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

The UK is set to experience further energy price hikes next winter. This news comes from Centrica, which is British Gas’ parent company, after it announced that due to unrest in the Middle East and the disaster in Japan, wholesale gas prices have gone up by a quarter compared to last year.

The Japan disaster has meant that the country has had trouble producing enough energy for its people as a result a great deal of liquefied gas supplies have been diverted to make up for the shortfall in power production.

"In the UK the forward wholesale prices of gas and power for delivery in winter 2011/12 are currently around 25% higher than prices last winter, with end-user prices yet to reflect this higher wholesale market price environment," said Centrica.

Due to the rising cost of gas a number of energy suppliers in the UK including Npower, First Utility and British Gas, which has over 16 million customers have already had to increase prices and take away some cheaper tariffs. 

Even though this is not good news for homeowners they can do something now to protect themselves against the hikes and bigger bills during the upcoming winter. Most of the largest gas and electric providers do offer fixed-price tariffs, however suppliers are already increasing prices and withdrawing cheap deals so time is running out.

Homeowners can use sites such as GasBoiler-Buyability.co.uk, Moneysupermarket.com and Uswitch.com to compare the best energy deals on the market.

Although these price hikes are unfortunately unavoidable due to rising wholesale prices they are nonetheless coming at a poor time with record petrol prices and other increased living expenses this is yet another blow to the average household’s dwindling disposable income.

The price hikes are not only affecting domestic users either with businesses set to be hit as well. But the recent Renewable Heat Incentive launched by the government will allow commercial and domestic users later on to receive subsidies and cash back. And with the new price hikes this will surely spur many companies to look at more cost effective forms of energy supply.

The RHI scheme will initially be funded by the government using £860 million and is set to be available to the public and commercial sector as of July 2011. The scheme will provide financial incentives for installing and using renewable energy. This will be done by paying an annual subsidy to the person who owns the installation. The funding will be available for systems such as ground source heat pumps and solar thermal. British Gas has teamed up with Sainsbury’s to promote renewable energy installation by providing advice and information to shoppers. This will help to promote the incentive to the public.

It is predicted that inflation and energy prices could double over the next decade and with the RHI scheme this could mean a new revolution in renewable energy production for businesses and homeowners.

Guest Article by Louise Goldstein

One of the UK’s major energy companies has shocked its customers with a huge 19% rise in its gas prices and a massive 10% uplift in electricity tariffs.

Scottish Power has rocked the energy sector with the scale of its rises and will bring down upon itself the wrath of consumer groups already wondering how people can cope with such inflation.

The rises will come into effect on 1 August, but will only affect those not on fixed deals. This has prompted a number of experts to recommend people to sign up fixed deals as quickly as they can.

It’s feared that others will follow where Scottish Power has led and that the other big five energy companies in the UK will make similar rises soon.

British Gas, EDF, E.ON, npower and Southern and Scottish will make announcements soon as to their pricing intentions in the run up to winter. And British Gas has made strong hints that rises are inevitable, given the continually increasing wholesale costs.

But the extent of the Scottish Power increases has stunned customers and energy pundits alike. For the average bill, it has added about £170 which means over a year, the bill has climbed from £1,150 to £1,320.

Scottish Power has over five million customers and has never been adverse to leading the way in announcing price rises. Industry observers had noticed that for the last few weeks the company had been dropping hints about price changes, but the scale of the change has shocked many.

The company were quick to lay the blame firmly at the door of rising wholesale costs, but consumer groups were less impressed with that view, saying that the protection of margins was the real reason behind the rises.

People are being told to get themselves into long term fixed agreements before they might be withdrawn over the coming months.

In a case of almost shutting the door after the horse has bolted from the stable, the regulator of the energy industry is looking at the whole question of whether companies are justified in using wholesale price fluctuations as an excuse to raise their prices, especially when it appears to many that they don’t cut them when they fall again.

The energy companies claim that the situation is more complicated than people believe and that the process of buying energy some months ahead is complicated, and does not always follow what the wholesale market is doing.

One thing is for sure though, Scottish Power won’t be alone for long.

Guest Article by Neil Camp 

It’s a shame that more boilers are not powered by electricity, especially when the number of innovative bio energy plants are being set up.

Electricity as an energy to heat boilers is not popular, mainly because of the cost and although things looked better when nuclear power was an option, post the Japan Tsunami, things look bleak again.

But it may be a missed opportunity, as projects like the anaerobic digester from BiogenGreenfinch (which has just received planning permission from Warwickshire County Council) are set to revolutionise the way we generate electricity.

BiogenGreenfinch will be the new plant’s owner and operator, in Merevale, and the facility will eventually treat up to 45,000 tonnes of waste food every year. This will be sourced from food retailers and manufacturers, and from households in the region.

It is estimated that the new plant will generate enough electricity to power 2,000 homes. This means that it could provide enough power for homes in both the Warwickshire villages of Baxterley and Atherstone.

The food waste is processed in such a way – via a complex anaerobic process – that it will not only produce electricity for the grid, but also provide a valuable bio fertiliser for farm land.

The chief executive officer of BiogenGreenfinch, Richard Barker, said:
“We are excited about being involved with this market-leading project. Merevale is an excellent site for an AD plant – centrally located with excellent transport links to nearby large population centres. This is a definite “win-win-win” project – we are diverting food waste from landfill, we are generating renewable electricity for the national grid and also delivering a fantastic bio fertiliser for crops on the land around the plant. We look forward to working with local food waste producers in the coming months and years to make this plant a success.”

The chief executive officer of customer Merevale Estates, Philip Blackman, said:
“We are delighted to be working with BiogenGreenfinch in this ground breaking project. Their proven track record in delivering AD plants, contracts in the industry and expertise with bio fertilisers makes them an ideal partner to anchor the first phase of this centre for renewable energy in North Warwickshire.”

BiogenGreenfinch believes it is the UK’s leading integrated designer, manufacturer and operator of such food waste anaerobic digestion plants. Three units are already in operation (Shropshire, Bedfordshire and Northamptonshire) and others are planned around the country.

Guest Article by Neil Camp