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The day we nearly ran out of gas

Sarah Coles — 2013-05-24T10:38:00+00:00

It has emerged that in March this year we were closer to running out of gas than anyone suspected. One official has confirmed that at one stage we had just six hours of supply left.

So how did it happen, and could it happen again?

Running out

Reports at the time estimated that we could have as little as 36-hours-worth of gas left in the reserves. However, Rob Hastings, energy and infrastructure director at the Crown Estate, has confirmed in an interview that in fact there were only six-hours-worth of supplies left.

He told the Financial Times that if the levels had fallen any further it would have caused interruptions in the supply.

Why?

The crisis was largely a result of unexpectedly cold weather. It means that far more people put the heating on than the experts had predicted, so stocks were eroded very quickly.

At the same time, Sky reported that there were problems with a processing plant in Norway which provides gas via a pipeline to the UK. Meanwhile, the pipeline under the sea between the UK and Belgium shut down unexpectedly. It meant we had to rely on stored gas - and that started to run out.

Could it happen again?

The risks remain. The problem is two-fold. First, we only produce about 45% of all the gas we need, so we rely on imports. This relies on the technology of supply working, and is also dependent on a lack of political interference. Previous issues regarding the Russian pipeline raised awareness of just how much we depend on a peaceful political balance for energy.

Second, we just don't have much storage capacity in the UK. According to the Daily Mail we can store enough for 20 days. This compares to Italy which can store enough for 70 days, France which can store enough for 103 days, and the US, where stores could last six months.

This isn't as bad as it sounds. We will only call on those stores if all other supplies dry up. We import gas from a variety of different places, so we would be very unlucky to lose it all at the same time. In addition, we still have domestically-produced gas, so stocks will last far longer than 20 days even in the worst case scenario.

However, this lack of storage does leave us very much more vulnerable than other countries to interruptions of supply from overseas.

We came very close to interruptions in the gas supply in March. How long before we have to get used to the very real threat of running out of gas?

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Energy bills could overtake mortgage repayments by 2025

lovemoney.com — 2013-05-23T12:30:00+00:00

Filed under: Utilities

Energy company First Utility has issued a chilling warning about the future of energy prices.

Gas and electricity bills are on course to become our biggest household expense.

First Utility found the annual cost of energy could soon exceed what some people pay towards their mortgage each year.

It's warning that should prices keep increasing at the same rate they will exceed average annual mortgage repayments in some parts of the country by 2025.

Could you save money by remortgaging? See the latest rates and get expert advice

How could it happen?
First Utility's analysis of Ofgem data found that the cost of gas and electricity has risen by 8.5% in each of the last five years, leaving us with an average annual dual fuel energy bill of £1,420.

At the current rate, in 12 years' time an energy bill might reach £3,761 - which is £125 more than the typical annual mortgage repayment in Stoke-on-Trent.

By 2029 the soaring cost of energy could mean an annual energy bill reaches £4,808, surpassing average yearly mortgage repayments of £4,776 for homeowners in Liverpool by £32.

And just one year later, in 2030, homeowners in Norwich and Birmingham will be in the same boat; paying £223 and £103 more respectively for energy than their mortgage that year.

Who will be to blame?
First Utility's grim prediction for future price rises assumes average annual mortgage repayments stay the same for the next 30 years and energy bills rise in a uniform manner.

That may seem like a stretch, but the energy company says it's quite a likely scenario if interest rates remain low, our consumption behaviour stays the same and government energy policies don't change.

Everyone else, it seems, will be to blame but the energy companies.

Shifting blame
Back in April First Utility joined the long line of energy companies to hike prices by announcing an 18.6% price rise.

Though the level of hikes varies between companies, the increased cost of wholesale gas and oil was used by all as the reason for driving prices up, as well as the cost of implementing government energy policies.

First Utility believes the cost of updating outdated infrastructure, subsidising energy efficiency measures, implementing renewable energy schemes like wind farms and an unfair energy market that lacks competition will contribute to the potential future price rises it predicts.

But government figures tell a different story.

Opposing figures
While First Utility's data suggests dual fuel energy will cost £2,505 by 2020 - rising by over £1,000 compared to current costs - the government predicts energy bills should only rise by £76 by 2020.

The smaller change is dependent on the take up of government policies like the Green Deal loan scheme.

The Department of Energy & Climate Change (DECC) published a report earlier this year where it predicted energy bills are likely to continue on an upward trend, with or without policies, as a result of rising wholesale energy and network costs.

The report looked at the impact of government energy and climate change policies and found that increased costs of £268 would be greatly outweighed by the eventual savings of £452 by 2020.

In all the government's energy-saving policies, like better gas boilers, tighter building regulations, the Green Deal loan scheme and smart meters could save householders around £166 a year by 2020.
Limiting the impact

Whoever's to blame one thing we can't deny is that energy bills are rising and one solution is to be more energy efficient.

Ian McCaig, CEO at First Utility said: "To address the inevitability of energy price rises, two things need to happen: We need industry reform to level the playing field and encourage more competition and we need to help consumers reduce their energy usage and get more efficient."

Strangely the boss at First Utility is actually encouraging us to use less energy. He added: "First Utility has an entirely different mindset to the Big Six in that it wants consumers to actually use less energy and helps them find ways to do so, giving people real and tangible ways to use less energy and lower their bills."

First Utility was the first UK energy supplier to offer smart meters to all its customers in 2008. In 2012 it launched my:energy, an online analytics service which provides households and businesses with personalised information regarding their energy usage.

The cheapest energy deals
As well as becoming more energy efficient in your home you can also make sure you are on the most cost effective energy tariff.

Here are the top cheapest energy tariffs around at the moment:

Supplier	Tariff	Average cost	Saving vs typical bill*	Payment method	Notes	Cancellation period
Sainsbury's Energy	Online July 2014	£1,157	£263	Monthly DD	Discounted variable tariff. 4% discount on Clear & Simple tariff rates until 31st July 2014	£30 per fuel until 31 July 2014
SSE	Discounted Energy Bonus October 2014	£1,158	£262	Monthly DD	Discounted variable tariff. Prices are guaranteed to be 11% cheaper until 1st October 2014.	£50 if you switch away before 1st October 2014
ScottishPower	Online Energy Saver 22	£1,180	£240	Monthly DD	Discounted variable tariff. Prices will always remain 6.3% lower than ScottishPower's standard gas and electricity prices until 31st July 2014	£25 per fuel until 31 July 2014.
npower	Energy Online August 2014	£1,182	£238	Monthly DD	Discounted variable tariff. Customers on this tariff are guaranteed at least 2% lower bill than npower's current Standard (off-line) variable prices until 31st August 2014	£30 per fuel until end of discount period 31/8/2014
npower	Online Price Fix August 2014	£1,184	£236	Monthly DD	Fixed until the 31 August 2014	£30 per fuel until end of discount period 31/8/2014
EDF	Blue +Price Promise February 2015	£1,192	£228	Monthly DD	Prices fixed until 28 February 2015	None
First Utility	iSave V15	£1,199	£221	Monthly DD	Discounted variable tariff.	None
ScottishPower	Online Fixed Price Energy October 2014	£1,201	£219	Monthly DD	Fixed until the 30th of September 2014	£25 per fuel before fix end
British Gas	Online Variable May 2014	£1,219	£201	Monthly DD	Discounted variable tariff. 4% discount against Clear & Simple prices until 31st May 2014	£30 per fuel until end of discount period 31/05/2014
E.ON	Energy Discount	£1,222	£198	Monthly DD	Discounted variable tariff. At least 3% cheaper than standard prices for 12 months	There is a cancellation fee of £10 if you switch away before the end of the guarantee period

*Saving calculated against an average bill as decared by OFGEM in winter 2013 (£1,420)

All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity

See if you can save on your gas and electricity bills

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Energy giant warns of price rise

Press Association — 2013-05-22T12:30:00+00:00

Filed under: Utilities

Energy giant SSE has warned that prices will continue to rise - even after profits from UK households jumped by a third following the cold winter.

The latest windfall was described as a "slap in the face" for customers after the company was last month hit with a record fine for mis-selling and in October raised its tariffs by an inflation-busting 9%.
Full-year results showed that profits from SSE's retail division, which supplies energy to UK households, were up to £410.1 million in the 12 months to March, from £321.6 million the year before.

They revealed that earnings just from energy supply were up by an even-greater 34% from £271.7 million to £364.2 million when falls in areas such as boiler installation and meter supply were stripped out.

Overall 2012/13 pre-tax profits at SSE, which trades as Southern Electric, Swalec and Scottish Hydro, were up 6% from £1.34 billion to £1.41 billion.

It said it took more money from UK households because the weather was colder in 11 of the 12 months of the year than it was the year before. Gas consumption was up 21% while electricity rose 5%. Customer numbers fell 80,000 to 9.47 million.

SSE said it was disappointed that it had to hike tariffs in October, blaming costs including wholesale energy price rises. But it warned that more were in the pipeline because it was facing additional costs of more than £80 per dual fuel customer in 2013/14.

"Unless there is a sustained reduction in prices in wholesale gas and electricity markets, it is highly likely that these additional costs will eventually have to be reflected in higher prices for household customers," it said.

The company added that it intended to "resist this trend of higher costs for as long as possible to shield customers from the unwelcome impact of higher prices".

Richard Lloyd, executive director of consumer group Which?, said said more needed to be done by regulators to keep prices down, encourage easier switching between suppliers and to make bills clearer. He said: "Such a large profit announcement will be a slap in the face for SSE's customers who have been hit with an inflation-busting price rise and seen this company given a record-breaking fine for mis-selling."

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Winter sparks 28% SSE profits rise

Press Association — 2013-05-22T05:00:00+00:00

Filed under: Utilities

Energy giant SSE pocketed a 28% profits boost from UK households over the past year as they turned up their heating to keep out the bitter winter weather.

SSE's retail operation made £410.1 million in the 12 months to March, compared with £321.6 million in the previous 12 months as gas consumption increased by a fifth.

Overall pre-tax profits rose by 6% from £1.34 billion to £1.41 billion.

But executive bonuses were slashed by 40% in the wake of a mis-selling scandal which last month saw the company fined £10.5 million for misleading customers about prices and savings that could be made by switching over.
Lord Smith of Kelvin, the chairman of SSE, apologised over the practice. The firm said: "Companies don't just have to earn profits; they have to earn profits in the right way."

But the words will come as cold comfort to families after a year when SSE hit them with a 9% bill hike.

The energy giant said household consumption of gas over 2012/13 - which included a prolonged cold spell at the start of this year - went up 21%, with electricity use rising 5%. But its customer numbers in Britain and Ireland fell by 80,000 to 9.47 million.

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Who really owns our water companies?

lovemoney.com — 2013-05-21T08:15:00+00:00

Filed under: Utilities

As Severn Trent looks set to fall into foreign ownership, we look at just how many water suppliers are no longer in British hands.

Severn Trent has been approached about a takeover bid by a group of foreign companies. The deal could be worth a whopping £5 billion.

Severn Trent is one of the biggest water companies in the country and supplies 7.7 million people with drinking water across the Midlands and Wales.

The Severn Trent bid
The group involved with the bid include the Canadian investment group Borealis, which already owns assets in the UK, the Kuwait Investment Office and the Universities Superannuation Scheme.

A statement was issued confirming the proposed takeover, although acceptance of the £5 billion bid has not been confirmed.

It said: "This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming."

After this announcement shares in the company jumped more than 18% to a record high before falling back again.

More details will be announced on the 11th June when the offer will either be confirmed or extended.

Customers are unlikely to see a difference if the takeover does go ahead because prices are under the control of water regulator Ofwat.

Water firms urged to reduce leaks

UK water companies in foreign hands
Severn Trent is just one of several utilities companies now under foreign control. This is because utility companies have proved to be a strong investment, as they're a good way to receive a steady income.

After the UK water industry was privatised in 1989 several new companies were formed and many of these have now been sold off.

In 2006 Thames Water was bought by a consortium which included the Australian investment group Macquarie and a Chinese wealth fund.

Yorkshire Water, which now supplies 4.7 million people, was snapped up in 2007 by another consortium, this time made up of Citigroup, HSBC, and the Singaporean sovereign wealth fund GIC.

Northumbria Water was also bought in 2011 by the Hong Kong-based company Cheung Kong Infrastructure Holdings.

How to cut your water bills

Where your water company is based
The table below shows which water companies are owned by overseas investors. There are now 12 water companies, out of the 23 in the UK, which have foreign owners not including the proposed Severn Trent deal.

Water company	British or overseas ownership	Who owns it?
Affinity Water (formerly Veolia Water Central, Veolia Water East, Veolia Water Southeast)	Overseas	US-based Morgan Stanley and UK-based Infracapital (investment fund managed by M&G).
Anglian Water (includes Hartlepool Water)	Overseas	Osprey Acquisitions Limited - a consortium of several companies based in the UK, US and Canada
Bristol Water	Overseas	Split between Canada-based Capstone Infrastructure, Spain-based Grupo Agbar and Japan-based Itochu Corporation
Cambridge Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Cholderton and District Water	British	Independent water company
Dee Valley Water	British	Independent water company
Dwr Cymru Welsh Water	British	UK-based Glas Cymru
Essex and Suffolk Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Northern Ireland Water	British	Government-owned company
Northumbrian Water	Overseas	Hong Kong-based Cheung Kong Infrastructure Holdings
Portsmouth Water	British	UK-based South Downs Capital Ltd
Scottish Water	British	Government-owned company
Sembcorp Bournemouth Water (formerly Bournemouth and West Hampshire Water)	Overseas	Singapore-based Sembcorp
Severn Trent Water	British	Severn Trent Plc
South East Water	Overseas	Canada-based CDPQ and Australia-based Utilities Trust of Australia
South Staffs Water	Overseas	US-based KKR
South West Water	British	UK-based Pennon Group
Southern Water	British	UK-based Southern Water Capital Limited
Sutton and East Surrey Water	British	UK-based East Surrey Holdings Limited
Thames Water	Overseas	Australia-based Kemble Water Holdings Ltd, part of the Macquarie group
United Utilities	British	Independent water company
Wessex Water	Overseas	Malaysia-based YTL Corporation
Yorkshire Water	Overseas	Citigroup, HSBC, and Singapore-based GIC

See if you could save big money on your gas and electricity bills by switching

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The longest fixed rate energy tariff EVER!

lovemoney.com — 2013-05-16T09:30:00+00:00

Filed under: Utilities

With some providers upping their prices and a seemingly never-ending winter, it can be a smart move to fix your energy bills. And the longest-ever fixed energy tariff has just been launched!

Two energy suppliers have raised their prices in the last few weeks, with first:utility raising its rates on many versions of its popular iSave tariff and Cooperative Energy increasing the costs of its sole tariff, Pioneer, by 8%.

On top of this bad news British Gas owner Centrica revealed the impact of the bitterly cold winter we experienced when they announced consumption for the first four months of this year was up by 18% on gas and 3% on electricity when compared to the same period last year. In simple terms this means, following price rises that came into effect earlier this year, we have been paying considerably more for our energy while using more to power our homes.

Time to fix?
So it is unquestionably a good time to choose a fixed energy deal. Although fixed tariffs can often seem more expensive than the discounted variable offerings, if prices do go up as expected then your savings over the course of the fixed period will grow and grow. Even if you are already on a fixed deal you may want to check when it expires, as many of last years most popular fixed deals are nearing or have expired.

At the moment there are a number of popular fixed deals available, including EDF's Blue+ Price Promise February 2015. This tariff sees your bills set in stone until the end of February 2015, carries no cancelation penalties and offers an average bill of £1,192 at typical consumption, a £228 saving over an average bill of £1,420 (Source: Ofgem).

Those looking for a longer fix may be interested in npower's recently launched Price Fix September 2016, the longest fixed tariff available on the market currently. In fact it's the longest fixed tariff ever!

This tariff fixes your rates for three years, has no cancellation penalties, and has an average cost of £1,318 per year. While currently this is only a saving of £102 over an average bill, the real benefit of such a long fix will be felt in years two and three, especially as bills are expected to keep climbing.

Other tariffs that may interest those who are fixing include npower's Online Price Fix August 2014, currently the cheapest fixed tariff, ScottishPower's long Fixed Price Energy April 2015 Online, and Ovo's New Energy Fixed.

Below is a table showing the current cheapest fixed tariffs on the market.

Supplier	Tariff	Average Cost	Average Saving*	Notes
npower	Online Price Fix August 2014	£1,184	£236	Prices fixed until 31st August 2014. Cancellation fees apply
EDF	Blue +Price Promise February 2015	£1,192	£228	Prices fixed until 28th February 2015
first:utility	iSave Fixed v8 September 2014	£1,225	£195	Prices fixed until 30th September 2014. Cancellation fees apply
ScottishPower	Online Fixed Price Energy August 2014	£1,230	£170	Prices fixed until July 31st 2014
e.on	Age UK Fixed 1 Year v3	£1,231	£189	Prices fixed for 12 months (only available to over 60s)

*based on a typical dual fuel tariff costing £1,420 (Source: Ofgem). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.

See if you could save by switching gas and electricity supplier

10 top ways to add value to your home

1. A new bathroom
Bathrooms can quickly look shabby and dated. The good news, though, is that you can get a new one for as little as £1,500.

Better still, a new bathroom should add in the region of £3,351 to the value of your home.
2. De-cluttering
It may be difficult, but getting your property ready for sale means depersonalising it.

Clutter can distract viewers and more than half (60%) of the property valuers who took part in the 2012 HSBC Home Improvement Survey said that the number one way to increase a property's chance of selling quickly, and for a good price, was to de-clutter.
3. A conservatory
Recent figures from HSBC indicate that adding an extension or conservatory adds an average of £12,151 on to the value of your home.
The bad news, however, is that most extensions cost between £20,000 and £30,000. Conservatories, on the other hand, typically cost about £10,000.
4. Painting and decorating
A quick splash of paint can work wonders on tired-looking walls, and sticking to neutral tones is the safest bet.

Keeping the colour scheme simple, fresh and inviting will help potential buyers to see themselves living in your home.
5. A loft conversion
According to Halifax valuers, loft conversions - which require lofts with a roof height of at least 2.4 metres - are a good way to increase the potential sale price of your home.
Be sure to stick to your budget, though. The average loft conversion will cost between £10,000 and £30,000, while HSBC's figures show that they typically add £20,876 to the value of a property.
6. A new kitchen
Kitchens suffer serious wear and tear during their lifetime, and a new one can add real wow factor to a property.

Again, however, it's important to weigh up the cost of the work against the overall value of your home. You can easily spend tens of thousands on a top-of-the-range kitchen, but according to HSBC, a new kitchen adds an average of £5,267 to the asking price.
7. New windows
Putting in new windows adds around £5,265 to the value of the average property and can reap big rewards when it comes to energy efficiency.

It is, however, sensible to ensure that your new windows are in line with the style of your property to maximise the added value - particularly as putting them in can set you back about £5,000.
8. A garage
Off road parking or a garage can be especially advantageous in areas where parked cars line both sides on the street.

Nationwide's figures show that adding a garage, which can cost anything between £8,000 and £25,000, can increase the value of your property by 11%.
9. Outside space
Outside space is just as important as inside - especially when people are seeing your home for the first time.

While 63% of the HSBC survey expert respondents said that repainting or varnishing a front door would make a difference, only 23% of homeowners recognised this. Peter Dockar at HSBC said: "It is often the smaller jobs like painting the front door that can make all the difference when looking for a sale."
10. Energy efficiency
With all properties for sale now coming with an energy efficiency report, it is sensible to do what you can to reduce the energy consumption of your house or flat.

Investing in a high-efficiency boiler, for example, may cost a bit more. However, it will attract ecologically-minded buyers, as well as those keen to avoid all their money going on heating bills. Mark Hayward, president of the National Associaton of Estate Agents, said: "The challenging market conditions mean that house-hunters are even more aware of a property's pros and cons. "So while it's important to maximise any summer features in your home, remember that house-hunters will also be thinking about how it fairs during the winter months."

Water firms urged to reduce leaks

Press Association — 2013-05-16T08:00:00+00:00

Filed under: Utilities

Water companies must do more to cut leaks which lead to up to a fifth of water supplies being lost, a top environmental official is demanding.

The industry needs to lead by example in reducing leakage to ensure water resources are secure in the face of a changing climate and a growing population, Environment Agency chairman Lord Chris Smith will warn.

Water companies must take steps to prevent sewers overflowing during heavy rains, which can lead to flooding of people's homes and businesses, and cause pollution in rivers, beaches and bathing waters.

Speaking at the Institute of Water's annual conference later, Lord Smith will acknowledge that water companies have made strides in improving environmental protection and cutting leaks from pipes and networks. But up to 20% of water is lost through leaks from water companies' networks and customer supply pipes, and two-thirds of sewers carry both sewage and rainwater and can overflow in periods of heavy rain.

Last year, water companies faced criticism for bringing in hosepipe bans for 20 million people in the face of drought conditions while heavy rain later in 2012 led to a fall in bathing water quality at the coasts as pollution was washed to the sea.

The call from the Environment Agency boss comes ahead of the process in which water companies set out their plans for the next five years for investment in infrastructure and the environment - and how much they will charge their customers.

Lord Smith will tell the conference: "Clean, healthy and readily available water is essential for people's health and wellbeing as well as for economic growth. But a changing climate will reduce the availability of water and population growth increase demand for it.

"Water companies need to make better use of their resources by sharing water within their networks and with neighbouring companies. They need to help their customers be more water efficient - but they must lead by example by reducing leakage further.

"2012, with its droughts and floods, put the resilience of the water network into sharp focus. One in every five days saw flooding in 2012, but one in four days were in drought, including hosepipe bans affecting over 20 million people. Water companies have an opportunity this year to make big, long-term improvements to their infrastructure through the periodic review process and ensure the water industry in this country is fit for the future."

In 2010/2011, six water companies failed their leakage target. Last year, all met their leakage targets, but the goals still allow as much as a quarter of water supplies to be lost through leaks.

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Water company rejects takeover bid

Press Association — 2013-05-15T11:14:00+00:00

Filed under: Utilities

Severn Trent has rejected a takeover approach from an overseas consortium, saying the proposal "completely fails" to recognise the water company's value.

The firm, which supplies 4.2 million households and businesses across the Midlands and parts of Wales, said the approach was tabled at "only a modest premium" to its share price prior to bid interest becoming known.
It emerged on Tuesday that the consortium featuring Canadian investment group Borealis, the Kuwait Investment Office and Universities Superannuation Scheme was interested in making an offer for Severn.

Speculation that a potential bid could be worth around £5.3 billion caused its shares to jump by 14% yesterday to a record high of 2077p, although the stock fell back slightly today after Severn rejected the proposal. Its shares were at 1835p, or £4.3 billion, prior to the bid interest on Monday night.

In a statement, Severn said it met representatives of the consortium for the first time yesterday to consider the approach. It said: "The board of Severn Trent has reviewed the proposal with its advisers and concluded that it completely fails to recognise the existing and potential value of Severn Trent. Accordingly the board has informed the consortium that it has rejected the proposal."

British water firms are prized by foreign investors and pension funds for their monopoly on customers and relatively stable returns. Severn is the latest British utility to attract interest after buyouts including Yorkshire Water, Northumbrian Water and Thames Water.

Borealis already co-owns the UK's biggest ports operator Associated British Ports and the London to Paris High Speed 1 rail line. It invests on behalf of thousands of Canadian workers and pensioners in the Ontario Municipal Employees Retirement System.

The Kuwait Investment Authority invests the emirate's vast oil wealth while the Universities Superannuation Scheme invests the pensions of UK higher education workers.

Severn covers an area stretching from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands. It was privatised in 1989 and takes its name from two of Britain's largest rivers - the Severn and the Trent.

Analysts said the timing of the buyout approach was surprising given that regulator Ofwat rules on prices every five years and will next year decide how much bills should rise by between 2015 and 2020.

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Centrica puts lid on price rises

Press Association — 2013-05-14T03:00:00+00:00

Filed under: Utilities

British Gas owner Centrica has said that it made so much money from hard-pressed householders during the prolonged freeze at the start of the year that it is putting a lid on further price rises for the time being.

The energy giant cashed in after raising its prices by 6% in December, just before the start of the harsh weather, a period that saw customers increase gas consumption by nearly a fifth compared with last year.

But it said that because of the "economic pressures" facing many households it would not pocket the extra earnings, and instead would use them to prevent any further tariff hikes "for as long as possible".

However the pledge comes as cold comfort to many of its eight million customers, who are likely to be shocked by their next bills after cranking up their heating to keep out the bitter cold.
Richard Lloyd, executive director of consumer group Which?, said the announcement highlighted the lack of transparency in the energy market and that "radical action" was needed to provide simpler and fairer bills, more competition and easier switching between providers. He said: "With inflation-busting price hikes and eye-watering profits, it's no wonder less than a quarter of people trust the industry and rising energy prices consistently remain one of consumers' top financial worries. With a big leap in gas use over the winter, huge numbers of people will be shocked by their next bill."

Centrica has faced sustained hostility as it awarded soaring multimillion-pound pay packets to executives while households have struggled to pay rising energy bills. Its pledge to curb future price rises is an attempt to acknowledge publicly its customers' difficulties in the face of both the unforgiving economic climate and the weather.

The announcement came on the day of the company's annual general meeting in London. Earlier this year it disclosed that five bosses received £16.4 million in pay and bonuses as British Gas made profits of £606 million, equivalent to nearly £50 per household.

In Monday's trading update, Centrica said it had "performed well" so far in 2013, with its British Gas residential business on course to deliver full-year profits in line with expectations of £602 million - slightly down on last year due to higher costs.

It added: "As a result of the unusual period of extended cold weather, average residential gas consumption was 18% higher in the first four months of 2013 than in the same period in 2012, and average residential electricity consumption was 3% higher. Recognising the economic pressures facing many of our customers, the board has determined that any benefit arising from the exceptionally cold weather will be used to maintain our price competitiveness. As a result of this decision, we expect the residential energy supply business to deliver an operating profit for the full year in line with expectations, weighted towards the first half." A spokesman said: "We will use that to effectively hold prices for as long as possible."

The company said that so much energy was used over the extended cold period that volumes at its Rough offshore gas storage facility reached a record low level in April. Elsewhere in the update, it also said it had signed up 28,000 more energy customers over the first four months of the year, and had passed the one million mark for smart meters installed in homes and businesses.

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Cold winter boosts Centrica profits

Press Association — 2013-05-13T06:00:00+00:00

Filed under: Utilities

Householders boosted profits for British Gas owner Centrica at the start of the year as consumption increased by nearly a fifth compared with 2012 during the prolonged cold snap.

But the energy giant, which raised prices by 6% in December just before the harsh weather set in, said that instead of pocketing the extra earnings it would use them to prevent any further price increases "for as long as possible".
In a trading update ahead of its annual general meeting, Centrica said its British Gas residential business was on course to deliver full-year profits in line with expectations of £602 million - slightly down on last year due to higher costs.

It said: "Against a background of sustained cold weather and periods of higher commodity prices, Centrica has performed well in the year to date."

The company said UK customers had increased by 28,000 over the first four months of the year due to "a competitive pricing position and continued good levels of customer service", and revealed the major impact of freezing conditions on its revenues at the start of 2013.

"As a result of the unusual period of extended cold weather, average residential gas consumption was 18% higher in the first four months of 2013 than in the same period in 2012, and average residential electricity consumption was 3% higher," it said.

"Recognising the economic pressures facing many of our customers, the board has determined that any benefit arising from the exceptionally cold weather will be used to maintain our price competitiveness. As a result of this decision, we expect the residential energy supply business to deliver an operating profit for the full year in line with expectations, weighted towards the first half."

A spokesman said: "We will use that to effectively hold prices for as long as possible."

Earlier this year, Centrica was criticised as "insensitive beyond belief" as it announced five bosses received £16.4 million in remuneration at a time of soaring bills for UK households.

Chief executive Sam Laidlaw received almost £5 million, with a basic salary of £950,000 topped up with bonuses and long-term share awards. British Gas boss Phil Bentley - due to leave next month - was paid £3.1 million in 2012, up from £2.1 million a year before, to reflect higher prices and a better trading performance.

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Warning to renters over gas safety

Press Association — 2013-05-09T04:00:00+00:00

Filed under: Utilities

Tens of thousands of private renters could be at risk from gas safety hazards, according to housing charity Shelter and British Gas.

One in 10 - the equivalent of more than 900,000 people - said their landlord or letting agent had failed to ensure a gas safety check was carried out in their home in the last year, a study of more than 4,300 private renters in England by the two organisations found.

An annual gas safety check and certificate is required by law and is the legal responsibility of the landlord.

The checks are designed to pick up a range of problems such as faulty boilers, and help to prevent gas leaks, explosions and carbon monoxide poisoning.
However, a separate survey of landlords by Shelter and British Gas found that one in seven (15%) was unaware of the responsibility.

Shelter chief executive Campbell Robb said: "It's shocking to think that in thousands of households across the country there are accidents waiting to happen because a simple safety check has not taken place. For households with children, this is an even bigger concern. Renters have a right to know that the property they are living in is safe.

"It's absolutely vital that renters are aware of the need to get an annual gas safety check. Meanwhile, landlords need to know that gas safety is not optional. Failing to get a gas safety certificate can put lives at risk."

YouGov polled 4,327 adults online living in the private rented sector in England in November and December.

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Energy firms miss emissions targets

Press Association — 2013-05-01T11:00:00+00:00

Filed under: Utilities

Six gas and electricity companies are being investigated by the energy watchdog for missing government targets to slash emissions and help households cut their bills.

Ofgem said that while firms across the sector had met 99% of energy efficiency goals by the year-end deadline, it would be looking into those that failed one or more targets.
Suppliers British Gas, SSE, Scottish Power, as well as generators Drax, GDF Suez / IPM and Intergen, are now facing investigations by the regulator.

The targets were set under two schemes launched by the Department of Energy and Climate Change in 2008 to get energy firms to reduce emissions and also to help the most vulnerable customers by insulating homes and replacing boilers to improve efficiency and save money on their bills.

Suppliers and generators were asked to deliver the energy saving measures to consumers, with £54 added to annual household bills to pay for the schemes.

Ofgem said since then, more than 3.9 million lofts and 2.5 million cavity walls had been insulated, while 150,000 vulnerable households received at least one energy efficiency measure.

Sarah Harrison, Ofgem's senior partner in charge of enforcement, said: "The fact that the industry has delivered 99% of its government energy efficiency targets is to be welcomed. However, Ofgem's role is to ensure that consumers do not lose out by the failure of firms to deliver all the help required or are not disadvantaged by late delivery."

Ofgem revealed that suppliers EDF Energy, E.ON, RWE npower and independent generator Eggborough power achieved all of their energy efficiency targets.

But of those that are being investigated, British Gas was found to have met less than two thirds - 62.4% - of its targets under the Consumer Energy Saving Programme (CESP), while Scottish Power met 70% and GDF Suez/IPM and Intergen hit only 38.6% and 6.5% respectively. SSE, which was recently fined £10.5 million for mis-selling, achieved 90.9% of the CESP target.

Energy and Climate Change Secretary Ed Davey said: "I am disappointed that under the old schemes, some companies failed to meet their obligations. Ofgem will be conducting a thorough investigation and will take any necessary enforcement action. We are already acting through the Energy Bill to give Ofgem the teeth it needs in future to get compensation to those directly affected."

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Npower rejects tax avoidance claims

Press Association — 2013-04-30T07:30:00+00:00

Filed under: Utilities

Energy giant Npower has rejected fresh claims that it is avoiding its tax obligations in the UK following a report that it has shifted millions in profit to Malta.

The company admitted earlier this month that it has not paid corporation tax in the UK for three years, arguing that it has invested "billions" in new power stations and wind technology.

But a report in The Sun claims that it has avoided paying up to £108 million in UK corporation tax in the past four years with the use of a Maltese company called Scaris.

The report claims that more than half of the firm's funding comes from German owner RWE via loans paid through Scaris, a shell company based in the Mediterranean tax haven, allowing Npower to return annual interest on the loans.

It claims the arrangement means the UK gas and electricity supplier can post a loss here, and avoid corporation tax.

A spokesman for RWE Npower confirmed it worked with the Malta company "for a couple of years" until 2011, adding: "I can categorically state that this makes no difference to our UK tax situation."

He added: "All of the ways in which we manage our tax is approved by HMRC. I can confirm that all of our UK activity is taxed in the UK and we pay all the taxes due. The reason it has been modest in the last few years is that we have invested around £5 billion in the UK."

On April 16 RWE Npower's chief executive Paul Massara told the Commons Energy and Climate Change Select Committee that the company had not paid corporation tax for three years after he was asked by Labour MP Ian Lavery if he could confirm how much it had paid in 2009, 2010 and 2011.

Mr Massara said: ''So we will not have paid corporation tax in those three years. Effectively we have invested £5 billion in the last five years building power plants, creating jobs, creating employment and helping to keep the lights on.

"If we had not made that investment we would not have the deductibility that we would be allowed. That is a simple accounting UK rule.'"

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The ghosts in your home spending 6p an hour

Sarah Coles — 2013-04-26T11:03:00+00:00

Filed under: Utilities

When nobody is home (or you're all asleep), you could be forgiven for thinking that you're not racking up a massive energy bill. However, new research has revealed that even when it's empty, the typical home is costing its owners between 1p and 6p an hour in energy - which works out at up to £526 a year.

So who is spending this money? Do you have ghosts?

Ghost spending

The researchers from All About Money passed a energy meter round a number of different households to assess "base use". Base use was defined as when all lights and appliances in the house were switched off (for example at night). The lowest "base level" usage found was 1p per hour, the highest 6p per hour.

They concluded that the appliances which are on all the time - plus chargers and gadgets on standby - face the lion's share of the blame.

Appliances

A typical fridge-freezer costs around 8p per day to run, while a broadband router costs 3p and a fish tank heater costs around 24p. That may not sound like a lot, but those three appliances alone add up to £7.44 a month, or £87.60 a year, to energy bills.

Phone and laptop chargers, TVs and other appliances on standby use much less energy, but nonetheless can add a lot to a household's energy bill over the course of a year - especially in larger family households.

Ian Williams of All About Money commented: "Our homes are getting increasingly cluttered with electrical items which are designed to be left on all the time. Alongside the obvious fridge and freezer, there's broadband equipment, clocks, radios and other gadgets. Whilst many of these draw little power, taken together it adds up. On top of this, homes often have a profusion of chargers for smartphones, cordless tools, laptops and tablets which are often left running for hours."

Some of the items using energy in the homes it checked were:

Fridge
Freezer
Broadband modem
Wifi router
Two TVs on standby
Two digi-boxes / Freeview boxes
Games console on standby
Handheld drill on charge
Cordless vacuum cleaner on charge
Four mobile phones on charge
Cordless landline phone on charge
Three clock radios / alarms (and two other electric clocks - on the oven and microwave)
One laptop on charge, one Kindle and one iPad
Burglar alarm
A TV aerial signal booster
An iPod dock on standby (with its own wireless router)
Three electric toothbrushes on charge

Ian Williams added: "Our data shows that the cost of 'forgotten items' such as burglar alarms, clocks and fish tanks can actually really add up over time - in some cases adding up to hundreds of pounds a year."

"It's a curse of Western society that many of us don't realise the more things we plug in, the more it's likely to cost over time - even when we're not actually using some of those items."

What can you do?

It's a reminder that we should pay more attention to the things we leave running in our home - and whether we really need them to be on all the time. Of course, it's tricky to rule out the cost of a fridge freezer, but how many of us leave gadgets on charge long after they are ready to go? And how many of us are guilty of plugging in a shiny new gadget with an electric clock that is no use to man nor beast?

But what do you think? What eats the energy in your home? And is there anything you can do abut it? Let us know in the comments.

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What does the average water bill cost?

lovemoney.com — 2013-04-26T08:50:00+00:00

Filed under: Utilities

As a new report suggests the cost of the average water bill has risen by 64% over the last decade, we look at exactly what the average bill costs and if there's anything you can do to reduce yours.

A new report has claimed that average water bills have grown by an incredible 64% over the past 10 years.
The study by trade union Unison found that water bills had grown at more than twice the rate of average earnings. If the average bill had done no more than keep up with earnings, it would now be £71 a year cheaper.

Unison has accused water suppliers of profiteering, claiming that 30% of the average household bill represents profit for suppliers. That's compared to 9% in the energy market.

Part of the problem is a lack of competition. After all, it's not like you can shop around for a new supplier if you don't like your existing one.

The average water bill
Water bills have gone up by 3.5% in the 2013/14 tax year, according to water regulator Ofwat.
The tables below highlight the expected average household bills for this period, including inflation.

Water-only companies

Supplier	Average water bill 2013/14	Change from 2012/13
Affinity Water Central region	£174	£0
Affinity Water East region	£171	£2 (1.4%)
Affinity Water South East region	£203	£6 (3.1%)
Bristol	£191	£11 (6.3%)
Cambridge	£130	£4 (2.8%
Cholderton	£204	£3 (1.5%)
Dee Valley	£150	£6 (4.1%)
Northumbrian (Essex & Suffolk)	£221	£6 (2.8%)
Portsmouth	£96	£2 (2.3%)
Sembcorp Bournemouth	£154	£2 (1.2%)
South East	£201	£6 (3%)
South Staffordshire	£144	£3 (2.3%)
Sutton & East Surrey	£186	£7 (3.9%)

Water and sewerage companies

Supplier	Average water bill 2013/14	Change from 2012/13	Average sewerage bill 2013/14	Change from 2013/14	Average combined bill	Average change in combined bill from 2012/13
Anglian	£194	£5	£240	£6	£434	£12 (2.8%)
Dwr Cymru	£181	£2	£253	£5	£434	£7 (1.7%)
Northumbrian (excluding Essex & Suffolk)	£164	£3	£195	£5	£359	£8 (2.2%)
Severn Trent	£177	£4	£158	£4	£335	£7 (2.2%)
South West*	£230	£4	£319	£6	£499	-£40 (-7.3%)
Southern	£158	£6	£291	£16	£449	£23 (5.3%)
Thames	£207	£9	£147	£10	£354	£18 (5.5%)
United Utilities	£193	£4	£213	£9	£406	£13 (3.4%)
Wessex	£249	£15	£229	£8	£478	£22 (4.9%)
Yorkshire	£167	£3	£201	£9	£368	£12 (3.3%)

*South West Water customers benefit from a Government contribution which reduces their bills by £50 per year, and is being applied from April 2013.

So the average water-only bill in the UK this year is £180.

How is the average water bill calculated?
Your water usage may not actually have much correlation with your water bill.

That's certainly the case if you don't have a water meter. In this instance, your bill will be made up of a fixed charge (which covers things like admin) and a charge based on the 'rateable value' of your home. This is the local authority's assessment of the rental value of your property.

Unfortunately this rating took place between 1973 and 1990, so it's not exactly up to date.
You can't appeal if you think the rateable value is too high either. Your bill is out of your hands and completely unrelated to your actual water use. Good news if you use a lot of it, not so good if you don't.

In which case, you might want to switch to a metered bill. This means your bill will be made up of a fixed charge and a volumetric charge, covering your exact use. Whether this means your bill goes down or up really is then down to you.

To see if a water meter might save you some cash, why not have a go with this calculator on the Consumer Council for Water website?

Switching to a water meter doesn't have to be a permanent move either. You can switch back to unmetered bills within the first 12 months, so why not give it a try? If your bills go up, just switch back!

Can I cut my water bill?
If you are on a water meter, then there are things you can do to reduce your bills.
Simple steps like taking a shower rather than a bath, turning off the tap when brushing your teeth and fixing leaky taps can all make a difference.

Most water companies offer widgets and gadgets to help you cut your water use. Many are free too so be sure to check out your provider's site.

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First Utility hikes prices by 18.6%

lovemoney.com — 2013-04-23T11:30:00+00:00

Filed under: Utilities

Energy provider First Utility has announced it is pushing up the price of its gas and electricity for some customers by 18.6% from 1st June.

This price rise is far higher than any implemented by the 'big six' providers towards the end of last year and will be an unwelcome shock to many.

It will be especially frustrating for those who have recently switched to First Utility to get a cheaper deal.

Price hikes

Last year all the major energy suppliers announced price increases which have all now come into force. British Gas, for example, pushed up prices by 6% whereas EDF increased its prices by 10.8%.

First Utility has now announced it is scrapping its iSave v12 tariff, meaning customers will have to switch onto a more expensive tariff, such as the iSave Everyday or the iSave v15, if they wish to stay with the company.

The exact price rise for customers will depend on how much energy they already use. The 18.6% will add an average of £264 onto annual bills.

Although the rise from First Utility is higher than increases from other providers, it says it still offers a cheaper tariff than any standard tariff with a big six provider. But when looking at the deals in the tables below, many are cheaper so therefore it may be worth switching if you want to save money.

Darren Braham, founder of First Utility, said although the company has been subject to the same challenging cost increases as other suppliers, it chose to delay changing prices for as long as possible and until customers were through the coldest winter months.

"The network costs, the increasing price of wholesale energy and the social and environmental obligations mandated by the government have meant that we regretfully need to increase our prices," he added.

How to change suppliers

If you're not happy sticking with First Utility after the price hike, you'll need to tell it within 20 days of receiving notification about the price change. Following this your new supplier then has 15 days to tell First Utility it is taking over your energy supply and the switch will take place.

There will be no penalty for switching.

Switching energy companies is easy and relatively stress-free although it's something we're not that keen on doing. But on average most people can save around £300 when they switch so it's well worth doing.

Our comparison tables show a whole view of the market but below you can see the top five cheapest deals, both for fixed and variable tariffs.

The cheapest variable-rate tariffs

Tariff	Average cost	Saving versus average bill *	Cancellation penalties
Spark Energy: Spark Advance	£1,041	£379	None
SSE: Discounted Energy Bonus October 2014	£1,158	£262	£50 if you switch away before 1st October 2014
ScottishPower: Online Energy Saver 21	£1,164	£256	£25 per fuel until 31 May 2014.
Sainsbury's Energy: Online April 2014	£1,165	£255	£30 per fuel until 30 April 2014
npower: Energy Online August 2014	£1,182	£238	£30 per fuel until end of discount period 31/8/2014

* Saving calculated against an average bill as declared by OFGEM in winter 2013 (£1,420). All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity. Source: Energyhelpline.com

The cheapest fixed-rate tariffs

Tariff	Average cost	Saving versus average bill *	Cancellation penalties
npower: Online Price Fix June 2014	£1,184	£236	£30 per fuel until end of fix
EDF: Blue +Price Promise February 2015	£1,192	£228	None
First Utility: iSave Fixed v8 September 2014	£1,225	£195	£30 per fuel until end of fix
ScottishPower: Online Fixed Price Energy August 2014	£1,230	£170	None
E.on: Age UK Fixed 1 Year v3 (over 60s only)	£1,231	£189	None

Are you a First Utility customer? Will you be switching companies to avoid the rise?

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Warning over energy bill changes

Press Association — 2013-04-22T04:00:00+00:00

Filed under: Utilities

Consumers could pay an extra £55 million for energy bills under new Ofgem proposals, it is claimed.

The energy tariff reforms could mean higher costs for more than 3.4 million households as they struggle to identify the cheapest energy tariffs, according to research by Which?.

Ofgem's proposed tariff comparison rate (TCR) aims to simply energy tariffs and allow consumers to compare tariffs across the market.

Consumers will be advised on their best deal based on medium usage of gas and electricity, but only 26% of consumers use this level of energy.

The remaining 74% will be directed to tariffs which could be unsuitable for their usage and would cost them more, it was claimed. Around 500,000 low energy users, who tend to be on the lowest incomes, could be advised on the wrong tariffs.

Richard Lloyd, executive director at Which?, said: "Rising energy bills remain one of consumers' top financial concerns yet six in 10 of us have never switched supplier as people are left baffled by the vast array of complicated tariffs. These current proposals are far too complicated and will fail to achieve their aim of making it easier for people to find the best deal, with three-quarters of people being asked to compare prices that are not based on their energy usage.

"The Government should introduce single unit prices for each energy tariff so people can easily see the best deal for them at a glance. Only then will people have the confidence to switch, injecting much-needed competition into the broken energy market."

Only one in 10 people can spot the cheapest energy deal from a range of standard tariffs, according to Which? after a survey of 1,029 UK adults last year. This increased to nine out of 10 when the deals were presented with a single unit price.

An Ofgem spokesman said: "Ofgem's reforms will deliver a simpler, clearer and fairer energy market for consumers and will make it much easier for consumers to choose the right deal for them. Our key goal is to try and get consumers engaged with the market as 70 per cent are currently not taking part. Which? is misrepresenting the purpose of the tariff comparison rate and how it fits into the full scope of Ofgem's reform package. The tariff comparison rate acts as a prompt to consumers to take a look at comparative deals . The tool is similar to the 'typical APR' used in financial services marketing.

"But it is partnered with personalised consumption information necessary to make a full and accurate cross market comparison , which every supplier must provide via bills and annual statements. Ofgem's reforms will also see suppliers cheapest deals on your bill. We share the desire with Which? to see an at-a-glance tariff comparison. We are taking forward our innovative proposals to put the market cheapest deal on consumers' bills - even if it is from a rival supplier - and this will remove the need to compare tariffs altogether. We hope Which? will respond positively to our invite to them to join this next stage of our work."

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Pensioner threatened with eviction over 28p debt

Sarah Coles — 2013-04-18T09:35:00+00:00

Filed under: Utilities

Raymond Medlen, 78, of Slade Green in Kent, was shocked to receive a letter from Orbit South housing association, demanding that he pay the 28p outstanding on his water bill, and threatening to take him to court and possibly evict him if he did not pay up.

So how could this happen, and what should you do if you run into debt with a utility bill?

Mistake

Medlen's water charge had increased by 14p a week. He changed his standing order at the bank, but did not manage to do so before two weeks' charges were made. The housing association noticed the debt, and immediately sent a letter demanding the money.

His sister, Maureen Price, told the Daily Telegraph that she had tried to pay the debt for him at the association's offices, but was told he needed to go in person, or she needed to take proof that he was happy to deal with the matter. She was furious her housebound brother was being treated this way.

This is Local London spoke to the housing association, which admitted that it had made a mistake. Letters are automatically generated for debts, and in this instance a possession order letter was sent by mistake. A spokeswoman said: "We apologise for any distress or inconvenience to Mr Medlen and his family. We would like to reassure Mr Medlen that we are not looking to take any formal action against him."

In this instance, therefore, it looks like we have a happy ending. However, it goes to show how things can get out of hand when you run up a debt with a utility company.

10 tips to improving your pension

What can you do?

Clearly these companies hold the threat of being able to cut you off if you don't pay, so if you have run up a debt that you cannot afford to pay, it's vital that you don't ignore it.

Your first step should be to contact your utility company. They will set up a repayment plan, where you make regular payments to cover the energy or water you are using now, with a lump sum towards your debts.

They will come up with a suggested lump sum, but this will be negotiable and will depend on what you can afford. If you genuinely cannot afford to repay what they ask for, then stand your ground, because by law they have to accept what you can afford to pay.

They may take this directly from any benefits you receive, they may take it as a regular weekly or monthly payment, or they may require you to set up a direct debit. For gas and electricity companies, they may also force you to have a pre-payment meter installed to avoid this happening again.

It's also worth noting that utility bill arrears are often a sign of a deeper problem, and more debts elsewhere. It's vital that you deal with any outstanding amounts on your bills, but don't stop there: unless you get a handle on all of your debt and spending, you will just find yourself in more trouble later.

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'£1.5m payouts' from energy company

Press Association — 2013-04-17T02:30:00+00:00

Filed under: Utilities

SSE, the energy supplier fined £10.5 million for mis-selling earlier this month, expects to pay out about £1.5 million in compensation, it has told MPs.

The firm revealed it made around £45 a year from each of the estimated 23,000 customers affected by mis-selling and expected to pay them compensation of between £65 and £70.

SSE - one of eight suppliers questioned by the Energy and Climate Change Committee - promised to compensate any customer who had lost money.

After the hearing, an SSE spokeswoman said the £60 to £75 figures were "typical" at the moment but affected customers were being treated on a case-by-case basis, adding: "We will make right any financial loss."

SSE's deputy chief executive, Alistair Phillips-Davies, said the company had changed its training and audit procedures to correct the problem, adding: "As soon as we knew there was mis-selling, we took action."

He admitted that the company's actions had affected trust among consumers, saying: "I would have thought for some customers, it would have decreased the level of trust. Although for others, it would not."

He said some feedback from customers suggested they were pleased with how the company had handled the issue. He also revealed SSE had agreed to accept the £10.5 million fine from regulator Ofgem, who found that the company had been guilty of "prolonged and extensive" mis-selling.

MPs also repeatedly pressed suppliers EDF and E.On to "come clean" about their own practices.

Jim Poole, director of residential customers at EDF, said he was confident that the company's controls were robust enough to ensure there was no widespread mis-selling.

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Is now the time to get a fixed tariff energy deal?

lovemoney.com — 2013-04-12T12:00:00+00:00

Filed under: Utilities

April is typically an awful month for bill-payers across the country, with the new tax year commonly meaning increases in household expenses. This year sees water bills hiked, Council Tax bills up, prescription costs increased and - to further put the boot in - many are anticipating further increases in the cost of gas and electricity.

With the last round of price rises hitting us by as much as 11% only a few months back, and the country experiencing bitterly cold weather recently, this will be a bitter blow to consumers who are already bracing themselves for their next energy bill.

Now is the time to tackle your costs by comparing your current energy tariff with other suppliers on the market, particularly if you haven't switched in the last twelve months. You may have put this off, but unlike the annual spring clean of the garage, it is hardly an arduous task. Now may well be the best chance to snap up a great deal and reduce your overheads prior to any April increases hitting you in other areas.

Time to fix?

With many predicting further price rises this year, it is prudent for those concerned about ever-riding bills to opt for a fixed deal. Make sure before signing up to a fix that you check the small print however, as many come bundled with cancelation fees and tie-ins that would be applicable if you decided to leave before the fix end date.

The new EDF Blue+ Price Promise February 2015 is currently the cheapest fixed tariff on the market. This tariff has an annual average cost of £1,192, a £228 saving over a typical dual fuel bill of £1,420 (Source: Ofgem). The price is fixed until 28th February 2015, so those taking up the tariff would see no further rises for two more winters. There are no cancellation fees with this tariff either, giving you the option to move on should you decide you want to switch.

Other attractive fixed tariffs include first:utility's iSave Fixed v7 September 2014 at £1,194 a year on average, and npower's Online Price Fix May 2014 at £1,226.

Here are the current top fixed tariffs available on the market:

Supplier	Tariff	Average Cost	Saving vs Typical Bill*	Notes
EDF	Blue+ Price Promise February 2015	£1,192	£228	Prices fixed until 28 February 2015, no cancellation fees
first:utility	iSave Fixed v7 September 2014	£1,194	£226	Prices fixed until 30 September 2014. £30 per fuel cancellation fees until end of fix
npower	Online Price Fix May 2014	£1,226	£174	prices fixed until 31st May 2014. £30 per fuel cancellation fees until end of fix
ScottishPower	Online Fixed Price Energy August 2014	£1,230	£170	prices fixed until July 31, 2014, no cancellation fees
e.on	Age UK Fixed 1 Year v3	£1,231	£189	Prices fixed for 12 months (only available to over 60s), no cancellation fees

* based on a typical dual fuel tariff costing £1,420 (SourceOfgem). All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.

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