Energy direct debits

Many thousands of people across the UK have had their energy direct debits hiked in the last few months, sometimes by as much as two or three fold. Yet often it seems the increase bears little or no resemblance to the increased cost of gas and electricity.

Worse still, many providers WON'T lower the payments without a fight, even when it's obvious you're overpaying enormously.

The price and what you pay aren't the same

The reason this can happen is the difference between the price and what you pay.

• The Price. Power costs are set by suppliers, usually with a daily 'standing charge' plus an additional amount based on energy used measured in kilowatts/hours. So the lower the rate and your usage, the less you owe.
• What you pay. With MONTHLY direct debit, the company estimates annual usage and then divides it by twelve so you pay that each month. Thus with low summer use, you'll usually build up a credit, but this'll be needed for winter months.

The problem is, some bills don't follow this logic and are massively overestimated, as if providers are making the figures up as they go along. What's more, overpay and you'll often have to wait until the end of the year to claim the cash back, whereas underpay and the difference has to be made up straight away.

Do note; QUARTERLY direct debits are different. There you pay depending on what you've used, but the price is then higher.

Fight back NOW

The most important thing is to always do a meter reading. If you don't, it's tough to argue what a reasonable charge is. Assuming you do that, if you're heavily in credit, ask for your money back.

Then it's a question of starting to negotiate and demand an explanation as to why your debit's been pumped so high. Better still send a quick letter explaining it should be lowered.

For a full step-by-step guide to this, including free template letters to send to your provider, see the "Unfair Energy Direct Debit" guide in the 'useful links' section. It also explains how to take a case to the Ombudsman if all else fails.

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Don't wait for price cuts

1) Compare and switch - never switched? Then now is not the time to be complacent as you are likely to be paying a premium on your energy bills. Getting the right deal for you - dependent on where you live, your actual energy usage and how you like to pay - is key to saving those pounds. If you use a price comparison service, check that it is accredited under the Consumer Focus Confidence Code, impartial and upfront about how it earns its money.

2) Pay the easy way - if you pay by cash or cheque you could be paying £94 a year on average more for your energy than paying by direct debit. Not only is direct debit easy, but many suppliers offer a discount for paying this way.

3) Switch two for one - dual fuel (buying gas and electricity from one supplier) can save time and money. Not only do you benefit from dealing with just one bill and one supplier, but dual fuel plans can also offer a discount.

4) Go online - customers on standard plans are paying on average £168 more than new online customers. This is an easy saving to make - don't be put off by it being called an ‘online' plan as some suppliers will only expect you to register online and then manage your account in the same way as before.

5) Keep on top of energy bills - make sure you give regular meter readings to ensure you are being billed accurately and review your energy bills at least once a year to ensure you are still on the cheapest deal.

6) Insulate, insulate, insulate - don't spend hard earned cash heating up the street and not your home. Make sure your loft is insulated to a depth of at least 10 inches.

7) Shed some light on savings - contact your supplier or the Energy Saving Trust to find out whether you would be eligible for a grant or financial help towards making your home more energy efficient.

8) Switch it off - before you go to bed make sure you turn off all appliances such as TVs, computers and DVD players at the socket. Fit energy efficient light bulbs and make sure you turn lights off when not using a room.

9) Turn it down - most of us have the heating on way too hot. Turn it down by just one degree and you could save up to 10% on bills.

10) Cut out the draughts - check your windows and doors are sealed against draughts before the winter chill turns your home into an icebox.
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The 10 big energy myths

Myth 1: solar power is too expensive to be of much use

In reality, today's bulky and expensive solar panels capture only 10% or so of the sun's energy, but rapid innovation in the US means that the next generation of panels will be much thinner, capture far more of the energy in the sun's light and cost a fraction of what they do today. They may not even be made of silicon. First Solar, the largest manufacturer of thin panels, claims that its products will generate electricity in sunny countries as cheaply as large power stations by 2012.

Myth 2: wind power is too unreliable

Actually, during some periods earlier this year the wind provided almost 40% of Spanish power. Parts of northern Germany generate more electricity from wind than they actually need. Northern Scotland, blessed with some of the best wind speeds in Europe, could easily generate 10% or even 15% of the UK's electricity needs at a cost that would comfortably match today's fossil fuel prices.

Myth 3: marine energy is a dead-end

The thin channel of water between the north-east tip of Scotland and Orkney contains some of the most concentrated tidal power in the world. The energy from the peak flows may well be greater than the electricity needs of London. Similarly, the waves off the Atlantic coasts of Spain and Portugal are strong, consistent and able to provide a substantial fraction of the region's power. Designing and building machines that can survive the harsh conditions of fast-flowing ocean waters has been challenging and the past decades have seen repeated disappointments here and abroad. This year we have seen the installation of the first tidal turbine to be successfully connected to the UK electricity grid in Strangford Lough, Northern Ireland, and the first group of large-scale wave power generators 5km off the coast of Portugal, constructed by a Scottish company.

Myth 4: nuclear power is cheaper than other low-carbon sources of electricity

If we believe that the world energy and environmental crises are as severe as is said, nuclear power stations must be considered as a possible option. But although the disposal of waste and the proliferation of nuclear weapons are profoundly important issues, the most severe problem may be the high and unpredictable cost of nuclear plants.

Myth 5: electric cars are slow and ugly

We tend to think that electric cars are all like the G Wiz vehicle, with a limited range, poor acceleration and an unprepossessing appearance. Actually, we are already very close to developing electric cars that match the performance of petrol vehicles. The Tesla electric sports car, sold in America but designed by Lotus in Norfolk, amazes all those who experience its awesome acceleration. With a price tag of more than $100,000, late 2008 probably wasn't a good time to launch a luxury electric car, but the Tesla has demonstrated to everybody that electric cars can be exciting and desirable. The crucial advance in electric car technology has been in batteries: the latest lithium batteries - similar to the ones in your laptop - can provide large amounts of power for acceleration and a long enough range for almost all journeys.

Myth 6: biofuels are always destructive to the environment

Making some of our motor fuel from food has been an almost unmitigated disaster. It has caused hunger and increased the rate of forest loss, as farmers have sought extra land on which to grow their crops. However the failure of the first generation of biofuels should not mean that we should reject the use of biological materials forever. Within a few years we will be able to turn agricultural wastes into liquid fuels by splitting cellulose, the most abundant molecule in plants and trees, into simple hydrocarbons. Chemists have struggled to find a way of breaking down this tough compound cheaply, but huge amounts of new capital have flowed into US companies that are working on making a petrol substitute from low-value agricultural wastes.

Myth 7: climate change means we need more organic agriculture

The uncomfortable reality is that we already struggle to feed six billion people. Population numbers will rise to more than nine billion by 2050. Although food production is increasing slowly, the growth rate in agricultural productivity is likely to decline below population increases within a few years. The richer half of the world's population will also be eating more meat. Since animals need large amounts of land for every unit of meat they produce, this further threatens food production for the poor. So we need to ensure that as much food as possible is produced on the limited resources of good farmland.

Myth 8: zero carbon homes are the best way of dealing with greenhouse gas emissions from buildings

Buildings are responsible for about half the world's emissions; domestic housing is the most important single source of greenhouse gases. The UK's insistence that all new homes are "zero carbon" by 2016 sounds like a good idea, but there are two problems. In most countries, only about 1% of the housing stock is newly built each year. Tighter building regulations have no effect on the remaining 99%. Second, making a building genuinely zero carbon is extremely expensive. The few prototype UK homes that have recently reached this standard have cost twice as much as conventional houses.

Myth 9: the most efficient power stations are big

Large, modern gas-fired power stations can turn about 60% of the energy in fuel into electricity. The rest is lost as waste heat.

Even though 5-10% of the electricity will be lost in transmission to the user, efficiency has still been far better than small-scale local generation of power. This is changing fast.

Myth 10: all proposed solutions to climate change need to be hi-tech

The advanced economies are obsessed with finding hi-tech solutions to reducing greenhouse gas emissions. Many of these are expensive and may create as many problems as they solve. Nuclear power is a good example. But it may be cheaper and more effective to look for simple solutions that reduce emissions, or even extract existing carbon dioxide from the air. There are many viable proposals to do this cheaply around the world, which also often help feed the world's poorest people. One outstanding example is to use a substance known as biochar to sequester carbon and increase food yields at the same time.

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MoT energy check for homes proposed

Householders and factory owners should face penalties if they fail to cut energy use in their properties, according to the Foresight Programme report.

It might mean an owner being denied property insurance or being unable to sell the building if it fails a compulsory energy inspection which would take place every 1-2 years.

To encourage a stronger take-up of green measures - such as better insulation and more efficient boilers - a package of grants and subsidies should be offered by the Government with the possibility of property tax rebates for those who carry out the work.

"To push households and firms into taking action on this issue it may be necessary to signal a strong intent to impose and enforce mandatory regulation at a given time in the future, say three to five years, if sufficient progress has not been made," the report says.

Foresight, part of the Government Office for Science, was commissioned to look at energy systems in the built environment and to examine the challenges over the next 50 years.

Energy use in homes, factories and offices is responsible for more than 50 per cent of CO2 emissions and the report concludes that this will have to change dramatically if the UK is to meet its legally-binding target of cutting greenhouse gas emissions by 80 per cent by 2050.

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the gas & electricity switching service that compares all energy suppliers

The world's first legally-binding bill to cut carbon emissions includes a plan to guarantee homes and businesses that use their wind turbines and solar panels to feed the national grid a set fee for doing so.

But while environmentalists have welcomed the move, the Association of Electricity Producers (AEP) claims that it will undermine existing schemes to force energy firms to invest in renewable energy.

AEP chief executive David Porter told Reuters that, while the idea was commendable, it could mean that energy companies pause their developments to see if they could receive more money by scaling back production and claiming through the new scheme.

The agreement that forces energy firms to produce electricity from renewable sources is called the renewables obligation (RO).

"We are strongly in favour of the renewables obligation and the RO, or a mechanism like it, only works if the government maintains it consistently," said Mr Porter.

"Every time you meddle with it you damage the confidence that people have in the RO and it has to be rebuilt."

If you want to find out more about switching energy suppliers and how you could save up to £378 in minutes, click here.
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Avoid These Energy Rip-Offs This Winter!

Loyal customers lose out

One of Ofgem’s key findings is that customers who are loyal to their energy supplier often lose out.

Those who get their electricity from a company which was formerly the key supplier in their local area are likely to pay around 10% more than new customers who live elsewhere.

Effectively, companies earn extra profit from consumers who have remained loyal to an incumbent electricity supplier -- while offering newbies far more competitive deals.

What’s more, energy companies also modify the tariffs they offer on a regular basis. This means existing customers are likely to get a worse deal than those who’ve just switched to an energy supplier, as each new ‘version’ of an energy tariff tends to be more competitive than the last.

How you pay affects how much you pay

This might not surprise many Fools -- but Ofgem has confirmed that the way you pay for your energy affects how much you’re charged.

Using a pre-payment meter (PPM) is generally the most expensive option. Ofgem data reveals that, at the start of 2008, ‘medium’ gas and electricity users with PPMs paid an average of £125 more per year for their fuel than those who paid by direct debit.

Similarly, ‘medium use’ customers who pay their energy bills quarterly in arrears (by ‘standard credit’) spend £80 more per year than those who pay by direct debit.

Crucially, Ofgem has concluded these price differences are not always justified. That’s because the cost to companies of accepting PPM or standard credit payments is sometimes lower than the premium they charge customers for using these methods of payment.

Once again, suppliers aren’t playing fair with these individuals -- and worryingly, it’s the people who are least able to cope with additional costs that tend to use standard credit and PPMs to pay for their energy.

Doorstep deals are dodgy

According to Ofgem, consumers who change their energy supplier after a doorstep discussion don’t always benefit from the savings they are sold.

In fact, as many as 48% of gas customers and 42% of electricity customers won’t achieve any reduction in the price they pay after signing up with a new supplier in this way -- so it’s certainly not a method of switching I’d recommend.

Avoiding these energy rip-offs

If you want to cut your energy costs this winter, it’s vital to avoid all the pitfalls I outline above.

Here are my top tips for bagging a better deal on your energy:

* Don’t stick with your existing supplier. Ofgem’s report suggests that around 46% of consumers have never switched suppliers or have done so only once -- but as loyalty doesn’t pay in this situation, they’re probably paying over the odds for their energy.

* Consider an online tariff. According to Ofgem’s report, customers who opt to manage their gas and electricity bills online save an average of £50 a year. Just remember, when using an online tool, to always enter your annual energy usage in kilowatt hours (kWh) to get the most accurate price comparison possible. If you can’t find this information, it’s a good idea to phone your existing supplier and ask for it

* If it’s possible for you, think about paying for your gas and electricity by direct debit. This could cut the annual cost of your energy by £80 -- or even more if you’re a ‘high user’.

* Always ensure that your energy bills show actual, rather than estimated, meter readings. Remember, you can read your meters yourself and submit the details to your supplier to ensure you’re being charged correctly.

I believe energy suppliers have been getting away with too much, for too long -- and I’m thrilled that Ofgem has stepped in to issue a few stark warnings. But until we see regulation tightened, customers who refuse to accept poor service, inflated prices and unfair charges hold the key to making these companies behave better.

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Get stuck in to the DIY boom

Sales of do-it-yourself (DIY) “how to” guides at B&Q are up 30 per cent since the start of the credit crunch, indicating that Britons are keen to cut back on tradesmen's fees of hundreds of pounds-plus for small household jobs.

To help readers, Times Money has compiled a list of straightforward tasks that carry big savings if tackled without help, and those jobs best left to the experts.

You can find step-by-step guides for these and other everyday tasks at the websites of retailers such as B&Q (diy.com). Also helpful are the free video guides at specialist websites, such as videojug.com and howto.tv.

For an idiot-proof introduction to DIY, however, consider taking an evening course at a local college (see below). These cost as little as £100 for ten weeks. John Worgan, who teaches the subject at the Hampstead Garden Suburb Institute, in North London, says: “Taking a course means that you get to ask lots of questions and experiment in a safe environment first.”

Put up curtains

Hanging your own curtains is a simple question of cutting a track or curtain pole to length and screwing it to your wall. You will need a pole or track kit (from about £10), a hacksaw, cordless drill and screwdriver (about £15 in total) - all of which will, again, become staples of your tool kit. Note that thick curtains will cut heat loss and your heating bill.

Insulate your loft

The Energy Saving Trust says that loft insulation could save the average family £155 a year in heating costs. For the average loft it should take about an hour to lay roll-out insulation (about £250). You can obtain government grants towards this, regardless of income. For details go to governmentgrants.co.uk.

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How to insulate your home

As part of Energy Saving Week, surveyors in a fleet of 23 cars are going around the country taking thermal images of homes. The initiative, sponsored by the Energy Retail Association, is adopting a door-to-door approach. It offers homeowners a thermal image of their property and advice on what can be done to reduce carbon emissions and potentially save on energy costs.

This saving could prove to be considerable. In a recent survey by B&Q more than three quarters of respondents said that they would prefer to live in a period property than a modern one despite it leaking heat, CO2 and money.

If you are not fortunate enough to come across one of these cars, then B&Q has some handy hints for you - depending on the age of your property. Understanding what period your home belongs to will help you to understand what energy-efficiency measures you may need to take.

Homes built before 1919

About 20 per cent of UK homes were built before 1919. All tend to have solid-wall construction, so cavity wall insulation is not possible. But you can insulate the loft. These homes are often over-ventilated, so draught-proofing is one of the best ways to reduce heat loss. Look at windows, doors and even letterboxes and cat flaps.

Homes built 1919-44

About 19 per cent of UK homes were built in this period. Most have cavity walls and are suitable for insulation. This is one of the most cost-effective measures for energy efficiency that you can make. Again, loft insulation is relevant. Watch out for draughts through the floors, particularly around skirting boards.

Homes built 1945-64

This was the era of the “new town”. There will most likely be cavities between the outside walls, so insulation here and in the roof will reduce heating costs. A mineral wool quilt under wooden floors is best for draught-proofing these properties.

Homes built 1965-84

The 1970s popularised larger homes with mass-produced double-glazing. Many properties will have loft insulation and only some will need cavity insulation. The best way to prevent draughts in these properties is to insulate solid floors using polystyrene, phenolic foam or cork with chipboard.

Homes built since 1985

With construction regulations and vast improvement in building materials, houses are now much more energy efficient. Lofts should have insulation and cavity wall insulation will not be required. For draught-proofing remember to fit underlay beneath carpets or laminate flooring to reduce heat loss.

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UK must cut greenhouse gases by 80 per cent, says Committee

He cited the following options to cut emissions:

* Improved energy efficiency by insulation, power saving and new technology in buildings and industry.

* An increase in renewables and replacing existing fossil fuel power stations with "clean technologies" like nuclear and coal connected to carbon capture storage.

* Cutting emissions from fuel by hybrid engines, biofuels and electric cars.

* Improved efficiency in heating by combined heat and power stations, ground source heat pumps and use of biomass in boilers.

* Reducing carbon produced by heavy industry such as steel and cement through new technologies.

Lord Turner said: "We have the potential to reduce our emissions by 80 per cent or more by using energy far more efficiently, by investing in developing new energy sources and by making relatively minor lifestyle changes."

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Modify your home to lower energy bills

• Add the proper insulation. Upgrading the insulation in your attic to at least an R-38 or as high as an R-49 level is one of the most cost-effective things you can do to make your home energy efficient. If your budget is squeaky tight, ceiling insulation is most important. Remember, heat rises.

• Install a programmable thermostat. We have all forgotten to turn down the heat or turn up the air conditioning before we go to bed or leave for work.

• Turn down the temperature on your water heater. This simple tip can not only save you money, it can decrease your potential for being scalded with hot water when taking a shower or even washing your hands.

• Wash clothes in cold water. Many of today's detergents do a great job of cleaning your clothes in cold water, and can even get out those grass and dirt stains.

• Seal leaky windows and doors. One of the cheapest ways to improve your heating and cooling efficiency is to seal leaks around your home's doors and windows. Use a high-end silicone or adhesive caulk.

• Use compact fluorescent light bulbs. These bulbs are all the rage now and use one-third the electricity versus incandescent bulbs, yet last up to 13 times longer and produce less heat. Look for K6500. Its light is bright white.

• Add roof ventilation. Attics require soffit venting and ridge or pot vents.

• Add ceiling fans in every room. Ceiling fans are a great way to help you make a home more comfortable and use less energy. During the summer, ceiling fans move the air to improve the air-flow, and in the winter a fan set at slow speed can push warm air away from the ceiling and spread the heat evenly in a room. Ceiling fans are also attractive and can improve your decor.
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Energy firm Ecotricity introduces bill payments through e-banking sites with OneVu

Renewable energy supplier Ecotricity has signed up with OneVu to offer its customers a greener billing alternative which will help to reduce the number of paper invoices and statements being produced and sent across the postal system.

Under the agreement, Ecotricity's domestic customers can now use OneVu's unique service to view and pay their bills through the secure environment of their online bank, whilst contributing to an initiative that reduces carbon dioxide emissions and lessens the pressure on natural resources.

Ecotricity's main focus is building new green energy sources, and in 2007 alone, the company invested £25 million in wind energy. This figure, equating to over £550 per customer, is more than 100 times the national average when compared to other UK electricity suppliers. To achieve and increase such levels of investment, the company is committed to streamlining business process and reducing overheads by identifying and using cost-effective and responsible solutions such as the OneVu service.

The OneVu service is free for consumers to use and offers a convenient and secure access to a large and growing number of biller websites, saving the consumer time and providing a greater control of personal finances. For billers there are significant savings to be gained through the reduction in processing and postage of paper bills, a decrease in call centre costs and reduced debtor days.

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Top 10 tips for reluctant landlords

From next Wednesday landlords must provide tenants with an energy performance certificate (EPC) or face a £200 fine. You have to provide an EPC only when you re-let to a new tenant. The EPC gives your house an A-G rating on energy efficiency and suggests ways to improve your rating. It costs about £100 and is valid for ten years. Find an accredited domestic energy assessor at hcrregister.com
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Fuel Bills Slashed for Heating and Cooling 300 Year Old House

The 300 year-old house has moved away from traditional oil-fired central heating systems and now benefits from an Ecodan air source heat pump system which uses free energy from the outside air to provide central heating and hot water.

Mrs Fox estimates that by converting to Ecodan system, the family should save around £500 a year on fuel bills, and reduce CO2 emissions from their house by 50%.

“We decided to look for an environmentally friendly alternative to our oil-heating system because it was proving costly, and as our village doesn’t have gas, we looked at alternatives such as wood, solar power and biomass-based systems, but many of these proved difficult to operate,” she explained.

“We are an environmentally aware family and try to do our bit, recycling as much as possible and insulating the house to the highest standards to preserve energy; so when we found Ecodan it made environmental sense, promising energy savings and lowering our carbon footprint.

“The Ecodan unit that is kept outside the house is a similar size to an old-style boiler, but it’s much quieter than our old oil-fired one and doesn’t blow out foul-smelling fumes,” said Mrs Fox.

“Since converting, we have a much more even temperature throughout the house and no longer suffer from drafts. The heat seems to be much gentler and there are copious amounts of hot water – even for my two teenage children who seem to live in the shower!”

By using free energy from the outside air to provide space heating and hot water, Mitsubishi Electric’s Ecodan, the easy to install, low carbon alternative to a traditional gas or oil boiler, can dramatically reduce home running costs and CO2 emissions.

With a conventional gas boiler, one kilowatt of energy delivers less than one kilowatt of heat to a building. With an Ecodan heat pump boiler, one kilowatt of energy delivers a heat output in excess of 3 kilowatts – that’s a 300 per cent increase in energy efficiency – and that is set to grow as the technology develops.

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Save Your Energy With A Bit Of Work

Gas prices have risen by an average of 52 per cent this year, while electricity costs are typically 28 per cent higher than in January.

That means the average annual bill has shot up by £380 in eight months.

Spiralling fuel bills have pushed many customers to switch energy suppliers, with comparison site moneysupermarket.com reporting a 39 per cent increase in visitors during the first six months of the year.

Consumers, however, are left in a quandary as to whether to move to a cheap online variable rate deal - knowing prices could rise again before the end of the year - or sign up to a fixed-rate deal.

The cheapest fixed-rate tariff in Scotland is the Scottish Power Fixed Price Energy 2009 deal, with a typical cost of about £1190.

However, the cheapest online variable rate deal is the British Gas Click Energy 5 deal, which costs about £855 for average consumption levels in Scotland.

nsulation is one of the keys to saving energy, as about 33 per cent of heat in a home disappears through the walls alone.

Cavity wall insulation can cost as little as £150, depending on the type of home you live in, yet could save between £130 and £160 a year.

Grants are available from the likes of British Gas and EDF Energy, and local authorities could pay 75 to100 per cent of the costs depending on your circumstances.

Loft insulation is another great way to save. Typically, it will cost about £200 to £250 if you install it yourself, or £500 if you have it done professionally. However, the savings can amount to about £155 a year.

A formof insulation that is often overlooked, but which can pay for itself very quickly, is floor insulation.

To lift floorboards and insert mineral wool insulation costs about £90 if you do it yourself, and could save you about £40 a year.

If you're looking for a cheaper method, use a regular tube sealant such as silicon to fill the gaps between the floor and skirting boards. At a cost of about £20, you should recoup yourmoney within the first year.

Another option to reduce heat loss is double glazing, with the two panes of glass creating an insulating barrier. This is expensive - installing double glazing for six windows typically costs around £3000 - but you can get secondary glazing, which is much cheaper.

Reducing the heat loss through windows should save you about £100 a year on your energy bills. But double glazing could also earn you a discount fromyour home insurance provider, thanks to the extra security it provides.

Draught-proofing is another wise investment. Filling gaps to stop cold air entering the home could save about £25 a year on energy bills, and most of the materials are available fromDIY stores.

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Brits would change energy supplier to save £200

Energy price hikes have brought people to feel the need for change. Approximately half of the UK's households have never changed their gas or electricity tariff but only 20 per cent of people surveyed now say they wouldn't change their tariff if an annual saving of up to £200 was on offer.

Research by price comparison site moneysupermarket.com shows energy users could save a whopping £483 by swapping - well over double the saving that most people crave.

Scott Byrom, utilities manager at moneysupermarket.com, said: "The hammer blow of two rounds of price hikes so far in 2008 means people are in more need than ever to tighten their purse strings. Gas has risen by 52 per cent since the start of the year and electricity by 28 per cent. Every pound counts at the moment, especially with other day to day living costs on the rise too.

"With winter looming, it's encouraging to see a large proportion of bill payers are actively looking to save."

Londoners and the Welsh are keenest to save, with only 17 per cent of them being unimpressed by a saving of £200. Those in East Anglia though are least likely to change, with 25 per cent unmoved by a £200 cut, including an astonishing 16 per cent saying they would never change.

Scott Byrom added: "The survey found 11 per cent of people would never swap supplier, which is quite worrying. I would have thought a potential saving of £200 would have been enough to convince everyone to take that simple step.

"British Gas Click Energy 5 is the cheapest tariff on the market at present, but its price might increase soon. Even if it does, virtually all online, monthly direct debit tariffs will still be cheaper than any Standard deal.

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Digging deep for home heating

Alternative energy As the cost of fossil fuel climbs, interest is growing in geothermal systems, which take heat stored beneath the Earth's surface and moves it above to furnace units and distribution systems inside buildings

Tapping the Earth's energy is a hot topic and getting hotter as the cost of fossil fuels rises.

"It's the best thing we ever did," says Pat Dobben of Drayton, Ont., as she describes the geothermal system she and her husband, Luke, installed in their 120-year-old farmhouse three years ago.

At that time, she says, only a quarter of the 1,900-square-foot house was insulated.

"The rest was double brick. That was how they did insulation years ago. With the oil furnace, our bills were atrocious - over $4,000 a year - and the house was still cold."

They decided to bite the bullet and invest $20,000 in a water-based geothermal system.

"Now, I have a warm house in winter and a cool house in the summertime," says Dobben, "and we don't have much of a hydro bill."

According to NextEnergy Geothermal, the company that installed the system, "the Dobbens are saving approximately 65 per cent annually on their heating bill and, with the additional savings on air conditioning and hot- water bills, can expect a full return on their investment in eight years - at current oil prices. The Dobbens were also eligible for a federal grant for installing a geothermal system."

A geothermal system takes heat stored beneath the Earth's surface and moves it from underground pipes to a furnace unit and distribution system inside a building, where it is dispers edevenly.

To cool, the system works in reverse, returning heat to the soil.

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Crash Gordon's plans are cold comfort

So Gordon Brown has decided that the best way to reduce energy bills is to provide free cavity wall and loft insulation to the poorest households. Discounts on household improvements are on offer to everyone else. Laudable as this is, the big question remains: will it work? The Government's record of running schemes to promote energy efficiency is not encouraging.

One of the central planks of Mr Brown's plans is to extend the existing Warm Front programme to an extra 40,000 households. This is supposed to provide pensioners and those on benefits with help to make heating and insulation improvements.

However, shoddy workmanship and poor management has left thousands of vulnerable individuals, who have already attempted to claim, out in the cold. Age Concern, the charity, says that it has come across many cases in which delays to work have left pensioners without heating. Others have had to pay to remedy poor workmanship.

Alternative schemes have also been plagued with problems. The offer of grants to help households to generate their own power had to be suspended because the Government underestimated its popularity. The fear is that the Prime Minister's latest plans will descend into similar chaos, meaning that it will be years before households receive help.

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Better off pay for energy efficiency

Insulating your loft can be a hazardous affair. Gordon Brown appeared to put a foot through the ceiling yesterday as he scrambled to prevent an escape of voter warmth over soaring energy prices.

The Prime Minister denied it and Britain's big six power companies sought to play down the idea, but the truth is that most of the £910 million cost of the Government's new fuel poverty scheme will ultimately be shouldered by consumers in the form of higher gas and electricity bills.

While nobody would argue against the merits of improving energy efficiency, it would be naive to believe that this money can be rustled up out of thin air.

The Government has simply created an additional cost for power companies - which they will try their utmost to recoup.

They will pass on as much of the expense as they can, either by raising prices again next year by more than they might otherwise have done - or, in the event of a future fall in wholesale prices, by delaying price cuts for longer.

The scheme will thus be paid for by those wealthier households who won't quality for the benefits.

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Home microgeneration tariffs: win-win

To date, the average take-up of microgeneration technologies across European households has been relatively insignificant; the main detractor being that microgeneration hardware is uneconomical and that the supply of power it generates is poorly matched to typical household demand. Therefore, the majority of microgenerating households still need to be connected to the local supply grid, or opt for energy storage and standby power systems, the size and inefficiency of which often makes standalone microgeneration inefficient.
Microgeneration is often touted as a costly and less reliable alternative to grid energy that can only provide a small fraction of the energy consumed by a typical domestic property. However, driven by the supply side, new market initiatives are boosting the appeal of microgeneration technologies.

However, in Germany - which has the largest solar market in Europe - the affordability of microgeneration was tackled by reducing payback time through two main initiatives: government-underwritten loans at a fixed interest rate, and regulation ensuring consumers were guaranteed a decent price for excess electricity exported back to the grid, far in excess of what consumers in the UK can currently expect.

In isolation, and without other incentives, microgeneration in the domestic market is unlikely to be economically viable in the short to medium term, and possibly even in the long term. There are too many significant hurdles in the current environment - including an inadequate energy export market, and a lack of guaranteed pricing propositions - for a viable market to emerge through natural market forces.

In addition, a lack of consumer awareness is preventing demand from being converted into actual purchases, and high front-loaded equipment and installation costs are acting as a deterrent to mass market demand. Various issues regarding metering, connection to the distribution network and balancing/settlement issues are also preventing widespread take-up of electricity generating technologies, as is the problematic design, management and regulation of energy networks.

Not only this, but the insufficient skills base for the future, combined with the lack of engagement with the construction industry, are undermining the feasibility of domestic microgeneration. There is also a pressing need for a more supportive legislative environment which embraces change affecting all aspects of the energy generation and usage model to create real economic incentives and true demand pull.

However, over the past few years, several new UK market initiatives have emerged that go some way towards counteracting the key limiting factor: inadequate direct legislative and regulatory environment support.
A good example of such initiatives is Good Energy's Home Generation offering, which is designed to support people with microgenerators - such as solar panels and micro wind turbines - by paying them for every unit of electricity that they generate, including those that they use themselves. The scheme also requires the microgenerator to be a supply customer of Good Energy, meaning that any power consumed by the customer from the grid will be supplied by Good Energy's 100% renewable electricity.

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50 easy ways you can live green (and save money while you're at it)

Being energy-effcient and eco-friendly does not have to be a hassle. Sarah Lonsdale shows you how

1 Light pipes: Light from outside, captured through roof-mounted domes is 'piped' into rooms via reflective tubes. One 12 inch diameter pipe can deliver 400 watts of light. From £198; www.sunpipe.co.uk.

2 Freecycle: A wonderful way of getting rid of unwanted household goods, and acquiring wanted ones for free. Saves millions of tonnes of household waste from landfill. Find your local freecycle group from www.freecycle.org and post wanted or unwanted items which are circulated to group members via regular emails.

3 Clay-based paints won't fill your home with chemical fumes in conventional paints which contain toxic solvents, arsenic, formaldehyde and heavy metals. Earthborn paints use clay and natural pigments and contain zero Volatile Organic Compounds (VOCs). £22 for a 2.5 litre pot; www.earthbornpaints.co.uk.

4 Ditch those energy-guzzling outdoor Christmas lights and festoon your garden with firewinders. The wind turns the spirals which power the 14 LED lights and create a magical glow at wind speeds as low as 4 miles per hour. The faster the wind, the brighter the light. Available at £99.95, from end October; www.firewinder.com.

5 Sheep's wool insulation: 100 per cent recycled, breathable, completely natural and giving Britain's hill farmers a market for their products. Approved for loft and timber-framed cavity wall insulation. From £9.50 per square metre for 100mm thick; www.secondnatureuk.com.

6 The Roberts solarDAB is the world's first solar-powered digital radio. Sit on a sunny windowsill and enjoy digital radio quality - powered by the sun. Display includes a 'light meter' to help you locate it in the sunniest part of the house. £80 from www.robertsradio.co.uk.

7 Energy efficient washing machines save on electricity and water too. New ones use 40 litres per wash, compared to 100 litres in older models. A spin cycle of at least 1200 rpm obviates the need for a tumble drier. Latest Energy Saving Recommended model (ESR) is the Hotpoint AQXXD169, retailing at around £335; www.hotpoint.co.uk.

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Solar panels are a 'waste of money', says Rics

Installing “green” energy saving measures in the home is so expensive it can take more than 200 years to cover the cost.

Solar panels are one of the least cost effective upgrades, according to the Royal Institution of Chartered Surveyors (Rics), which today published The Greener Homes Price Guide.

The cost of adding solar panels to the average home is between £4,000 and £5,000, but the energy savings are worth as little as £24 a year, according to Rics, meaning it would take about 208 years to pay back the price of installation.

The report also reveals that the average cost of replacing a wall-mounted boiler with a more energy-efficient version is about £1,700. But with expected savings of just £95 a year, it would take up to 18 years to offset the cost.

The most cost effective energy saving measure is cavity wall insulation. At a cost of between £440 and £2,400, depending on the size of the home, and an average energy savings of as much as £145 a year, the cost could be paid back over as little as three years.

A large free-standing wind generator can cost anything from £12,000 to £24,000 to install. But they are only really economic or practical for people in rural areas, particularly those not connected to the electricity grid. Even then, and taking account of electricity fed back into the grid, it would take at least 15 years for them to pay for themselves.

The same goes for ground-source heat pumps. They take natural heat from the ground and boost it to useable levels using a small amount of external electricity.

The Energy Savings Trust, a government-backed group that promotes better energy use, says that a six-kilowatt ground-source heat pump will cost up to £10,000 to install and save as much as £750 a year in energy costs. But heat pumps work best with under floor heating, which can cost a further £20,000 to install.

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Heat on Brown over cost of energy

The prime minister has been accused of letting Scottish households "plunge into fuel poverty" by not acting to address rising energy prices.

It comes after Gordon Brown told business leaders in Glasgow he had decided a one-off cash rebate would only be a gimmick.

First Minister Alex Salmond said the windfall gains of energy giants should be used to help people with bills.

Mr Brown has indicated the focus should be on improving energy efficiency.

Mr Salmond said this showed the prime minister was out of touch with real people.

He said: "Gordon Brown may think that helping people with their fuel bills this winter is a 'short-term gimmick'.

"The reality is that it is a pressing need for households which have been plunged into fuel poverty by soaring energy prices."

Energy efficiency

A UK Government statement on energy prices is expected next week, but it is thought a windfall tax will not be among the measures announced.

Ministers were hoping to unveil a package of help with fuel bills, including payments of between £50 and £100 per head.

But after energy firms refused to help provide the cash, the focus is now being put on improving energy efficiency, rather than securing immediate savings.

Accusations of "caving in" to the energy companies over cash rebates have been denied.

Fuel poverty is defined as when more than 10% of household income is spent on fuel bills.
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A step-by-step guide to cutting all your bills

As the outlook for the current economic climate shows little sign of improving, increasingly hard-pressed households will be looking for ways to tighten the financial belt as incomes continue to be ravaged by mounting food, fuel, mortgage and motoring costs.

New findings from consumer body Which? show that 46 per cent of people plan to reduce spending in the coming year in the face of these increased demands on their finances, with half planning to cut back on non-essential items, such as clothes, DVDs or books – while many are holding off on buying big-ticket items.

At the same time, there are no signs of the current inflationary pressures easing over the short term, so it's time to look at ways of trimming your monthly expenditure on the basics, in order to balance the books.

The good news is, there are some simple bill-busting steps you can take to economise and offset rising household costs.

UTILITY BILLS

The price of utilities such as gas and electricity have rocketed of late, and many of us have seen our bills go through the roof. Almost every household across the UK has been hit by the soaring cost of oil, and felt the pinch as gas and electricity providers have put up their prices.

In the latest round of hikes, Scottish and Southern Energy (SSE) and Eon both increased their gas and electricity prices; SSE introduced hikes of 19.2 per cent on electricity and 29.2 per cent on gas, while Eon introduced increases of 26 per cent to its gas and 16 per cent to its electricity prices.

"These hikes are a hammer blow to households," says Scott Byrom from the price comparison service Moneysupermarket.com. "They show that the energy giants are reeling from the rapid spike in wholesale gas prices."

Given that things only look set to get worse, now is the time to take steps to keep a lid on your bills, and one of the simplest ways of cutting costs is by switching supplier.

If you have never switched before you could save nearly £300 by moving to a better deal elsewhere, according to price comparison service Confused.com – although the amount will vary according to your supplier and tariff, and the size of your bill. The whole process is very straightforward, and most of the legwork – and paperwork – is done for you.

Consider switching to an online tariff, which tends to be cheaper than a standard tariff, and opt to pay by monthly direct debit, as providers tend to reward customers who do this with a discount. You may be able to make savings by buying your gas and electricity from the same provider – known as a "dual fuel" plan; these deals typically include discounts or reduced prices.

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Barack Obama, climate change is change we can believe in.

Speakers at the Democrats’ convention this week, by and large, have taken as dim a view of fossil fuels as the Iraq war. If you were quaffing your brew at each mention of "alternative energy" from the podium, you’d have a lot of recycling to do by now. The green theme climaxes tonight, with environmental hero Al Gore setting the stage for the candidate’s address.
Since he launched his campaign, Obama has offered remarkably detailed proposals and demonstrated fluency in the language of energy and carbon. He promises a broad agenda aimed at growing sustainable industries quickly. That means jobs, profits and a balm for the planet, but it’s a riddle when, or if, that growth would offset the financial costs of change.

If he takes the helm, Obama’s blueprint may be welcomed by an admiring Congress. Then comes the hard part: implementing it.

Like rival John McCain, Obama proposes a market in permits to emit greenhouse gases, commonly termed "cap and trade." His approach is stricter, however, and his final goal -- an 80% reduction from 1990 levels by 2050 -- more ambitious. Even though emissions limits are defined by the government, cap and trade is widely seen as a fair, market-driven way to, in Obama’s words, make "dirty energy expensive."

Coal generates half the country’s electricity, but with carbon costs imposed, new plants won't be built. Under Obama, investors may shun coal producers that only sell domestically while favoring those that feed booming demand overseas, such as Peabody Energy Corp. Meanwhile, firms that crack the engineering challenge of burying coal emissions underground would get more than a few contracts.

Assuming that a Congress renews key tax incentives, utilities would hurry to add renewables to their mix, playing into the hands of wind energy specialists such as Vestas and solar companies like Energy Conversion Devices Inc., Sunpower Corp. and private BrightSource Energy.

Obama is not a friend of nuclear power but urges the industry to solve its chronic waste storage and other problems. With coal in the doghouse, though, the pressure to go nuclear would build. That’s where natural gas comes in. In his energy factsheet, Obama makes special mention of the cleaner-burning fossil fuel, the No. 2 source of U.S. electricity. He promotes drilling in the Barnett shale in Texas, among other places. After all, the Illinois senator doesn’t see renewables contributing more than 10% of our power supply by 2012, and even that may be a reach.

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Obama’s Green Dream: Would His Renewable-Energy Plan Make a Difference?

Barack Obama’s week in the media sunshine ended abruptly with John McCain’s surprise pick of Sarah Palin for his vice-presidential running mate. But after Thursday’s big speech, it’s worth taking a look at one of the centerpieces of Sen. Obama’s energy policy: The call to invest $150 billion in renewable energy like wind power, solar power, and second-generation biofuels over the next decade.

That sounds like a big number, even if it works out on a yearly basis to a more modest $15 billion. But how does it compare to the actual challenge of overhauling the entire U.S. power sector, which is still overwhelmingly dependent on coal, natural gas, and nuclear power?

Earmarking $15 billion a year amounts to less than what the U.S. government spent last year on all energy subsidies, but it would be a lot more than what the government spent on “renewables.” Last year, Washington paid $16.7 billion in federal energy subsidies, with $4.8 billion for renewables, including ethanol.

On paper, Sen. Obama’s plan looks like a way to easily finance continued, long-term support for renewable energy—support that has been tripped up in Congress by budgetary “pay-go” rules and Republican opposition so far. And many in the clean-energy game figure if they can just get long-term price support for things like wind and solar power, the private sector will take care of the rest. After all, even with the specter of subsidies expiring at the end of this year, the U.S. has broken records for new wind and solar power installations.

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Energy groups increase pain with gas price rises

Npower and ScottishPower today became the last of Britain's big six energy suppliers to raise gas and electricity bills, adding at least another £162 a year to millions of customers’ heating costs.

Npower, the UK’s fourth-biggest energy group, will increase gas prices by 26 per cent and electricity bills by 14 per cent.

From today, the company’s 6.6 million customers will pay an average £162 more each year for gas and an extra £60 for electricity.

At the same time, ScottishPower has raised its gas bills by 34 per cent, the second largest rise after British Gas increased its gas prices by 35 per cent last month.

ScottishPower also announced today that it has increased its electricity prices by 9 per cent, which will come into effect on September 1.

The company's 1.2 million customers will pay £221 more a year on gas and an extra £38 for electricity.

Like ScottishPower, npower is blaming today's price rises on “massive” increases in wholesale costs which it claims has made its previous pricing levels unsustainable.

The company said prices had risen by 122 per cent for gas and coal and by 79 per cent for oil over the last 12 months.

The company, which already increased prices in January, claimed that, until today, its domestic gas prices had been the same as they were 18 months ago owing to a decrease in bills in 2007, despite wholesale tariffs more than doubling.

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Is Your Green Electricity Tariff Just a Con?

Ecotricity takes a different approach. It guarantees that it will invest some of its customers' money in building new renewable energy, and thereby increase the total amount of renewable power generated in the UK. Dale Vince, founder of Ecotricity, argues that what is really needed is greater certainty for renewables investors, and that the best way of doing this is through providing dedicated funds for investment. Controversially, Vince does not believe that retiring ROCs is worthwhile, as it does not send a clear signal to the market: 'it's a very poor second-best to actually building something.'7 As these examples show, there are some genuinely green deals around, but cutting through the confusion is difficult to achieve. Even those familiar with energy issues struggle to assess the relative merits of the different tariffs.

The Advertising Standards Agency recently took British Gas to task for claiming that it was selling 'the greenest energy tariff in the market', on the grounds that there was no way of verifying the claim. The National Consumer Council blames the confusion, and lack of independent verification, for the less-than-impressive levels of enthusiasm among would-be -greener householders.8 Many businesses, too, are calling for greater clarity. As companies are increasingly being asked to count their carbon, they need to know what sort of electricity they are buying. BT, for example, is working with energy suppliers, the gas and electricity market regulator Ofgem, the Carbon Trust and others to get some basic information about the carbon content of the power that it buys.

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Hit us with a tax and the public will pay for it

The energy industry has claimed that the public would bear the brunt of a windfall tax, giving warning that there was serious risk of bills going up.

Half of Britain's energy companies have already raised their bills twice this year and the remainder are set to follow suit before the autumn, taking average household bills just shy of £1,500 a year.

The industry said that a windfall tax would lead to more inflation-busting increases, with companies struggling to find money to invest in ageing power stations and networks.

“If you take money out of the companies and they have to find it somewhere else, then their investment costs will go up and customers will have to bear the brunt of that,” said David Porter, chief executive of the Association of Electricity Producers. “There is a serious risk that bills would go up.”

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Pensioners' leader attacks E-ON price hike

A NOTTINGHAM pensioners' group has condemned energy giant E.on for putting "account books above human beings".

The Nottingham Pensioners' Action Group claims the firm's decision to impose inflation-busting rises in the price of gas and electricity could push more of the city's elderly below the poverty line.

From today, the German-owned group is putting up electricity by 16% and gas by 26%.

But they say a quarter of customers – including pensioners – will be unaffected because of price protection plans.

E.on blames rising wholesale energy costs which have put outlay up by 51% since February.

Average dual fuel customers could see their bill increase by as much as 62p a day – or £17 a month.

Roy Tomlinson, pensioners' group chair, said: "This is going to have a great impact, especially on the back of recent hikes by other energy and utility companies.

"The increases all add up and I think we will be seeking action on this.

"There has been no thought whatsoever about human beings, only their own account books."

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Solar plane makes record flight

The trial, which took place between 28 and 31 July, also included the participation of the UK Ministry of Defence.

The 30kg Zephyr was guided by remote control to an operating altitude in excess of 18km (60,000ft), and then flown on autopilot and via satellite communication.

It tested a communications payload weighing approximately 2kg.
At first sight, the propeller-driven Zephyr looks to be just another model aircraft, and it is even launched by hand. But this "pilotless" vehicle with its 18-metre wingspan incorporates world-leading technologies.
Its structure uses ultra-lightweight carbon-fibre material; and the plane flies on solar power generated by amorphous silicon solar arrays no thicker than sheets of paper. These are glued over the aircraft's wings.

To get through the night, the propellers are powered from lithium-sulphur batteries which are topped up during the day.

"A lot of effort has gone into power storage and light-weighting the systems," explained Mr Kelleher. "Lithium sulphur is more than double the energy density of the best alternative technology which is lithium polymer batteries.

"They are an exceptional performer. We've worked with the Sion Corporation. They've had them in development for years. We're actually the first application in the world for them."

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Ten tips to beat energy price hikes

1. Check out tariffs

Price comparison Web sites such as www.theenergyshop.com look at the different providers to calculate how much you could save by switching to a different supplier. You can also get a list of the supply companies operating in your area, together with the prices they charge, from Energywatch, the gas and electricity watchdog, by calling 0845 906 0708.

2. Are you entitled to benefits?

Billions of pounds' worth of benefits go unclaimed every year and fuel-poor households could be entitled to significant rebates. If you are aged 60 or over, you can claim a tax-free Winter Fuel Payment of 250 pounds or more, which should be paid in automatically if you receive a State Pension. If you are over 60 and not receiving the payment, call the government's Winter Fuel Payment helpline on 08459 151 515.

3. Could you sign up for social tariffs?

Many energy suppliers have begun to finance social tariffs, which offer fuel discounts of up to 300 pounds a year to the elderly, the disabled, families with young children and those on income support. To find out more, call your energy supplier and ask if you could benefit.

4. Get free advice

Ron Cambell of National Energy Action advises all customers to freephone 0800 512 012 to speak to their local Energy Efficiency Advice centre. These centres also maintain complete listings of all grants and sources of benefit aid and home improvement available in your local area.

5. Get a grant to improve the energy efficiency of your home

An estimated 66 percent of home heat is lost through poorly insulated roofs and walls, and fixing the problem could represent a sizeable saving on your energy bills. Government grants of up to 4,000 pounds are available to help cover the cost through the "Warmfront" scheme. Grants cover loft and cavity wall insulation, draft prevention, repairs of faulty boilers and assessment of your home's energy status. To check your eligibility, freephone 0800 316 6011.

6. Get energy-efficient light bulbs

Your choice of light bulb can make even more of a difference to your final bill than turning off the lights when you leave a room. Energy-efficient light bulbs last up to 10 times longer and use a fraction of the power required by ordinary bulbs. The Energy Saving Trust estimates that each energy-efficient light bulb saves the average household 7 pounds a year in electricity bills.

7. Mind the radiators

Avoid putting large items of furniture in front of radiators as they block heat flow. If you dry your clothes indoors, hang them over drying racks rather than dampening the heating power of your radiators with soggy laundry. You can also wrap tinfoil around pieces of cardboard and slot them behind your radiators to reflect heat back into the room.

8. Curtain call

Thicker curtains retain more heat, especially if they're cut to fit your windows properly, resting just below the bottom of the pane. Heat can be funnelled away under curtains that are too long, especially if the radiators are located underneath the windows in a room. Cheap net curtains provide an extra layer of insulation and help to retain heat whilst letting natural light into a room.

9. Turn off your computer and other electrical appliances. Huge amounts of energy are wasted every day by power-hungry laptops and desktops being left switched on whilst not in use. Computer monitors in screen-save mode reduce energy consumption by only a few watts. Up to 75 percent of energy used to power home electronics is used when these devices are "switched off", costing British households an estimated 800 million a year in fuel bills. Set your computer to hibernate when you aren't using it, and take an extra 30 seconds to switch it off properly at the end of the day. Dimming the monitor by just a few settings of brightness can also save energy.

10. Insulate your loft

Many houses have lofts that are not insulated at all, meaning that a lot of heat escapes through the roof. Figures from the Energy Savings Trust suggest that by adding 250 mm loft insulation where none was present could save 80-100 pounds annually on your energy bills.

(Sources: Energywatch, Winter Fuel Payment Helpline, National Energy Action, Energy Saving Trust)

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Beginner's Guide: Cutting Household Bills

10 Ways To Cut Your Water Bill


1. How Are You Billed? The traditional way is to receive a yearly bill based on your home’s old rateable value (a rough estimate of how much your house could be rented out for), regardless of how much water you use.

But now you can opt to have a water meter fitted to calculate your actual usage instead.

2. Shower: A daily bath uses 80 litres of water, while a shower uses around 35 to 40. Over a year, by showering, a couple could save more than £65.

3. Water Saving Devices: The Hippo, or similar devices that displace water in your cistern, are not terribly expensive, and could save you up to three litres each time you flush. Any submerged object, such as a few handfuls of marbles, will achieve the same effect.

Water-saving showerheads restrict the amount of water that comes through – though it may take longer to wash. As an alternative spend less time in the shower. More on water saving devices at Save Water, Save Money .

4. Fill Up: Make sure dishwashers and washing machines have a full load before you turn them on.

5. Fix Drips: A dripping tap could waste as much as 90 litres of water a week. Have it fixed.

6. Turn Off The Tap: When you’re brushing your teeth or shaving, fill the basin rather than letting the tap run.

7. Reuse Water: Instead of chucking water down the drain reuse it - water from a cooking pot, for example, can be reused for watering plants.

8. In The Garden: Water butts are a great way to harvest water for use in the garden.

9. The Lawn: Reduce the frequency with which you mow your lawn. Not only will it save your electricity (or your back!) but a longer lawn needs less watering than closely cropped turf.

10. The Plants: And soaking your plants once a week, rather than watering daily will save your money and keep your plants strong as their roots probe more deeply for the water.

10 Ways To Cut Your Fuel Bills


1. Switch Now? Martin Lewis, the guru behind Money Saving Expert, advises us to wait until all providers have increased their prices. If you switch now you may find yourself paying even more when your new supplier pumps up their prices.

2. Have A Free Home Energy Check: Complete the free home energy check at Energy Saving Trust and you'll receive a report telling you how you can save up to £270 a year on your household energy bills.

3. How You Pay: By switching to a monthly direct debit you could cut your bills by around ten per cent. And by moving to an internet-based account your savings could be even greater. Don’t pay an estimated bill - always read the meter. You don’t want to hand over more cash than you need to, or end up with a big bill at the end of the year either.

4. Cheaper Tariffs? Grants? If you’re struggling financially find out if your company has a cheaper tariff designed to help people on a low income. Check with the Energy Saving Trust to see if you're eligible for grants and offers.

5. Energy Monitor: A home energy monitor will record your electricity consumption and convert it into a monetary value, based on the cost price of your electricity, so you can see how much all those cups of tea really cost you.

Although last year we were told that the Government would be giving us all a monitor, free of charge, we’re still waiting.

6. Insulate: Cavity wall insulation is estimated to reduce heat loss and thus save on heating bills by around £100-£120 a year. At a cost of around £500 to fit, the insulation could pay for itself in as little as four years.

Loft insulation (to a depth of 270mm) is another big carbon cutter as it seriously reduces the loss of rising heat. The estimated cost of £300 could be well worth it, with heating bill savings of around £110 a year.

7. New Boiler: A modern condensing boiler uses up to 40 per cent less energy. Despite the £500 price tag, the savings could be as much as £240 a year, meaning you could've covered the cost in just over two years.

8. Turn It Down: If you turn your thermostat down by just 1°C, you could cut your heating bills by up to ten per cent, saving you around £50 a year.

9. Switch Off: Don’t leave your electrical appliances on standby. Items left on standby use up to 85 per cent of the energy they would use if fully switched on.

10. Lightbulbs: Energy saving light bulbs could save around £65 during each bulb's lifespan, thanks to their low power output and their longevity.


Nikki Sheehan
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Cut Your Energy Bills By 75%?

There are two types of people in this world, those who turn off the lights when they leave the room, and those who leave them blazing away.

I'm a switcher-offer, but my girlfriend is a leaver-oner. Last week, she accused me of following her around the house, flicking off the lights behind her. I confessed. With the cost of energy soaring, I said in my defence, we can't afford to squander electricity.

And with the average household now spending more than £1,200 a year on home energy bills, you probably can't afford it either.

High energy

Now we come to the big money. If you haven't properly insulated your walls, roof, loft, water tank, pipe and floor, the work could save you on average £501 a year.

Installing a brand new heating system could save up to £155, while double glazing and draught proofing your house could save £150.

That makes a total saving of £972.70. Sounds wonderful doesn’t it… but alert readers will have noticed there is a catch.

Installing double glazing, buying a whole new heating system and replacing all your white goods such as dishwashers will set you back thousands, or even tens of thousands of pounds. It could be years before you see a return from that outlay.

So we can take those figures with a pinch of salt. But that doesn't mean you shouldn't do your bit. Don't you know there's a credit crunch on? Not to mention a warming planet. Plus, as long as you don’t move house before you break even, making these improvements should eventually prove cost-effective.

Save the planet

Some of you might be able to get a Government grant for the work. Pensioners over 60 who receive state help such as pension credit, council tax and housing benefit can claim up to £2,700 in energy-saving grants under the Government's Warm Front scheme, called Warm Deal in Scotland and the Home Energy Efficiency Scheme in Wales.

Many local authorities also award grants to local residents to help them cut their energy usage. The Energy Saving Trust website helps you search for details of grants and awards. It also gives you plenty of advice on cutting back on energy use.

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'Pickpocket' foreign fuel giants 'ripping off' Britons to keep energy bills down in Europe

Foreign energy firms have been accused of 'picking the pockets' of 11 million British customers while capping price rises in their home countries.

French-owned EDF has announced a 22 per cent rise in gas bills and 17 per cent on electricity for its 5.5million UK users.

At the same time, it has secretly raised gas prices for some of its most vulnerable customers by as much as 75 per cent.

The increases are in stark contrast to the situation in France.

EDF has been told by the government there to cap its increases on electricity to just 2 per cent and gas to 5 per cent.

There are fears the company, which is part-owned by the French government, is looking to protect its profits by imposing punishing increases on UK families.

The price cap in France will not stop EDF imposing big rises in the cost of electricity it sells to Britain via a cable under the Channel.

The increases were strongly criticised yesterday by Ed Mayo, chief of the National Consumer Council.

'Closed and protectionist European energy markets end up picking the pockets of consumers in this country,' he said.

He suggested Britain should consider introducing French-style price caps. 'If the French are capping prices, that is something we should be looking at. We should learn from the French,' he said.

'My concerns are for people on fixed income, such as pensioners, who will be switching off their electricity and heating this winter. That will lead to more illness and disease.'

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The handbag which can charge your mobile

Nicknamed the Power Purse, the clutch uses solar panels to harness the sun’s rays, and convert them into electricity.

The power is transmitted to a USB port inside, allowing women to charge their electronic gadgets while on the move.

Joe Hynek, a mechanical engineering student, designed the bag during a competition at Iowa State University in the US and it has been well-received by eco-conscious followers of fashion.

The 29-year-old said: “It begins working every time the user steps outside. People are very excited because it expresses ecological and environmental themes in addition to the function provided of charging your phone and iPod.”

The black rectangular bag is patterned with laminated solar panels made of photovoltaic cells.

Power is channelled to a circuit linked to two batteries concealed in the lining of the bag, and to a USB port.

The bags needs two hours of full sunlight to charge a mobile phone battery, and can power most other small devices including cameras, BlackBerrys and personal organisers.

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Don't make the consumer pay for these inflated fuel prices

It was only last April that energy secretary John Hutton persuaded Britain's big six energy companies to double their spending on social tariffs for the fuel poor, to £100m this year. The proud boast was an extra 100,000 people would pay greatly reduced fuel bills. Then came commitments to invest in renewables and nuclear as part of a concerted drive to make Britain's energy more secure, cheaper and with a lower carbon footprint. In energy legislation, economic rationality, social justice and business-friendly policies were marching in happy union. Labour had everything under control.

Four months later and the story looks very different. Oil prices have rocketed; gas prices followed suit. Although they try to hedge against such massive price hikes, energy companies are having to increase their tariffs. Centrica has been pilloried on all sides for raising gas prices by 35 per cent; frankly, given that the price of natural gas in the wholesale markets has risen by 350 per cent in 12 months, the surprise is that the hike is so small.
If John Hutton had succeeded in taking 100,000 out of fuel poverty, gas price rises on this scale will plunge another million straight back into a grim universe in which 10 per cent of their income is dedicated to paying energy bills, the definition of fuel poverty. Suddenly the air is thick with calls for windfall taxes on energy companies, particularly as oil giants BP and Shell are reporting massive profits.

Such loot should be diverted to alleviate the conditions of approaching five million fuel-poor, runs the argument. After all, in 1997 New Labour raised some £5bn in a windfall profits tax - justified because the privatised utilities had been given away too cheaply - to fund spending on education and the New Deal. Now it should do something similarly radical and popular to head off electorally damaging increases in its voters' fuel bills. Chancellor Alistair Darling is said to be actively considering just such a move.

But as much as introducing a one-off tax on the energy companies to make a one-off payment to the fuel-poor, the government needs to address the way the entire energy market - and welfare system - is organised. To further tax Centrica, for example, whose 58 per cent tax rate is the highest in the FTSE 100, simply because the oil price has gone up is arbitrary. Is the government proposing a rebate when oil and gas prices fall?

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Beat the heat on gas bills

It's not too late to try to offset the 35 per cent price rise announced last week by British Gas, but you will have to move quickly to get the best fixed or capped price deal, writes Rosie Murray-West

Householders shocked by the record British Gas 35 per cent price jump last week are being warned by experts that they ain't seen nothing yet.

One price comparison website, energyhelpline.com, claims that gas and electricity bills could be another 40 per cent higher by the start of next year. Analysts at Eclipse Energy go further and predict a 60 per cent rise by 2010. No wonder many experts say that householders should lock into fixed and capped price deals without delay, even though some of the best were withdrawn last week.
Before British Gas raised its prices by 35 per cent for gas and 9.4 per cent for electricity - meaning that dual-fuel customers will pay 25 per cent more - EDF Energy had already increased gas prices by 22 per cent and electricity prices by 17 per cent. Other suppliers are expected to do the same.

"These were the first, but everyone else is expected to follow suit within two weeks," says Mark Todd of energyhelpline.com. "There is also likely to be another rise of 20 per cent in January or February - it is very grim news."

By switching off your electrical equipment rather than leaving the red standby light blinking, you could reduce your electricity bill by up to 8 per cent a year. And turning your thermostat down by 1C will cut heating bills by up to 10 per cent.

Other measures include draught-proofing your home, while insulating the hot-water tank should cut £20 off your annual bill, says British Gas. Replacing all your conventional incandescent light bulbs with energy-efficient versions will save you about £45 a year for a typical three-bedroom property.

Those receiving certain state benefits (for example, pension credit) can claim up to £4,000 under the Government's Warm Front scheme to make their home more energy-efficient. These grants can pay for installing loft insulation, central heating, a new boiler and cavity wall insulation.

To check your eligibility, go to warmfront.co.uk or call the Energy Efficiency Advice Centre on 0800 512 012. Other contacts include energywatch.org.uk (tel 08459 06 07 08); uswitch.com (0800 404 7908); moneysupermarket.com (0845 345 5708); energyhelpline.com/cashback (0800 074 0745). See sust-it.net to find out which appliances are the most energy-efficient.

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China's 'rapid renewables surge'

China's rapid investment in low carbon technologies has catapulted the nation up the global renewable energy rankings, a report shows.
The Climate Group study said China invested $12bn (£6bn) in renewables during 2007, second only to Germany.
However, it was expected to top the table by the end of 2009, it added.
The findings have been published as China faces criticism over its air quality ahead of the Beijing Olympic Games, which begin on 8 August.
The report, China's Clean Revolution, brings together the latest data on the country's burgeoning renewables sector in one publication.
Co-author Changhua Wu, The Climate Group's China director, said the rapid rise in investment was, in part, the result of the government realising that the western model of industrialisation was unsustainable.
"China has been experiencing similar problems during its industrial revolution that western nations saw during their period of rapid growth - pollution, environmental damage and resource depletion," she told BBC News.
It has the world's largest hydroelectricity capacity since the controversial Three Gorges project began producing electricity, and the fifth largest fleet of wind turbines on the planet.

Although its installed capacity of photovoltaic (PV) panels is still relatively low, it is already a leading manufacturer of solar panels.
Ms Wu explained that the rapid growth of the sector was being driven by both government and business.
"In order to really drive towards a low carbon economy, policy incentives are crucial; but it is not always the case," she said.
"The wind sector's fast growth was mainly a result of domestic policies, because the government offered incentives to developments so that private and public sector entrepreneurs would jump on it.
"But the solar PV sector benefitted mainly from the international market, such as demand from the US and EU.
"Even today, the policy incentives are still not there, yet it still has grown to the level it is now."

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Households must pay more just as gas price falls

It is the biggest gas price rise in British history and probably the most badly timed. Only a day before the announcement by British Gas that household bills would rise by a third, the wholesale gas price fell off a cliff.

Last week a utility could buy gas on the spot market for next-day delivery at about 60p per therm. On Tuesday the price had fallen to 33p per therm. If British Gas was in the market on Tuesday evening, filling up its portfolio with short-term gas supplies, it did some very good business.

Of course, it is more likely to be bad timing than cynical opportunism. Spot gas prices are notoriously volatile and consumer price rises of this importance and magnitude are not decided over lunch. British Gas was doubtless as surprised as other gas traders by the scale of the market collapse on Tuesday.

The reasons for the sudden weakness are many, say market operators, who point to the start-up of several North Sea fields that were out of commission for maintenance, and the warm weather.

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Gas price hikes: your stories

I am one of the few people in the UK who actually looks forward to energy price rises. I'm a designer or renewable energy products so hope that the rising prices of gas and electricity will force people to re-consider where they get their energy from. People are currently reliant on the big energy companies and don't think about investing in "inflation proof" energy.

I design ecological, renewable energy products for people's homes but feel that there is no government investment in this sort of clean energy. I can't get any government grants to fund my designs and local authorities make it almost impossible to install clean energy products, like small wind turbines. In Germany, the government provides 100% grants for people to install solar panels.

I am not affected by the gas price hikes as I heat my home the most energy efficient way with an electricity powered heat-pump. A solar heating water system costs only two thousand pounds to install and would pay for itself, especially as energy prices rise. Every new-build property should have one but the government don't seem to be seriously committed to renewable energy.

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Home energy consumption has been reduced, but what are the reasons?

Some good news for a change. In each of the past three years, the amount of fuel burnt in UK homes has reduced. Reversing what had looked like an inexorable long-term trend of increases.
The biggest drop has been in gas consumption, down 12 per cent in just three years. Gas being the main fuel for heating and hot water, that implies our heating systems and building fabric are getting more efficient. Or it could just mean we have had some unusually mild winters. Or, more alarmingly, that rising prices are leading to deliberate heat rationing.
With the number of gadgets per home increasing, one might have expected electricity consumption to be rising. But over the past three years, we have just about held steady overall consumption levels in our homes. Again, a comforting headline figure.

Before we become too complacent, we have to remember that, up until 2004, we were witnessing a pretty steady increase in consumption levels. Between 1990 and 2004, overall energy consumption in homes soared by 19 per cent.

In its 2004 Housing Act, the Government legislated that during this decade English households would become 20 per cent more energy efficient. Are we on track to achieve this statutory commitment?

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Power firm shocks with huge price rise

EDF Energy, one of the big six UK power firms, today shocked customers with tariff rises that will see fuel bills soar by more than 20%.
EDF has increased its electricity prices by 17% and its gas prices by 22%. The hikes, which some into effect immediately, will put a massive £200 on the average annual dual-fuel bill of £1000.

The company blamed record wholesale energy costs for the increases. This is the second hike this year for EDF, which raised its tariffs by 8% for electricity and 13% for gas in January.

Eva Eisenschimmel, chief operating officer of EDF Energy customers branch, said: 'Record world oil prices have continued to drive up wholesale gas prices.

'Alongside unprecedented rises in wholesale coal and electricity costs, this has impacted hugely on the cost of supplying energy to our customers.'

The French firm is one of Britain's biggest energy suppliers with 5.1m customers. Other energy companies are expected to follow the move.

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Scottish & Southern Energy tells of cost pressure

Electricity and gas bills look set for double-digit rises in the next few weeks as Britain's second-biggest energy supplier said that it was under unbearable pressure to pass on rising costs.

Wholesale gas prices have risen by 60 per cent this year and Scottish & Southern Energy (SSE) yesterday told investors that the soaring gas price would lead to substantially lower first-half profits than in previous years.

Ian Marchant, SSE chief executive, said it was becoming increasingly hard to keep retail energy prices down, as wholesale prices soar. He said: “The extent of the energy shock with which the entire global economy is having to contend has been well documented, and its full impact on prices for electricity and gas in the UK has still to be felt. We are continuing to resist the pressure to put up prices for domestic customers, but doing so is becoming more difficult by the day.”

British Gas, the UK's biggest energy supplier, with 16 million customer accounts, is expected to move first to raise prices, possibly as early as next week when interim results of its parent, Centrica, are issued. Centrica last week published a report saying that with oil at about $140 a barrel, the price of gas for an average household could hit £1,000 a year over the next two years.

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Self sufficient 'smart homes' promised by 2010

The world's first commercially available "smart" homes, which will be virtually self-sufficient in energy terms by using cutting-edge efficiency and microgeneration technologies, will be available by the end of 2009 for rent in Barcelona and Paris, developers told a conference in Spain yesterday.

The Smart Energy Home (SEH) consortium, a collaboration of university researchers, chemical and construction companies, hope that the homes will demonstrate the potential for cutting down personal energy use in the home, with plans for further homes in Warsaw and Berlin and ongoing discussions about a project in the UK.

Rudiger Iden of BASF, one of the companies in the consortium, outlined plans for the demonstration homes at the Euroscience Open Forum meeting in Barcelona. In Paris there will be an apartment block containing 200 dwellings, while in Barcelona, the SEH consortium will build around 40 flats.

On average, a family expends around 3,000 kilowatt-hours of energy per year and around 70% of that is used up in and around our homes. Iden said that SEH was aimed at reducing the environmental impact of this proportion virtually to zero.

Some of the technologies slated for use in the homes are tried and tested, such as using renewable energy sources to generate electricity - either wind turbines or solar PV panels and concentrators on the roof - and better thermal wall insulation. The SEH homes could also use smart energy-management systems that can, for example, use sensors to work out where there are people in a house and turn heating and lighting on and off depending on where it is needed.

Other ideas will be more advanced, such as the use of phase-change materials to even out fluctuations in temperature inside a building. These wax-like materials are embedded into the walls, storing heat when temperatures are high by melting. When external temperatures drop, the materials solidify and release the trapped heat back into the house. To even out seasonal changes in temperature, homes could collect excess energy during summer and use it to freeze a block of water in their basement. When the building next needs cooling, the water can be melted.

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