Friday 29 August 2008

The heat is on

As two energy suppliers hike prices again, the temperature is rising for households and firms, writes Nathalie Thomas
WHEN, in the grip of the 1970s oil crisis, US President Jimmy Carter advised Americans to turn down their heating, wear more jumpers and switch off their Christmas lights, he was mocked by his critics as a "feckless thermostat-watcher in a cardigan".

But 30 years later, on this side of the pond, households are starting to sit up and listen to his tips after two more energy companies last week unveiled their second price rises in a year.

To the chagrin of consumers already squeezed by spiralling food and petrol prices, Scottish and Southern Energy (SSE) and E.ON told customers on Thursday they will have to shoulder increases of as much as 29%.

For SSE customers, the announcement followed a near 16% hike in gas bills in March, while E.ON had already raised its gas and electricity prices by 15% and 9.7% in February.

SSE and E.ON are not alone. Scottish Gas customers were left holding their heads in their hands last month when it announced a 35% increase in retail gas prices, just six months after raising gas bills by 15%. The French energy giant EDF, which has five million UK customers, also unveiled a second round of double-digit rises in July.

Consumer groups such as Energywatch warned that this second round of increases will push the number of UK households living in fuel poverty above five million for the first time in decades.

"The brakes have failed on the energy market," said Adam Scorer, campaigns director at Energywatch. "The results are calamitous."

Business groups, including the Federation of Small Businesses (FSB), cautioned that the rises will also have a detrimental effect on the economy, in particular Scotland's army of small firms.

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Ten tips to beat energy price hikes

LONDON (Reuters) - The average cost of household gas prices is predicted to rise by up to 40 percent this year. Following is a list of tips from consumer organisations on how to fight back.
1. Check out tariffs
2. Are you entitled to benefits?
3. Could you sign up for social tariffs?
4. Get free advice
5. Get a grant to improve the energy efficiency of your home
6. Get energy-efficient light bulbs
8. Curtain call
9. Turn off your computer and other electrical appliances.
10. Insulate your loft

You can also get a list of the supply companies operating in your area, together with the prices they charge, from Energywatch, the gas and electricity watchdog, by calling 0845 906 0708.

If you are over 60 and not receiving the payment, call the government's Winter Fuel Payment helpline on 08459 151 515.

Ron Cambell of National Energy Action advises all customers to freephone 0800 512 012 to speak to their local Energy Efficiency Advice centre.

Grants cover loft and cavity wall insulation, draft prevention, repairs of faulty boilers and assessment of your home's energy status. To check your eligibility, freephone 0800 316 6011.

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Thursday 28 August 2008

British families pay almost £800 per year in 'dishonest' green taxes

Every family in Britain is paying nearly £800 a year in a 'dishonest' green tax grab, a shocking report said last night.

Hard-pressed households are forking out the staggering sum on flights, fuel and for their cars even though it is 'unnecessary', said low tax campaigners.

Figures published by the TaxPayers' Alliance (TPA) suggest hard-working Britons pay £19.6billion a year too much in tax aimed at covering its carbon footprint.

The levies included fuel duty, vehicle excise duty, landfill tax, climate change levy and the renewables obligation, which is the cost to the taxpayer of power companies generating electricity from environmentally-friendly energy sources.

Subtracting the £8.8billion spent by the Department of Transport on roads last year gives a total burden of green taxes and charges of £24.2billion.
By Ian Drury


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Wednesday 27 August 2008

Even "green" energy needs lower oil price

As a lengthening economic slowdown bites, the antidote for the renewable energy sector may come as a surprise -- a lower oil price.

Government subsidies and record prices for competing fossil fuels have underpinned the alternative energy boom, but now they are now starting to work against the sector.

Reliance on subsidies exposes the likes of wind and solar power to the whim of governments grappling with wider voter priorities during a global economic slowdown.

As oil and energy bills have soared consumers have become less tolerant of the extra costs passed on to them by utilities for the greener option.

"Government priorities in the last five years or so have been very clearly environment, security of supply, and way down the list has been price... all of a sudden affordability has shot to the top," said Citigroup utilities analyst Peter Atherton.

"If oil drops back to $80 then government can probably live with it (the extra cost of climate policies)."

Higher oil prices have made onshore wind competitive with natural gas, making continuing subsidies there less important, but more expensive renewable energy sectors and especially solar will be hurt by a policy pull-back.

Europe, the United States, China and India want to ramp up power production from low-carbon wind, solar and biomass to battle climate change and source more secure, domestic energy.

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