Trapped' homeowners can't switch to cheaper energy tariffs

People looking to avoid energy price hikes by switching to cheaper deals could be trapped with their current supplier if they have defaulted on a payment and owe money, according to MoneyExpert.com.

The independent financial comparison website, owner of SimplySwitch.com, says some 726,000 people missed a gas or electricity bill in the last six months and warns that just as many could be trapped into expensive tariffs if they don't settle their bills.

Sean Gardner, founder of MoneyExpert.com, said: "Generally speaking if you have defaulted on a recent energy bill and still owe your supplier money, you will be tied into that contract until you pay up.

"With wholesale energy prices increasing, it's inevitable that gas and electricity prices will rise again, so we anticipate large numbers of people to look to switch to the most competitive deals once that process begins.

"However if you've missed a bill you won't have that luxury and could be hit with price hikes that you just can't avoid. The only way to release the shackles is to pay up and move on."

British Gas owner Centrica has warned it will have to increase prices to maintain profits, sparking speculation that an average household could face yearly fuel bills of more than £1,300.

The rules on switching provider state that any money a customer has not paid to a supplier becomes a 'debt' after 31 days. Suppliers are then allowed to stop their customers changing to another company until the 'debt' is repaid. Suppliers also have the choice to allow you to switch.

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Ships bring water to parched Barcelona

Climb down the stony banks of the massive Sau reservoir in the mountains above Barcelona and you get a real sense of why this famous city is so short of water that it's resorted to bringing in emergency supplies - by ship.

Nestling in a deep valley of stunning cliffs and forests, this vital source of water has sunk so low it's exposed the eerie sight of a medieval village that was flooded when the reservoir was opened in the 1960s.

The huddle of ancient stone buildings, including a church with its spire, has now re-emerged into the light and stands as a potent symbol of the severity of this water crisis.

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British Gas to raise prices as profits slump

Millions of homeowners face a second rise in the gas and electricity bills this year as British Gas owner Centrica grapples with a slump in its profits.

British Gas customers were dealt a 15 per cent rise in their energy bills in January as the company struggled to deal with the near doubling in the cost of buying gas in the wholesale markets.

That price rise did not go far enough for Centrica however as a trading update revealed that as the continued rise in wholesale gas prices "has caused profit margins in British Gas in the first half of the year to be squeezed to levels below our long run expectations."

British Gas has lost 100,000 customers since the January price rises, leaving total customer base at 15.9 million the company reported today. The group had 17.7 million British Gas customers at the start of 2005.

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Cash cuts see green grants halved

The number of government grants made to people who want to fit solar panels or other green energy systems to their homes has halved, the BBC has learned.

It comes after the low carbon buildings programme cut the maximum grant on offer from £7,500 to £2,500.

The Renewable Energy Association, which says the programme is failing, has accused ministers of complacency.

But the government says uptake went up considerably last month after the need for planning permission was removed.

Europe's third worst

Figures seen by the BBC show that in 2007, 2,339 grants were made nationwide, compared with 5,104 the previous year.

Britain is the third worst performer in EU for producing energy from renewable sources - 2% of the UK's energy is produced in this way - and it has been told to raise its share to 15% by 2020.
In comparison, Germany has 200 times as many homes fitted with solar photovoltaic power.

But critics say the low carbon buildings scheme has been confusing and stingy, and has provided little incentive for people to go green.

Last month the programme was extended by a year to April 2010 but the £2,500 cap remained.

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