Social housing body calls for end to 'unfair' fuel prepayment meters

Low-income families struggling to pay soaring fuel bills will stay in the spotlight this week as charities and industry bodies demand that the government stop energy companies from charging some of their poorest customers high premiums.

Following the double-digit energy price rises at Eon and Scottish and Southern (S&S), the National Housing Federation - which represents 1,300 non-profit housing associations - will launch its Energy Action Week tomorrow. It wants housing associations to pressure their MPs to take action against higher tariffs for electricity and gas prepayment meters.

Customers using these meters typically pay £150 more a year than those paying by direct debit, and around £60 more than those who pay quarterly by cash or cheque, its research shows. Prepayment-meter customers use a key, card or tokens, which can be topped up in local shops, as opposed to 'standard' customers who pay by cash or cheque on receipt of their bill. Monthly direct debit customers pay their bill in equal installments over 12 months.

These tariffs are unfair and penalise impoverished families, claims the federation, which has conducted research showing that the average income of prepayment customers is £16,000.

'A quarter of prepayment customers are "fuel poor", which means they spend over 10 per cent of their household income on gas and electricity, and this burden is only increased by the high tariffs forced on them by prepayment meters,' says John Pierce at the NHF. 'We are not opposed to prepayment meters as housing association tenants can sometimes struggle to pay large quarterly bills and the meters give them the chance to budget carefully. But it is unfair that they are overcharged when they are already struggling with a low income.'

Economy tips

· Try to switch from prepayment to cheaper standard or monthly direct-debit payments.

· If you can, change suppliers to find a cheaper tariff that suits your energy consumption.

· If you're in debt to your current supplier, you might still be able to switch if it does not exceed £100. You will then owe the money to the new supplier.

· You may be eligible for benefits and grants such as the Warm Front Programme, which can help you pay for fuel. See energywatch.org.uk.

· Most companies now offer a social tariff if you receive certain benefits. Your supplier will be able to give you more information.

· If you are struggling to pay off a debt to an energy company, contact Citizens Advice for help.

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Smart Way To Slash Energy Bills

A new energy company launches on Monday with the promise to revolutionise the industry and help you with your gas and electric bills.

First Utility is to install smart meters - the next generation of electricity and gas meters that read energy usage every 30 minutes.

It hopes to compete with the Big Six energy companies by letting homeowners see where they are spending their cash.

Mark Daeche, the co-founder of First Utility, told Sky News Online: "Trials have show that you can save up to 15% on your electric bill.

"We are from a background of telecoms. We are bringing the strengths of the telecoms industry to energy. We are bringing smart billing, we are accurate and on time. These are things that the big six just don't do."

He accused the Big Six of operating a cartel - something they deny.

"There is no transparency. They are vertically integrated which means the generator is selling to the supplier. It needs to be broken," he added.

"We need to have a liquid wholesale market where we can go and purchase then it's clear to everyone what the prices are."

So how does the smart meter work?

It is a box fitted to a wall in your home, telling consumers and suppliers how much energy is being used at any given moment.

The information can be sent to our televisions, mobile phones or PCs. It could eventually be broken down by appliance - so letting you see, for example, how much electricity your kettle is using.

First Utility promises a three way tariff with a cheaper rate.

"We will be offering 9p/kilowat compared to the 14p/kilowat that some other firms charge," added Mr Daeche.

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The green kitchen

For the purposes of this week’s column, the kitchen shall embrace the tumble dryer – even if the dryer is in a different room. And it will get a shock. The most efficient tumble dryers, according to figures published by the sustainability group Market Transformation Programme (www.mtprog.com), use electricity at a rate of 2.3-2.5kWh for 4.5kg of laundry (the smallest load its studies measure). The least efficient use 80-90 per cent more.

The environmental and financial cost is enormous. Karen Lawrence from the Energy Saving Trust (www.est.org.uk) says that we spend £400 million a year on drying laundry, producing eight million tonnes of CO2 and using enough electricity “to power almost all the homes in Greater Manchester for a year”.

What can you do? Well, you can buy a more efficient tumble dryer. But more sparing use of it is an even better option. And yes, the alternative to tumbling is air drying, but I wager that you will be converted once you’ve got the hang of it (no pun intended). Watch this space for detailed advice on air drying.

In the meantime, here are some intermediate steps to more environmentally responsible drying. One: make sure that your laundry has spun at at least 1400rpm in the washing machine. This cuts the water content by around 20 per cent over 1000rpm, thus cutting time in the dryer. Two: buy a folding clothes rack and put it next to the dryer. Tumble dry the load for 20 minutes, then let it finish drying on the rack. This is better for clothing, causing less mechanical and thermal stress on the fabric.

And three: never, ever tumble dry items like tea towels and napkins. You can buy small, wall-mounted racks that will accommodate them. Once they’re back in the Green Kitchen, you’ll never know they haven’t seen the inside of your dryer.

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When the wind doesn't blow

By 2020, more than a third of Britain's electricity will be generated by wind power, according to government plans. One problem - six out of 10 days aren't windy enough to make sufficient power. So what happens then?

On a clear summer's day the Horns Rev wind farm off the coast of Denmark could almost double as a tourist attraction. Watching the rows of 200 foot white steel turbines turning gently in the wind, occasionally catching the afternoon sun is beautiful, almost hypnotic.

To see it properly you need a helicopter, as it's in the middle of the North Sea. I had hitched a ride with Bent Johansen, who manages the operations of Danish turbines for the energy company, Vattenfall. For him the future of wind is off-shore.

"Horns Rev can produce as much power as all our 300 onshore turbines put together," says Mr Johansen.

Horns Rev is currently the biggest off-shore wind farm in the world, covering an area of over 20km. In the next decade Britain will be seeing its own versions of Horns Rev cropping up off the coastline.

The government estimates about 35% of electricity will need to be generated from wind power by 2020, to meet an EU target. This will mean a massive increase in the amount of wind power generated, from 2% at present to 35%.

It's a big leap, admits Maria McCaffery of the British Wind Energy Association, "but we believe it is possible".

Denmark is the poster boy for wind power - 20% of the electricity it generates comes from wind, it claims. Horns Rev can provide enough power for 150,000 homes. On the day I visited it would be lucky to power a village. So what does Denmark do when the wind doesn't blow?

The answer is on the giant screens which dominate the control room of Energinet, the Danish national grid. Peter Jorgensen, the vice president of Energinet, directs me to the map of Scandinavia which fills one vast screen. On it are the unique energy connections Denmark has to its neighbours in Norway, Sweden and Germany.

This allows them to import power when it's not windy or export it when they have too much.

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