Switching to a ‘greener’ energy tariff may cost you more than a conventional deal but it needn't cost the earth, Which? Money says today.
The magazine has compared green gas and electricity deals from 10 energy suppliers to find the best available.
We found that Npower was the cheapest green option for gas and dual fuel tariffs (a gas and electricity package), while for electricity Scottish Power was the best value.
Renewable energy
Using a variety of addresses around the UK, our researchers posed as a customer currently paying £720 a year for gas and £480 a year for electricity from different companies.
We found that green energy tariffs are still significantly more expensive than the cheapest non-green options.
But the prices of green tariffs also vary hugely, and some are more eco-friendly than others.
Dual fuel discount
Which? Money editor Martyn Hocking said: ‘Many companies offer a dual fuel discount if you buy both gas and electricity.
‘Consider carbon offsetting as a potentially cheaper alternative to green energy. But if you are buying green energy, check the company’s fuel mix to see how much renewable energy it produces overall.’
Which? runs an impartial energy price comparison site, Switch with Which?.
full article
Wednesday 25 June 2008
Tuesday 24 June 2008
Why UK Natural Gas Prices Will Move North of 100p/Therm This Winter
WHERE IS UK NATURAL GAS PRICES HEADED AND WHY
In 2007 the UK natural gas market became flooded with natural gas thus depressing prices. This flood of natural gas resulted from several sellers, like Norway, Holland (BBL) and LNG traders, had perceived an increased tightness in the UK market (due to declines in UK indigenous supplies and expected growth in consumption) for the heating season 2006/2007 and positioned them to reap the profits from this tightness. What happened, as these players seems to have been unaware of each other (which should be the case in an ideal liberalized marketplace), was that supply increased more than demand grew and in addition the weather became milder than normal, a combination and a recipe for depressing natural gas prices.
UK will increasingly have to cover their natural gas consumption through imports, which suggests that an era of cheap natural gas, which has also acted as a competitive edge, increasingly will have to become harmonized with natural gas prices on Continental Europe which UK increasingly will have to bid against to secure supplies. Indirectly this may now be observed as less natural gas is exported to Continental Europe in the summer months through the Interconnector.
The above points suggest that natural gas prices on average in 2008 in UK will have to put on 150 - 200% resulting in average prices through 2008 of 75 - 90 p/therm at the beach. Recently natural gas is now trading at 60 - 65 p/therm.
It is difficult to predict the weather for the upcoming heating season and this is often the one factor having the greatest effect on short term natural gas prices. Given the seasonal nature of natural gas consumption it should come as no surprise if UK natural gas prices at the beach move north of 100 p/therm before the upcoming Christmas.
For an average household consuming 600 - 700 therm/annually (18 - 21 000 kWh/a) this would translate into an increase of the households natural gas bill of £3 - 400 this year relative to 2007.
SUMMARY
In this post it has been shown why UK households and industries should expect to increasingly be hammered by growing energy prices.
In less than ten years UK went from being a considerable energy exporter to becoming in size a similar energy importer. In 2007 UK imported more than 20% of its energy needs. This import is now forecast to grow at an annual rate of 13 - 15 MTOE (250 - 300 kboe/d; kilo barrels of oil equivalents a day) or 6 - 8% in the years ahead. What makes UK such an interesting subject from an energy standpoint is that the UK has had to transit from a major energy exporter to an energy importer with a speed never seen before for any other comparable economy. There are economies that are and have been more reliant on energy imports than UK (like Germany, France, Italy, Japan to name a few) and these have from these realities developed (seemingly) long term successful strategies involving central government’s involvement to cope with this energy reality.
This post has further shown that the UK energy mix is dominated by natural gas and thus made it vulnerable for potential future supply crunches. To revise the energy mix is a time consuming process and if the world has passed, is on or close to its apex for liquid energy supplies, these will not constitute a sustainable alternative to natural gas for the UK energy mix.
I have been informed that after a coal mine has been closed it may take ten years to recommission it for operations. Coal is mainly used for electricity generation and could of course be used for both heating and cooking purposes, which suggests changing housing appliances and stoves to accommodate this. To base the future UK energy mix on more coal results in future growth in coal imports.
Nuclear energy comes with delicate political maneuvering as the public needs to familiar itself with this alternative. Further needs nuclear plants a lead/construction time of approximately 10 years from approval have been granted.
I have not presented anything about renewables.
(I consequently refuse to use the expression “renewable energy”, as people who are familiar with the laws of thermodynamics know that energy by nature is NOT renewable. Energy may be transformed from one form into another.)
So called renewables will play a role in the future energy mix, but their impact on energy supplies must realistically be viewed against the potent and versatile nature of oil and natural gas.
Like USA talks about its oil addiction it looks like UK needs to talk about its natural gas addiction.
Given the time frame and not least options available to redesign the UK energy mix it looks like the UK “energy supply war” may have been lost before most people became aware that there was one on.
Nature enforces its own limits and a realistic look on the future energy options available for UK, energy conservation and power down now seems the most likely. This is of course a harsh message for any politician to convey to the public as it requires talent and leadership which there generally seems to be a universal deficit of......even in good times.
BY Chris Vernon
full article
In 2007 the UK natural gas market became flooded with natural gas thus depressing prices. This flood of natural gas resulted from several sellers, like Norway, Holland (BBL) and LNG traders, had perceived an increased tightness in the UK market (due to declines in UK indigenous supplies and expected growth in consumption) for the heating season 2006/2007 and positioned them to reap the profits from this tightness. What happened, as these players seems to have been unaware of each other (which should be the case in an ideal liberalized marketplace), was that supply increased more than demand grew and in addition the weather became milder than normal, a combination and a recipe for depressing natural gas prices.
UK will increasingly have to cover their natural gas consumption through imports, which suggests that an era of cheap natural gas, which has also acted as a competitive edge, increasingly will have to become harmonized with natural gas prices on Continental Europe which UK increasingly will have to bid against to secure supplies. Indirectly this may now be observed as less natural gas is exported to Continental Europe in the summer months through the Interconnector.
The above points suggest that natural gas prices on average in 2008 in UK will have to put on 150 - 200% resulting in average prices through 2008 of 75 - 90 p/therm at the beach. Recently natural gas is now trading at 60 - 65 p/therm.
It is difficult to predict the weather for the upcoming heating season and this is often the one factor having the greatest effect on short term natural gas prices. Given the seasonal nature of natural gas consumption it should come as no surprise if UK natural gas prices at the beach move north of 100 p/therm before the upcoming Christmas.
For an average household consuming 600 - 700 therm/annually (18 - 21 000 kWh/a) this would translate into an increase of the households natural gas bill of £3 - 400 this year relative to 2007.
SUMMARY
In this post it has been shown why UK households and industries should expect to increasingly be hammered by growing energy prices.
In less than ten years UK went from being a considerable energy exporter to becoming in size a similar energy importer. In 2007 UK imported more than 20% of its energy needs. This import is now forecast to grow at an annual rate of 13 - 15 MTOE (250 - 300 kboe/d; kilo barrels of oil equivalents a day) or 6 - 8% in the years ahead. What makes UK such an interesting subject from an energy standpoint is that the UK has had to transit from a major energy exporter to an energy importer with a speed never seen before for any other comparable economy. There are economies that are and have been more reliant on energy imports than UK (like Germany, France, Italy, Japan to name a few) and these have from these realities developed (seemingly) long term successful strategies involving central government’s involvement to cope with this energy reality.
This post has further shown that the UK energy mix is dominated by natural gas and thus made it vulnerable for potential future supply crunches. To revise the energy mix is a time consuming process and if the world has passed, is on or close to its apex for liquid energy supplies, these will not constitute a sustainable alternative to natural gas for the UK energy mix.
I have been informed that after a coal mine has been closed it may take ten years to recommission it for operations. Coal is mainly used for electricity generation and could of course be used for both heating and cooking purposes, which suggests changing housing appliances and stoves to accommodate this. To base the future UK energy mix on more coal results in future growth in coal imports.
Nuclear energy comes with delicate political maneuvering as the public needs to familiar itself with this alternative. Further needs nuclear plants a lead/construction time of approximately 10 years from approval have been granted.
I have not presented anything about renewables.
(I consequently refuse to use the expression “renewable energy”, as people who are familiar with the laws of thermodynamics know that energy by nature is NOT renewable. Energy may be transformed from one form into another.)
So called renewables will play a role in the future energy mix, but their impact on energy supplies must realistically be viewed against the potent and versatile nature of oil and natural gas.
Like USA talks about its oil addiction it looks like UK needs to talk about its natural gas addiction.
Given the time frame and not least options available to redesign the UK energy mix it looks like the UK “energy supply war” may have been lost before most people became aware that there was one on.
Nature enforces its own limits and a realistic look on the future energy options available for UK, energy conservation and power down now seems the most likely. This is of course a harsh message for any politician to convey to the public as it requires talent and leadership which there generally seems to be a universal deficit of......even in good times.
BY Chris Vernon
full article
Cut heating bills without feeling the draught
Householders feeling the squeeze will be alarmed by news that gas and electricity bills could rise by a further 40 per cent this year. This will push the average cost of heating for the UK's hard-working families up to almost £1,500 a year – a rise of nearly £500. This comes on top of sharp price rises since the start of this year.
The price of oil has doubled in 12 months while wholesale gas has climbed by 75 per cent this year, rises that have prompted all the major energy companies to bump up prices by an average 15 per cent. Consumers have been warned to brace themselves for price rises in August, with further increases expected later in the year.
1 OPT FOR A FIXED-RATE
Most of the big energy companies offer fixed- or capped-rate deals, where prices are guaranteed not to rise for at least a year (and often more). Historically, fixed-rate deals have rarely been the cheapest available, meaning customers have been paying a premium for peace of mind.
At present, fixed-rate gas and electricity bills average out at £1,036 a year. While the exact price will depend on where you live and the amount of energy you use, this compares surprisingly well with standard energy tariffs, which now charge an average of £1,048 a year – leaving you £12 worse off.
2 MOVE TO AN ONLINE TARIFF
Georgina Walsh, of EnergyWatch, the gas and electricity watchdog, says:"Customers don't have to move suppliers to save money, they can often cut bills simply by moving on to a cheaper tariff with their existing company."
3 TAKE SOME SIMPLE ENERGY-SAVING STEPS
You don't have to resort to turning your heating off completely and wearing an extra sweater to save money. Nor do families have to spend thousands to make their homes more energy efficient. The simplest step is to switch off all your electrical equipment rather than leaving it on standby.
According to the Energy Saving Trust, this could reduce your electricity bill by 8 per cent a year. And turning your thermostat down by 1C will cut heating bills by up to 10 per cent, saving the average customer £40 a year.
If you draught-proof your home, as well as fitting covers over letterboxes and keyholes, this should make you feel warmer, even with the thermostat turned down. Likewise, fitting a cover over the hot-water tank should cut £20 off your annual bill, according to British Gas. And make sure that next time you replace a light bulb it is with an energy-efficient one. Replacing all your bulbs will save you about £45 a year.
4 DO YOU QUALIFY FOR HEATING GRANTS?
Those on certain benefits (for example, pension credit) will be able to claim up to £4,000 to make their home warmer and more energy-efficient. These grants can pay for loft-insulation, installing central heating, a new boiler and wall insulation.
To check your eligibility for the government-funded initiative, known as Warm Front, go to www.warmfront.co.uk, or call the Energy Efficiency Advice Centre on 0800 512 012.
full article
The price of oil has doubled in 12 months while wholesale gas has climbed by 75 per cent this year, rises that have prompted all the major energy companies to bump up prices by an average 15 per cent. Consumers have been warned to brace themselves for price rises in August, with further increases expected later in the year.
1 OPT FOR A FIXED-RATE
Most of the big energy companies offer fixed- or capped-rate deals, where prices are guaranteed not to rise for at least a year (and often more). Historically, fixed-rate deals have rarely been the cheapest available, meaning customers have been paying a premium for peace of mind.
At present, fixed-rate gas and electricity bills average out at £1,036 a year. While the exact price will depend on where you live and the amount of energy you use, this compares surprisingly well with standard energy tariffs, which now charge an average of £1,048 a year – leaving you £12 worse off.
2 MOVE TO AN ONLINE TARIFF
Georgina Walsh, of EnergyWatch, the gas and electricity watchdog, says:"Customers don't have to move suppliers to save money, they can often cut bills simply by moving on to a cheaper tariff with their existing company."
3 TAKE SOME SIMPLE ENERGY-SAVING STEPS
You don't have to resort to turning your heating off completely and wearing an extra sweater to save money. Nor do families have to spend thousands to make their homes more energy efficient. The simplest step is to switch off all your electrical equipment rather than leaving it on standby.
According to the Energy Saving Trust, this could reduce your electricity bill by 8 per cent a year. And turning your thermostat down by 1C will cut heating bills by up to 10 per cent, saving the average customer £40 a year.
If you draught-proof your home, as well as fitting covers over letterboxes and keyholes, this should make you feel warmer, even with the thermostat turned down. Likewise, fitting a cover over the hot-water tank should cut £20 off your annual bill, according to British Gas. And make sure that next time you replace a light bulb it is with an energy-efficient one. Replacing all your bulbs will save you about £45 a year.
4 DO YOU QUALIFY FOR HEATING GRANTS?
Those on certain benefits (for example, pension credit) will be able to claim up to £4,000 to make their home warmer and more energy-efficient. These grants can pay for loft-insulation, installing central heating, a new boiler and wall insulation.
To check your eligibility for the government-funded initiative, known as Warm Front, go to www.warmfront.co.uk, or call the Energy Efficiency Advice Centre on 0800 512 012.
full article
Sunday 22 June 2008
Dyson working on new generation of fast, green cars
Britain's most famous inventor, Sir James Dyson, is working on a project that could lead to the creation of a fast, green car.
Engineers at his research laboratory in Wiltshire are developing a powerful lightweight motor that could enable electric cars to zoom along for hundreds of miles without causing pollution. Solar panels on their roofs or in garages would charge them with renewable energy.
In an interview with The Independent on Sunday, the scientist forecast that electric cars would be "the future" of transport, and predicted they could outnumber petrol vehicles in as little as 10 years' time.
"They're quiet and they're pollution free," enthused Sir James, whose bagless vacuum cleaner cemented his reputation as an innovative risk-taker and earned him an estimated £700m fortune.
The 61-year-old inventor also expressed his belief that the cars could overcome their current drawbacks – their short range and slow speed. "An electric car doesn't go far enough. It could do. Electric motors can do that," he said, adding that there were "fantastic opportunities" to make electric vehicles lighter.
"At the moment, electric cars are seen as city cars and to go 30mph is quite enough, but in the future that will change. An electric motor can go to very high speeds."
full article
Engineers at his research laboratory in Wiltshire are developing a powerful lightweight motor that could enable electric cars to zoom along for hundreds of miles without causing pollution. Solar panels on their roofs or in garages would charge them with renewable energy.
In an interview with The Independent on Sunday, the scientist forecast that electric cars would be "the future" of transport, and predicted they could outnumber petrol vehicles in as little as 10 years' time.
"They're quiet and they're pollution free," enthused Sir James, whose bagless vacuum cleaner cemented his reputation as an innovative risk-taker and earned him an estimated £700m fortune.
The 61-year-old inventor also expressed his belief that the cars could overcome their current drawbacks – their short range and slow speed. "An electric car doesn't go far enough. It could do. Electric motors can do that," he said, adding that there were "fantastic opportunities" to make electric vehicles lighter.
"At the moment, electric cars are seen as city cars and to go 30mph is quite enough, but in the future that will change. An electric motor can go to very high speeds."
full article
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