A round of punishing gas and electricity price rises has been set in motion, but reports of a 15% rise across the country do not tell the whole story. Some consumers will pay much more purely because of where they live.
Npower was the first supplier to raise prices, but the remaining members of the 'big six' – British Gas, Scottish & Southern Energy, Scottish Power, Powergen, and EDF Energy – are expected soon to follow suit.
The headlines were grabbed by Npower's 17.2% increase for gas and 12.7% increase for electricity, but hidden within the new pricing structure were regional variations that mean some regions will pay much more.
Users in London will pay an extra 21.7% for combined gas and electricity, while those in the North West will pay 20.8% more. Other regions, including the Midlands and Yorkshire, will pay less than the reported increase.
The discrepancies in price are due to suppliers applying, for the first time, regional variations in gas prices. Npower joined Scottish Power and Scottish & Southern Energy, who were each charging more to customer in the North West and less to those in Scotland.
Suppliers have justified the change by arguing that it costs more to deliver gas to some regions than to others. The distance the gas needs to be piped and the state of the pipes that carry the gas accounts for the differences.
However, consumer groups - who point out that changing suppliers does not mean a change in the gas that flows through the pipes - suggest that new pricing strategy is more to do with exploiting regions where customers have shown themselves to be reluctant to switch supplier. Suppliers see they can charge more in these regions with a lower risk that customers will seek a cheaper alternative.
Energywatch, the independent consumer watchdog for the energy industry said that the Npower move would create confusion. A spokesman said: 'Npower's move is likely to mean the development of regional gas markets with consumers having different unit costs for gas depending on where they live. This means more confusion for consumers in an already complex marketplace.
'To get a better deal, it is vital that they use postcode-based internet comparison sites to be certain they're getting advice specific to their location. Consumers should use the price comparison sites accredited by the energywatch Confidence Code.
Whatever the reasons for the differences the industry regulator, Ofgem, is reluctant to step in to prevent potential inequities in the system.
A spokesman for Ofgem said: 'We are not in the business of dictating how suppliers should set prices. If they become uncompetitive in a region they stand to lose customers.'
The increases applied by Npower will only affect its 6m customers, but customers of other suppliers could see similar regional variations if they apply the same logic when raising prices.
Ed Monk
full article
Wednesday 9 January 2008
Ten myths about nuclear power
The UK government is expected to announce tomorrow that it will give the green light to the building of new nuclear power stations in the UK - the first since the Sizewell ‘B’ station was completed in 1995. These are urgently needed to make up the shortfall in power supply as older nuclear stations are closed over the next few years.
Yet the decision is bound to be controversial - not helped by widespread misinformation about nuclear power. Greens opposing nuclear power muddle every issue from terrorism to uranium supplies, in order to besmirch the only proven safe and cost-effective way to generate large amounts of electricity that won’t produce large amounts of greenhouse gas emissions. One would think that greens don’t want a world with abundant energy and a stable climate!
These are some of the myths we are likely to hear from greens debating nuclear power over the next few weeks:
2) Nuclear is not a low-carbon option
Anti-nuclear campaigners claim that nuclear power contains ‘hidden emissions’ of greenhouse gases (GHGs) from uranium mining and reactor construction. But so do wind turbines, built from huge amounts of concrete, steel and plastic.
The OECD analysed the total lifetime releases of GHG from energy technologies and concluded that, taking into account mining of building materials, construction and energy production, nuclear is still a ‘lower carbon’ option than wind, solar or hydroelectric generation. For example, during its whole life cycle, nuclear power releases three to six grams of carbon per kiloWatthour (GC kWh) of electricity produced, compared with three to 10 GC/kWh for wind turbines, 105 GC/kWh for natural gas and 228 GC/kWh for lignite (‘dirty’ coal) (6).
Greens, exemplified by the Sustainable Development Commission, place their trust in ‘carbon capture and storage’ (CCS) to reduce the GHG emissions from coal and gas plants (7). But carbon capture is, at present, a myth. There is no functioning power station with CCS in the world – not even a demonstration plant – and if it did work, it would still greatly reduce the energy efficiency of any power station where it is installed.
4) Reactors produce too much waste
Contrary to environmentalists’ claims, Britain is not overwhelmed with radioactive waste and has no radioactive waste ‘problem’.
By 2040 there will be a total of 2,000 cubic metres of the most radioactive high-level waste (9), which would fit in a 13 x 13 x 13 metre hole – about the size of the foundations for one small wind turbine. Much of this high-level waste is actually a leftover from Britain’s atomic weapons programme. All of the UK’s intermediate and high-level radioactive waste for the past 50 years and the next 30 years would fit in just one Royal Albert Hall, an entertainment venue in London that holds 6,000 people (and which seems, for some reason, to have become the standard unit of measurement in debates about any kind of waste in the UK) (10).
The largest volume of waste from the nuclear power programme is low-level waste – concrete from outbuildings, car parks, construction materials, soil from the surroundings and so on. By 2100, there will be 473,000 cubic metres of such waste from decommissioned plants – enough to fill five Albert Halls (11).
Production of all the electricity consumed in a four-bedroom house for 70 years leaves about one teacup of high-level waste (12), and new nuclear build will not make any significant contribution to existing radioactive waste levels for 20-40 years.
Rob Johnston
full article
Yet the decision is bound to be controversial - not helped by widespread misinformation about nuclear power. Greens opposing nuclear power muddle every issue from terrorism to uranium supplies, in order to besmirch the only proven safe and cost-effective way to generate large amounts of electricity that won’t produce large amounts of greenhouse gas emissions. One would think that greens don’t want a world with abundant energy and a stable climate!
These are some of the myths we are likely to hear from greens debating nuclear power over the next few weeks:
2) Nuclear is not a low-carbon option
Anti-nuclear campaigners claim that nuclear power contains ‘hidden emissions’ of greenhouse gases (GHGs) from uranium mining and reactor construction. But so do wind turbines, built from huge amounts of concrete, steel and plastic.
The OECD analysed the total lifetime releases of GHG from energy technologies and concluded that, taking into account mining of building materials, construction and energy production, nuclear is still a ‘lower carbon’ option than wind, solar or hydroelectric generation. For example, during its whole life cycle, nuclear power releases three to six grams of carbon per kiloWatthour (GC kWh) of electricity produced, compared with three to 10 GC/kWh for wind turbines, 105 GC/kWh for natural gas and 228 GC/kWh for lignite (‘dirty’ coal) (6).
Greens, exemplified by the Sustainable Development Commission, place their trust in ‘carbon capture and storage’ (CCS) to reduce the GHG emissions from coal and gas plants (7). But carbon capture is, at present, a myth. There is no functioning power station with CCS in the world – not even a demonstration plant – and if it did work, it would still greatly reduce the energy efficiency of any power station where it is installed.
4) Reactors produce too much waste
Contrary to environmentalists’ claims, Britain is not overwhelmed with radioactive waste and has no radioactive waste ‘problem’.
By 2040 there will be a total of 2,000 cubic metres of the most radioactive high-level waste (9), which would fit in a 13 x 13 x 13 metre hole – about the size of the foundations for one small wind turbine. Much of this high-level waste is actually a leftover from Britain’s atomic weapons programme. All of the UK’s intermediate and high-level radioactive waste for the past 50 years and the next 30 years would fit in just one Royal Albert Hall, an entertainment venue in London that holds 6,000 people (and which seems, for some reason, to have become the standard unit of measurement in debates about any kind of waste in the UK) (10).
The largest volume of waste from the nuclear power programme is low-level waste – concrete from outbuildings, car parks, construction materials, soil from the surroundings and so on. By 2100, there will be 473,000 cubic metres of such waste from decommissioned plants – enough to fill five Albert Halls (11).
Production of all the electricity consumed in a four-bedroom house for 70 years leaves about one teacup of high-level waste (12), and new nuclear build will not make any significant contribution to existing radioactive waste levels for 20-40 years.
Rob Johnston
full article
Sunday 6 January 2008
An energy saving bulb has gone - evacuate the room now!
Energy-saving light bulbs are so dangerous that everyone must leave the room for at least 15 minutes if one falls to the floor and breaks, a Government department warned yesterday.
The startling alert came as health experts also warned that toxic mercury inside the bulbs can aggravate a range of problems including migraines and dizziness.
And a leading dermatologist said tens of thousands of people with skin complaints will find it hard to tolerate being near the bulbs as they cause conditions such as eczema to flare up.
The Department for Environment warned shards of glass from broken bulbs should not be vacuumed up but instead swept away by someone wearing rubber gloves to protect them from the bulb's mercury content.
In addition, it said care should be taken not to inhale any dust and the broken pieces should be put in a sealed plastic bag for disposal at a council dump – not a normal household bin.
By MARTIN DELGADO
full article
Saturday 5 January 2008
Q&A: Switching energy suppliers
Energy firm Npower has announced double-digit rises in the price its domestic customers will have to pay for gas and electricity - with industry observers saying that other companies are likely to follow suit.
So is now the time to reconsider who provides your energy?
--------------------------------------------------------------------------------
I am an Npower customer. Should I look to change providers?
Not necessarily. Before the price rises, Npower was seen as one of the cheaper providers.
The independent watchdog Energywatch has said that, given other firms are likely to also raise their prices, it may be worth waiting to see what Npower's competitors do.
If you switch to a cheaper supplier today, you may well find that they too put up their prices, as all of the companies have to buy gas in exactly the same international market.
So switching is a waste of time then?
Not quite. The argument goes that savings can still be made, especially if you have never switched before and are still with either British Gas or the company that took over from your regional electricity board.
In those cases, you are likely to be on their highest tariff.
So you may still be able to achieve a significant relative cut in your bills.
How common is energy switching?
The full figures for 2007 are not yet available, but in 2006 about 4 million households changed their gas or electricity supplier, according to the energy regulator Ofgem.
In April 2006, when wholesale energy prices were last at very high levels, and price increases were starting to bite, a record 900,000 customers changed supplier.
However about 50% of UK households have never taken the opportunity to switch their provider and it is these people who are likely to have the best opportunity to make hefty savings.
How do you switch energy companies?
In theory, it is relatively easy to switch your energy supplier - and should certainly be less arduous than changing, say, a mortgage provider.
Regardless of where you live in the UK, there are several suppliers to choose from.
You can opt to have separate firms supplying your gas and electricity - or choose one company to supply both, commonly known as dual fuel.
The most common and effective way is to firstly identify the company which can offer the cheapest deal is to use a price comparison service.
Energywatch has approved 13 companies providing price comparison services both via the internet and on the telephone - and it lists these firms on its website.
Most of these companies will deal with your new supplier on your behalf, and also contact your old supplier to organise the switch. It does not cost the consumer anything - with the firms receiving a payment from the energy company which has won the new business.
However if you would rather go it alone, you can talk with the firm you want to be your new supplier and agree a contract. Then you tell your existing provider that you wish to end the service - usually having to give about one month's notice.
What if I use a pre-payment meter?
You too can also change suppliers.
People using pre-payment are often on low fixed incomes and could really benefit from moving to a less expensive provider, Energywatch says.
But despite this, industry figures suggest that just over a third of pre-payment gas users and four out of 10 electricity customers have changed supplier.
This compares with more than half of those who pay by direct debit and monthly bills.
How much can I save by switching
This depends on how much you are currently paying and on your personal circumstances - for example where you live and your level of usage.
Firms often offer discounts if you buy both gas and electricity from them.
But the industry regulator Ofgem has said that households changing their supplier for the first time can save an average of £100 per year.
Besides switching supplier, how else can I reduce my energy bills?
Changing your method of payment is one way that you may be able to save money.
If you can afford to pay by direct debit rather than by cash or cheque, this typically can knock about £40 off your annual bill, Energywatch says.
The other key thing to think about is reducing the amount of energy you use and the Energy Saving Trust has plenty of advice about this.
Tips include:
Don't leave appliances on standby
Unplug chargers for mobile phones, MP3 players etc. when not in use
Turn off lights when leaving a room
Wash clothes at lower temperatures
Turn the thermostat down
full article
So is now the time to reconsider who provides your energy?
--------------------------------------------------------------------------------
I am an Npower customer. Should I look to change providers?
Not necessarily. Before the price rises, Npower was seen as one of the cheaper providers.
The independent watchdog Energywatch has said that, given other firms are likely to also raise their prices, it may be worth waiting to see what Npower's competitors do.
If you switch to a cheaper supplier today, you may well find that they too put up their prices, as all of the companies have to buy gas in exactly the same international market.
So switching is a waste of time then?
Not quite. The argument goes that savings can still be made, especially if you have never switched before and are still with either British Gas or the company that took over from your regional electricity board.
In those cases, you are likely to be on their highest tariff.
So you may still be able to achieve a significant relative cut in your bills.
How common is energy switching?
The full figures for 2007 are not yet available, but in 2006 about 4 million households changed their gas or electricity supplier, according to the energy regulator Ofgem.
In April 2006, when wholesale energy prices were last at very high levels, and price increases were starting to bite, a record 900,000 customers changed supplier.
However about 50% of UK households have never taken the opportunity to switch their provider and it is these people who are likely to have the best opportunity to make hefty savings.
How do you switch energy companies?
In theory, it is relatively easy to switch your energy supplier - and should certainly be less arduous than changing, say, a mortgage provider.
Regardless of where you live in the UK, there are several suppliers to choose from.
You can opt to have separate firms supplying your gas and electricity - or choose one company to supply both, commonly known as dual fuel.
The most common and effective way is to firstly identify the company which can offer the cheapest deal is to use a price comparison service.
Energywatch has approved 13 companies providing price comparison services both via the internet and on the telephone - and it lists these firms on its website.
Most of these companies will deal with your new supplier on your behalf, and also contact your old supplier to organise the switch. It does not cost the consumer anything - with the firms receiving a payment from the energy company which has won the new business.
However if you would rather go it alone, you can talk with the firm you want to be your new supplier and agree a contract. Then you tell your existing provider that you wish to end the service - usually having to give about one month's notice.
What if I use a pre-payment meter?
You too can also change suppliers.
People using pre-payment are often on low fixed incomes and could really benefit from moving to a less expensive provider, Energywatch says.
But despite this, industry figures suggest that just over a third of pre-payment gas users and four out of 10 electricity customers have changed supplier.
This compares with more than half of those who pay by direct debit and monthly bills.
How much can I save by switching
This depends on how much you are currently paying and on your personal circumstances - for example where you live and your level of usage.
Firms often offer discounts if you buy both gas and electricity from them.
But the industry regulator Ofgem has said that households changing their supplier for the first time can save an average of £100 per year.
Besides switching supplier, how else can I reduce my energy bills?
Changing your method of payment is one way that you may be able to save money.
If you can afford to pay by direct debit rather than by cash or cheque, this typically can knock about £40 off your annual bill, Energywatch says.
The other key thing to think about is reducing the amount of energy you use and the Energy Saving Trust has plenty of advice about this.
Tips include:
Don't leave appliances on standby
Unplug chargers for mobile phones, MP3 players etc. when not in use
Turn off lights when leaving a room
Wash clothes at lower temperatures
Turn the thermostat down
full article
Subscribe to:
Posts (Atom)
