Two million households will receive discounts to their heating bills this winter as the government forces energy firms to help pensioners pay soaring gas and electricity costs.
Ministers announced that 800,000 of the poorest pensioners will be among the first to receive the new Warm Home Discount, worth at least £120 this year.
Payments are also expected to be made to disadvantaged families, the disabled and the long-term sick.
Energy companies are to be required by law to give rebates totalling £1.1 billion over the next four years, three times as much as they provided under the previous voluntary arrangements.
The regulations introducing the new scheme are already in force, according to the Department for Energy and Climate Change. The Energy Secretary, Chris Huhne, said: “The Warm Home Discount will give the most vulnerable pensioners practical help to manage rising energy bills through an annual rebate. Energy companies will be required by law to provide this support.”
The move follows warnings that consumers face steep rises in fuel bills. Last week, Scottish Power announced that prices will rise by up to 19%, increasing gas and electricity costs by up to £200 a year. Other companies are expected to follow suit.
full article
Thursday 16 June 2011
Wednesday 15 June 2011
Why is it SO hard to find the cheapest energy deal?
WHICH TARIFF?
So who should you switch to? The very cheapest tend to be variable online tariffs.
The problem is that prices can go up. Your account must be managed entirely via the internet, so you input meter readings online and receive statements by email.
The cheapest way to pay is by direct debit. You will normally be charged more if you receive paper bills or have a prepayment meter.
You are also penalised if you don’t want to use direct debit and choose to pay quarterly by cheque.
With other suppliers set to follow Scottish Power’s lead, the biggest worry for people is that their new supplier will increase prices.
Therefore, it may be best to opt for a fixed rate. You will pay a small premium for fixing, but your bill won’t go up. The best is EDF’s Fix Saver v2 which the supplier says should work out at £1,009 a year for a typical semi-detached home.
This is £69 more expensive than its cheapest variable deal — but your costs will not go up until September 2012.
These fixed-rate deals have limited capacity and are likely to be snapped up very quickly.
If you are in fuel poverty — where one-tenth or more of your income goes on gas and electricity — ask if you are eligible for your supplier’s social tariff, which gives a discount to the most vulnerable customers.
Each supplier has different eligibility criteria for social tariffs. EDF, for example, requires people to be either in fuel poverty or receiving income support or pension credit.
Social tariff customers can normally save £150 per year.
full article
So who should you switch to? The very cheapest tend to be variable online tariffs.
The problem is that prices can go up. Your account must be managed entirely via the internet, so you input meter readings online and receive statements by email.
The cheapest way to pay is by direct debit. You will normally be charged more if you receive paper bills or have a prepayment meter.
You are also penalised if you don’t want to use direct debit and choose to pay quarterly by cheque.
With other suppliers set to follow Scottish Power’s lead, the biggest worry for people is that their new supplier will increase prices.
Therefore, it may be best to opt for a fixed rate. You will pay a small premium for fixing, but your bill won’t go up. The best is EDF’s Fix Saver v2 which the supplier says should work out at £1,009 a year for a typical semi-detached home.
This is £69 more expensive than its cheapest variable deal — but your costs will not go up until September 2012.
These fixed-rate deals have limited capacity and are likely to be snapped up very quickly.
If you are in fuel poverty — where one-tenth or more of your income goes on gas and electricity — ask if you are eligible for your supplier’s social tariff, which gives a discount to the most vulnerable customers.
Each supplier has different eligibility criteria for social tariffs. EDF, for example, requires people to be either in fuel poverty or receiving income support or pension credit.
Social tariff customers can normally save £150 per year.
full article
Sunday 12 June 2011
Chris Huhne urges energy customers to switch suppliers
Consumers should vote with their feet and switch to a different supplier if their power company raises its charges, Energy Secretary Chris Huhne has said.
In an interview with the Observer, Mr Huhne said people did not have to take price increases "lying down".
He urged people to hit firms "where it hurts" by finding a cheaper supplier.
Scottish Power has this week announced big rises in gas and electricity prices and there are fears the other five major suppliers will follow suit.
Mr Huhne said: "Consumers don't have to take price increases lying down. If an energy company hits you with a price increase, you can hit them back where it hurts - by shopping around and voting with your feet."
Mr Huhne is expected to announce new measures this week to make it easier for smaller companies to compete in the energy market.
He said: "Right now, only one in five people switch suppliers. I want to see more switching, more competition and more companies in the market.
"The big six only have a few minnows snapping at them, who are kept artificially small. By scrapping red tape for small players they can become serious challengers and help keep bills down."
'Deep concern'
On Tuesday Scottish Power revealed price increases of 19% for gas and 10% for electricity from 1 August, affecting 2.4 million households in the UK.
The company blamed the rises on a sharp rise in the wholesale cost of gas.
Scottish Finance Secretary John Swinney has called for talks with the supplier over the move.
He said: "I am deeply concerned at the scale of Scottish Power's price increases and I am seeking an urgent meeting to hear why they think increases of this scale are justified.
"Any fuel price rises have an impact - yet these increases will leave many households, in particular vulnerable consumers, in real, real difficulty."
A spokesman for Scottish Power said the company always co-operated with parliamentary requests and it looked forward to the meeting with Mr Swinney.
full article
In an interview with the Observer, Mr Huhne said people did not have to take price increases "lying down".
He urged people to hit firms "where it hurts" by finding a cheaper supplier.
Scottish Power has this week announced big rises in gas and electricity prices and there are fears the other five major suppliers will follow suit.
Mr Huhne said: "Consumers don't have to take price increases lying down. If an energy company hits you with a price increase, you can hit them back where it hurts - by shopping around and voting with your feet."
Mr Huhne is expected to announce new measures this week to make it easier for smaller companies to compete in the energy market.
He said: "Right now, only one in five people switch suppliers. I want to see more switching, more competition and more companies in the market.
"The big six only have a few minnows snapping at them, who are kept artificially small. By scrapping red tape for small players they can become serious challengers and help keep bills down."
'Deep concern'
On Tuesday Scottish Power revealed price increases of 19% for gas and 10% for electricity from 1 August, affecting 2.4 million households in the UK.
The company blamed the rises on a sharp rise in the wholesale cost of gas.
Scottish Finance Secretary John Swinney has called for talks with the supplier over the move.
He said: "I am deeply concerned at the scale of Scottish Power's price increases and I am seeking an urgent meeting to hear why they think increases of this scale are justified.
"Any fuel price rises have an impact - yet these increases will leave many households, in particular vulnerable consumers, in real, real difficulty."
A spokesman for Scottish Power said the company always co-operated with parliamentary requests and it looked forward to the meeting with Mr Swinney.
full article
Saturday 11 June 2011
It's a Swiss Army bike!
This extraordinary new electric bicycle looks sharp and folds out just like a Swiss Army knife.
The creation by Swiss brand Voltitude, has been dubbed the ultimate space saver.
Designed for city-dwellers, the compact 18.5 kilogram bike measures just under two feet in width, 2ft 7in high when folded and 3ft.6in when stretched out.
The bike can be charged by hooking it up to a standard mains socket and takes around four hours to reach full power.
It can reach speeds of around 15 miles per hour and can be ridden for 25 miles before needing to be recharged.
The bike, which is set to sell for around £2,650, is not yet in full production but it can be pre-ordered through the Voltitude website.
full article
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