The Big 6 have been in the news a lot lately and not entirely for the right reasons. We hear so much about them, but the information usually only goes as far as price rises.

So who are these energy behemoths that fuel our gas boilers and heat our showers in the morning?
After privatisation on March 31st 1990 the energy industry changed dramatically. As a result 6 companies have emerged as key players in the UK energy market.

Npower
Npower supplies gas and electricity to around 7 million customers in the UK and employs over 11,000 staff. It predominantly produces energy using gas-fired, coal and oil powered stations with a small proportion being generated via renewable energy.
During the 1990s it acquired several smaller companies such as Midlands Electricity, Calortex, and Independent Energy and eventually became Npower in 2000.
They are currently a member of the ‘Percent Club’ which requires them to invest more than 1% of their pre-tax profits back into the community.

British Gas
British gas (including Scottish Gas & Welsh Gas) is the largest energy supplier in the UK and delivers gas and electricity to over 16 million domestic and commercial users. The company also operates in the U.S and Canada with recorded revenues of over $22 billion in 2010.
It currently operates 8 gas-fired power stations but also produces energy via various methods including the largest offshore wind farm in Europe. The giant wind farm covers an area of 20 square km and has 54 turbines.

EDF Energy
EDF energy was founded in 2002 and is owned by French state operated EDF SA. EDF stands for Électricité de France. The UK arm employs over 15,000 people and supplies gas and electricity to almost 6 million homes and businesses.
EDF has made a number of acquisitions including London Electricity, SEEBoard and British Energy. They continue to be a big supporter of green initiatives with EDF operating over 20 wind farms in the UK.

E.ON
E.ON supplies gas and electricity to over 9 million homes in the UK. They operate over 20 windfarms, but also utilise hydropower schemes in England and Wales.
It is currently part of the largest investor owned energy service company in the world delivering gas and electricity to over 26 million customers, their headquarters are based in Germany. The group reported revenues exceeding $92 billion in 2010.
E.ON used to be known as Powergen but was taken over in 2002 and renamed.

Scottish Power
Scottish Power was founded in 1990, employs 24,000 staff and supplies gas and electricity to over 5 million customers in the UK. It is also a subsidiary of Spanish utility company Iberdrola.
It is currently in partnership with Sainsbury’s. So if you buy your energy through Sainsbury’s you are in fact using Scottish Power.
Iberdola bought the company in 2007 for £11.6 billion and effectively incorporated it into its structure making it the third largest energy supplier in Europe.

SSE
SSE supplies 10 million customers with gas and electricity in the UK. They were the first company to be awarded the UK Domestic Electricity and Gas Supplier in Customer Satisfaction prize. They were also responsible for building the first deep water wind turbine in the UK.
SSE have also invested over £850 million in renewable generation, refurbishment and various other construction projects.

Guest Article by Louise Goldstein

The Energy Saving Trust is largely funded by the government and was set up to help people in the UK save energy and reduce carbon emissions.

They currently advise 3.5 million people every year and have various advice centres across the UK, which have become increasingly popular during the recession. The Energy Saving Trust was also responsible for setting up the £50 million gas boiler scrappage scheme in 2010, which was a huge success.

One of their most successful initiatives which has helped the UK public is the Energy Saving Trust Recommended Scheme (ESTR) this is offered in collaboration with many of the country’s leading retailers and manufacturers. The accreditation covers over 3,000 products which pass stringent design criteria so customers can be assured they are buying the most energy efficient products.

You can visit The Energy Saving Trust’s (EST) website to see a list of accredited products. Alternatively, you can look out for the EST sticker at any major retailer.

The EST also works with most of the local authorities in the UK and thousands of community groups. In 2009-10 The Energy Saving Trust contributed towards massive CO2 savings, some of which are highlighted below.

• Consumer – 404 tons of CO2
• Housing Associations – 155 tons of CO2
• Small Companies – 7 tons of CO2

Member organisations of the Energy Trust include British Gas (Centrica) and Baxi boilers. These organisations work with EST to improve energy efficiency and promote advice.

The Energy Saving Trust’s website has lots of information on how to save money and the various schemes it runs and supports. I even found some useful tools such as, TrACE (tracking action on carbon emissions). This is mainly used by Local Authorities that want to track and monitor carbon emission reduction in their area.

Visit the  Energy Saving Trust’s website for more information about how it can help you save money and reduce your carbon emissions.

Guest Article by Louise Goldstein

Are you worried about your energy bills? With the news of further energy price hikes it could be a very cold winter indeed for those already struggling to make ends meet. However, even if you are on a low fixed income there are measures you can take to make things easier and keep your bills low.

Let’s put this into perspective; according to recent government figures 5.5 million homes in the UK are now in what is known as fuel poverty, this is almost one in five households. This essentially means they have to spend more than 10% of their total income on keeping their homes warm. But that is not even the whole picture because Consumer Focus, a government watchdog, expects the figure to rise by another 1.3 million over the next 12 months due to the energy price hikes.

The Department of Energy and Climate Change (DECC) has also reported that, between 2004 and 2009, energy prices increased by 75% and gas over 120%. Other reports from other organisations predict the recent announcements will mean the average annual dual fuel bill would have increased by 50% since 2007 to about £1,450.

Top 5 Energy Saving Tips

• Standard light bulbs are not very friendly when it comes to energy efficiency. But if you replace them with energy savers you can save around £40 per light bulb over its lifetime. If you have 12 light bulbs in your house the savings can significantly add up
• Turn electrical appliances off at the socket before you go to bed or if you are not using them. Leaving them on can add 10% to your electric bill
• Most of us have heard this tip before but it is a good one and worth mentioning again. By decreasing your thermostat by just 1.5C you could save as much as 10% on your heating bills
• Now is the time to have a look around and switch from a variable to fixed rate tariff. EDF is currently offering the cheapest rate. It has a one-year online fixed rate and estimated average bills will be about £1,009 a year
• New A-rated high energy efficient condensing gas boilers, such as the ones by British Gas, can reduce your bills by about £225 a year

Small changes turn into big savings over an entire lifetime.

Need some advice?
If you are more than a little worried about your bills there is help. There are literally thousands of people in the same boat. The Money advice Trust a debt charity has reported a 180% increase in reports of fuel debt concerns.

For independent advice you can call the National Debtline (0808 808 4000) they can actually prepare an income and expenditure plan and can help you to come up with a repayment plan so you can resolve any energy debt problems.

Guest Article by Louise Goldstein

British Gas installs over 100,000 boilers in the UK every year. They install more than anyone else. Today we’re looking at their installation process and why so many people buy from them.

They often run a number of different offers throughout the year and promote them everywhere. You can see one of their latest British Gas boiler offers here. These usually involve discounts on boilers, installation or free breakdown cover. You can make an appointment or enquire online or over the phone. At which point they take contact details and arrange for a heating adviser to visit you so they can provide a free quote.

Heating Adviser Appointment
All British Gas heating advisers are trained to be energy efficiency experts. During the appointment they will complete a technical inspection of your current system and advise you on which heating system is most appropriate for your needs and how you can save money on bills. The quote they provide, unlike some other companies, is a fixed price not an estimate.

The Boiler Installation
The installation is carried out by a qualified engineer and where necessary they cover furniture and appliances and try to minimise disruption. The time it takes to install a new boiler depends on the system. However, a few hours during a single day is not unrealistic for small straight forward replacements.

Do they have any after sales care or guarantees?
They provide 24 hours a day 365 days a year breakdown cover. A 5 year heating system guarantee is also available as well as the promise that all parts for your heating system will be available for 10 years.

Are they expensive?
Because they are such a large company and the largest installers in the UK they command a great deal of buying power which means greater flexibility on finance options and price. They offer a wide range of gas boilers from many top brands including Baxi, Vaillant, Worcester, Potterton and even their own models. You can pay a deposit and the rest on a monthly basis. The cost of a boiler and installation depends on a number of factors which is why a heating adviser appointment is required.

Anything else I should know about?

• In some cases you may need a survey if the installation is tricky, but this will be mentioned during your initial appointment
• Usually materials for the installation will be delivered to you the day before the installation. You may need to clear away an area in your home to accommodate
• If the system takes longer than a day the engineer may have to isolate or even turn off your water and gas supply to certain parts of your home
• Before the work begins it is best to try and locate your gas and electric meters and main water tap

Guest Article by Louise Goldstein

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