January 6, 2012

And Let There Be Light!

Filed under: Business Electricity — Tags: — admin @ 12:58 pm

It’s the demise of the 60 watt light bulb, as from yesterday, 1st September, there aren’t any more being made.  It’s quite a problem for some users as 100 watt is often too bright and the 40 watt is only suitable for a wall light or table lamp.

The 60 watt is a good light for reading by – when in a lampshade it casts a soft glow and is used everywhere.  That’s the argument on one side.  The other approach is – use the new energy saving bulbs – they are much better, last considerably longer and, tough, just get on with it!

You can see both sides of the argument, and on one side is the traditional approach where people don’t want change imposed on them.  The flip side of the same coin says that we’ve all got to move forward.  The energy bulbs do take a little longer before they glow, and they certainly don’t produce a gentle soft graduation of colour.

The main point though, before everyone falls asleep is, that if all we need to worry about is the end of a light bulb then the world is a much better place than previously thought.  There is a report that a shopkeeper has stockpiled 2,000-3,000 of the 60 watt bulb so that his customers will still be able to buy them.

Really, when this becomes a major news item, it’s very strange.  Doing everything possible to reduce energy usage is considerably more important.  This shopkeeper may also be wonderful at saving energy.  Everyone has their own foibles and the British people are loved for their eccentricities.  Perhaps this comes under that heading.

It is possibly past the time of being reasonable to those small businesses which aren’t doing anything to reduce their own energy consumption.  If businesses aren’t going to co-operate voluntarily some sanctions may need to be imposed.  Everyone loves a challenge.  Ask the large energy providers for encouragement.  Look to the local independent energy brokers for assistance.  Every business needs to receive a visit from their local broker and to take advice on how to reduce their costs.  If necessary, make it a competition amongst local businesses, with different groups according to the size of the business.

This is something which needs to be started with the schools and students need to discuss the benefits of reducing their carbon footprint, together with information regarding green technology at an early age.  Many senior schools and colleges have already started embracing the new technology – they have their own gardens producing vegetables, as well as flowers and one or two schools even have a smallholding attached.

The teenagers of today will help with passing the word to everyone.  Let’s get everyone talking about green technology and wanting to be involved.  Let’s move forward – with not a 60 watt bulb in sight!

December 24, 2011

Fuel Poverty – How Bad Is It?

Filed under: Business Electricity — Tags: — admin @ 9:23 am

It is said that if more than ten per cent of household income is spent on gas and electricity then that family is in fuel poverty.  This seems a little too easy to state, and it surely, is relative.  For a household with a net income of £1000 per month then ten per cent is £100 and then they will be in the fuel poverty bracket.

A study which has just been concluded says that currently six per cent of the income is being used on energy.  However if increases in gas and electricity continue in the same manner as present by 2015 a further twenty five per cent of households will be in fuel poverty.

Currently the average annual cost of energy for the home is around £1300.  However, we’re not all average, and the figures, although to a certain extent need to be estimated rather than actual, are perhaps, slightly contrived.

Our household comprises two adults – the children have fled the nest now – and have their own energy bills to worry about!  Our energy is paid by direct debit, which is probably the most efficient method of payment.  Currently we pay £130 per month for our dual-fuel bill.  This equates to £1,560 per year.  We don’t like the rooms to be over-warm – however, if the home feels cooler than we like the heating is switched on.  We don’t own a large property – a three bedroom semi.  Our one extravagance is the gas-fired Aga which we have running throughout the year.  This costs around £30 per month however it does warm the downstairs of the home slightly.  Removing that cost leaves £100 per month, which is about average.

What I’m trying to say, is before grumbling at the cost of the energy bills, if yours is higher than neighbours, there could be a good reason – ours is the Aga.  We feel that the benefits outweigh the cost implications.

Look slightly outside the box to see if there are other ways in which you may be able to reduce energy.  There are lots of ways to get help if you are struggling.  Remember if help is offered, accept it.  Should you not like their advice, well, you don’t need to take it, but it is worth consideration.

Back to the beginning and fuel poverty.  It is all relative at which level fuel poverty kicks in.  Families living in a large property and with energy bills of, say £1,000 per month – this is a cautious estimate – are they in fuel poverty if their income is £9,000 per month?  I would tend to say no, however we don’t know details of their expenditure.  Even if their mortgage payments are £3,000 each month, the residue should cover every other bill, surely!

Energy brokers may be the best people to have a conversation with, as they spend every day looking for the best prices for their customers.  See if they can help you – what have you to lose?

October 31, 2011

And Another Small Business Bites The Dust

Filed under: Business Electricity — Tags: , — admin @ 10:21 am

It is really sad when hearing from local businesses that they need to close down because of their spiralling business energy costs, which they can’t continue to pay.  I have just had an email from an acquaintance who owns a local shop.  He has sent this email to all customers and he explains that over the past three years he has been struggling to pay staff wages and that he now just has a couple of people on a part time basis.

Although the local supermarket is some miles away, customers when they are there tend to buy across the range of products, which leaves the smaller independent shop owners out in the cold.

Apparently the main problem for this shopkeeper was his utility bill.  The vast majority of the bill is for electricity, with a smaller portion being gas, for heating.  Over the past five years he doesn’t recognise his bill as being from the same premises.  As he commented – the shop is the same size, and he has the same number of appliances as before.

I gave him a quick call to find out if I could offer any assistance, but he said that making the decision to close was the hard part, and that now he had done that, he wasn’t going to change his mind.  I understand his point of view, and respect him for sticking with it.

Apparently the energy bills were the straw which broke the proverbial camel’s back!  He has been making a loss for some time, and only stubbornness had made him continue to try to work through the problem.  Eventually he wasn’t making any profit, and they were living on his wife’s salary.

I asked him if he had ever spoken to an independent energy broker – he didn’t know that there were energy brokers who may have managed to save him thousands of pounds each year.  It’s sad that although I regularly suggest that business owners should utilise the services of energy brokers, many small business customers don’t actually know that they exist.  Only when everyone is aware of the services offered by brokers, can the reversal of the spiralling costs for both residential and business customers have a chance to start to take effect.

It appears that I’m going to need to continue to bang on about the brokers who can save money for their clients.  This is important as it may well stop other shopkeepers from finding themselves in the same position.  With a little effort from the customer and some good advice from the broker there will be considerable savings in both the gas and electric bills.

There is a way for customers to benefit but they need to know about it.  As soon as I find out the best way of telling them, I’ll let you know!

October 19, 2011

Ask for Help – But Then Use It

Filed under: Business Electricity — Tags: , — Newsroom @ 10:12 am

It is good news that eventually there may be a way ahead which will reduce the charges made by the big six energy suppliers.  At this stage many of the ideas put to the energy providers seem sensible, but how many of these will the energy providers accept and agree to, and how much will consumers actually save?

When it comes down to business customers, there doesn’t appear to be very much assistance, other than providing debt advice, and being able to pay the charges by instalments.

One of the major problems for business owners is that they don’t really want to spend the time in wondering how to save money on their electricity bills.  They want to concentrate on their core business and not to worry about needing to change tariffs, etc.  Although they want to save money – their main interest is in making money for the business.

The best way for business owners to be able to continue with their business, is by letting other people, who may be experts, help you.  It’s “horses for courses” as the saying goes – let everyone do what they are good at!  Inevitably this will lead to areas where there is no expertise.  This is where, by securing the services of an independent energy broker he will identify where and what is being spent.  Your broker will go through all the major energy providers and when your existing contract is due to finish he will negotiate a new contract with the existing company, or if there is a cheaper energy supplier, will arrange the transfer to the new provider.

Utilising the services of an energy broker to obtain the best deal possible is the ideal way forward for many smaller businesses.  The business owner can get on with what he does best – and that is by operating his business to the best of his abilities.  If there is a member of staff who can assist the broker by arranging to implement any energy efficient products suggested by the broker, or, if necessary by making a couple of phone calls or by purchasing low energy light bulbs and thermostats for radiators.  By spending a few pounds now, it can add to the potential savings elsewhere.

Another item which the small business owner needs to do is to read every bill when it arrives.  Many employers and small business users will open a bill, possibly grumble a bit about it, and then puts it away until the reminder arrives.   A few weeks later when he receives a disconnection of services letter, he then panics and pays the bill without looking at it.  No-one should pay an invoice without first checking it closely – there are, in a high proportion of accounts, errors which could result in the bill payer spending far too much on their account.

Take advice, do a little detective work to check whether your bills are correct, and make savings where necessary.

September 16, 2011

Bingo – It’s a Full House!

Filed under: Business Electricity — Tags: , , — Newsroom @ 10:04 am

We now have a full house, as EDF has just announced its increased prices; the last of the big six energy providers to confirm their figures.  Electricity has risen by 4.5%, in line with inflation but gas has a huge hike of 15.4 per cent.  This latter figure, although enormous is actually lower than the other major players.

Those EDF customers who have a duel fuel agreement will see their energy bills increase by approximately 33p each day which equates to about £120 per year.  These increases are bound to cause further problems for their customers who are already struggling to pay their energy bills.

It really is dreadful to advise that 15.4 per cent is the lowest price rise of all of the major energy providers.  We know that these companies have their own problems – doesn’t every business.  The difference is that if small organisations increased their prices by anything close to this figure, clients would, without any doubt at all, walk away.  A small company providing first-class service and products for a long time and whose clients know the brilliant work done by them, will find it extremely difficult to persuade their clients that a 15% rise is justified.

At a time when many UK businesses are reducing their prices to ensure that their clients remain, it is impossible to comprehend the actions of these energy providers.  Their customers, both residential consumers and business owners can’t afford these increases.  The majority of households and small businesses haven’t had an increase in their income for some years now and there certainly aren’t expectations of windfalls in the near future.

The problem is that these companies have us all over a barrel.  They know that every home and business require electricity and gas in order to keep functioning.  It may be possible for a rural property and occupants to manage without being connected to the mains for electricity – it isn’t practical for the remaining 99.99 per cent for the UK population to contemplate.

There is a wonderfully romantic notion of the woman (or man) kneading the dough in readiness for making the daily bread cooked in one of the multi-fuel ranges.  The other partner checks that the windmill at the top of the field is generating sufficient power so that the radio can be switched on.  They then wander to see if the generator has enough fuel for another few weeks.

This is the position that many UK families would like to imagine themselves in – however; the problems outweigh the benefits.  The cost implications are excessive and so for those families wanting to save on their energy bills the initial capital required makes it untenable.

Unfortunately, this brings us all back to requiring the energy providers to enable our homes and businesses to function.  As we don’t appear to have viable alternatives at this time, perhaps the Regulator needs to instruct these electricity and gas suppliers to keep their increases to a minimum – otherwise when all the exciting alternatives which are starting to be implemented are actually affordable – a large swathe of customers are likely to vote with their feet!

August 8, 2011

Eon Drops Prices for Business customers!

Filed under: Business Electricity — Tags: — admin @ 8:25 am

Eon Energy this morning dropped Maximum demand business electricity prices by, 1 Year: Decrease of 1.8%, 2 Year: Decrease of 1.5%, 3 Year: Decrease of 1.0%.

This is extremely good news for business customers and should start to filter down to non Maximum demand customers over the coming weeks. This fits in with Bluemark market commentary over the past couple of months, everybody else was saying prices will continue to rise, our analyst was adamant they will drop. Once again our analyst Les Simmons got it right.

Les also believes that this is the tip the iceberg and wholesale prices will start to tumble to early 2007 prices in the coming 6 month period. “The weakness of the Dollar and dropping world demand for oil will have a massive impact on prices” He stated.

July 28, 2011

Southern Electric Charges 30 pence per kWh!!!

Filed under: Business Electricity — Tags: — admin @ 8:59 am

Southern Electric charges one of our customer 30 pence per kWh!!!

An organisation contacted Bluemark recently about a massive increase in their electricity prices. The customer’s unit price per kWh was increased from 9.8 pence per kWh to a whopping 30 pence per kWh!

We are dealing with the issue for the customer and are trying to ascertain if this is an automatic renewal rate for 12 months for if this is Southern Electric’s “out of contract rate”. Either way it is a totally unjustifiable figure.  And in my opinion a complete rip off.

Pound Coin

When are certain electricity suppliers going to start being playing fair and being ethical? There is no justification for a unit rate of 30 pence per kWh and if it is an “automatic renewal rate” it is absolutely disgusting.

We will be taking up this fight on behalf of this customer and we will get this disgusting unit rate reduced.

Yours Disgusted of Dorset

July 19, 2011

Will business electricity prices drop further ?

Filed under: Business Electricity — Tags: — admin @ 9:29 am

With the recent falls in business contracts it is a good time to compare business electricity prices. Both Eon Energy and British Gas have dropped prices over the last week or so by around 4%. British Gas Business have a also launched a no standing charge tariff for business customers using less than 734,000 kWh of natural gas per year.

Prices are still up considerably on last year so we would only advise taking a 12 month contract. The possibility of a weakening Euro is also an important factor as Europe is a key competitor with the UK for natural gas, so any weakening of the Euro against the pound will have a strong downward effect on business energy prices.

June 15, 2011

Recent Energy Price Increases Start To Fall

Recent substantial power gains began to reverse yesterday as Tuesday’s trading session came to a close. Prices closed strong on Monday for the second consecutive session thanks to a short gas system. With limited Norwegian flows and LNG send-out levels still low, the gas system was under pressure pushing gas, and by extension power, prices higher. However, extra gas supply was sourced later in the day and as a result prices began to soften into the close. Gas prices dropped at a faster rate, while power contracts held on to some of their early week gains, causing spark spreads to widen. Wednesday’s opening may see power prices catch up with falling gas. Day-on-day, both the front month and the front season shed 60pence/MWh, while other contracts lost between 10pence/MWh and 35pence/MWh. Only the day-ahead price remained flat against Monday’s close, holding steady at £52/MWh, despite good plant availability and generous margins. Tuesday’s minimum surplus reach 13.6GW thanks to returning units, and even as peak demand is forecast to rise on Wednesday, margins are expected to remain comfortable; well above 12GW.

June 2, 2011

British Gas Business Cut Prices By 6 – 8 %!!!

British Gas Business the largest supplier of electricity and gas to UK businesses has today announced a large price cut. Gas prices are down by an average of 6% and electricity by an average of 8%.

This is extremely good news for UK businesses that have been squeezed by the wholesale price increases this year.

Les Simmons , Managing Director of Bluemark Consultants stated” This is very good news for our customers , we have been saying for the last two months that prices will fall due to key fundamentals , so it’s nice to be proven right”.

Now is a very good time to compare business electricity and business gas prices and find your business a good energy deal.

British Gas Logo

British Gas Business Drop Prices

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