Warm Front, the Government's flagship fuel poverty scheme, has come under attack for squandering public money, with contractors accused of charging high prices for poor standards of workmanship.
Times Money has been inundated with complaints about the scheme, which gives grants of up to £2,700 to make the most vulnerable households energy-efficient. Readers have reported paying more than £3,000 in top-up fees - required when the cost exceeds the maximum grant - for boilers that do not work.
Warm Front was also criticised last week in a National Audit Office (NAO) report for “inefficient targeting of resources”.
Mervyn Kohler, of Help the Aged, says: “We are receiving thousands of complaints about Warm Front. Not only are customers being let down, but there also appears to be little accountability over how public money is spent. The organisation is unfit for purpose in its current form.”
The Government has poured almost £2.4 billion into Warm Front to help the 5.4 million households in fuel poverty, where one tenth or more of income goes on fuel bills. It relies on a contractor, eaga, to administer the scheme and manage the 139 sub-contractors responsible for installing heating and insulation systems.
But many customers complain that they have to agree to eaga's choice of supplier and equipment to obtain the grant, even if the boiler selected is unsuitable or the work appears to be overpriced. Many also say that complaints about unsatisfactory work can take months to resolve.
Times Money reader Malcolm Field, 56, applied to Warm Front for a new boiler on behalf of his 80-year-old mother. The total cost was £3,300, so his mother was asked to pay a top-up fee of £600. Mr Field, who lives in Chertsey, Surrey, says: “The contractor took more than a week to fit the boiler and its work was appalling. We called it out six times because the system failed. Eventually, 18 months later, a new pump was fitted and it now seems to work. My brother was a plumber and says that the work should not have come to more than £1,500. These contractors are lining their pockets with the Government's and pensioners' money.”
full article
Monday 16 February 2009
Tuesday 3 February 2009
Electricity prices are too high, says EU
THE European Commission is to launch an investigation into the price of electricity, following concerns that they may be too high.
Commissioner for Consumer Affairs, Meglena Kuneva said the decision followed an initial report which showed prices charged by some suppliers across the 27 member states may be excessive.
"Less than two thirds of consumers are satisfied with their energy supplier," said the commissioner.
Across the EU, about 60 per cent of consumers reported a rise in their electricity bills last year, while only 3-4 per cent saw falls.
It follows an announcement by British Gas last month that it would cut its standard gas bills by 10 per cent, but would not pass on cuts to electricity customers.
The new rates, which will save the average customer around £80 a year, will come into effect on February 19, benefiting 7.5 million of the supplier's 15.6 million customers.
Yet they will see no reduction in electricity bills, despite a 35 per cent drop in wholesale costs since last summer. It means dual-fuel customers will see their bills drop by a mere 7 per cent.
Critics also point out the gas cut was only half what they expected given the 50 per cent fall in wholesale gas prices since they peaked last summer.
Mark Todd at comparison website energyhelpline.com said: "Given the dramatic falls in wholesale energy prices, we were hoping for something more like 20 per cent."
British Gas said it had not passed on the full effects of last year's wholesale price increases , so consumers could not now benefit from the full drop.
The UK government has already urged suppliers to pass on savings to customers and warned that it may legislate to lower bills.
The energy regulator Ofgem told suppliers in October that they had to stop charging customers different rates if they paid by direct debit or pre-payment meters.
full article
Commissioner for Consumer Affairs, Meglena Kuneva said the decision followed an initial report which showed prices charged by some suppliers across the 27 member states may be excessive.
"Less than two thirds of consumers are satisfied with their energy supplier," said the commissioner.
Across the EU, about 60 per cent of consumers reported a rise in their electricity bills last year, while only 3-4 per cent saw falls.
It follows an announcement by British Gas last month that it would cut its standard gas bills by 10 per cent, but would not pass on cuts to electricity customers.
The new rates, which will save the average customer around £80 a year, will come into effect on February 19, benefiting 7.5 million of the supplier's 15.6 million customers.
Yet they will see no reduction in electricity bills, despite a 35 per cent drop in wholesale costs since last summer. It means dual-fuel customers will see their bills drop by a mere 7 per cent.
Critics also point out the gas cut was only half what they expected given the 50 per cent fall in wholesale gas prices since they peaked last summer.
Mark Todd at comparison website energyhelpline.com said: "Given the dramatic falls in wholesale energy prices, we were hoping for something more like 20 per cent."
British Gas said it had not passed on the full effects of last year's wholesale price increases , so consumers could not now benefit from the full drop.
The UK government has already urged suppliers to pass on savings to customers and warned that it may legislate to lower bills.
The energy regulator Ofgem told suppliers in October that they had to stop charging customers different rates if they paid by direct debit or pre-payment meters.
full article
Monday 2 February 2009
Victorian house given £330,000 eco makeover
The Victorian council house in Camden has been fitted with £330,000 of green gadgets and measures to save energy and cut emissions.
If the occupiers manage to cut their bills, the council will extend the initiative across the borough. The five-bedroom house has solar panels on the roof to provide power and an advanced air-conditioning system to lower heating costs.
It has high levels of draught proofing and windows that are designed to be 20per cent better at retaining heat than current building regulations.
The property also boasts heat recovery ventilation to warm incoming fresh air and rainwater harvesting for use in the garden.
Council bosses say emissions from the house are now 80 per cent lower and it will save residents hundreds of pounds in bills.
What's behind the green door?
Insulation: floor, roof and internal wall insulation fitted wherever needed at a cost of £12,000
Windows: good-quality double glazing means windows are 20 per cent better at retaining heat
Draught proofing: every area, including loft access, is draught proofed as much as possible
Internal heat recovery: uses “smart ventilation” to recycle the heat from the outgoing stale air and re-use it in the incoming clean air
Drainage: rainwater is collected for use in the garden
full article
If the occupiers manage to cut their bills, the council will extend the initiative across the borough. The five-bedroom house has solar panels on the roof to provide power and an advanced air-conditioning system to lower heating costs.
It has high levels of draught proofing and windows that are designed to be 20per cent better at retaining heat than current building regulations.
The property also boasts heat recovery ventilation to warm incoming fresh air and rainwater harvesting for use in the garden.
Council bosses say emissions from the house are now 80 per cent lower and it will save residents hundreds of pounds in bills.
What's behind the green door?
Insulation: floor, roof and internal wall insulation fitted wherever needed at a cost of £12,000
Windows: good-quality double glazing means windows are 20 per cent better at retaining heat
Draught proofing: every area, including loft access, is draught proofed as much as possible
Internal heat recovery: uses “smart ventilation” to recycle the heat from the outgoing stale air and re-use it in the incoming clean air
Drainage: rainwater is collected for use in the garden
full article
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