Energy industry regulator Ofgem has announced that it has launched “misselling” investigations into four of the UK’s largest energy suppliers. The four named are nPower, Scottish power, Scottish and Southern Energy, and EDF Energy.

The investigation concerns whether the four energy suppliers are complying with new regulations after a recent Ofgem probe.

What’s more, Ofgem has established a “Hotline” with Consumer Direct, so that any customers with examples, or evidence of misselling can tell their woes. The number to reach this service is 08454 04 05 06. Customers are being urged to call if they are at all concerned about the sales tactics of the four energy companies when negotiating energy contracts. This might include face-to-face dealings, or by telephone.

Ofgem is keen to review any evidence of misselling.

The regulator is throwing its weight around after its recent retail market probe and tougher obligations placed on energy suppliers.

The Ofgem Senior Partner, Markets, Andrew Wright, said:
“Suppliers have existing obligations to detect and prevent misselling and new licence conditions were brought in following our probe to further increase protection for customers. We expect all suppliers to comply with these tougher obligations but if our investigations find otherwise we will take strong action.”

It was last October when the new Ofgem obligations were introduced. It meant that the energy suppliers had to be more proactive in the prevention of misselling to customers face-to-face and over the telephone. Key were the conditions that if the companies were selling face-to-face, then they are obliged to provide their customers with an estimate before any agreements, or contracts are signed. Furthermore, most customers should get a comparison of the supplier’s offer with their current deal.

Ofgem acknowledged at the time that these newer obligations were tougher than those used within the general consumer protection law, but argued that the importance of the issues raised in energy deals were such that it warranted tough sanctions.

Both Ofgem and Consumer Focus have also published a leaflet with has been designed to give consumers helpful advice and guidance when it comes to dealing with energy suppliers.

Ofgem goes on to say that just because they have launched the investigations, does not mean to say that all, or any one of the four energy suppliers involved has either broken a condition of the new rules, or has broken the law.

The regulator has had to fine companies before following similar investigations. In 2008 nPower was stung for £1.8 million and £2 million was levied on London Electricity (which is now part of EDF Energy) in 2002.

Should Ofgem get upset with one of the companies supplying the UK market, it has the power to levy a financial penalty of up to 10% of the company’s total turnover.

Such a fine would make a sizeable dent in any one of the four energy suppliers named by Ofgem in this latest investigation.

Guest Article by Neil Camp

When it comes to central heating, those north of the border often seem to be one step ahead of those in the south and as if in confirmation of this, ScottishPower has launched what it claims to be the first combined energy tariff that offers three key components: boiler care, gas and electricity.

And with the launch of this product, Scottish government central heating is set to become a little more comfortable. This bundle will guarantee customers their gas and electricity prices, and an all inclusive maintenance service for their boilers through a single monthly payment. ScottishPower believe that this will save their customers up to £50 on their energy prices and boiler cover.

The package, called The Platinum Fixed Energy January 2014 tariff, is designed to give 24 hour care for boilers, and an extended protection on energy prices. Not only this, but ScottishPower will also give a 25% discount on cavity wall insulation for their customers.

The online cost of this package is on average £1,211, making it a very attractive bundle.
“Through talking to our customers we became aware that many people wanted to be able to purchase a single product that covered all of their home energy needs and offered security on price. We believe that our new tariff will appeal to those who want both security on prices and the security of full protection for their boiler,” says Gerry Magee, Head of Marketing at ScottishPower.

Scottish government central heating is therefore likely to become less of a hassle for those Scottish customers who take up ScottishPower’s offer; the combined tariff and comprehensive care and cover of boilers will make it a leading choice for many. The future of combined tariffs appears to be growing too: “We believe that the approach of combining these different services will be the way that the market moves forward in the future,” adds Gerry Magee.

Guest Article by Neil Camp

The Ewe Hill Windfarm has got the go ahead from Dumfries & Galloway Council.

The council approved the building of the Ewe Hill Windfarm by ScottishPower Renewables.

Ewe Hill Windfarm is located just over ten miles from Lockerbie and will feature six turbines. They will produce enough green energy for approximately 10,000 homes.

The Ewe Hill Windfarm was initially ear-marked for 22 turbines and Scottish Renewables is still progressing part of what was an earlier application.

Possibly as a sop to views of residents near to Ewe Hill Windfarm, Scottish Renewables has said it has demonstrated its commitment to the local community by creating a special fund to support local projects. The company says that around £20,000 will be invested into the fund every year.

UK Director of ScottishPower Renewables, Simon Christian, said about Ewe Hill Windfarm:
“This announcement is tremendous news, not just for ScottishPower Renewables, but also for Scotland’s renewables targets. We have spent considerable time working on this project and to gain this consent is great reward for the efforts of all our team.”

Altogether, ScottishPower Renewables confirmed that it now has over 1200 megawatts of electricity generating capacity deriving from clean, green power. In terms of capacity in operation, sites under construction and planning permission consented, ScottishPower Renewables is the UK’s largest operator of onshore windfarms. It also operates Whitelee, which was completed in May 2009 and is Europe’s largest windfarm.

ScottishPower Renewables is a part of the largest wind energy company in the world, Iberdrola Renovables, and at the end of 2009, boasted a capacity of nearly 11,000 megawatts and a future pipeline of nearer 60,000 megawatts. The ScottishPower Renewables part of the business contributed 800 megawatts of installed capacity and a pipeline of 5,115 megawatts at the end of 2009.

Iberdrola Renovables has operations in over 20 countries worldwide.

Guest Article by Neil Camp

After my latest round of exhaustive (and frankly quite tedious) research into the UK energy marketplace, I’m starting to despair at the plethora of offers available for domestic energy supply. With over 4,000 different energy tariffs available in the UK alone, choosing the right one is becoming incredibly confusing and time consuming.  A fine example of ‘confusion marketing’ at its very worst!

Nevertheless, I’m pleased to report that Scottish Power have again won this month’s top slot in the BUYability rating contest with their Online Energy Saver 7 tariff.  The combination of excellent customer feedback and very good ‘dual fuel’ savings for average households have convinced me that they are still one of the very best value deals currently available.

The Online Energy Saver 7 offer runs until the end of November 2010 and guarantees that prices will stay at least 3% cheaper than Scottish Power’s standard gas and electricity prices for customers who pay by monthly direct. It’s effectively a fixed term deal because customers who cancel early could incur cancellation fees of up to £50. That’s £30 for electricity & £20 for gas.

Our comparisons assumed an average annual electricity and gas usage for selected three bedroom dwellings in several different locations.

Customers whose gas is supplied via an Independent Gas Transporter pay an extra £42 per year on top of the Online Energy Saver 7 tariff.

The offer is subject to limited availability and may be removed without notice by ScottishPower at any time. 

<< Check how much you can SAVE with Scottish Power here >>

A summary of the benefits are shown below:

• Guaranteed discount until 30th November 2010.
• Limited Availability, could be removed at any time
• Early redemption charges inclusive of VAT of £30 for electricity and £20 for gas apply.
• Cash back on credit balances at annual reassessment.

Article by Alan Potts

As we all know 2008 saw the price of gas and electricity go through the roof and for many domestic consumers this has meant they literally can’t afford to heat their houses and turn their lights on. In fact, reports now show that over 3 million households are suffering from ‘fuel poverty’ and that the majority of the country are paying over 10% of their income just towards their fuel bills. There is however a light on the horizon and many of the big gas and electricty providers have recently revealed their intended price cuts to the nation. But who is offering the best deal?

Scottish Power
Scottish Power cut their Price Sure fixed rate tariff by 10% in January which means that the average household will save around £80 this year as dual fuel customers. Unfortunately the company hasn’t mentioned the effect that the price cut will have on their other tariffs – if any – and so I can’t comment further on this.

Scottish and Southern
Scottish and Southern are part of a larger group however they have independently announced their gas and electricity price cuts which will come into effect from the end of March 09. As things stand they intend to cut gas prices by 4% and electricty by 9% and this will save the average dual fuel customer around £66 per year. Here there is no mention of specific tariffs and so it is assumed that the price cut is good for all customers.

British Gas
Everyone waited in anticipation to see what Bristish Gas would do when the first of the price cuts were announced at the beginning of the year. Not surprisingly they have virtually matched the other providers and are cutting prices by 10% on most tariffs from 19th February 09. For dual fuel customers this can mean a saving of well over £100 per year, depending on your annual consumption.

N-Power
And finally N-Power who have gone down a slightly different route. Their price cuts are to come into effect from May 09 and are set at a whopping 16% for gas but only 3% for electricty. This is fantastic news for households with a large gas consumption but for the rest of us – providing we are dual fuel customers – it averages out at around 10% overall saving again so no real difference from the rest.

In Conclusion
It seems that the price war has started but nobody really wants to take hold of the reins. All of the large providers are offering similar price cuts and so the one you go with will depend on your annual consumption and the unit price they’re offering. Costs are still around 50% higher than they were in 2007, even with the new reductions, and so there are still going to be millions of households struggling to pay bills. You should do your homework and shop around for the exact tariff that suits your needs so that even if the price cuts are temporary, you can still take full advantage of them.

Guest Article by Clare Lynock