British Gas has cut its electricity prices by 5% with immediate effect, while SSE will reduce gas tariffs by 4.5% on 26 March.
The moves come a day after EDF Energy announced plans to cut its domestic gas tariff by an average of 5% owing to low energy use during the mild winter.
The price cuts will add pressure on the rest of the major suppliers to cut their tariffs as wholesale prices dip.
British Gas said the average annual domestic bill would fall by £24.
"We want to keep prices as low as possible for our customers. Household budgets are stretched, and we are doing everything we can to help our customers keep their bills down," said Ian Peters of British Gas.
"This price reduction means British Gas is once again offering the cheapest standard electricity, on average, of any major supplier."
The price cut comes after a 16% rise in electricity prices and an 18% rise in gas prices for British Gas customers in August.
Future costs
The company said that 5.3 million customers on variable tariffs, including those on dual-fuel deals, would benefit from the price cut.
Continue reading the main story
“Start Quote
It may be interesting to note that a 5% gas price cut would have cost British Gas more than double this electricity price cut”
Mark Todd Energyhelpline.com
The reduction comes into effect ahead of the EDF gas price cut which comes into force on 7 February. The EDF change is set to cut the typical annual bill by £38.
British Gas said that it was not changing its gas charges because, although there had been some short-term falls in the cost of gas, the longer term trend in wholesale prices was upward. It said it bought its energy in advance.
The company said it was too early to predict what would happen to prices in the future.
The choice to cut the cost of electricity, rather than gas - for which British Gas has more customers - has caused some debate.
"Every drop is welcome but consumers will find it baffling that the company cannot also reduce gas bills as well - especially after the EDF Energy move," said Mark Todd of Energyhelpline.com.
"The maths do not seem to add up so British Gas need to do something on gas as well if they want to look like they are passing on wholesale falls fairly. It may be interesting to note that a 5% gas price cut would have cost British Gas more than double this electricity price cut."
Following suit
Just a few hours after British Gas dropped its electricity prices, SSE - which runs Southern Electric and Scottish Hydro - announced the planned reduction of its gas price in late March.
Some 3.5 million customers would see their typical annual gas bill fall by £28, SSE said.
"Virtually all of the gas being supplied to customers this winter was bought some time ago, but some of the gas that will be supplied to customers from the spring onwards has been purchased since the period of lower wholesale prices began," it said.
"Having analysed and considered the position for some time, SSE is able to announce this reduction in household prices."
The company raised gas prices by 18% and electricity prices by 11% in September.
Adam Scorer, of watchdog Consumer Focus, said that companies would react differently depending on how they expected wholesale prices to change. But he said any drops in wholesale costs should be reflected in the price the consumer paid.
full article
Thursday 12 January 2012
Wednesday 11 January 2012
EDF Energy to cut gas price by 5%
One of the UK's largest energy suppliers, EDF Energy, has said it is to cut its gas bills by 5% from 7 February.
The move follows a sharp fall in the price of wholesale gas over the winter period due to the mild weather.
EDF increased its gas bills by 15.4% in November in response to rising wholesale gas prices.
The move to cut bills is the first by a major supplier and is likely to be followed by other energy companies.
The company did not announce any cut to the price of its electricity bills, which rose by 4.5% in November.
"What customers want more than anything else is fair, clear and transparent prices. We know they want action rather than words. That is why we are the first major supplier to announce a cut and were the last to increase prices," said Vincent de Rivaz, chief executive of EDF Energy.
'Join in'
The company said that the wholesale price of gas had fallen 9.2% since it announced it was putting up bills on 10 November last year.
Continue reading the main story
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Now the pressure is on for the rest of the major suppliers to follow suit”
Richard Lloyd Which? executive director
The typical bill will fall by about £38 a year, according to price comparison website Uswitch, with the average dual-fuel customer paying about £1,203 a year.
Energy Secretary Chris Huhne has called on the rest of the major suppliers to follow suit and cut their prices.
Some smaller suppliers have announced price cuts of some tariffs or cancellation of price rises in recent weeks.
EDF has been one of the most active in marketing price changes. It was the last of the six major suppliers to cut prices this autumn. Last winter, it held its prices until March amid widespread price rises.
Dissatisfaction
However, the price cut comes as an annual customer satisfaction survey carried out by the consumers' association Which? showed EDF second bottom of the "big six" energy suppliers.
In all, 43% of customers said they were satisfied with the company's service or likely to recommend it to others.
Of the big six suppliers, only one, Scottish and Southern Energy, received a score of more than 50%, getting 51%.
Richard Lloyd, Which? executive director, welcomed EDF's upcoming price cut.
"Now the pressure is on for the rest of the major suppliers to follow suit. But as our survey today shows, there remain huge problems with customer service in energy as well as high prices," he said.
This report suggested that, when customers had gripes about their energy company, some 90% of unsolved complaints were not taken to the energy ombudsman for resolution.
The ombudsman can get involved if the complaint has been outstanding for eight weeks, or if the supplier sends a letter saying the two parties are in deadlock.
Some 95% of complaints looked at by the ombudsman are upheld and 70% of them receive financial redress, Which? said.
full article
The move follows a sharp fall in the price of wholesale gas over the winter period due to the mild weather.
EDF increased its gas bills by 15.4% in November in response to rising wholesale gas prices.
The move to cut bills is the first by a major supplier and is likely to be followed by other energy companies.
The company did not announce any cut to the price of its electricity bills, which rose by 4.5% in November.
"What customers want more than anything else is fair, clear and transparent prices. We know they want action rather than words. That is why we are the first major supplier to announce a cut and were the last to increase prices," said Vincent de Rivaz, chief executive of EDF Energy.
'Join in'
The company said that the wholesale price of gas had fallen 9.2% since it announced it was putting up bills on 10 November last year.
Continue reading the main story
“Start Quote
Now the pressure is on for the rest of the major suppliers to follow suit”
Richard Lloyd Which? executive director
The typical bill will fall by about £38 a year, according to price comparison website Uswitch, with the average dual-fuel customer paying about £1,203 a year.
Energy Secretary Chris Huhne has called on the rest of the major suppliers to follow suit and cut their prices.
Some smaller suppliers have announced price cuts of some tariffs or cancellation of price rises in recent weeks.
EDF has been one of the most active in marketing price changes. It was the last of the six major suppliers to cut prices this autumn. Last winter, it held its prices until March amid widespread price rises.
Dissatisfaction
However, the price cut comes as an annual customer satisfaction survey carried out by the consumers' association Which? showed EDF second bottom of the "big six" energy suppliers.
In all, 43% of customers said they were satisfied with the company's service or likely to recommend it to others.
Of the big six suppliers, only one, Scottish and Southern Energy, received a score of more than 50%, getting 51%.
Richard Lloyd, Which? executive director, welcomed EDF's upcoming price cut.
"Now the pressure is on for the rest of the major suppliers to follow suit. But as our survey today shows, there remain huge problems with customer service in energy as well as high prices," he said.
This report suggested that, when customers had gripes about their energy company, some 90% of unsolved complaints were not taken to the energy ombudsman for resolution.
The ombudsman can get involved if the complaint has been outstanding for eight weeks, or if the supplier sends a letter saying the two parties are in deadlock.
Some 95% of complaints looked at by the ombudsman are upheld and 70% of them receive financial redress, Which? said.
full article
Wednesday 4 January 2012
Power company says overcharging cost UK £134m
A study by power company Eon has found that British households waste £134 million a year in electricity costs by overcharging mobiles phones and laptop computers.
One can only assume that over the festive period the authors of the report didn't feel like checking in with any remotely qualified engineers that would point out that the vast majority of chargers, and all chargers for anything with a lithium-chemistry battery like phones and laptops, stop charging the battery when its full.
If they didn't, the battery would dangerously overheat. For batteries using nickle cadmium or nickle metal hydride chemistries, typically chargers will fast charge and then switch to a trickle when the battery is near full. That trickle is important to maintain the cell capacity, lest you want to pick up your device and find it has no charge at all.
That said, there is a nugget of truth regarding wasting of power by leaving devices plugged into a charger after they have finished charging. A small amount of residual power will be drawn by the AC adaptor, usually a couple of watts or so.
In recent years there's been a raising of awareness over so-called phantom power consumption of devices with unusually large power draw when in stand-by, such as set-top boxes. The upshot of that was that manufacturers improved their standby power consumption and it's still an area worth highlighting.
Ironically Eon was using the report to draw attention to their Energy Fit plan which consists of a power meter and a free smartphone app.
full article
One can only assume that over the festive period the authors of the report didn't feel like checking in with any remotely qualified engineers that would point out that the vast majority of chargers, and all chargers for anything with a lithium-chemistry battery like phones and laptops, stop charging the battery when its full.
If they didn't, the battery would dangerously overheat. For batteries using nickle cadmium or nickle metal hydride chemistries, typically chargers will fast charge and then switch to a trickle when the battery is near full. That trickle is important to maintain the cell capacity, lest you want to pick up your device and find it has no charge at all.
That said, there is a nugget of truth regarding wasting of power by leaving devices plugged into a charger after they have finished charging. A small amount of residual power will be drawn by the AC adaptor, usually a couple of watts or so.
In recent years there's been a raising of awareness over so-called phantom power consumption of devices with unusually large power draw when in stand-by, such as set-top boxes. The upshot of that was that manufacturers improved their standby power consumption and it's still an area worth highlighting.
Ironically Eon was using the report to draw attention to their Energy Fit plan which consists of a power meter and a free smartphone app.
full article
Tuesday 3 January 2012
Five ways to save money on your energy bills
Insulate your home
There's no point in spending money heating your house if it is simply leaking into the atmosphere, so make sure your home is as insulated as possible. According to the Energy Saving Trust, cavity wall insulation is the most effective energy-saving measure you can take.
This simple measure, which involves injecting foam into the gap between your walls, can save £110 a year. There are grants available for installing this, especially if you are over 60. Try the Energy Saving Trust's grant search tool on www.energysavingtrust.org.uk
Loft insulation, which saves around £40 a year on the average house, can also be installed at a subsidised cost, if you can get a grant. Most homes have some loft insulation, but normally fall short of the recommended level of 220mm.
Switch to the cheapest provider
The biggest change you can make to energy bills is by making sure you are on the cheapest tariff for gas and electricity. This won't make any difference to the quality of the energy supplied to you, but it could make a vast difference to the cost.
Give your boiler an MOT
If you buy boiler insurance cover you may get a service with it – however, this has risen by as much as 20pc since last year and now costs between £150 and £200, so it pays to check whether you really need it.
If your boiler is really old and does need replacing, it may pay to do it sooner rather than later. The Energy Saving Trust calculates that the difference between gas bills from a home with an old boiler to one with an ultra-efficient new one is as much as £225 a year for an average three-bedroom semi. Getting a new one sorted before winter kicks in could be sensible if you know that yours is on its last legs.
Keep an eye on your usage
Some companies, are energy monitors out free to customers; or you can buy one from theOwl.com for from just over £20.
These can be attached to your electricity meter, and can act as a powerful incentive to switch off lights and appliances by showing you exactly how much your usage is costing.
Studies suggest you could save 5pc of your electricity bills by using one, although of course this is a behavioural saving – you won't get cheaper bills just from looking at the monitor.
Sadly, these do not yet exist for gas meters.
Stop up the gaps
You can also increase your winter comfort factor by blocking draughts, especially if you have single-glazed windows. Just fitting draught stripping across your doors could save you £25 in winter. Even when the figures sound unimpressive, don't underestimate the extra comfort that thick curtains, draught excluders and other cheap measures can bring.
Rosalyn Dungate, of the Energy Saving Trust, suggests blocking cracks between floors and skirting boards with material, newspaper or decorator's caulking, a cheap home-made solution that could save money and make life far warmer.
Plenty of heat is also lost through your chimney if it is open, so if you're not having fires, try using a chimney balloon to seal it. These are easily deflated and removed.
full article
There's no point in spending money heating your house if it is simply leaking into the atmosphere, so make sure your home is as insulated as possible. According to the Energy Saving Trust, cavity wall insulation is the most effective energy-saving measure you can take.
This simple measure, which involves injecting foam into the gap between your walls, can save £110 a year. There are grants available for installing this, especially if you are over 60. Try the Energy Saving Trust's grant search tool on www.energysavingtrust.org.uk
Loft insulation, which saves around £40 a year on the average house, can also be installed at a subsidised cost, if you can get a grant. Most homes have some loft insulation, but normally fall short of the recommended level of 220mm.
Switch to the cheapest provider
The biggest change you can make to energy bills is by making sure you are on the cheapest tariff for gas and electricity. This won't make any difference to the quality of the energy supplied to you, but it could make a vast difference to the cost.
Give your boiler an MOT
If you buy boiler insurance cover you may get a service with it – however, this has risen by as much as 20pc since last year and now costs between £150 and £200, so it pays to check whether you really need it.
If your boiler is really old and does need replacing, it may pay to do it sooner rather than later. The Energy Saving Trust calculates that the difference between gas bills from a home with an old boiler to one with an ultra-efficient new one is as much as £225 a year for an average three-bedroom semi. Getting a new one sorted before winter kicks in could be sensible if you know that yours is on its last legs.
Keep an eye on your usage
Some companies, are energy monitors out free to customers; or you can buy one from theOwl.com for from just over £20.
These can be attached to your electricity meter, and can act as a powerful incentive to switch off lights and appliances by showing you exactly how much your usage is costing.
Studies suggest you could save 5pc of your electricity bills by using one, although of course this is a behavioural saving – you won't get cheaper bills just from looking at the monitor.
Sadly, these do not yet exist for gas meters.
Stop up the gaps
You can also increase your winter comfort factor by blocking draughts, especially if you have single-glazed windows. Just fitting draught stripping across your doors could save you £25 in winter. Even when the figures sound unimpressive, don't underestimate the extra comfort that thick curtains, draught excluders and other cheap measures can bring.
Rosalyn Dungate, of the Energy Saving Trust, suggests blocking cracks between floors and skirting boards with material, newspaper or decorator's caulking, a cheap home-made solution that could save money and make life far warmer.
Plenty of heat is also lost through your chimney if it is open, so if you're not having fires, try using a chimney balloon to seal it. These are easily deflated and removed.
full article
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