Energy firms 'failing to pass on falling oil prices to consumers’

The Prime Minister and Ed Mayo of Consumer First are putting public pressure on power companies to cut their gas and electricity prices in line with falling world oil prices.

A series of sharp price rises by the big energy suppliers earlier this year have left the average household facing an annual gas and electricity bill of more than £1,300.

Some companies put gas prices up by more than a third, blaming the rise on soaring world oil prices.

But oil prices have now fallen by half after it reached an all-time high of $147 a barrel earlier this year. A barrel of North Sea oil now costs $73.02.

Some big European gas suppliers’ contracts tie gas prices directly to oil. As oil prices peaked in the summer, wholesale gas prices also rose. They have now fallen by more than quarter, but household bills have not come down at all.

Mr Brown is now piling public pressure on energy firms to start cutting consumers’ bills.

”What we have seen is prices going up for fuel and energy when the oil price went up and now that the oil price has come down, the public would naturally expect retail prices for fuel and household energy to come down as well,” said a spokesman for Mr Brown.

Ed Miliband, the new Energy Secretary, last week met executives from the “Big Six” energy retailers to underline the Government’s desire for prices to fall quickly.

Ed Mayo, the chief executive of Consumer Focus, accused the industry of delaying price cuts.

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Energy saving tips for businesses

1. Look around you

If you see a load of people wearing tee-shirts you could probably afford to turn the heating down a bit. Notice a light on in a rarely used meeting room? Think about installing a sensor (or, as a short-term solution, simply switch it off). Go for a walk and you'll also spot machinery that is left on when not being used and other areas of waste. Equally importantly you'll prove your environmental creds to your colleagues if you do this regularly - and you'll need to inspire others if change is going to happen. Speaking of which …

2. Consult your colleagues

It's no good fighting a lone battle; you'll need everyone on board if savings are to be made. If you're the boss, consider appointing an 'energy champion' to find new ways of reducing energy use. They should report any waste that they notice and contribute ideas for improving the way things are done. Share the environmental love around.

3. Conduct an energy audit

Taking regular meter readings and comparing consumption over a number of months is a good idea (as long as you remember to take into account such factors as that cold snap last November). As the Carbon Trust notes, if your business manufactures something tangible try to measure energy use per product item. This will allow you to spot patterns and identify areas where savings could be made.

4. Switch things off (part 1)

Make sure that, where possible, all machines and equipment are switched off overnight. It's an obvious one, but doesn't happen often enough. A single computer and monitor left on 24 hours a day will cost a business over £50 a year. Switching it off out of hours and enabling standby features could cut this to £15 a year, according to the Carbon Trust. That's the kind of saving that will prick up any FD's ears. For shared equipment such as photocopiers and water coolers, why not fit a timer to ensure they are switched off out of hours? There are products available for larger organisations which enable network administrators to power down PCs remotely (and automatically) when they're not needed. But it's cheaper to shame people into pressing the off button. Get in early for a week, see who's left their PC on and attach a huge arrow to the ceiling above their head with the words "environmental criminal" (or similar) scrawled on it in large letters. Behaviour will swiftly change.

5. Switch things off (part 2)

Turn off any air-conditioning, extraction, compression or ventilation units whenever there's nobody in the workplace to benefit from their use. Curiosity may have killed the cat but it's laziness that's helping kill the planet.

6. See the light ...

Fit lights that sense movement and link motion-activated lights in toilet facilities to the extractor fan (if you have one). Label equipment and control switches so that it's clear how to switch something on when it's needed. Some people need a little nudge to get them heading in the right direction.

7. Turn the heating down

Unless it's too cold for comfort, try to keep your thermostat at 19C (66F). Your heating costs will go up by 8% each time you increase the temperature by just one degree. Encourage your employees to wear warmer clothing if they are feeling the cold. That may sound like a leaf from the Victorian Workhouse Manager's Textbook, but does anyone really need the air around them to be warmer than 19°C? Really?

8. Get the boss on board

If you're not the boss, ensure he or she is on board (and make friends with the FD). Securing some energy savings will inevitably require capital outlay so you may need to develop a business case to get hold of the necessary funds. This should focus on cost and financial return (eg payback period, based on energy and other cost savings), but may also include other benefits such as meeting regulations, improved environmental performance and corporate reputation, or better staff working conditions. The least you can do is investigate getting your electricity from a renewable source. And don't forget that you may qualify for an interest-free loan from the Carbon Trust http://www.carbontrust.co.uk/energy/takingaction/loans.htm.

9. Explore tax incentives

You could claim tax incentives if you're prepared to invest in energy saving technologies and products. The Enhanced Capital Allowance scheme (ECA) enables you to claim 100% first year capital allowances on investments of qualifying equipment. You could write off the whole cost of your investment against your taxable profits for the period in which you make an investment. Now we really are talking the FD's language.

10. Be realistic

Energy-saving measures that are difficult, inconvenient or impractical to implement are likely to be ignored or withdrawn. This will undermine any future attempts to reduce energy use. So don't be too ambitious. Suggesting your business installs solar panels on the roof tomorrow may meet with some resistance; asking people to equipment off when they go home this evening will not.

There are loads of things you can do to reduce your organisation's energy consumption. The Carbon Trust website provided some of the tips above and contains many more. The government's Business Link service also has some good advice.

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Planning for an EPC

Q: I am a landlord with a small number of properties in the North East. I understand there are new regulations coming in concerning Energy Performance Certificates. Please can you explain what I need to do in order to be compliant?

A: With effect from 1 October, Energy Performance Certificates ("EPC's") must be provided by any seller or landlord on the sale or letting of any non-domestic building or part. The legislation has been in place since April this year, but it has been introduced gradually on the basis of larger buildings first. Now it is applicable to all sales and lettings, regardless of size.

An EPC will show the building's energy rating, based upon its performance potential, on a scale between A (excellent) and G (poor). It will be accompanied by an advisory report containing recommendations. Only people who have undertaken suitable training and are registered as approved assessors can produce EPCs.

You will need an EPC before your premises are marketed. The idea is to inform potential buyers or tenants about the energy performance of a building, so that they can consider energy efficiency as part of their investment or business decision to buy or occupy the building.

You must provide the EPC free of charge. Any non-domestic building on the market before October 1, and remaining on the market will need an EPC by 4 January 2009 at the latest. If it is sold or rented out in the meantime, an EPC must be commissioned and handed over as soon as possible. This is intended to make it easier for owners and landlords to comply with the legislation.

In general, an EPC is intended to reflect whatever accommodation is being sold or let. In the case of a multi-occupancy building, if the building has a common heating system, when the building or any part is sold or let an EPC can be produced for the whole building or of the relevant part.

If however the building does not have a common heating system, then you need an EPC for each part being offered for sale or let (or of the whole if you are selling or letting the whole). Once an EPC is obtained, it lasts for 10 years.

The penalty for failing to comply is 12.5pc of the rateable value of the premises, with a minimum of £500 and a maximum of £5,000.

You need to plan therefore for the cost of obtaining EPCs, and allow additional time for gathering data and appointing an assessor.

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Eco cars: the ten best

This might sound like jam tomorrow, but there are only limited measures you can take to save CO2 when you buy a new car. It might even be the best thing to hold on to the car you have and use it less, as according to Volvo, the amount of CO2 expended in making a car is some 13 to 15 per cent of its lifetime emissions and that doesn’t count the CO2 released when scrapping.

Nevertheless, if you need a new car, here’s our guide to what we think is the most practical environmental cars in every class. These might not be the cheapest or the most frugal, but in our opinion they offer the most practical driving utility and pleasure for your money while doing the planet the least amount of harm *.

Utility

Citroën Berlingo Multispace from £11,495 for 1.6 HDi 110 model, 41.5mpg/147g/km. Reviewed motoring July 11 2008.

Supermini

Volkswagen Polo Bluemotion, from £12,120 for the Bluemotion 1, three-door model 72.4mpg/99g/km. Reviewed in motoring May 12 2007.

Small hatchback

Honda Civic from £15,050 for a five-door S model, 53.3mpg/135g/km. Reviewed in motoring December 3 2005.

Saloon

Skoda Octavia 1.9TDi from £13,605 for Class model, 44.8mpg/132g/km. Reviewed in motoring May 22 2004.

Estate

Volkswagen Passat Bluemotion, from £19,000, 55.3mpg/137g/km. Reviewed in motoring May 7 2007 also see telegraph on same date.

Convertible

Ford Focus CC, from 19,287 for a 2.0-litre diesel model, 48mpg/156g/km. Reviewed in motoring September 23 2007.

Multi-purpose vehicle

Vauxhall Zafira from £17,290 for seven-seat 1.9 CDTi model 47.1mpg/162g/km. Reviewed in motoring July 23 2005.

Sport Utility Vehicle/4x4

Fiat Panda 1.2 4x4 from £9,885, 43mpg/156g/km. Reviewed motoring October 9 2004.

Executive

BMW 520d, £27,190 for SE model, 55mpg/136g/km. Reviewed motoring May 24 2003.

Luxury

BMW 730d from £54,160, 30mpg/192g/km. Reviewed motoring 11 October 2008.

Supercar

VW’s one-litre experimental car capable of 292mpg and valued at £2 million. Reviewed motoring July 5 2003.

* Toyota’s Prius is not included because it is being revamped at the end of the year with a claimed 99g/km carbon dioxide emissions - the new car will debut at the Detroit Auto Show in January and goes on sale next spring.

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