Posts Tagged ‘gas’
Here’s a worrying accusation – the charity Age UK may have been promoting unfavourable energy deals in exchange for money from E.On. The watchdog, Ofgem, are looking into the claim, after an investigation by The Sun.
The paper claimed that the energy deals that were being offered by Age UK with supplier E.On could well have been more expensive than necessary, with cheaper deals available. The Sun continued that, in return, Age UK pocketed around £6m from the energy company.
Given that Age UK are there to serve pensioners, who are often vulnerable when it comes to things like this, this is serious indeed. If it is true that the charity have been doing pensioners out of money, and messing with anything that might affect the warmth of their home, there’s going to be hell to pay.
It is worth pointing out that Age UK have rejected these claims, while E.On have simply said that their tariffs are as competitive as anyone else’s. Okay? Will that suffice, watching lawyers?
Now, back to The Sun’s report – they have said that Age UK recommended a special rate from E.On, which typically costs pensioners £1,049 for the year, which is £245 more than the cheapest rate which you could’ve been offered in 2015. The paper also said that the charity got around £41 from the energy firm, for every person signed-up, which totalled somewhere in the region of £6m.
A spokesperson for Age UK said: “We strongly reject the allegations and interpretation of figures in this article. Energy prices change all the time and we have always advised older people to look out for new good deals and we will continue to do so.”
E.On said: “We always work to make sure our tariffs, for all customers, are competitively priced and that is further evidenced by the fact that our current Age UK tariff was the UK’s cheapest product of its type in the UK when it was launched, a two-year fixed deal, and when we launched our current one-year fixed product, it was also the cheapest in the UK.”
Ofgem are going to look into this and, if there’s any foul play, expect some huge fines to be handed out.
As for ScottishPower, this reduction will come into play from March 15th, so you’ll have to wait a while if you’re a customer on the standard variable tariff. So you’ll still be paying more while it is cold, regrettably.
These price drops don’t affect electricity prices either.
Now, seeing as this price drop has been a long time coming (too long, you might say, given that the price of wholesale gas has been dropping steadily for the past 12 months), it does leave ScottishPower customers still paying hundreds of pounds over the odds, compared to those who have already shopped around and switched to a fixed-price deal.
If you’re looking at switching supplier or tariff, then check out uSwitch’s tool where you can search for the best deals.
Gas vendors, SSE, have said that they’re going to be reducing their prices, thanks to a drop in wholesale costs. The 5.3% cut in their standard tariff will come into play on 29th March, just in time for Spring.
SSE said: “This latest reduction will save a typical household gas customer on our Standard tariff £32 per year compared to existing prices and is SSE’s third gas price cut in two years when it announced a unique price freeze in March 2014.”
“SSE customers have not seen an energy price increase since November 2013; indeed, the new gas prices will be 12%, or £78 lower for an average customer than 2013 levels.”
“A typical dual fuel Direct Debit bill on our Standard tariff will be £1,068 compared with £1,162 in November 2013.”
Of course, SSE have been losing a lot of customers of late, so this is clearly a move to win some hearts and minds. Will it work? Well, seeing as all the energy companies are looking at (or have already) dropping their prices, SSE will have to do more than just lower some bills. You’ll remember than E.On made a similar move.
SSE added: “Wholesale energy prices account for an ever-smaller proportion of the bill and there are different cost pressures affecting electricity and gas, but SSE is pleased that it will be able to bring down gas prices three months before its current price freeze is due to end.”
E.On have decided to cut their prices, buckling under the pressure of complaints, saying that the Big Six suppliers haven’t been doing enough. They’re the first of the big guns to lower their prices, saying that there’s going to be a 5% drop in gas bills.
This comes into play on February 1st, and in real money, works out at around £32 off your average bill.
Seeing as wholesale costs have been falling, there’s been a lot of chatter and yelling about gas bills, and after numerous complaints from customers, campaign groups got involved, and so too did energy regulator Ofgem.
Of course, the real good news here, is that E.On dropping their prices invariably means that the other providers are going to have to follow suit, or else look like uncaring tightwads. There’s already rumours that British Gas are preparing a similar cut in price, but were just beaten to the punch by E.On.
If British Gas and E.On do it, then it shouldn’t be too long before EDF, Npower, SSF, and Scottish Power get on board too.
However, you might be thinking that this is all a bit underwhelming… and you’d be right to, even though any fall of price is to be welcomed. This is long, long overdue, as the wholesale prices have been dropping quickly, while the energy companies decided to do nothing for the most part, other than scratch their arses.
Two years ago, Britain’s small energy providers had 2.6% of the market. Since then, the Big Six have been acting like thundering arseholes, and as such, the smaller companies have been making gains and now have 13.4% of the market.
The little independents have been getting loads of new customers in the year to July 2015, while the Big Six managed to lose 660,000 accounts in the same period. The large companies have been offering dismal customer service, and the Competition and Markets Authority recently said that Big Six had overcharged customers by roughly £1.2 billion a year.
“Eventually customers who are on standard tariffs realise that they’re kind of getting ripped off and they look to the market and we’re out there with a great price, with a different message,” said Ed Kamm, chief customer officer at First Utility. Kamm’s company have doubled their customer base in three of the last four years.
He added: “We won’t be satisfied until many more people are switching and saving. We believe the key to this is a fairer, more transparent energy market to ensure consumers are getting the best deal and money can be put back in people’s pockets.”
Npower said that they’ve lost around 100,000 household customers between late 2014 and mid-2015, and everyone else is losing theirs too.
Which!!! honcho Richard Lloyd said: “The Big Six have repeatedly failed to deliver a decent standard of service so it’s no wonder customers are starting to leave them in droves. Despite this the CMA has found there is a lack of competition which is leading to people paying much more than they should.”
“We now need the competition inquiry to bring forward radical changes to boost competition, introduce fairer prices and encourage more households to switch to better deals.”
While that seems like good news, there’s criticisms that the energy supplier isn’t doing enough for customers and that the drop should’ve been more substantial, considering the size of the decrease in the amount British Gas pay for their gas.
Comparison website uSwitch is particularly unhappy, and has accused British Gas of “short-changing” everyone.
“British Gas is the biggest energy supplier so they should really be market leading, setting the trend for the others to follow suit,” Ann Robinson, uSwitch’s consumer policy director, said. “Although the price cut is welcome, I wanted [British Gas] to do far more and almost shame the other companies into taking action. But instead we get a price cut that is far smaller than it should be. It short-changes their customers and lets the other suppliers off the hook.”
“I want all of the suppliers to give customers a decent price cut to reflect what has happened to wholesale prices. We have seen these prices falling; they are at a really low level. And we are not talking about months – it has been well over a year now.”
“The reason suppliers give for not cutting prices more is that they buy their stock in advance, and thus was purchased at a pricier level, but that excuse no longer holds water. Now is the time for big suppliers to treat customers fairly.”
British Gas sent a spokesperson out to defend the company. They said: “We’re cutting our gas prices by 5% for almost 7 million customers, taking £35 off the average annual bill. This is the second time we have cut prices in six months – that’s a total saving of more than £72 over the next year.”
“We always cut our prices by as much as we can, as soon as we can, when we see a reduction in our own costs, and we were keen to do this ahead of next winter. There are many moving parts to the bill, some have gone up, others have come down but in the round we felt able to cut gas prices by 5%.”
Yesterday, British Gas announced a 5% price drop on bills, and it looks like the rest of the Big Six will be following suit.
Of course, Npower, EDF, E.On, SSE and Scottish Power don’t want to be missing out or made to look like awful, greedy, upright swine compared to British Gas. What do you mean that’s what you think of them, regardless?
Energy companies usually announce their changes in September, but with British Gas making the move earlier than usual, you’d expect the rest to follow suit.
If that’s the case, there’s a lot of money to be saved – whether they could’ve passed on more savings is up for debate (we think they could have) – with Npower having around 5.1m customers in the UK, EDF Energy serving 5.5m domestic and business customers, E.On UK having 5m domestic and business customers, Scottish Power having somewhere in the region of 5m domestic and business customers and SSE with over 8m customers. That’s a lot of people getting money off their bills, which we should be vaguely grateful for.
However, the problem is that the industry has seen much bigger drops in wholesale energy costs, so really, they should be doing more for their customers.
Alongside all this, the Treasury has launched an investigation into the sector, regarding the savings that utilities companies could, or should be passing on to everyone. If they are found to be stitching us up, then the government may well intervene… but then again, they probably won’t because, as we all know, all politicians are arseholes.
British Gas has announced a 5% cut in gas bills, which will give the average customer a saving of £35 per year. Now, normally, that’s pretty good news, but this is British Gas who have, to put it bluntly, been taking the piss for years.
Even though this is the second gas price reduction in six months, which combined, is supposed to save us £72, British Gas have enjoyed a 25% fall in the wholesale cost of gas since December 2014. While any reduction in bills is welcomed, they could have absolutely passed on more savings.
Stephen Murray, from MoneySuperMarket and not very happy about the whole thin, said that this price cut is “long overdue, and may seem underwhelming compared to how low wholesale prices are”.
Of course, British Gas have an answer for everything, and they’ve said that other costs had gone up.
Mark Hodges, from British Gas, said: “If you look at transmission costs – the cost of the pipes that move the gas around the country – actually those costs have been going up steadily for a number of years.”
Anyway, the drop in price will come into play from 27th August and will benefit 6.9 million customers.
It’s one of those things that savvy people do- you buy your gas and electricity from the same supplier to get the dual fuel discount because it would be silly not to, especially when said discount is advertised as being £50, £70 or even £100 per year. That’s a lot of lightbulbs. However, new research from Which!!! suggests that actually, buying your gas and electricity from the same supplier might not be the cheapest way to do it.
While we are all sold by the promise of huge cash discounts, quite often in life it doesn’t pay to get tied products if you don’t have to- home insurance as a condition of your mortgage being a great example- and it seems buying energy might follow a similar pattern. Which!!! found that the best deals for gas and electricity on their own were actually with smaller specialist suppliers, and by choosing the best individual deals, you could actually beat the dual-fuel-discount inclusive price of the more mainstream suppliers.
Which!!! reckon that small suppliers, like Daligas and Zog Energy, are often the cheapest for just gas, while electricity suppliers iSupplyEnergy and GB Energy Supply are the most competitive for electricity single supply. By using the best available tariffs, using prices from enrgylinx, Which!!! calculate your total energy costs for a year would be £849 a year, getting gas from Daligas (Daligas One FIX 12 paperless) and your electricity from GB Energy Supply (Premium Energy Saver). The cheapest dual fuel deal available, after deducting any dual fuel discount, comes in at £870, followed by the next cheapest at £913. This means that buying both fuels from the same supplier is actually costing you at least £20-60 more than choosing the best single fuel tariffs.
Of course, depending on how you are with bills, you might decide that the hassle factor of dealing with two suppliers instead of one is worth £20 to you. Also, if you are a switcher, the additional cashback you might get through sites like Quidco or Topcashback might be more than £20 more valuable to you, meaning a dual fuel switch might actually work out better for you. The point is to always assume the headline discount is not necessarily the best deal until proven otherwise. Energy companies are never considered the most trustworthy of brands, so why believe their discounts are the best without investigating it yourself?
It has been reported that 400 or so staff at British Gas and EDF Energy have been given body armour in case someone attacks them. Of course, no-one should be in fear of getting stabbed for simply doing their job, but then, even this hasn’t seen the powers that be thinking that there might be a problem with how much they’re charging: they see issuing stab vests as a solution, rather than making their products affordable.
The vests are being given to staff tasked with investigating energy theft, or those who have to fit homes with pre-payment meters to sort out customers who are in debt.
“Electricity and gas theft is a serious crime which puts lives at risk and adds unnecessary costs to customers’ bills. Because of the nature of the work our energy theft teams do, we’ve made protective clothing available to them,” said a spokesperson for British Gas.
A spokesman for EDF Energy added: “Our staff are issued with stab vests when carrying out debt-related customer visits or visits where the meter has been tampered with.”
Obviously, attacks are rare, and most customers vent their anger in the traditional way – shouting down the phone and the like – but really, this is a bleak indictment of the state of the energy market in the UK.
A couple of days ago, we pointed out that there’s a lot of people losing money because The Big Six energy companies are ripping you off. Well, according to the Competition and Markets Authority, over 95% of households in the UK are indeed paying too much.
They’ve said that everyone could save £234 a year by switching their supply of gas and electricity.
As ever, the ones being hammered hardest are the poor and old, because they either think switching is impossible, or that it’ll be too difficult to do or they haven’t even considered it at all. With the Big Six charging the highest prices and not likely to help you out, then people are being stung via their ‘standard tariffs’.
The watchdog is going to continue to look into this in a bid to find out why people don’t shop around and whether or not the Big Sixers are actively trying to keep everyone “disengaged so as to retain them on high tariffs”.
The CMA are also looking at the possibility that the energy companies are ‘discriminating’ against loyal customers (or indeed, those disengaged) and weighing-up whether the businesses might “exploit and influence” the behaviour of their customers to their own advantage.
With more than 90% of UK households signed-up with the Big Six firms – British Gas, SSE, ScottishPower, E.On, EDF Energy and Npower – this is of course, a big problem. Many customers are with this shower after companies inherited them after the energy market was privatised over a decade ago.
How To Switch
If you want to switch accounts, then you can use an Ofgem-approved price comparison site. Find out about those by starting here. Before doing that, get in touch with your current supplier and ask for an ‘annual summary’, so you’ll have all the info you’ll need to get a better deal. You can also call the Energy Saving Advice Service on 0300 123 1234.
However, there’s a glimmer of hope for us all as wholesale gas prices in the UK hit a record low today, which means that there’s increased pressure on our beloved energy firms to cut our household bills.
So what’s the latest drop in price all about? Well, Ukraine and Russia have signed a deal which will see Moscow resuming gas supplies over the winter, guaranteeing delivery to the EU. Seeing as Russia provides around a third of Europe’s gas, this is good news.
Thanks to the unseasonably warm weather we’re having this time of year, British households are avoiding putting the heating on, which is also having an impact on bills.
Ofgem have said that they are chasing up Britain’s energy suppliers on why they had not passed the significant falls in wholesale costs on to customers this year.
With all these factors, we might just see some price drops in our bills, but don’t hold your breath.
That’s the vibe The National Grid are giving out, as they’ve asked electricity suppliers to indicate how much more spare capacity they have for peak times this Winter.
It wants to be sure that it can muster through each side of Christmas without plunging us all into blackouts.
This scheme has been brought forward by a year, as the Grid have been coping with plant repairs, fires and closures of main power stations.
The idea that the country could face power cuts is going to put the shit up the government, who are already aware that a less-than-fully operational power generation is likely to cause issues.
As part of the greener incentives brought in, new power plants are taking their sweet time to get up to full capacity, while older, more polluting plants become decommissioned.
The jolly sounding Cordi O’Hara, National Grid’s director of UK market operations, reckons: ”At this stage we don’t know if these reserve services will be needed, but they could provide an additional safeguard.”
Power generators would have to prove they’d be available to provide additional electricity between 7am and 9pm from November to February, the months with the highest demand for the likes of lights and heating.
Still, at least bored couples can get off with each other during Christmas powercuts, which means even more September babies, eh?
Obviously this is some kind of butterfingered incompetent mistake from the doofuses (doofi?) at NPower, but incredibly they had been trying to stick by it. Before they received the bill, The Savages got a phone call from the company telling them to prepare themselves for an extremely large bill, and advised them to cancel their monthly £52 direct debit, or their account would be completely wiped out.
(Is it me, or does that seem REALLY WEIRD?)
The bill arrived, with a letter advising Mr Savage to increase his Direct Debit to £7000(!). When Mr Savage called NPower, the call centre lackey was as shocked as he was, and told him that not even Wembley Stadium would be able to run up a gas bill like that. They told him it probably had something to do with a new meter that was installed last year, and not at all anything to do with them being complete idiots.
Meanwhile these poor pensioners have blood pressure through the roof and are afraid to open the door in case the bailiffs come. But NPower said:
‘We are very sorry to hear about the problems Mr and Mrs Savage are having. We have put a stop on the account while we investigate.’
As they’re the most complained about energy company in the Big Six, maybe they could also try to investigate why they’re so crap.
By 2020, your energy bill will look like a phone number. That’s the latest news from Which! who are predicting that energy companies will have to spend £118bn on updating ageing infrastructure between now and then.
And are the energy fat cats going to take that out of their sherry bill or are we going to pay for it? Well, what do YOU think?
Which! has written to the Treasury prior to next week’s budget with a stark warning that the upgrade to the UK’s energy infrastructure could make bills skyrocket – leaving households with an average of £2000 a year to pay. And that’s a conservative estimate. If energy prices go up, we might be looking at a whole lot more.
Consumer firebrand Richard Lloyd has his pilot light set to stun, and said:
‘I don’t think consumers know that this is heading their way and that decision has already been made by the Government. This is a massive chunk potentially on everyone’s bills. This means one thing: that household bills are set to rise, and to rise for many people very steeply for the foreseeable future.’
Which! are campaigning for a full investigation into energy pricing. Meanwhile, we consumers will be quaking in our boots when the budget is announced, praying that we don’t get shafted even further.