A leading consumer website is warning that half of the competitive online energy plans, including one offered by British Gas, have been pulled off the market and more are likely to follow.

The British Gas online tariff is priced at a very competitive £895 a year, but observers wonder how long they can keep this price at that level.

EDF Energy and npower have already pulled the plug on their most competitive online plans to new customers.

Their action has meant that the average price of the best energy deal has rocketed by nearly 4% to £947; up from £913, a hike of £34. The only reason why this average is not higher, is because British Gas has kept its cost down.

But with rumours that British Gas is about to pull their plan, users are being urged to take action before being disappointed.

The energy expert at uSwitch.com delivered the warning in no uncertain terms:
“This latest move by two of the big six suppliers to remove their most competitively priced plans off the market suggests that the current crop of best buy plans are not going to be around for long. I would urge people to snap up a deal now or risk seeing the last competitive plan slip through their fingers.”

And with energy prices set to rise further over the coming months, those that would appreciate the lower online tariff prices definitely need to hurry before all the best deals disappear for a very long time.

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 

Centrica is the UK’s biggest energy company and owner of British Gas, and it has very obvious mixed feelings when it came to the recent UK budget unveiled by Chancellor George Osborne.

Like most companies in the oil sector, it was particularly scathing that the industry was made to pay for what many believe was a grandstanding tactic when it came to reducing the duty on fuel.

The Centrica Energy Managing Director (who also looks after British Gas) Mark Hanafin said:
“The Budget presents a mixed picture for the UK energy outlook. We are disappointed by the Government’s decision to increase further the already high levels of tax on UK gas and oil production. With more than 50 per cent of Britain’s gas now imported, it is vital for our energy security and for the economy that investment is maintained to ensure we extract all of the untapped hydrocarbons we can. This tax hike could have a chilling impact on future investment in the North Sea.”

The accusation was clear – the Coalition might pay dearly for trying to win cheap political favour and strike at a sitting target.

Yet there was more welcome news when it came to the question of the carbon price and this time, Centrica (and British Gas), has kindlier words to say: 
“However, we are pleased by the Government’s decision to support the UK carbon price from 2013. It is an important first step in delivering cost effective carbon emission reductions by increasing the cost of high-polluting forms of electricity generation. Crucially, it will provide greater financial certainty for the significant investment decisions being made in the next few years.

“While carbon price support is necessary, it is not sufficient on its own to deliver the scale of investment required to meet the UK’s carbon targets and secure energy supplies. It is therefore important that it is seen in the broader context of the forthcoming electricity market reform proposals.”

So, the reaction was definitely mixed and industry observers now await to see the relationship between the energy companies, including British Gas, and the UK Coalition Government will develop over the coming months. Some say this spat will be soon forgotten as the companies will be keen not to rock the perhaps fragile Coalition as it enters the choppier waters of austerity cuts. Others are pointing out that although Labour expanded a lot of hot air about windfall taxes, they were comparatively few levelled when they were in power.

British Gas, alongside its parent Centrica, remains on the sidelines.

Guest Article by Neil Camp 

The recent nuclear scare in Japan has done more than frighten the life out of Western European governments who were just persuading their populations that nuclear, afterall, was now a tamed monster.

It has thrown the whole energy debate out of kilter. Latest conceived wisdom is that the world has about 20 to 30 years left of comparatively cheap fossil fuels (before they become very expensive with higher production costs).

Nevermind for a minute that they might be harming the environment, the fact is that at today’s estimates, the current stocks are at the wrong end of the tank: nearing empty.

Now, okay, Russia has lots left (oil, gas, you name it), as does parts of the Middle East which appears to have discovered plentiful natural gas. But Russia has a tendency to sulk when it comes to supplying energy, and the Middle East is undergoing radical political upheaval which might not stop at Libya.

But if the West wants true energy freedom and comfort, the frozen wastes of the poles will have to fall to the oil companies, despite the environmental howls of protest, and the US might just have to start drilling off their East coast where it’s said there’s buckets of oil.

So politicians across the West saw nuclear as literally a great white light ready to save their problems. Three Mile Island was just an ugly memory (and some say not a bad movie) and Chernobyl thankfully happened in a part of the world where people don’t go on holiday.

And for the UK Government in particular, who see that in 20 years time the country is going to struggle to generate little of its own power, nuclear power was a God send. And when the French company EDF came along and started buying parts of the UK nuclear infrastructure, the Government took shelter in their upbeat PR machine which had well groomed men in suits saying that nuclear power was now nice and clean.

Oh dear. What a difference a Tsunami half way across the world makes. And for every day that TV stations focus on hissing steam coming from the stricken plant, you can strike a year off the time before nuclear power once again becomes the power of the future. Think of the bowed heads in the EDF Boardroom.

And the mother of all problems now confronts the politicians. Nuclear is back on the naughty step, shale gas retrieval is about as popular as killing badgers and wind power is fine as long as it’s about a hundred miles offshore and out of sight.

Yet the country’s population craves ever more energy to run their iPods, cars and every other conceivable gadget you can think of.

In other words, the UK populace can’t have its cake and eat it. Nuclear energy is out (given the fear of meltdown); the new wonder fuel shale gas is getting people onto the streets in protest and wind turbines either make too much noise, or kill too many birds.

But if the population of the UK don’t wake up soon, they might find their energy is more expensive than they ever had imagined, and that’s the true cost of not in my back yard.

Guest Article by Neil Camp 

British Gas has responded to the proposals from the energy supply regulator, Ofgem, saying that they welcome the ideas, saying that any plan to boost competition and reassure customers was a good thing.

British Gas was one of a number of energy supply companies that will be effected by Ofgem’s proposals which were contained in six key areas.

Firstly, Ofgem said that complex and unfair practices should be swept away. Secondly, the big six energy companies should be required to auction up to 20% of the output of electricity. Thirdly, if the companies continue to resist reform, they face a Competition Commission referral this year. Fourthly, an investigation is about to be launched into the standard credit prices from Scottish Power. Fifthly, independent accountants will be tasked by Ofgem to look at accounting disclosures; and, finally, the regulator will also review if energy companies are frustrating switching (when an industrial customer wants to change to another supplier) in the non-domestic market.

Managing Director of British Gas, Phil Bentley, said:
“We welcome any proposals that further boost competition in the UK energy market and provide reassurance for consumers. In particular, we welcome Ofgem’s proposals to improve electricity market liquidity and transparency in the reporting of company returns.

“This review by Ofgem has been full and wide-ranging, and we believe a line can now be drawn under the issues addressed, and the need for a Competition Commission Inquiry. We will now digest the detail of Ofgem’s plans and work with the regulator to make the necessary changes that will continue to build trust in the UK energy market.”

Commentators noted the mild response from effectively a damning list of proposals from the industry regulator and surmised that this is because little will change over the year, despite the best intentions of the gate keepers.

The energy companies, including British Gas, are powerful companies who believe they act in a commercially responsible way and might possibly see the Ofgem as an example of grand standing; almost trying to appease consumers who are being continually hit by rising energy bills.

Guest Article by Neil Camp