The Labour Government has been reported to be considering a scheme by which a homeowner could fund eco-improvements through a long term loan, possibly provided through the energy companies.

And although an inevitable row has broken out between the political parties as to whose idea it is – both the Tories and Liberal Democrats claim they had the idea first – it is a genuine attempt to help people afford home improvements with the environment in mind.

It has always been a dilemma for anyone contemplating making changes to their house and more energy efficient, is that the pay-back can be decades.

Take double-glazing which undoubtedly makes a property warmer. Although it will save hundreds of pounds off an average energy bill every year, that won’t cover for a long time the actual cost if installation which will cost thousands of pounds.

Even the simpler job of installing loft insulation is not that cheap, especially if a householder cannot do it as a DIY project.

So the Government plan is simple: provide people with access to long term funding so they can make their home more energy efficient.

The crux is of course, can the Government afford such schemes, especially as over the coming years the public purse is going to have to be considerably tightened and home grants will be hit hard? If you look at the welcomed boiler scrappage scheme, this has proved very popular, but the scheme itself has a limited shelf life. It will not continue forever. What’s more, various consumer groups are already complaining that a number of home improvement grant schemes are being withdrawn, or wound-down.

So, it’s perhaps inevitable the Government will want to involve the energy companies in the scheme. Maybe not to wholly bank roll-it, but to act as a clearing house, although you could see the temptation of ministers asking the big energy companies to put their hands in their pockets for people’s house improvements; almost a corporate tax by proxy.

But the cynics might also point out this is the period before the general election, when the Government and opposition parties alike will promise many things which are then conveniently forgotten when they become leaders.

So, it’s a great idea, but don’t hold your breath!

Guest Article by Neil Camp

Baxi Group has just launched what they describe as a breakthrough in micro-CHP for the home.

For those that have forgotten, CHP stands for Combined Heat and Power, and are the new trend in modern domestic heating systems. And Baxi claim that their Ecogen is the first commercially available micro-CHP unit for the home.

Mark Kelly, Baxi Group’s CEO, said:
“Baxi Ecogen heralds the most important step-change for the home heating industry since the condensing boiler. This is the first, wall-hung micro-CHP unit which can be specified by local authorities, housing associations and private developers.

“It will help them meet Level 3 of the Code for Sustainable Homes, tackle fuel poverty issues more effectively and significantly cut carbon emissions. Baxi Ecogen is a unique, world-class technology for the 21st century home.”

The Ecogen boasts a Free Piston Stirling Engine which generates up to 1kWh of electricity, at the same time as giving lots of space heating and hot water. An initial heat demand of up to 6kW ignites the engine gas burner, which in turn causes the gas to expand inside the Free Piston Stirling Engine, which moves a piston up and down inside a coil of copper. This generates electricity in much the same way as a car’s alternator.

Once the heat demand is more than 6kW, then a supplementary burner kicks in to supply a further 18kW of extra heat.

Baxi has carried out extensive trials of the Ecogen, which showed that their micro-CHP can cater for two-thirds of electrical needs for an average household. And any electricity that the householder does not need, can be exported back to the National Grid.

And Baxi has deliberately designed the appliance to have the feel, look and dimensions of a conventional wall-hung boiler. The Ecogen unit has also been made to suit open vented and sealed heating systems, which means that it will be a viable choice in both replacement jobs and new-build projects.

Baxi also has produced a wide range of intelligent controls which have been specifically designed to control and monitor energy efficiency, and increase the comfort of the user.

Guest Article by Neil Camp

British Gas owner Centrica has just announced results at a time when the country’s regulators are asking the energy companies to pass on more quickly to the customer the drop in wholesale prices.

But whilst Centrica admit in their financial statement that there was a substantial drop in both electricity and gas wholesale prices in 2009, it warns that they will be heading north again in 2010.

In their performance review, Centrica said:
“In 2009, energy was once again never far from the headlines. Wholesale UK gas and electricity prices both declined sharply from the levels seen during 2008 and while the forward curve indicates that they will rise again during 2010, it is clear that we are in a very different commodity price environment from that experienced in 2008.

“This comes at a time when the UK Government recognises that unprecedented levels of investment will be required across the industry if security of supply is to be maintained and tough environmental targets met.”

As for the financial performance of Centrica, for 2009 it recorded revenues of £21.96 billion, up 5% from 2008. Operating profit rose from £661 million in 2008 to £856 million in 2009.

As for the year’s achievements, Centrica made a major acquisition which increased its gas and oil reserves by 50%. It also took a strategic position in nuclear power by acquiring a 20% equity in British Energy, a company which owns and operates all of the UK’s nuclear power stations.

It highlighted a strong performance from British Gas, which included operational improvements and price reductions. It pointed out that there were some 550,000 additional product holdings, which included 164,000 additional households taking both energy and service products.

What’s more, British Gas’s commitment to the growing emerging energy efficiency market would create 1,100 new jobs in 2010.

Sam Laidlaw, Chief Executive of Centrica, said:
“2009 was a year of significant achievement for Centrica with British Gas now transformed and the completion of the Venture Production and British Energy transactions. Our existing strategic priorities have now been achieved, and today we have announced new priorities to build on the robust, vertically-integrated business model that we have in place. Centrica is well-positioned to pursue growth opportunities and lead the drive to a low-carbon world, whilst maintaining the financial discipline to secure strong returns on our investments.”

Guest Article by Neil Camp

The largest supplier of residential gas in the UK, British Gas, has cut its standard gas prices by an average of 7%.

For the average gas customer, this will mean a reduction of around £55 a year from their bill. It is thought that some eight million households will benefit from the cuts and the price changes take effect immediately.

Bearing in mind this is the third British Gas price cut in the past 12 months, it means that nearly £190 has been chopped off the average annual dual fuel bill.

Phil Bentley, British Gas Managing Director, said:
“At British Gas, we know household budgets are stretched, and that our customers are concerned about the effect the recent cold weather will have on their winter fuel bills. I’m pleased we’re able to offer our customers some extra help with this gas price cut – and that we’re able to do this while it’s still winter, allowing our customers to really feel the benefit.

“This latest price cut means that, no matter where you live in Britain, British Gas is offering on average the cheapest standard gas, electricity and dual fuel prices – beating all other major suppliers. But, at British Gas, we know that cutting prices is just part of the picture in helping our customers cut their fuel bills; we’re also doing more than any other supplier to help our customers use less energy. As well as cutting prices three times in the past year, we have been helping our customers improve their energy efficiency and cut their energy use by 7%.”

British Gas claim that last year, they cut both standard gas and electricity prices by an average 10%. And the May 2009 electricity price reduction saw British Gas become on average the cheapest supplier of standard electricity across the UK.

What’s more claim British Gas, this latest gas price cut means that they are now also the cheapest major supplier of standard gas at average consumption, and therefore of dual fuel, right across the UK.

In another move, British Gas has also removed the price ‘differential’ for gas pre-payment meter accounts, meaning that pre-pay gas customers are now paying, on average, the same for their energy as customers who pay by cash, or cheque.

Find out more about British Gas here.

Guest Article by Neil Camp

The boiler scrappage scheme was welcomed by consumers and industry alike as a great way to help people improve the efficiency of their heating systems and at the same time stimulate flagging businesses, but the scheme has hit problems.

Recent national newspaper reports have revealed that applicants are waiting to receive their vouchers and the call centres are experiencing a backlog of calls.

The scheme is so structured that only those with a voucher (received after lodging a valid quote from a Gas Safe Registered heating engineer) can have the work started. But the vouchers are reportedly suffering long delays as scheme staff cannot cope with demand.

The voucher is worth £400 and was created to encourage people to swap their old boilers – rated G, X or non-rated – for new A rated boilers which are over 90% efficient as opposed to between 50% and 70% efficient. The scheme is being administered by the Energy Saving Trust.

But such was the enthusiastic response that the call centre had quickly received some 160,000 calls for the limited number of vouchers available: at the moment, 135,000. And some 36,000 applicants had been received.

At least say the reports, the number of call centre staff has been doubled and it is now claimed that people who qualify under the scheme will get their vouchers within ten days.

The chief operating officer at the Energy Savings Trust told the media that they had taken the necessary steps to cope with the demand and that things had been dramatically improved, with only a few days backlog remaining and a return to normality quite soon. This included an automatic email being sent to those who contacted the Energy Savings Trust about the boiler scrappage scheme.

The biggest installer of new gas boilers in the UK is British Gas and they have reported that in the first three weeks of January, they had seen a four-fold increase in the number of people asking for a quote as compared to the same period last year. British Gas offer a further £400 rebate over and above the Government voucher, and also offer other incentives on maintenance schemes, services and fittings.

Observers are now concerned that the Energy Savings Trust will have difficulty in processing the payments in time when vouchers are redeemed. The scheme says that voucher payments will only be made on receipt of a valid voucher and paid Gas Safe Registered engineer’s invoice. Payment should then take place in 25 days and the worry is that this system will suffer the same delays as the start of the process.

Guest Article by Neil Camp