Boilers that generate electricity

Domestic gas boilers that can simultaneously generate electricity and heat will be unveiled in the UK today, providing a lower-carbon option to power homes.

The so-called micro-combined heat and power (micro CHP) units look like ordinary wall-hung gas boilers, but as well as generating heat for radiators and water, they produce electricity as a byproduct.

Traditional boilers are highly efficient at generating heat within the home, with more than 90% of the energy in the fuel converted into useful heat. But conventional electricity generation is highly inefficient, with as little as 35% of the energy in the fuel burned in the power plant becoming electricity in the home. Most of the rest is wasted as heat in the power station, with a smaller amount lost in transmission across the national grid.

But the new micro CHP devices create enough electricity for a one-bar electric fire as a byproduct of heat generation. This reduces wastage, with 92% of the total energy in the gas converted into heat or electricity. The new CHP boiler will be able to produce around 1,800–2,400 Kwh of electricity a year, more than half of the typical gas-heated home's total demand, because the electricity is generated "on site" without the need for transmission which wastes power.

Larger micro CHP devices have been sporadically available in the UK for a number of years, but the Ecogen by Baxi – which will be launched today at London's Ecobuild show and will go on sale at the start of April through British Gas – is the first to be comparable in size to a conventional boiler. The units will cost around twice as much as a large regular boiler – likely around £5,000.

Unlike solar panels and wind turbines, the Ecogen does create carbon dioxide, since it burns natural gas. But by producing electricity alongside the heat, the device can reduce the carbon footprint of a typical three-bedroom home by around one tonne a year (or significantly more if replacing an inefficient 10-year-old boiler), according to the manufacturer.

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First Utility sparks energy price war

First Utility, the independent energy company, has cut its prices to make it the cheapest energy supplier in the UK.

Its iSaveV3 dual fuel tariff now costs £889 per year for a typical energy user - £10 cheaper than British Gas’ WebSaver6 and more than £20 cheaper than the average of the best online deals from other energy suppliers.

To qualify for the First Utility tariff, consumers must operate their account online and pay by monthly direct debit. For those unable or reluctant to go online and use direct debits, First Utility also operates the cheapest Standard energy tariff on the market, with a price tag of £1,074 for a typical energy user.

Its latest initiative comes amid growing consumer concern at the huge profits being racked up by the big six energy companies. Mark Daeche, chief executive of First Utility, said: “We’re aiming to send out a clear message that there is a real alternative to the big six incumbent energy companies.”

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Five ways you can hit back at the greedy energy giants

1: Switch supplier

This should be straightforward and can be done over the phone or online - yet 12 million households have never bothered.

The internet has made searching for a cheaper deal easier. Our sister website, thisismoney.co.uk, can help you to make average annual savings of £263. Where a household has never switched before, the savings should be far higher.

'Allow about six weeks for the transfer to complete,' says Mark Todd, managing director at energyhelpline.com, which powers This is Money's switching facility.

2: Consider newcomers

New smaller firms, such as OVO and First Utility, are grabbing market share from the big six - British Gas, EDF, Eon, npower, Scottish and Southern and ScottishPower.

First Utility has undercut many of the big players. It is also innovative, offering customers in the Midlands smart-meter technology since last September. Smart meters attach to existing gas and electricity meters to give an exact reading of usage, which is transmitted back to First Utility.

3: Seek a dual-fuel deal

If your gas and electricity is supplied by different companies, you can probably save by moving to a dual-fuel package. All companies offer dual-fuel as a standard tariff as opposed to an online-only deal.

4: Go online and pay by direct debit

The biggest savings are to be made by people prepared to take a dual-fuel online deal and pay by direct debit. According to thisismoney.co.uk, a household paying its bill quarterly on receipt of a bill will save on average between £200 and £300 a year by switching to an online direct debit tariff. British Gas has the cheapest online deal for households with average energy consumption, while ScottishPower and EDF are among the best for high users. Npower is competitive for homes with low energy use.

There have been problems with direct debit payments being set too high and companies holding on to customers' overpaid cash.

5: Consider a fixed rate

Almost all energy companies offer fixed-rate tariffs, which can suit those households that are worried about rising costs and need to budget. Yet Todd says that if energy prices are set to fall it may be worth waiting.

Help for the vulnerable


Pensioners and households on low incomes may be eligible for help with their energy bills.

Energy companies are required by law to provide 'social tariffs' to help their most vulnerable customers. These tariffs must be at least equal to the provider's cheapest deal. There are also State-funded grants and money available from energy providers to help lower-income households make energy-saving improvements to their homes.

One of the best known is Warm Front, which provides grants of up to £3,500 to eligible households in England. Similar schemes operate in Scotland, Wales and Northern Ireland. Money is available for loft insulation, draught-proofing and cavity wall insulation. To find out more, go to warmfront.co.uk or call 0800 316 2805.

The Government's boiler scrappage scheme still has funds available. Households with a G-rated boiler (the oldest and least efficient) can get £400 towards the cost of a new, more efficient model and its installation. For more on this and other energy savings ideas, visit energysavingtrust.org.uk.

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Tesla gets ready as electric cars go mainstream

The single-model display at the Geneva motor show by electric motoring pioneer Tesla is swamped this year by a seemingly endless string of rival sportscar companies launching electric vehicles of their own.

Whereas in the past the Tesla Roadster stood out as a breath of fresh air, and although it remains the only fully functional and street-legal electric car with others being trial models, it will soon be up against petrol-electric hybrids from Fisker and Lotus, Ferrari and Porsche.

"The world has been waiting for Porsche to show this," insists Porsche's chief executive Michael Macht as Porsche unveiled its plug-in petrol-electric hybrid at a Volkswagen Group event ahead of the motor show.
"Electric cars will be important for our customers; our models will have to be socially acceptable."

But whereas analysts fret about the threat, Tesla views the rivals' arrivals as good news.

Global Insight automotive analyst Aaron Bragman takes the view that Tesla is in danger of losing its "competitive advantage of being novel and unique".

By contrast, Cristiano Carlutti, head of Tesla's sales and operations in Europe, believes more electric cars from established brands will instead result in growth in the overall market for electric cars.

"Whoever does electrics is our friend," he says. "The fact that large firms enter the electric car market is an advantage for everyone.
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