, the solar panel would then be responsible for producing electricity that could meet half of the household’s needs.

The Government’s Feed-in Tariff scheme has been developed to encourage their use, with the programme paying owners of the solar panels for the electricity they generate. Households with a solar panel could therefore earn up to £600 a year from having the solar panels installed on their roofs, and those which can accommodate bigger systems could get up to £1000.

Carbon savings are of course the biggest benefit from using solar panels; the average solar panel on a household roof can save up to 692kg of CO2 per year. If every house were to take on a solar panel, then the UK would save roughly 8.5 million tonnes of Co2; an impressive figure for a relatively small nation.

After a period of piloting schemes, British Gas have announced that they are putting a big push behind the offering of solar power to British households. mySolar Energy is believed by British Gas to be the new way forward in solar power, providing end-to-end solar installation service, as well as carrying out assessment of energy consumption in homes, installing the solar panels, and issuing a CEPP (Certificate of Expected Panel Performance) to homeowners should they wish to sell their home. On top of this, British Gas is working with the new government to entwine their offer with the Feed-in Tariff.

British Gas hope to offer two ways in which customers can get involved with using solar power; the first involves British Gas installing the panel at no cost, but claiming the Feed-in Tariff from the solar panel. However, the householders get to benefit from the electricity their panel generates; this has been dubbed the ‘rent a roof’ scheme. The second way in which people can engage with this new idea is to buy the solar panels up front from British Gas, and claim the Feed-in Tariff for themselves; for this, a two year 0% APR has been offered.

Solar panel costs are no longer a thing of myth and legend with British Gas’s new research and report, as well as its push for a more solar-panel oriented nation. They argue that the benefits of having a solar panel vastly outweigh any negatives that customers may have heard, and point to the success of the pilot schemes.

Guest Article by Neil Camp

When it comes to central heating, those north of the border often seem to be one step ahead of those in the south and as if in confirmation of this, ScottishPower has launched what it claims to be the first combined energy tariff that offers three key components: boiler care, gas and electricity.

And with the launch of this product, Scottish government central heating is set to become a little more comfortable. This bundle will guarantee customers their gas and electricity prices, and an all inclusive maintenance service for their boilers through a single monthly payment. ScottishPower believe that this will save their customers up to £50 on their energy prices and boiler cover.

The package, called The Platinum Fixed Energy January 2014 tariff, is designed to give 24 hour care for boilers, and an extended protection on energy prices. Not only this, but ScottishPower will also give a 25% discount on cavity wall insulation for their customers.

The online cost of this package is on average £1,211, making it a very attractive bundle.
“Through talking to our customers we became aware that many people wanted to be able to purchase a single product that covered all of their home energy needs and offered security on price. We believe that our new tariff will appeal to those who want both security on prices and the security of full protection for their boiler,” says Gerry Magee, Head of Marketing at ScottishPower.

Scottish government central heating is therefore likely to become less of a hassle for those Scottish customers who take up ScottishPower’s offer; the combined tariff and comprehensive care and cover of boilers will make it a leading choice for many. The future of combined tariffs appears to be growing too: “We believe that the approach of combining these different services will be the way that the market moves forward in the future,” adds Gerry Magee.

Guest Article by Neil Camp

The nPower business is a great sponsor of UK sports and are adept at trying to get kids involved in the big sporting events.

The latest idea from the nPower business was to choose children from East Midlands schools to form a Guard of Honour at the recent Test match between England and Pakistan at Trent Bridge.

The children were selected from the Urban Cricket World Record Attempt; over 2010 children took part to try to seal the new world record for the largest number of children all at the same time and in the same space. Out of these 2010 children, 10 boys and girls were chosen from the nine winning teams that took part at the Nottingham Racecourse.

Candleby Lane, Lowes Wong, Forest Fields, St Johns Church of England, Middleton, Coppice Farm, St. Edmund Campion, Jesse Gray Primary and Bentinck Primary were the nine schools that came out on top.

The structure of the competition meant that 105 pitches were spread across nine zones; each of the zones ended with a champion after three tense rounds of matches. The winners joined others in the Urban Cricket Crew reserved seating to watch the Test cricket; another part of nPower’s grassroot ideas to get children into some of the top cricket matches out there.

All children received an Urban cricket Crew goodie bag, and enjoyed a thrilling match. “We are delighted to give children from the winning teams a chance to be the Guard of Honour at the celebrated Test ground. I’m sure it’s an experience they’ll remember for years to come and hopefully will inspire them to become the next generation of cricketing stars,” said Clare McDougall, nPower’s head of education and community.

The nPower business has been attempting to get to the grassroots of local communities through their diligent and attentive sponsorship of major sporting events, and are most well known for their support of the Test cricket. The Urban Cricket, in conjunction with the ECB, is one of the many grassroots projects that are currently running.

Guest Article by Neil Camp

Cheap electricity prices might be harder to get in the future thanks to a new Government green tax.

And ironically, the fact that cheap electricity prices might be a thing of the past, will mean a windfall for French energy company EDF.

It’s all thanks to the government’s plans to artificially raise the price of carbon allowances traded in the UK which will in effect make it more expensive to run a conventional fossil-fuel, high carbon power station, than it costs to run a low carbon nuclear plant.

And this, says two accountancy groups in major reports, will lead to an increase in electricity prices.

They point out that a carbon price of £29 per tonne, would result in a £7 increase per megawatt hour. This would take the total taxpayer cost to some £2.5 billion.

Translated in terms of the UK’s 22 million households , a £29 per tonne carbon price means an extra £40 every year on their energy bills.

And for UK businesses, it would mean a substantial addition to their costs.

As to the winner in this new arrangement, it’s been calculated that both EDF and the Treasury will be the main beneficiaries. EDF stands to get a windfall of £350 million, mainly because it owns and operates a number of UK nuclear power stations which currently produce nearly 15% of the country’s electricity. So the company gets the benefit of higher electricity prices, but will not have to buy carbon allowances, because their nuclear power stations do not produce carbon gases.

The same ‘carbon dividend’ will be felt by other renewable generation plants, including wind farms.

Observers says that EDF is keen on an increased carbon floor price for obvious reasons, as it’s a winner in both ways.

But experts point out that even with increased carbon floor prices, the incentive for new players to enter the market and build new nuclear power plants is simply not enough. And unless a major new nuclear power station build programme is started, then the current plants, plus the aging fossil-fuel stations, will not be enough to provide sustained energy for the UK over the coming decades.

Guest Article by Neil Camp