SSE have seen 110,000 people ditching them in the three months since they announced their freeze.
They blame “very competitive market conditions” for the losses.
What’s worse is that SSE had already lost 370,000 customer accounts in the year to March and these losses will heap yet more pressure on the energy giant to cut prices further, especially given that everyone now knows that there’s been falls in wholesale electricity and gas costs.
However, that’s not likely to happen, mainly because energy companies are all complete arseholes. In the case of SSE, they have a further excuse – they’ve already bought most of their energy further in advance than normal, which means customers will be locked into higher prices. Well done SSE.
Will Morris, SSE group managing director for retail, said: “We operate in a very competitive market and, as you would expect, different supply companies take different approaches and have different propositions.”
“There are some short-term offers available at the moment, which a limited number of customers can benefit from. These offers will come and go, but SSE is offering all customers the long-term certainty that its standard prices will not go up until at least 2016. Things can change very quickly in energy; this is an unprecedented long-term commitment and it should be judged over the long term.”
No. You’ll be judged over your prices and whether or not people can afford them.
The people at Ofgem have done a study which says the 9 million people renting in the UK are losing out to the tune of £200 million. They say renters are less likely to shop around, so they’re getting stiffed on deals.
This data was gathered from Ofgem’s incredibly exciting ’2014 Consumer Engagement survey’ which showed that three-quarters of tenants have never switched supplier and one in five isn’t aware that they are able to.
Dermot Nolan, Ofgem’s CEO, said: “The number of British households renting stands at 9 million and counting, yet research has shown that this group is not shopping around for their energy, and missing out on savings of up to £200.”
Their maths, not ours, just in case any of you lot start moaning.
Weirdly, it seems that there’s a lot of people out there who think they are stuck with the energy supplier who provide their utilities on the day they move in. Even if your landlord takes care of the bills and your rent is all-inclusive, you can still shop around and ask them to go cheaper if you want.
This is all part of Ofgem’s “Be an Energy Shopper” campaign, which hopes to help consumers realise that they aren’t in a situation that is akin to an energy company chaining them to a radiator and waiting for Stockholm Syndrome to kick in.
Ann Robinson, Director of Consumer Policy at uSwitch.com, said: “These findings are worrying, particularly given the dramatic rise in the number of people having to rent as they can’t afford to get onto the property ladder. Renters need all the help they can get to keep costs down and switching energy provider is an extremely easy way to reduce their monthly bills.”
“Ofgem’s campaign to clear up tenants’ misconceptions about their rights is a step in the right direction, but more should be done. We call on landlords and letting agents to provide all new tenants with information on their current energy provider and remind them of their right to switch. This will empower renters to make an informed choice about who provides their energy.”
It seems new billing systems have caused all kinds of problems for customers, but really, there would’ve been complaints either way because, especially in the case of npower, it looks like they’re actively trolling everyone now.
Citizens Advice and Citizens Advice Scotland said complaints about npower rose from 306.8 for every 100,000 customers to 592, in the last quarter of 2013. In fact, complaints about all suppliers increased in the first quarter. They really couldn’t care less could they? They can afford the fines and no-one is looking like they’re going to do anything about it.
Have the Big Six got blackmail files on Cameron and Clegg? Dirty Polaroids and taped conversations with sex-workers or something? That’s the only explanation for their Teflon state of mind.
Last month, Ofgem warned npower to sort out their billing balls-ups by the close of August, or stop all telesales activity. Ofgem are also investigating npower’s failings as a whole, but you get the impression that between the CA and Ofgem, npower will work a way around it.
The chief executive of Citizens Advice, Gillian Guy, said: “The knock-on effect of poor billing systems can turn household budgets upside down. Many people do not have the spare cash to cover the cost of a large bill that suddenly lands on their doorstep.”
“While we recognise npower is receiving more complaints because it is starting to get over some of the earlier issues, it needs to do more to stop consumers’ problems escalating. Offering repayment plans and discussing ways they can help consumers will nip issues in the bud and remove the need to complain.”
“Scottish Power has an opportunity to learn from other suppliers’ billing system failures and address these problems now so more consumers won’t have cause for complaint.”
“A rise in complaints about all suppliers is concerning. Suppliers won’t win the trust of customers back unless they show they understand what consumers need, recognise the financial pressures many people are under and are able to sort out problems quickly. This is something that all suppliers can act on.”
Energy providers are already public enemy number one, and now Ofgem has underlined the point by allowing British Gas to pay out a total of £1million in compensation to people it mis-sold its energy to. You might wonder how energy can be mis-sold, after all, you will actually get gas and electricity from them. However, the offences in question concern salespeople lying about ‘exaggerating’ the amount of savings that could be earned by switching to British Gas.
The mis-selling took place in Sainsbury’s stores nationwide and in Westfield shopping centre, Shepherds Bush. In addition, staff and branding in Sainsbury’s stores did not make clear that British Gas was the supply partner for Sainsbury’s Energy, thereby fooling all those who already had an axe to grind with British Gas.
Ofgem has today revealed that, between February 2011 and March 2013, British Gas staff in Sainsbury’s stores and Westfield shopping centre made exaggerated savings claims to prospective customers. It seems some unscrupulous sales staff did not compare tariffs on a like for like basis, even going so far as to compare monthly direct debit payments with quarterly payment methods to produce inaccurate savings estimates. This shocking underhandedness meant that, unsurprisingly, some customers were told that they would save money by switching, but in fact they paid more with Sainsbury’s Energy or British Gas than they would have paid if they had remained with their current supplier.
To be fair to British Gas, they identified the issue and voluntarily reported it to Ofgem in April 2013, taking immediate action to correct the issues. Ofgem therefore decided to accept British Gas’ compensatory offer in lieu of opening a formal investigation.
British Gas has identified customers who were potentially mis-sold to and has made an average payment of £130 to 4,300 affected customers. It was unable to contact around 1,300 ex-customers, so £434,000 in compensation will be paid to the British Gas Energy Trust to directly benefit customers. Rather than the ex-customers who got shafted.
Sarah Harrison, Senior Partner in charge of enforcement said: “Ofgem welcomes British Gas’ action to tackle its sales failures and compensate customers quickly when it became aware of mis-selling. Ofgem expects all suppliers to put this poor behaviour behind them and really start acting in a way that will help consumers trust energy suppliers. Where they don’t, Ofgem will act.” Or sometimes, Ofgem will allow energy companies to define their own crimes and decide their own punishment…
Britain’s infrastructure is looking a bit tatty, so our beloved government have to carry out an independent assessment of the ability of us lot, to see if we can afford to cough-up the extra £250bn which will be added to our household bills modernise the things that give us water and energy.
Above inflation increases means we’re all going to get hammered, especially people on lower incomes.
It will be of zero surprise to anyone with at least one eye and a handful of rudimentary braincells that Britain needs major upgrades to services like energy, water, communications and transport.
The government think that energy bills will rise by 18% by 2030, because obviously, they haven’t gone up enough already.
Margaret Hodge, Labour MP said: “No one seems to be sticking up for the consumer in all this. This is of particular concern given that the poorest households are hit hardest by increases in bills. Poorer households spend more of their incomes on household bills relative to richer households, meaning that funding infrastructure through bills is more regressive than doing so through taxation.”
Hodge’s committee’s report – the excitingly titled ‘Investment: the impact on consumer bills’, Hodge said: “A staggering £375bn of investment is needed to replace the country’s ageing infrastructure, help meet policy commitments such as climate change targets, and meet the long-term needs of a growing population. It is the consumer – through their various bills – that is expected to fund at least two-thirds of this investment where the infrastructure is financed, built, owned and operated by private companies. Currently, consumers rely solely on government and regulators to protect their interests. But it doesn’t take much nous to work out that this is going to have a tough impact on the consumer.”
The short version is this: Wages aren’t going up, but everything else is.
The Treasury countered arguments against them and said: “The country will pay a heavy price if we don’t invest in the infrastructure essential for our future. The National Infrastructure Plan provides unprecedented certainty about what those investments are and making sure they are built in a way that delivers value for consumers and taxpayers is at the centre of it. The analysis in the PAC report fails to make a proper assessment of this.”
You can only assume that the only ‘unprecedented certainty’ in all of this is that those who win the contracts to take on all this work will have a strong connection to the Prime Minister and his pals, because that’s how all the big jobs are divvied out.
Everyone knows by now that leaving things on stand by means we are using unnecessary energy. When this first became news, we were all living in our pre-financial crisis utopias, waving wads of cash like Loadsamoney, and doing something just to save the environment was a bit of a hard sell.
Now, of course, we are way more money-savvy, and many people will already take those extra few seconds to turn the switch off rather than leave appliances in eternal standby- assuming there is an actual off button that is. Other things merely need to remain plugged in to be sucking away at your electricity, meaning an energy-intensive crouch to switch off at the wall or unplug is required to minimise those bills.
The Energy Saving Trust has already estimated that each household literally burns good money to the tune of around £80 a year by leaving appliances on standby but now green energy provider Ecotricity has only gone and calculated which specific appliances are costing you the most dosh.
Top of the power-muching pops is actually wireless routers, a modern day necessity that we cannot live without. And an extra £21.92 a year to save the thing rebooting every time you turn it on, not to mention all that blue-light web surfing in bed, is probably not too much to ask. But what about shelling out £18.92 a year to leave your laser printer on? Surely that’s worth the flick of a switch?
At the bottom end are things like night lights (73p per year), electric toothbrushes (they have plugs?) and modern monitors and TVs. Confusingly, however, a mobile phone charger uses a modest £2.44 a year, but an iPad charger uses a greedy £12.18; iPhone 5+ owners will wonder which amount applies to then, given the lightning charger charges both mobile phone and iPad…
The full list of appliances is shown below. So now if you only have three seconds’ worth of spare time for unplugging, you know the order of priority to save you the most on your energy bill.
Annual energy usage while on standby:
Wireless Router (e.g. BT Hub) – £21.92
Printer (Laser) – £18.26
Set-top (Satellite) – £18.26
Amplifier – £12.18
Compact Hi-Fi – £12.18
iPad charger – £12.18
Nintendo Wii – £12.18
Set-top box (Freeview) – £7.31
Alarm Clock – £6.09
Microsoft Xbox 360 – £6.09
Modem – £6.09
Sony PlayStation 3 – £6.09
Air freshener plug-in – £4.87
CD player / Tuner – £4.87
Television (Plasma) – £4.87
Video Player – £4.87
Inkjet printer – £4.26
Desktop PC – £3.65
Nintendo DS – £3.65
Oven (Electric) – £3.65
Microwave – £3.04
Television (CRT & LCD) – £3.04
Mobile phone charger – £2.44
PC monitor (CRT) – £2.44
Electric toothbrush – £1.22
Childs night light – £0.73
The referral means there’ll be some serious explaining to do and the investigation is due to start immediately.
*rubs hands with glee*
Every member of the Big Six – British Gas, SSE, Npower, EDF, Scottish Power and E. On – will be crapping themselves as the probe tries to determine ‘once and for all’ whether they are making excess profits.
Dermot Nolan, Ofgem chief executive, said: ‘Prices have risen more than they should have, we believe, over the last few years. Profits have risen, prices have risen, margins have risen.
Competition is not working well, consumers are probably paying more than they should have and we need to put in step a process that is going to force competition to drive costs down.’
The investigation will take about a year, and if they find that the Big Six have ripped customers off, the companies will be broken up, and all those energy fat cats will have to go on the scrounge.
If the companies were right, and wholesale prices, energy infrastructure and all that jazz were driving the price rises all along, we’ll have to find something else to moan about.
But something tells us they’ll only have to take one look at all those Chateaubriand dinners and enormous pay packets, and the decision will be clear…
A study by Sustainable Homes used both emojis and good old fashioned shame to encourage people to use less energy – giving them a smiley if they’d saved and a sad face if they’d left the iron, the hairdryer and the oven on all night.
And it worked.
In the study – which recruited 450 households over 14 housing associations in England – people saved up to £80 on their bills when they were shown the emoticons based on their household energy use.
They were sent smileys if they used less energy than other similar households, and sad faces if they were using more. The ones that were using more were so ashamed that they soon started to use less, to keep within the norm.
Andrew Eagles of Sustainable Homes said: ”These findings will be of great interest to anyone concerned with cutting energy bills – which, of course, is most of us. We know that people are always keen to save money, but what this study uncovers is that their natural desire for approval is at least as important, and probably more so.”
So sod the scare stories about climate change – just compare people to their neighbours and watch those meters stop spinning…
The company has to address the billing palavers of their 400,000 customers by August, after instruction by regulator Ofgem.
The energy company have long been a concern, with issuing bills long after customers had fled their service, when that sort of thing should be done within six weeks, under the regulators rules.
The ban facing npower would affect their cold-calling, where energy companies win most of their new customers.
They admitted last September that a computer glitch caused by a new billing system had caused various problems with around 700,000 customer accounts.
Which!!! revealed that npower received 83 complaints for every 1,000 customers in the first quarter of this year – the highest number among The Big Six energy companies.
This is a sharp jump from the 49 complaints per 1,000 at the same time last year, almost hilariously so. They’re just trolling everyone now, right?
You’re never going to believe this – the number of complaints against the Big Six energy firms have gone through the roof to new records in the last quarter as customers vent spleen over lousy service from our beloved energy companies.
They really are just trolling everyone now aren’t they?
They received 1.7 million complaints, which is the highest number in a single quarter since records began, up 15% on the same time last year.
The swine at npower received 83 complaints for every 1,000 customers in the first quarter of 2014 (they topped the league). The same time last year, they were getting 49 complaints per 1,000. Looks like they’re trying to double the amount of complaints, eh? Meanwhile, SSE, British Gas and E.On all received roughly 30 complaints per 1,000 customers. Scottish Power received the fewest with 13 for every 1,000.
Of course, Which!!! had something to say on the matter.
Their executive director, Richard Lloyd, said: “Yet again millions of customers are being let down by poor service from the Big Six energy companies. This has to change.”
“If they want to improve the low level of consumer trust in the energy market, suppliers must up their game now, rather than wait for the results of a competition review.”
Now, for the laughs. An Energy UK spokesman said, without a trace of irony: “Most customers are happy with their energy provider. But, in an industry which serves 27 million households, sometimes things can go wrong. Most issues just take just a call to fix even though all problems – large and small – are lumped together. But all problems, no matter how minor, are important and if a customer has any concerns about their service, they should contact their supplier as soon as they can.”
“No one wants to see complaints rise, but the industry uses this information to improve its service. Anyone with a problem needs to contact their supplier before they do anything else.”
They’ve been getting waste coffee and turning it into biodiesel by extracting oil from it and then using a chemical process called ‘transesterification’.
Seeing as fossil fuels is really bad for the environment, we need to find a substitute that is kinder and altogether nicer… and the coffee industry is completely problem-free and doesn’t come at the expensive of humans at all.
Dr Chris Chuck, from the university’s Centre for Sustainable Chemical Technologies, said: “Around eight million tonnes of coffee are produced globally each year and ground waste coffee contains up to 20 per cent oil per unit weight.”
“This oil also has similar properties to current feedstocks used to make biofuels. But, while those are cultivated specifically to produce fuel, spent coffee grounds are waste. Using these, there’s a real potential to produce a truly sustainable second-generation biofuel.”
This will be music to Starbucks’ ears. They’ll be looking at setting up fuel stations that play Paulo Nutini albums on the forecourts all over the world.
A regular-sized coffee shop produces around 10kg of coffee waste per day, which translates into around two litres of biofuel. There’s also gigantic amounts of grinds produced by the coffee bean roasting industry.
If they can make the fuel smell like freshly brewed coffee, we’re onto a winner here… but it’s more likely to smell like liquid faeces isn’t it?
Ofgem have confirmed that the time it takes to ditch one energy company and sign-up with another will be cut in half. They’ve sat everyone from the industry down and switching times will fall to three days plus a 14-day cooling off period from December 31st.
From 2018, we’ll all be able to do next-day switching.
In itself, the move isn’t a bad one. If you think you can save money by losing one company and getting in bed with another, this is good news.
Ofgem chief executive Dermot Nolan said: “Consumers can change their bank in seven days, their mobile phone in just a couple, but have to wait significantly longer to switch their energy supplier. We hope this will give consumers more confidence to get out there and start shopping around.”
At the moment, it takes over a month to complete the process. The energy companies need to update their IT so this can come into play.
Ann Robinson at uSwitch.com, thinks this is a good idea, saying: “Today’s announcement is exactly the sort of game-changer that is needed to encourage consumers to engage with the energy market. By speeding up the time it takes to switch energy supplier, households will feel the benefits of moving to a new tariff even sooner.”
“With half of households yet to switch their energy supplier, it is clear there are barriers that need to be broken down. For many of these, it will be a question of confidence and fear of the unknown.”
However, the thing staring everyone in the face (everyone, in this instance, doesn’t include anyone from the energy sector, Ofgem or uSwitch, it seems) is that, if all the energy companies are ripping everyone off and constantly hiking up their prices, a fast turnaround time is little more than giving consumers the opportunity to get to know more dickheads, quickly.
It’s a bit like getting the option to recover from a cold quicker, in return for getting an STD.
Ed Davey is being shouted at by Which!!! They’re telling him that his proposed subsidy scheme will encourage the building of higher-cost energy projects (offshore wind farms and the like) that might not actually deliver value for money.
The rest of the country meanwhile, is collectively rolling their eyes and handing out degrees for stating the bloody obvious.
Either way, Which!!! has written to the secretary of state for energy and climate change saying that his plans for electricity market reform “could result in expensive generation projects being prioritised over cheaper, more cost-effective options”.
Of course, Which!!! are insistent that they support green initiatives, but doesn’t want to see the Government’s Contract for Difference (CfD) being rolled out in a way that is not only flawed, but needlessly expensive.
“It is vital that any measure that adds costs to consumers’ bills is closely scrutinised at a time when energy prices are the top financial concern for consumers. Whilst there has been a lot of welcome attention given to tackling the immediate cost of energy bills, Which!!! believes that more attention needs to be done to address energy costs in the long term,” said Richard Lloyd, Which!!! executive director.
He added that: “The absence of full competition from the Contracts for Difference process at the outset risks priority being given to investment that may not deliver value for money for customers.”
“In our view it is not appropriate to shield offshore wind developers from competitive cost pressures … there are a wide range of costs across offshore wind projects but accurate cost information is hard to come by. Allocating subsidy competitively is the best way of revealing this information.”
It has emerged that the price the energy companies pay for gas has halved in six months – the cheapest they’ve had it for four years. They’re also paying less for electricity as well. So, what about everyone’s bills getting cheaper?
Don’t be stupid.
Ofgem have contacted the companies asking to know why everyone’s still being charged so much. Of course, everyone else is pretty angered by it too.
TUC general secretary Frances O’Grady spat: “The big energy firms are taking their customers for a ride. The Government should stand up for consumers in the face of this naked greed. Instead, the Chancellor has shied away from taking on the energy giants.”
However, some people don’t like trade unions so much that they’ll, for the sake of an argument, side with the energy companies.
MP Ian Lavery, a member of the Commons energy select committee, said: “This is a classic example of the way energy companies treat the general public with the utmost contempt. They are basically robbing people of hundreds of pounds every year, and it is time the Government took action.”
Ofgem chief executive, Dermot Nolan, currently in the process of writing some stern letters in his neatest handwriting, thinks that our trust has been ‘undermined’, added: “I’m very concerned these clear and sustained falls in the price of electricity and gas have not been passed on by the majority of suppliers.”
“I would expect the threat of losing market share to encourage suppliers to pass on sustained reductions… as soon as possible. If that is not happening, it could be seen as further evidence that competition is not working for consumers as well as it should be.”
In real terms, it looks like the average household spend on gas and electricity will go up by 3%.
Fear not though. Our blessed Government do have an answer for those of you who feel like you’re being ripped off by the Big Six. In short, if you don’t like it, change to a different provider. It’s like choosing which illness you want, isn’t it?
Sometimes plans don’t come together, and that’s what’s happened with the Government’s shiny idea about putting smart meters in every home by 2020. It’s not that they’ve run out of money-despite the estimated £11bn cost- it’s because we don’t actually want them.
New figures from The Smart Meter Central Delivery Body (SMCDB), the organisation set up to drive public support for the devices, found that while 84% of people had heard of smart meters, less than half of us- just 44%- expressed interest in having one installed in their home. Clearly, the SMCDB has been excelling at ‘driving public support’.
The whole point of smart meters is to enable customers to monitor energy usage in real time. This will not only allow people to see just how much energy they are using at any given tim (and hopefully encourage them to turn lights off), thereby reducing energy usage, but will also be capable of sending automatic readings back to energy suppliers, to enable accurate billing. Imagine how shocked energy companies will be once they cannot keep you in permanent overpayment owing to estimated bills eh…
Nevertheless, energy companies are obliged to attempt to install the meters in all customers’ homes, but consumers do have a right to refuse them. Given the latest findings, that’s 56% of us likely to refuse.
The problem seems to be that more than half of all consumers simply do not trust any energy company. And you can hardly blame them. Sacha Deshmukh, SMCDB’s chief executive, said suspicion of energy firms related to issues such as inaccurate bills, the very thing that smart metering could solve.
“Antiquated systems for recording energy use and managing billing are no longer fit for purpose. Households need to be able to take control of their energy use and bills,” he said.
“For this to happen, the national smart meter roll-out is the essential transformation of the technology we use to buy energy. It will create newly empowered consumers, and increase trust in those who sell us gas and electricity.”
He also insisted that mistrust in itself would not hinder the roll-out as “customers trusted individual engineers”, which seems to contradict his own findings, not to mention sounding a bit desperate.
There are around 1m meters currently in use, mostly installed by British Gas. The full roll-out is due to begin late next year, having already suffered delays while data and communications systems are developed and put in place. Assuming SMCDB can convince us all to change our minds by then…