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

The end of summer is fast approaching and with September experiencing some last minute sunshine you will still be enjoying the break you are having from heating your home over the summer months.

However, during the summer period you should have been thinking ahead to the winter months and getting your boiler and central heating system serviced and if necessary repaired or replaced over this quiet period.

This is because summer is the best time to get the condition of your boiler checked-out by a qualified tradesman and there are many reasons why.

Firstly, if your boiler does have a problem then it can be fixed on your own time and the repair doesn’t become an emergency as if it arose over the winter months. Having this flexibility of time would just not be a factor in winter months.

Secondly, the price may be cheaper in the summer as the engineer and their resources will not be so pressed and booked up. Many companies offer households incentive schemes in the summer months to replace their boilers as they find that their engineers are less busy over this period. Currently, British Gas is running a £400 boiler scrappage scheme on selected new boilers. This means that households who are with British Gas can get a quote to trade-in their old boiler to a newer more energy efficient Worcester boiler and save £400. The only proviso is that the quote and installation needs to take place by the 2nd October 2011.

Finally, if you have to replace your boiler completely, by doing it in the summer months it will mean that you won’t experience any loss of heating as it won’t be on anyway. This would be a real problem in the cold winter months. Also, by replacing a boiler over the summer months it will start saving you money as soon as you need to use it as the newer boiler will be much more energy efficient. This will mean that when your first energy bill of the winter months arrives, though it will be more than your summer consumption it will be less than you have experienced in the past.

If you haven’t had your boiler serviced yet this year or you know that it needs repairs or possibly replacing then it is recommended that you should look to do this as soon as possible. There is still time to book this in before the busy winter period starts and don’t forget to look out for boiler scrappage schemes to help you financially. Make sure you aren’t left in the cold this winter by getting your boiler serviced, repaired or replaced today.

Guest Article by Sarah Wain

British gas joins the other energy suppliers and increases the cost of energy bills – so how do you prepare for these price hikes?

This week British Gas announced that it was increasing the cost of gas by 18% and electricity by 16% in a move that follows E.ON, Scottish Power, Scottish and Southern Energy (SSE) and Npower who have already announced a rise in their energy prices. This means that the average British Gas customer is likely to see their annual dual energy bills increase by £190. It is predicted that EDF will follow suit and announce price increases imminently, meaning all of the top six energy suppliers will have increased their prices this year leaving the majority of energy consumers hit in the pocket from these price hikes.

It seems like when one energy company decides to increase prices then the rest of the companies follow suit. The price rises in some camps are being blamed on economic uncertainty in these recessional times and this uncertainty affecting the wholesale price of energy. However, TheEnergyShop.com has recently stated that fuel prices for domestic suppliers have fallen by 8% since March 2011 due to the slow growth in the economy. This sends out mixed and confusing messages to customers leading to anger and frustration over the reasons for increasing costs and customers shrinking household expenditure. However, one thing that is certain is that these all-time high fuel costs are unfortunately here to stay.

So is there anything that you should be doing to compensate for these higher bills? The answer is yes and this is what I recommend:

Firstly, it is recommended that you speak to your existing energy supplier and look to see whether you are on the right tariff for how your household uses energy. Your energy supplier will obviously want to keep you as a customer but they have a duty of care to provide you with the information that you require to make an informed decision about your energy supply. You can also gauge valuable information about your energy usage to understand the best product for you. For example, don’t always assume that dual fuel is cheaper as you should compare the cost of getting your gas and electricity from other companies to double-check your past assumptions.

Secondly, you should also consider switching to a fixed tariff rate based against your existing payment plan. These fixed tariff rates usually tie you in for 18 months to 2 years but will mean that you won’t be affected by any additional price rises. If you want to fix your energy prices then it is important that you act now as many cheaper fixed rates are disappearing and are being replaced by more expensive ones. Have a look to see whether your energy supplier offers online tariffs as these can be cheaper than standard rates. Also, it is recommended that you pay for your energy supply on a monthly direct debit as many companies will offer you a discount of up to 10% when paying by this method.

Finally, if fixed pricing isn’t for you then you should wait until all price rises among the energy suppliers are determined and find the one that offers you the best value for money and switch to them.

Guest Article by Sarah Wain

Energyshare was launched by British Gas in May this year and is one of the best certified green energy options on the market for customers.

Developed in partnership with River Cottage whose aim is to change the way that we source, generate and use energy, the Energyshare concept is hoping to get customers thinking about where their energy supply comes from and to be more environmentally aware. So, if you’re energy conscious and looking for an energy supply that comes from 100% British renewable sources then British Gas Energyshare could be the tariff for you.

Not only does British Gas Energyshare tariff promise customers fuel from 100% British renewable sources it also promises additional benefits to the environment and UK communities.

The environmental benefits include British Gas ensuring that for each unit of electricity used on this tariff that 100% renewable electricity will be put back into the grid. As for communities, they will benefit as British Gas will contribute £10 per year for each customer who is signed up to the package to support community renewable energy projects and British Gas aims to contribute over £15 million to support these projects over the next few years. Customers will also be given some control over this community spend as they will have the opportunity to decide which projects and causes are the most worthy of this investment. Worthy projects currently underway with the support of Energyshare include projects to install solar panels and create wind farms in local communities.

If this doesn’t tempt you to switch to Energyshare then you may be surprised to learn that Energyshare comes at the same price as British Gas’s standard tariff, so you won’t be paying any more for your energy supply. The tariff is also available for both gas and electricity for residential and business customers and when you move to this tariff you will also be given a free energy saving appliance such as an eco-kettle.

With British Gas being the biggest energy supplier supplying over 6 million customers in Britain, Energyshare can only be a good thing for the continual development of UK renewable energy sources and renewable energy projects. If however, you are concerned about whether this tariff delivers on its promises then you will be safe in the knowledge that Energyshare is independently certified and meets Ofgem’s Green Supply Guidelines. Therefore, you can be sure that by choosing this tariff that you are making a real difference to the environment and that results will be measured and improved upon year after year.

Guest Article by Sarah Wain

Are you thinking about switching to an online account for your gas and electricity? British Gas supplies gas and electricity to over 16 million customers in the UK, that’s a lot of gas boilers fired up and even more light bulbs switched on!

British Gas Online Account