March 29, 2012

An Independent Energy Supplier Can Test The Strength of the Big Six

Filed under: Energy News — Tags: , — Newsroom @ 12:04 pm

Price increases of epic proportions caused many UK small businesses to consider closing down, and forced residential consumers into fuel poverty.  The information that there is a new kid on the block willing to take on the big six providers should be welcome news for all. First Utility, an independent gas and electricity supplier, has a new chief executive, Ian McCaig who positively relishes the opportunity to change UK energy buying habits.

First Utility want the customer to be more informed about their energy usage by providing detailed information which will give the consumer various options for reducing their gas and electricity consumption.  Every customer will have a smart meter fitted, together with itemised bills.  News about upcoming weather conditions will allow the customer to adjust the temperature on their heating, and up to date information regarding energy prices will be available.

First Utility has collaborated with Opower, which is a US energy management software company.  This is commencing in June 2012 and will allow First Utility the flexibility to provide energy saving data to consumers.  Opower will enable First Utility the choice to text or email customers with information about situations directly relating to the customer’s energy usage and give them the opportunity to alter their demand for energy.  This messaging service should be available from June and Mr McCaig explained the benefits for consumers.

“You or I could be sitting at our desk and we could get a prompt that that the temperature is going to go up by five degrees in the next 24 hours and if you would like to save £20 in the next two days, select profile three and we will adjust your hot water, heating and lighting, based on what the environment is going to be.  This is an example of an empowered consumer” said Mr McCaig.

Changing the way in which a consumer uses their energy will benefit both retail prices and the wholesale market.  Mr McCaig also feels that with careful management at wholesale power markets there may be the opportunity to lessen the likelihood of short-term price instability.  This should lead to more competitive pricing for both retail and wholesale markets.

First Utility was founded in 2008 and currently has around 80,000 customers.  They have had their problems including an investigation launched by Ofgem, the UK energy regulator, about the way the company dealt with customers.  Ofgem issued deadlines to First Utility during which time they had to improve their service otherwise they would face penalties.  The issues Ofgem raised have been rectified.   First Utility realise that as a relatively new company they need to continue to ensure that the basics are correct.

This is a UK energy supplier which is proud to be different in how they look after their customers.  Mr McCaig sums it up “we say this is about information, tools and control – a different relationship with energy rather than just providing it and billing it.  If customers can see that what you are doing really benefits them, then you’ll be really successful.”

It will be interesting to note whether the big six energy suppliers will decide to introduce some system of messaging their business customers with information.  Perhaps we’ll need to wait and see!

September 13, 2011

Let’s Save – Then We Can Spend!

Filed under: Renewable Energy — Tags: , , — Newsroom @ 11:37 am

With energy prices spiralling out of control and there being nothing to redress the balance, perhaps it is time to look at little more closely into what is available from the alternate green and micro generation market.

The cost of installation of most systems will be beyond the reach of many small business owners; however, for those who perhaps share a building with other small businesses, or perhaps a small business park, then there could be an opportunity to pool resources with a view to obtaining lower prices.

Everyone is aware that the huge supermarkets are able to bring products to their shelves at a much lower price than the independent retailers would even need to pay – let alone sell the items.  Buying power is what separates these large companies from their very much smaller and poorer relations.

There are many different options for micro generation installations.  Three of the most familiar are solar panels, wind turbines and biomass boilers, which are fuelled by woodchips and pellets.

Although these alternative heat sources are thought of for commercial and industrial use they are all able to be used within residential properties.  Some architects are being requested to include one of the elements of micro generation installation in planning applications for new properties.

At the moment there are many UK residents who aren’t aware about green technology, and even more people haven’t realised that the government new green deal relates to energy efficiency.  There needs to be a considerable amount of education provided before the UK residents are comfortable with the level of knowledge they have regarding energy efficiency as a whole, never mind micro generation, carbon footprints and greenhouse gas.  There have been so many different alternative concepts which have been primarily targeted at the business owner, that the residents of the UK who aren’t in business have been overlooked.  We’re not idiots, but all the information needs to be easily accessible, together with news items and documentaries explaining the differences between one source of sustainable energy and another.

Once the adult population within the UK are totally aware of the alternatives including installation costs and ongoing income and expenses, then we can ask people to be involved.  At this time, when a high percentage of the population aren’t aware of even basic information regarding alternative forms of energy, then it is unfair and unrealistic to expect everyone to be overly enthusiastic about any new technology.

At present when twenty-five percent of people who were asked about double glazing, cavity wall and loft insulation said that they weren’t interested in installing any of these to reduce energy costs within their homes, it appears unrealistic to be discussing biomass heating systems.

Let’s make sure that everyone knows the basic information regarding saving energy and increasing efficiency in the present energy, before trying to persuade us all to invest again in an alternative form of heating.

August 24, 2011

Once a Jolly Swagman Camped By His Billabong…

Filed under: business energy — Tags: , , — Newsroom @ 10:42 am

As everyone living and working in the UK is only too painfully aware, electricity and gas prices have increased for both business and residential consumers, and are still increasing to date.  We spend a huge amount of time, in the UK, discussing energy prices and green issues.  Is this a peculiarly British phenomenon or do other countries spend equal time and – energy – talking about it?

It may be interesting to be aware of the trends for energy prices in other countries, and even to see if they have any information which could be useful in trying to persuade the large energy providers to reduce their charges in the UK.

Energy Australia is offering small and medium businesses the opportunity to change gas suppliers and is promising a 12% discount from the regulated gas rates – however, and there is always a “but” – this offer is for new users switching to Energy Australia, and has some additional requirements regarding levels of usage, location of the business and credit status of the company.

Regarding electricity, Energy Australia is offering a system called Power Smart – electricity is charged by different tariffs which relate to time periods in conjunction with a Smart Use meter.  Peak time is 2pm to 8pm Monday to Friday.  Shoulder rate is 7am to 2pm and also 8pm to 10pm on weekdays and is also the weekend rate from 7am to 10pm.  The remaining tariff is the Off Peak which kicks in to fill the various gaps.

The intention is to reduce usage from the most expensive time band and to move it to one of the lower zones.  The electricity usage is recorded in half-hour intervals.  The meter shows the user the amount of energy they are using at any specific time, and the idea is to promote awareness by the end user so that they can implement savings themselves.

Neither of the two instances above shows anything to assist the UK business energy market but they may satisfy those business users in their own country.

They don’t appear to be particularly earth shattering – however, according to various websites electricity and gas charges in Australia are amongst the cheapest in the world.  The two examples above also need the business user to go direct to the energy providers rather than being able to work through an intermediary, or energy broker.

It may be interesting to look for comparisons regarding micro generation and the whole green market to establish whether Australia has any helpful advice to the UK business market.  Certainly for gas and electricity there doesn’t appear to be much of interest.

Perhaps the best alternatives are the simplest ones – let’s crack on with the camp fire and wait for the billy to boil!

August 8, 2011

Looking into the Crystal Ball brings a Magical Result!

Filed under: Energy News — Tags: , , , , — Newsroom @ 12:09 pm

At close of business last Friday energy prices, after a weak start to the day, had recovered somewhat; however, the downward trend is still continuing in line with the global financial worries.  The renewable energy sector is steadily growing within the UK as companies are seeking to have some, if not all of their energy provided from renewable sources, thus enabling a reduction in their carbon footprint and showing a commitment to an environmentally friendly future.  This then provides their clients and customers a tangible way to show that they are willing to embrace sustainability in all areas of their business.

The overall energy situation can’t substantially improve until the current financial difficulties which are being experienced around the world allow the market as a whole to settle and consider its position. As with many different industries the energy sector is being dragged hither and thither by outside influences.  Gas, electricity, oil and water – at least two from these four utilities are essential within every business and today, there is some good news regarding one of these utilities.

One major provider, EON, has announced that it is reducing prices for business customers.  This had been predicted by leading energy brokers Blue Mark Consultants some time ago.  Once a major company like EON does this, it is usually likely that other major providers will follow the leading sheep and its shepherd.  Another interesting pointer is that as the global demand for oil has reduced dramatically, oil prices are dropping considerably.  The US dollar has also taken a battering recently as a result of their ongoing internal credit issues.

Over the coming months savvy business energy brokers are predicting a fall in the business energy prices.  There is also an expectation that major gas providers will reduce their prices to business customers within a short period of time.  How low the various energy providers will drop their rates can’t be stated with certainty; however for those businesses and owners who don’t currently consult an energy broker now is the time to do so.  They know the business energy market thoroughly, and as they devote all of their time to negotiating the best prices for their clients, they will certainly be able to give all business owners the benefit of their knowledge which will result in better energy rates and terms for their clients.

There may not be a good reason to change energy providers. Another major benefit derived from the consultation with an energy broker may result in them actually brokering a considerably better deal with your existing energy provider.  As the brokers understand the market thoroughly they are professionals who can help achieve the best result for you and your business.  By not using the expertise provided by a business energy broker, you may, literally, be flushing money away every single day.  They won’t suggest that you change providers for the sake of it.  They will, however, do so when there is compelling evidence of savings to both you and your business.