March 30, 2012

When Nothing Goes According To Plan

Filed under: Energy News — Tags: , , — Newsroom @ 12:43 pm

The UK energy policy has been dealt a huge blow because German energy suppliers RWE npower and E.on have decided to walk away from their commitment to build two nuclear power stations.  This has obviously caused massive problems for the government as there will now be an enormous shortfall in power generation which needs to be resolved.  The two projects were worth £10billion and the stations were going to be built at Wylfa, Anglesey and Oldbury-on-Severn, Gloucestershire.

This doesn’t just leave a massive hole in the generation of electricity, it means that the thousands of jobs which would have been created and essential towards the success of the project are now not required.  This is a major blow for these two UK regions.

The reasons why the two energy giants have abandoned their plans aren’t clear; however it is known that they were experiencing difficulties in obtaining funding for the projects.

Two weeks ago the French energy supplier EDF withdrew from their plan to build a nuclear power station at Heysham, Lancashire.  The loss of three major projects within such a short period of time is of great concern and will inevitably push additional reliance on wind farms and imported gas to ensure continuity for essential power supplies.

One theory is that the UK government wasn’t able to provide enough financial support with subsidies.  This, together with uncertain power prices could have made the projects appear unviable.  Nuclear power contributes less than twenty per cent of the UK electricity supplies.

Green Supporters Welcome the News

The news that three nuclear projects are currently suffering major difficulties has been welcomed by supporters of green technology.  They feel that the way forward isn’t by the use of nuclear energy – the future as they see it is green.

They comment that the government must realise that it’s time for them to invest in providing a renewable energy strategy so that UK businesses have “clean, safe and cheaper power that will also create much-needed jobs for the UK economy.”

Financial Uncertainty is Unhelpful

E.on has stated that both they and RWE npower will attempt to find new investors who are in a position to take over Horizon, which was the joint venture company behind their scheme.  Unfortunately the likelihood of finding any company with sufficient resources and the necessary expertise is miniscule.

Both RWE npower and E.on are planning to turn their attention towards less expensive schemes, possibly wind farms or the building of gas-fired plants.  E.on’s UK chief executive, Dr Tony Cocker said “investment would focus on projects bringing quicker benefits for the firm and customers.”

Charles Hendry, the energy minister has commented that “their withdrawal was very disappointing.”  He continued by insisting that “the move was driven by financial pressures, not doubts about the future of nuclear power.”

Whatever the true reasons are for the withdrawal of three of the largest energy suppliers from UK nuclear power stations, perhaps there needs further consultation before the commissioning of similar projects.

March 5, 2012

Be Independent – With an Independent Energy Broker

Filed under: business energy — Tags: , , — Newsroom @ 1:33 pm

It is really important for all business owners and householders to check their consumption of electricity and gas on a regular basis.  Those commercial and residential customers who pay their utility bills by direct debit can tend to forget the “product” itself.  They are aware that they always pay for their gas/electric as they can see the payment being taken from their bank account each month.

Direct Debit is the cheapest way to pay for utilities – the energy suppliers are reasonably confident that they will receive payment each month, and if a customer starts to struggle with the amount, it can be identified before the arrears spiral out of control.  This is the same for businesses and domestic consumers.

Business Clients will benefit from contacting an Energy Broker

In the majority of businesses the cost of gas and electricity will be considerably higher than for domestic customers.  It is essential to speak to an independent energy broker who will provide impartial advice for every individual customer.  They are able to go to every provider in order to find the best price for their client.  The independent broker isn’t being paid by specific energy providers.  This ensures that the broker will find the best deal for every client.  The business owner doesn’t pay the broker for the service.  The broker chooses the provider, after consulting with his client, and then receives commission from the successful energy supplier.

Make Time for your Energy Broker

The broker can only work with the information they have available.  It is still the work of the small business owner to ensure that electricity and gas consumption is kept as low as possible.  There are many different ways to reduce the amount of energy being used in every business.  We’ll go into this in greater detail later this week.

It is difficult for small business owners, particularly if they are a “one man band” and need to do everything for themselves.  It may be economical to employ a part-time member of staff for even one day a week.  This may seem somewhat drastic, but spending £50 each week to get some help for a few hours, may, very quickly bring a considerable number of benefits to the business owner.   They will be able to get on with actually running their business, and may be able to leave some of the paperwork to a competent assistant.

The savings on the utility bills may swallow some of the costs, and may alleviate other problems which are being pushed to the background.  It is certainly worth checking out some figures to see whether this could be a possibility.

The first step though in reducing costs, or establishing that your business is paying the correct amount for the current usage is with the assistance of an independent energy broker.

November 8, 2011

Make the Time and Reduce Costs

Filed under: business energy — Tags: , , , — Newsroom @ 12:25 pm

The final price increase from EDF Energy, one of the big six energy providers is due to come into effect this Thursday, 10th November 2011.  The increases of 15.4% for gas and 4.5% electricity rises are the last increases to be permitted this winter.

Ofgem, the energy regulator, received agreement from all of the six largest energy suppliers – which provides over 99% of electricity and gas for the UK – that there won’t be any further increased charges until at least 1st April 2012.

Small business users are, in particular, struggling with these costs, as their energy bill is, in many cases, their greatest overhead, apart from rent or mortgage payments.  In many cases it is even higher than their business rates.

It is really important for business owners to start taking control of these costs so that they are aware from where the energy is being expended.  It isn’t possible to reduce costs if it isn’t clear where they are coming from!

The hardest thing, as every self-employed person knows, and which applies equally to small business owners, is to actually start a job.  A business owner has many demands on his time, and it is all too easy to prevaricate from doing something which he doesn’t want to do.  There are always ten things which are more important, so that the items which aren’t as interesting are quite easy to put to the bottom of “important things to do today”.

It isn’t particularly exciting or fulfilling to see where savings can be made in the amount of electricity and gas being used – however, it won’t take long and the potential savings are worthwhile.

Self-employed people don’t usually have any staff members at all, so need to deal with everything themselves and know how easy it is to delay doing something.  In the main, though, the problem is that of getting started.  If there is something we are unsure about because it is a little different, we delay and make excuses not to start.  There is always a “reason” for not getting on with the job!

Business owners don’t have much spare time, and to spend it by trying to reduce energy usage may not be a high priority.  However, the time spent is worth cash – cash which could help the business in future.

The business owner who really doesn’t know where to start towards reducing energy costs would be best served by contacting an independent energy broker – they are not tied to any of the energy providers and can therefore access the amount of electricity and gas being used by the business at present, and will work with the business owner to establish where savings can be made, and will negotiate a new contract (obviously, subject to the terms of the existing contract) to ensure that the business owner pays as little as possible for future gas and electricity.

November 3, 2011

Help Yourself – To Reduce Costs

Filed under: Renewable Energy — Tags: , , , — Newsroom @ 11:55 am

There is a considerable amount of information which gives details of renewable energy sources as well as the government’s green deal.   Leaflets and emails are being sent about loft and cavity wall insulation.   Even with all the publicity, it is surprising how many people still aren’t aware of the need to save energy.  Interestingly, the younger the person, the more knowledge they appear to have, although whether it is purely superficial and acquired from news headlines hasn’t been clarified.

We are fortunate that we are into November with the weather still relatively mild, which is a bonus.  Every week we can manage without needing the central heating being switch on for too long is a distinct advantage.  The average gas and electric bills for each household is now approximately £1300 per annum according to the latest figures available after the last increases by the energy suppliers.  Many people pay for their energy by direct debit and have a dual-fuel tariff as this is the most cost effective.  Changing energy suppliers in the future will be made easier, under new guidelines from the government and Ofgem, so that switching providers should take less than three weeks.

There are still a majority of homes where low energy bulbs still aren’t being utilised at all, as people consider that they are too expensive to buy.  However, the saving in the amount of electricity they use, plus the length of time that each bulb will last, certainly outweighs the objections.  Even if just one low energy bulb can be bought every month it will make a substantial difference to the electricity bill.  The same applies to turning down the central heating boiler by one degree and individual thermostats when rooms aren’t being used.  These are only small changes in themselves, but even small reductions will result in lower energy bills.

A really good way to save energy is by cooking as many items as possible all at the same time.  Most ovens take quite a long time to heat up to the required temperature and of course to cool down at the end of the cooking.  Try to organise timings so everything is started when the oven is at its hottest, and then the temperature can be reduced when required.  Add extra items to the oven when it reaches the right temperature for them.  Batch cook large casseroles, which can be frozen down in smaller portions and brought out, defrosted thoroughly and reheated when required.  It may take a little time to get used to cooking more than one meal at a time but it will reduce your energy bills and may even give a little extra time.

Make a few simple changes in the way you use energy, and in the end substantial savings can made on your energy bills.  If additional loft and cavity wall insulation can also be installed these will provide a great opportunity to further reduce energy bills.

November 1, 2011

You Need To Help Yourself – So That Others May Help You

Filed under: business energy — Tags: , , — Newsroom @ 1:51 pm

There are many small and medium business owners who feel that they are being overcharged by their electricity and gas suppliers.  They are sure that there are problems with their meters.  If the meters are generating incorrect readings for the energy suppliers it will result in a bill for the wrong amount being sent to the company.

Many business owners aren’t aware that they have the right to ask for their meters to be verified to confirm that they are running at the right speed.  Some older meters can spin round or be either too slow or fast.  These problems are more likely to happen for customers who still have the old analogue meters.

It is essential for anyone who believes that their meter is running at an incorrect speed to contact their energy supplier as soon as possible.  Every business is entitled to ask for a check meter to be installed next to their existing meter.  The cost of this, in relation to the possible savings, is low.  It is also considerably cheaper than asking for a replacement meter to be installed.  Once an additional meter is fitted it will be easy to tell, within a very short period of time whether the original meter was faulty.

Energy suppliers are currently involved with the new smart meters and the timetable during which they must have them installed in all business premises. This means that stock of the digital meters which would normally be used to replace the old analogue meters may be depleting.  All energy providers must have the smart meters installed in every small and medium sized business premises by 2019.  Although the official timeframe for these smart meters to be rolled out commences in 2014 some energy providers have already started to install them now in order to keep on top of the situation.

It is important for all businesses to check their energy consumption on a regular basis.  If during one month the amount of energy shown as being used has increased dramatically without there being a valid reason for the increase, there is a good possibility that there is a faulty meter.  Companies must mitigate the effects quickly, thus showing the energy providers the reason why a check meter should be installed.  It may be that the meter has been wrong for some time, but only by a small amount each month which may have been ignored as seasonal fluctuations or extra usage of a specific appliance or machine.

If the company hasn’t ever kept their own records relating to the amount of gas and electricity being consumed each month, it will be difficult for them to realise the increased usage, leading to some considerable time elapsing before it is noticed.

It is essential that every business knows the amount of energy being used each month, particularly if they need to reduce their overheads.

October 18, 2011

Does the Customer Win…What Do You Think?

Filed under: Energy News — Tags: , , — Newsroom @ 12:35 pm

At last there appears to be some movement from the big six energy suppliers in response to the investigations being undertaken by Ofgem, the energy regulator.  These big six suppliers provide over 99% of the energy in UK households.  At a summit meeting held yesterday which was attended by representatives of all of the six providers and consumer groups, there was recognition that there is a problem through the industry.  The energy providers have lost the trust of a high proportion of the UK population.

Letters are going to be sent out to over eight million consumers suggesting that they should change to a lower tariff for either their electricity or gas, and also reminding customers to ensure that their homes are sufficiently insulated.

The government will provide a new website giving information about energy saving measures together with information regarding cheap tariffs.

The energy providers have stated that they will all make their bills easier to understand.  The new bills will also have a “signpost message” which will be on the front of the bill to advise customers if cheaper prices are available.  All of the energy providers which do offer free insulation will send a letter to vulnerable energy customers, and there are about four million consumers in this category, to tell them that they are eligible for this free insulating service.

Scottish Power, the first energy provider to increase their charges this year, and which are the most expensive with the average duel fuel customer paying £1391, yesterday promised that they won’t make any further increases until, at the earliest, 1st April 2012.

British Gas – the largest of the providers, has announced that they are extending their “free insulation” offer which was due to finish at the end of this month.  The offer will now continue until the end of March 2012.  All British Gas domestic customers will now be eligible to receive loft insulation and cavity wall insulation at no cost to themselves at all.  They have also confirmed that a new raft of measures is being introduced designed to assist both domestic and business consumers in saving energy and ultimately, reduce their bills.

Domestic consumers who have their energy supplied by British Gas have been promised that there won’t be any further increases in charges over the winter, and they will also assist consumers to find the lowest prices through their “Tariff-Checker” scheme.  They also claim that customers who have both the loft and cavity wall insulation fitted will achieve savings, from a dual-fuel bill, in the region of £200 each year.

British Gas has also promised to assist business customers by offering energy efficiency and debt advice, together with offering flexible payment plans.

However, British Gas are also warning that in the longer terms prices will increase because of the rising charges from the wholesale energy suppliers.

Perhaps matters will improve for customers, certainly during this winter.  However, in the longer term it certainly appears that there is one step forwards, another sideways and then a further step backwards.

September 27, 2011

Make a Little Effort – Your Wallet will Benefit

Filed under: business energy — Tags: , , , — Newsroom @ 10:22 am

We have suggested for some considerable time that there needs to be a significant reduction in the amount of gas and electricity consumed by everyone in the UK.  From huge corporations down to the smallest one person business, 5 star hotels to studio apartments; we all need to play our part.

Over the past few weeks leading up to the conference season the various political parties have been adding their twopenneth into the melting pots.   Beneath all of the hype and bluster which automatically is achieved when politicians are involved, they all agree that energy savings are necessary.

It is irrelevant as to where the blame lies – yes, the energy suppliers have increased their charges quite dramatically and we’ve all given them plenty of stick about it.  Ofgem and their independent accounting experts are trying to get to the bottom of these price increases and when answers are available I’m sure we will all be advised.

The much-promised “green deal” which will soon be available, will hopefully encourage a large proportion of the UK population to improve their own energy efficiency.   Businesses throughout the country will also be able to benefit from the same funding.  Information on how business and residential customers will benefit has now become available and tomorrow I will advise as to the way the coalition government expect the scheme to work.

Energy brokers have a big part to play in explaining to small and medium sized business owners and directors the best way forward.  These brokers will be able to provide an energy audit of the business premises which will identify where the energy is being used.  Once that information is available then these business owners will be able to work with the energy brokers to obtain the highest savings.

There is a need for change and surely everyone who lives and works in the UK will know that the gas and electricity currently being consumed is depleting rapidly and at some point in the not too distant future will run out.   Alternatives are obviously being implemented to ensure that there will be sufficient energy for the long term.

It is still up to all of us to consider the way in which we use electricity and gas.  In rural areas there are places where mains gas isn’t available – there are alternative delivery systems for LPG by tank outside the property or by bottles.  With a little thought from the whole population perhaps a ten per cent saving on energy consumption could be achieved without needing to spend much to promote it.  Check your energy bill and see how much electricity and gas you used in the last quarter or month – make a note of the units you used and then deduct ten per cent from the total units.  That is the figure to aim for this month.  Check the meter regularly to confirm that you are on target, and adjust your consumption accordingly.  With only a little effort the energy used can be reduced, and of course, on the flip side, the more the savings are on energy, the more money is left in our bank account.

September 22, 2011

Energy Providers – You Need To Do More To Help Your Customers

Filed under: Energy Efficiency — Tags: , , , — Newsroom @ 12:46 pm

Although all of the six major energy suppliers have increased their prices to residential consumers and business customers across the board they are falling behind regarding Carbon Emission Reduction Targets (CERT) set by the coalition government in 2010.   By December 2012 they must have achieved a reduced figure of 293 million lifetime tonnes of CO2.  This applies to every gas and electricity supplier which has over 250,000 customers.

The six energy providers have been told that they need to increase their efforts regarding the insulation of their customers’ UK properties.  Earlier this month they were advised by the Energy Minister that although nearly sixty per cent of UK homes currently have loft and/or cavity wall insulation this number isn’t sufficient to meet the new energy efficiency targets.

Over the past three months approximately 300,000 households have had new loft and/or cavity wall insulation works carried out and these figures are included in the percentages mentioned earlier.  This is a good increase, but it isn’t sufficient to ensure that the UK is anything approaching the numbers of installations which are necessary to avoid reneging on the emission reductions promised by 2015.

At present the energy suppliers are averaging 100,000 insulations each month.  To reach the December 2012 target these must double to 200,000 per month.  By 2015 every UK property should have reasonable loft and cavity wall insulation.  If each home has adequate insulation then gas and electricity bills can reduce by approximately £100 each year.

The energy regulator Ofgem will be able to fine energy providers which don’t meet their targets (CERT) by up to ten per cent of, not only their UK turnover, but their global turnover.

The energy suppliers are making reasonable progress in their efforts; however this will need to be cranked up several notches for them to be confident about their ability to reach these targets.  A problem which they have noticed and is one previously commented on here, is the attitude from a sector of the UK population which are still not insulating their properties because they can’t be bothered.

This also applies to business owners, and although saying that both residential and business electric and gas users aren’t interested and therefore can’t be bothered to do anything it mainly comes down to knowledge.  Any change is difficult, particularly for some members of the UK population who may, for a wide range of reasons, not be able to understand, or be well enough to do anything about it.

Independent energy brokers will be able to assist in looking for the best deal for customers and will arrange the changing of suppliers to the provider most appropriate for the circumstances.  As more information becomes available, the voluntary consumer organisations will have staff members who will be trained to explain the ramifications and options open to the residential customers and business consumers which should also improve the situation.  The new green deal will go a good way to making sure that the owner of every property, whether residential or commercial, has the tools and financial backing of how they will be able to benefit, both in the short and medium term.

September 21, 2011

Helpful Words Spoken – But Will They Make A Difference?

Filed under: Energy Efficiency — Tags: , — Newsroom @ 10:18 am

Chris Huhne, the Energy Minister speaking yesterday at the Lib Dem conference, indicated that Ofgem will be given great powers to hold the big six energy providers to account.

Mr Huhne also said that he wants consumers to be able to switch to cheaper energy suppliers so that they can get the benefits without delay.  This is all very promising and whilst applauding Mr Huhne for his words, there is another problem which may negate some of the impact.

We all know the phrase “you can take a horse to water but you can’t make it drink.”   It is very good to have measures in place to ensure that every customer who uses electricity and gas, whether in their own homes or in their businesses, can pay the cheapest price.

There is nothing to suggest that the UK population will actually make any sort of effort towards changing energy suppliers.  We are all too aware of the parlous state of the economy.  The news this morning, which won’t surprise anyone, confirms that no-one is making any major purchases.  The recession is still with us, and it would appear that things aren’t going to substantially improve in the short term.

Back to the main problem and although Mr Huhne has spoken the words about making it easier to change energy suppliers, this alone won’t make any difference.  Until everyone some efforts to save the energy currently being used in their businesses and homes we won’t get the best results.  A common phrase is that the cheapest energy is the energy which isn’t used.

At a time when money is tight for everyone – well, nearly everyone – when change is suggested which will allow savings to our over-stretched wallets and bank accounts, we need to grasp the hand offering help, but everyone needs to co-operate to achieve the maximum results.

A few cheap improvements can vastly reduce energy bills.   A major loss of energy is through the roof, and this can be minimised by the installation of the highest level of loft insulation.  There will probably be an opportunity of obtaining a grant to cover the cost of this, so contact local loft insulation firms for advice.  They will know the current position and will be able to arrange installation. Cavity wall insulation may also be a good idea; however do check whether there is a grant, otherwise the cost implications may outweigh the benefits.

A really inexpensive way to reduce energy bills is by changing all light bulbs for low energy bulbs.  These bulbs last much longer than the old light bulbs, so although the new bulbs cost a little more they won’t need replacing as often.  Turn central-heating boilers down by just one degree, which makes a good saving on heavy winter energy bills.  Wear an extra sweater if necessary and this change will pass without comment.

Finally, if you have double glazing this is helpful towards the loss of energy through the windows.  If not and it isn’t affordable at the present time, don’t borrow the money – unless it is an interest-free loan – to have it installed.

All it takes is a little effort from everyone to achieve positive change.

September 20, 2011

It’s Not Just The Small Businesses with Problems

Filed under: business energy — Tags: , — Newsroom @ 10:36 am

Although the ever rising energy bills cause immense pressure on small and medium sized business owners, the increase in the cost of energy is also creating problems at the other end of the business scale as financial directors tear their corporate hair out whilst trying to balance the books.

Energy providers have been forced into paying their wholesalers increased prices.  Well-documented problems in the Middle East and Japan have inevitably pushed commodity prices sky high.   Unfortunately the energy suppliers have now passed these increases on to large organisations so that some major UK companies will now need to pay fifty per cent more for their electricity and gas than two years ago.

We all expect these very large organisations not to need to worry about everyday overheads such as their energy bills; however these price increases are out of kilter with other increased costs and can’t be passed on to their customers.  In the overall scheme of big business it would be thought that their profits would more than cover ongoing costs.  More worrying than the knowledge that these increases are impacting on large corporations is that one third of financial directors say that they don’t have a strategy for dealing with the problem.

Over the past three years the UK has faced challenging times and the recession isn’t sufficiently behind us to expunge it from memory; however it would be reasonable to expect that the larger UK businesses would have contingency plans to cope with difficult periods.

The only way for companies large and small to ensure that their energy bills are kept as low as possible is to appoint independent energy broker.   They can arrange an energy audit of the business premises whether they are all at one location, or spread across towns, cities or counties.  By establishing the correct energy tariff and looking at making sensible reductions in the usage of energy then a budget for the future can be made.

In circumstances where these large organisations use considerable quantities of energy, now could be the ideal time to install solar panels and biomass boilers which are fed with pellets or woodchips.  The initial cost can be offset by selling back the excess energy to the local electricity suppliers.  This is a massive change for some companies, but embracing renewable energy will reduce their carbon footprint and will ensure that for many years to come they will be contributing to the new greener policies which are being promoted throughout the UK.

An independent energy broker will be able to advise every company based on their circumstances.  By scrutinising the use or level of electricity and gas by the company, the broker will be able to identify where the savings can be made.  It is also important for the energy broker to be able to always report back to one person within the business.  This person will then be able to liaise with company directors and keep them informed of all progress.

Making the effort to change and improve the situation will benefit everyone over a period of time.