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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Thursday 31 July 2008
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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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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Wednesday 30 July 2008
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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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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Friday 25 July 2008
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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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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Thursday 24 July 2008
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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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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Monday 21 July 2008
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.
continue
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.
continue
Friday 18 July 2008
What Is Brown's Gas?
Brown's Gas, often referred to as HHO, is 2 parts hydrogen gas, and one part oxygen gas (by volume). Because it has the same elements and in the same proportions as water vapor, and because it is composed of Oxygen and Hydrogen, it is often not clearly understood what makes Brown's gas different from what you might buy from commercial suppliers of industrial gas (for instance).
Ordinary hydrogen and oxygen gas, when purchased commercially, or when produced by ordinary electrolyzers, comes in the form of 02 and H2. That is, the molecules of both gases form molecules of 2 atoms each. This is a more stable state for these gases than when individual atoms are separate as molecules (charged ions) of one atom each.
The problem with H2 and 02 as a combustible gas, is that before they can react together to make H2O, they must first be broken apart into separate H and O atoms. The energy required to do this is a large fraction of the energy you get back when they combine to make H2O.
What makes Brown's gas unique, and much more valuable, is that the hydrogen and oxygen have not formed into H2 and 02 molecules. They are in their monatomic (one atom per molecule) state. In this state, 3.8 times more energy will be returned when the hydrogen burns (combines with oxygen).
More importantly, however, is the reported results of using Brown's gas in internal combustion engines. Monatomic hydrogen makes a superior catalyst for breaking down and burning other fuels, such as petroleum based fuels. Increases in horsepower, mileage (mpg) and cleaner burning (less emissions) have all been reported by people introducing Brown's gas into their vehicle's intake air stream.
Some notes about Brown's Gas:
* In practice, the best electrolyzers will never produce pure Brown's Gas. There is always going to be some percentage of H2 and 02 molecules. The better the design of the electrolyzer, the higher the percentage of Brown's gas there will be.
* Over time, the charged ions, H+ and O- will combine into H2O, H2 and 02 molecules, further reducing this percentage. For this reason Brown's gas is best provided in an on-demand system.
* When creating Brown's gas the electrolyzer doesn't get hot. Electricity is absorbed by the reaction that creates H+ and O- from H2O. When H+ and O- reform into H2 and 02 molecules, they give off heat. This heat can be used as a gauge as to the percentage of Brown's gas being delivered.
* Brown's gas will have double the volume as the same amount of H2 and 02 molecules. This is because it doesn't matter what size the molecules are, it's the number of molecules that determines the volume of a gas. H2 and 02, having 1/2 the number of molecules will have 1/2 the volume. Therefore volume can be used as a gauge of Brown's gas production.
continue
Ordinary hydrogen and oxygen gas, when purchased commercially, or when produced by ordinary electrolyzers, comes in the form of 02 and H2. That is, the molecules of both gases form molecules of 2 atoms each. This is a more stable state for these gases than when individual atoms are separate as molecules (charged ions) of one atom each.
The problem with H2 and 02 as a combustible gas, is that before they can react together to make H2O, they must first be broken apart into separate H and O atoms. The energy required to do this is a large fraction of the energy you get back when they combine to make H2O.
What makes Brown's gas unique, and much more valuable, is that the hydrogen and oxygen have not formed into H2 and 02 molecules. They are in their monatomic (one atom per molecule) state. In this state, 3.8 times more energy will be returned when the hydrogen burns (combines with oxygen).
More importantly, however, is the reported results of using Brown's gas in internal combustion engines. Monatomic hydrogen makes a superior catalyst for breaking down and burning other fuels, such as petroleum based fuels. Increases in horsepower, mileage (mpg) and cleaner burning (less emissions) have all been reported by people introducing Brown's gas into their vehicle's intake air stream.
Some notes about Brown's Gas:
* In practice, the best electrolyzers will never produce pure Brown's Gas. There is always going to be some percentage of H2 and 02 molecules. The better the design of the electrolyzer, the higher the percentage of Brown's gas there will be.
* Over time, the charged ions, H+ and O- will combine into H2O, H2 and 02 molecules, further reducing this percentage. For this reason Brown's gas is best provided in an on-demand system.
* When creating Brown's gas the electrolyzer doesn't get hot. Electricity is absorbed by the reaction that creates H+ and O- from H2O. When H+ and O- reform into H2 and 02 molecules, they give off heat. This heat can be used as a gauge as to the percentage of Brown's gas being delivered.
* Brown's gas will have double the volume as the same amount of H2 and 02 molecules. This is because it doesn't matter what size the molecules are, it's the number of molecules that determines the volume of a gas. H2 and 02, having 1/2 the number of molecules will have 1/2 the volume. Therefore volume can be used as a gauge of Brown's gas production.
continue
Thursday 17 July 2008
energy-comparison compare energy prices to cut costs
Energy providers vary greatly across the United Kingdom, with some large companies dominating the market and smaller companies spread throughout. When choosing your next place to live, or simply looking to cut household costs, it can be important to compare energy prices and companies and prices in the area to see if you can get a bit of a bargain. The British energy market is comprised of several companies: British Gas, NPower, Scottish Power, and a group of other, more local electricity companies that are much smaller in size.
First, find out more about the company options that are available in your areas. Websites like energychoices.com provide electricity switching comparison services, including for gas and electricity, as well as water and broadband based on your postcode. The most important thing to compare is the tariff rate. There are many different options to choose from.
British Gas is one of the largest electricity companies in the United Kingdom and can be one of the cheapest, depending on the area where you live. British Gas is available all over Scotland, Wales, and England., operating under the name Scottish Gas in Scotland. They provide both gas and electricity and have a range of discounts if you sign up for your services online. In addition to providing maintenance, they also provide installation for central heating, such as boilers, and provide repair services. British Gas prices include the possibility of saving £122 on the standard tariff, both on electricity and gas services. They also have the market tracker, which allows you to follow the wholesale energy market more closely than traditional energy products.
nPower is another large energy provider, supplying 6.8 million customers in the UK and is jointly owned by a German energy company. It has three different plans, including a standard plan, a capped plan for a certain time period, and a plan that allows users to derive some supply from green energy sources. Consumers should keep in mind that npower raised its rates for npower gas by 17% and npower electricity by 12.7% in January. But it is still worth checking to see how their prices compare in your area.
ScottishPower is slightly smaller than npower and provides energy to 5.2 million customers all across the UK. It has a much broader range of plans offered than nPower or British gas, including a fixed price energy 2009 plan, an economy 7 plan, and a green energy plan as well, all of which come in different variations. After some price rises in 2006, ScottishPower reduced gas and electricity prices by 16.5% for gas and 6% for electricity.
One major benefit from almost all of the providers is that you will not lose power during the switch, and it is usually free to switch for all providers. However, do your research carefully and run the companies through a comparison engine based on the plan you are looking for . Not all companies may have the same plan, especially if you are looking for something cheaper. Make sure that each plan you compare has the same features. It is usually well worth the bit of effort needed to compare gas and electricity prices, as there are usually savings to be made.
continue
First, find out more about the company options that are available in your areas. Websites like energychoices.com provide electricity switching comparison services, including for gas and electricity, as well as water and broadband based on your postcode. The most important thing to compare is the tariff rate. There are many different options to choose from.
British Gas is one of the largest electricity companies in the United Kingdom and can be one of the cheapest, depending on the area where you live. British Gas is available all over Scotland, Wales, and England., operating under the name Scottish Gas in Scotland. They provide both gas and electricity and have a range of discounts if you sign up for your services online. In addition to providing maintenance, they also provide installation for central heating, such as boilers, and provide repair services. British Gas prices include the possibility of saving £122 on the standard tariff, both on electricity and gas services. They also have the market tracker, which allows you to follow the wholesale energy market more closely than traditional energy products.
nPower is another large energy provider, supplying 6.8 million customers in the UK and is jointly owned by a German energy company. It has three different plans, including a standard plan, a capped plan for a certain time period, and a plan that allows users to derive some supply from green energy sources. Consumers should keep in mind that npower raised its rates for npower gas by 17% and npower electricity by 12.7% in January. But it is still worth checking to see how their prices compare in your area.
ScottishPower is slightly smaller than npower and provides energy to 5.2 million customers all across the UK. It has a much broader range of plans offered than nPower or British gas, including a fixed price energy 2009 plan, an economy 7 plan, and a green energy plan as well, all of which come in different variations. After some price rises in 2006, ScottishPower reduced gas and electricity prices by 16.5% for gas and 6% for electricity.
One major benefit from almost all of the providers is that you will not lose power during the switch, and it is usually free to switch for all providers. However, do your research carefully and run the companies through a comparison engine based on the plan you are looking for . Not all companies may have the same plan, especially if you are looking for something cheaper. Make sure that each plan you compare has the same features. It is usually well worth the bit of effort needed to compare gas and electricity prices, as there are usually savings to be made.
continue
Tuesday 15 July 2008
People opting for home delivery service to cut travel cost
ALMOST everyone is whining about the high cost of driving now, but one type of business concern is laughing its way to the bank with some windfall from the situation.
The fast-food home delivery service is apparently enjoying a surge in business as more and more people opt to stay home for suppers and snacks instead of driving out.
Following the 41% fuel price increase last month, many people are opting to eat at home or for food to be delivered to the door-step.
This way, they save on petrol cost and parking charges.
Plus, there’s the convenience of enjoying the meal in the comforts of the home, while watching television or just chatting among family members.
Nevertheless, consumers should take into account the delivery charges and food quality when it comes to home delivery service.
Some fast food restaurants and food delivery companies have cashed in on the fuel price increase to market their products and services by highlighting the high cost of travelling and promoting the convenience of home delivery service.
By OH ING YEEN
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The fast-food home delivery service is apparently enjoying a surge in business as more and more people opt to stay home for suppers and snacks instead of driving out.
Following the 41% fuel price increase last month, many people are opting to eat at home or for food to be delivered to the door-step.
This way, they save on petrol cost and parking charges.
Plus, there’s the convenience of enjoying the meal in the comforts of the home, while watching television or just chatting among family members.
Nevertheless, consumers should take into account the delivery charges and food quality when it comes to home delivery service.
Some fast food restaurants and food delivery companies have cashed in on the fuel price increase to market their products and services by highlighting the high cost of travelling and promoting the convenience of home delivery service.
By OH ING YEEN
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Insulation is not sexy, but it keeps the bills down
Every year for the next 40 years, half a million UK homes will need extra insulation, new windows and other energy saving features if we are to fight climate change and fuel poverty. The vast majority of our homes were built decades, if not centuries, ago and leak hot air. Eight-five per cent of these draughty, leaky homes will still be standing in 2050, by which date we must have cut carbon emissions by 80 per cent.
He says the average cost of green-refurbishing a home will be £20,000-£25,000, a large sum but far less than building from scratch.
"Despite all the talk about new homes being 'zero carbon' by 2016, the main focus of reducing emissions from the housing sector will have to be on existing homes," says Andrew Warren, a member of Existing Homes Alliance. "Three million people already struggle with fuel bills, spending more than 10 per cent of their disposable income on keeping warm.
"With fuel costs rising, more people will be in fuel poverty by the winter. Simply raising cold weather payments is not tackling the cause.
"What we need is a properly funded Government refurbishment programme to insulate the nation's homes."
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He says the average cost of green-refurbishing a home will be £20,000-£25,000, a large sum but far less than building from scratch.
"Despite all the talk about new homes being 'zero carbon' by 2016, the main focus of reducing emissions from the housing sector will have to be on existing homes," says Andrew Warren, a member of Existing Homes Alliance. "Three million people already struggle with fuel bills, spending more than 10 per cent of their disposable income on keeping warm.
"With fuel costs rising, more people will be in fuel poverty by the winter. Simply raising cold weather payments is not tackling the cause.
"What we need is a properly funded Government refurbishment programme to insulate the nation's homes."
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Victorians can have a green makeover too
Mention eco houses and most people think of modern designs. What doesn't spring to mind is an Edwardian terrace in Hove, for 23 years home to Jeffery and Brenda Marchant. But the couple have spent 18 months making adaptations to their bay-fronted property which have reduced costs (58 per cent on gas and 48 per cent on electricity) and boosted its eco credentials.
'It started a couple of years ago when the energy market started getting tricky,' says Jeffery, a retired Seeboard employee. 'With Russia cutting off gas to Ukraine we thought: there's not going to be any more gas in the world, so what could we do to reduce our consumption?'
One answer, he decided, was solar thermal water heating, as heating water takes up a 'huge chunk' of each household bill. Although solar panels seem costly (around £3,200 with the help of a government grant) he reasoned it would cost twice as much for a 'fancy glass' conservatory. 'This way, I've got a capital investment on my roof which adds value to my property but is saving me money.'
The Marchants' home is one of 14 environmentally friendly homes in Brighton and Hove being showcased this weekend through Eco open houses, an event co-ordinated by the city council, Low Carbon Trust and Brighton Permaculture Trust. The thinking is to inspire change through demonstrating practical steps other householders have taken, from simple measures such as draught-proofing to building from new.
Karen Dugdale
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'It started a couple of years ago when the energy market started getting tricky,' says Jeffery, a retired Seeboard employee. 'With Russia cutting off gas to Ukraine we thought: there's not going to be any more gas in the world, so what could we do to reduce our consumption?'
One answer, he decided, was solar thermal water heating, as heating water takes up a 'huge chunk' of each household bill. Although solar panels seem costly (around £3,200 with the help of a government grant) he reasoned it would cost twice as much for a 'fancy glass' conservatory. 'This way, I've got a capital investment on my roof which adds value to my property but is saving me money.'
The Marchants' home is one of 14 environmentally friendly homes in Brighton and Hove being showcased this weekend through Eco open houses, an event co-ordinated by the city council, Low Carbon Trust and Brighton Permaculture Trust. The thinking is to inspire change through demonstrating practical steps other householders have taken, from simple measures such as draught-proofing to building from new.
Karen Dugdale
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Monday 14 July 2008
Brown sets 'no limit' on number of nuclear reactors to be built
Gordon Brown is to fast-track the building of at least eight nuclear power stations to cut Britain's dependence on oil following the dramatic rise in its price.
The Prime Minister will set "no upper limit" on the number of nuclear plants that will be built by private companies. That would mean nuclear, which provides about 20 per cent of Britain's electricity, could meet a bigger share after the new generation of nuclear stations come on stream over the next 15 years.
Mr Brown fears the UK could experience an energy supply crisis if it does not step up its nuclear programme. He believes that fast-rising oil prices have tipped the balance even more in favour of nuclear and renewable energy, such as wind and wave power, since the Government published a White Paper in January, which backed nuclear.
The Prime Minister's growing enthusiasm for nuclear has provoked controversy. Environmental groups believe that it is not safe and would land taxpayers with a huge clean-up bill after the new plants are decommissioned, pointing to the £73bn cost of phasing out the existing 10 reactors. All except one of them – Sizewell B – will shut down over the next 15 years.
By Andrew Grice
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The Prime Minister will set "no upper limit" on the number of nuclear plants that will be built by private companies. That would mean nuclear, which provides about 20 per cent of Britain's electricity, could meet a bigger share after the new generation of nuclear stations come on stream over the next 15 years.
Mr Brown fears the UK could experience an energy supply crisis if it does not step up its nuclear programme. He believes that fast-rising oil prices have tipped the balance even more in favour of nuclear and renewable energy, such as wind and wave power, since the Government published a White Paper in January, which backed nuclear.
The Prime Minister's growing enthusiasm for nuclear has provoked controversy. Environmental groups believe that it is not safe and would land taxpayers with a huge clean-up bill after the new plants are decommissioned, pointing to the £73bn cost of phasing out the existing 10 reactors. All except one of them – Sizewell B – will shut down over the next 15 years.
By Andrew Grice
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Sunday 13 July 2008
Homeowners who use heating oil seek alternatives
Mark Bancroft is already counting his savings from a European-made wood pellet furnace he's buying to replace the oil furnace in his home.
Bancroft burns about 1,100 gallons of heating oil a year, which would cost him about $5,000 at today's record-high prices. With pellets, he expects to use about 8 tons at $250 a ton this coming winter, giving him a savings of $3,000 a year.
As heating oil approaches $5 a gallon, consumers in the oil-reliant Northeast are looking at pellets, heat pumps, firewood and even geothermal systems to soften the blow of high oil prices -- which have almost doubled in the past year and gone up nearly fivefold since 2003.
Bancroft plans to have his new furnace installed this summer. Even at a cost of more than $12,000, he thinks it will pay for itself within five years. Besides saving money, the construction company owner likes the idea of using a homegrown heat source -- wood -- rather than oil.
"How great is it if we make a move toward this type of heating that can boost the economy instead of sending money to foreign lands for oil?" he said.
About 8 million households in the U.S. use heating oil as their primary heating source, according to the federal Energy Information Administration.
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Bancroft burns about 1,100 gallons of heating oil a year, which would cost him about $5,000 at today's record-high prices. With pellets, he expects to use about 8 tons at $250 a ton this coming winter, giving him a savings of $3,000 a year.
As heating oil approaches $5 a gallon, consumers in the oil-reliant Northeast are looking at pellets, heat pumps, firewood and even geothermal systems to soften the blow of high oil prices -- which have almost doubled in the past year and gone up nearly fivefold since 2003.
Bancroft plans to have his new furnace installed this summer. Even at a cost of more than $12,000, he thinks it will pay for itself within five years. Besides saving money, the construction company owner likes the idea of using a homegrown heat source -- wood -- rather than oil.
"How great is it if we make a move toward this type of heating that can boost the economy instead of sending money to foreign lands for oil?" he said.
About 8 million households in the U.S. use heating oil as their primary heating source, according to the federal Energy Information Administration.
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Friday 11 July 2008
Hedging Heating Bills Just Got Harder
The massive runup in oil prices has claimed another set of victims: those who heat their homes with oil and natural gas. Suppliers of those commodities, having nearly doubled their prices over the past year, are cutting way back on the prepayment plans that many homeowners traditionally sign in the summer months to protect against inflation.
Fortunately, there are several other practical steps that you can take to hedge against potentially insufferable heating costs this winter.
Soaring prices for natural gas and heating oil, along with the day-to-day volatility in the futures markets, have befuddled everyone from oil dealers to consumers. On the New York Mercantile Exchange (NMX), the natural gas contract was $12.391 (as of July 10), up more than 93% from a year ago, while the price of heating oil was up more than 80%. That means homeowners, already feeling the pinch from higher gasoline prices at the pump, will have to pay more than ever before to heat their homes this winter, according to a recent prediction by the National Energy Assistance Directors Assn.
Premium on Prepayment Plans
The first step is to check with your heating oil dealer to see if it is offering a prepayment plan this year. Natural gas and electricity prices are regulated by public utilities, which don't usually offer such plans. Heating oil prices are set by local suppliers, and some will still let homeowners lock in the price of heating oil months before they need it if they purchase a prepayment plan. With No. 2 oil—the kind used to heat homes—recently topping $4 per gallon for the first time, it's a risky move if prices drop, but a smart one if they continue to climb.
Some prepayment plans offer a cap, which puts a ceiling on how much the homeowner will pay for heating oil, regardless of how much prices rise. Scaran, a New York-based oil dealer, offers homeowners two choices. One plan lets them pay the market price for heating oil without ever paying more than $4.89 per gallon, and the other sets the maximum at $4.59, says General Manager Tom Scarangello. However, these plans come at a premium: Enrolling in Scaran's first plan costs $99, and the second costs $249, both of which cover July 2008 to July 2009. Last summer, Scaran customers could set the maximum price at $2.99 per gallon for just $69.
However, many heating oil dealers are so worried about paying more for supplies that they're not offering the capped plans this year. Some dealers, who used to offer summer-long enrollments in prepayment plans, now have their enrollment open for just a few days so they can collect the money from customers and purchase the oil immediately, before the price jumps. Dealers usually purchase oil in 42,000-gallon increments, and a 20¢ swing in the market price (unheard of until recently) can wreak havoc on their profit margins. "Now you're seeing dealers offering three- and four-day offers," says Matt Cota, executive director of the Vermont Fuel Dealers Assn. "And people are signing up."
One dealer in Vermont recently offered prepayment contracts on heating oil well above the roughly $4-per-gallon price today and sold them all in one day, says Shane Sweet, president and CEO of the New England Fuel Institute. He recommends contacting your local oil suppliers to see if they're offering prepayment plans this summer.
BY Ricky McRoskey
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Fortunately, there are several other practical steps that you can take to hedge against potentially insufferable heating costs this winter.
Soaring prices for natural gas and heating oil, along with the day-to-day volatility in the futures markets, have befuddled everyone from oil dealers to consumers. On the New York Mercantile Exchange (NMX), the natural gas contract was $12.391 (as of July 10), up more than 93% from a year ago, while the price of heating oil was up more than 80%. That means homeowners, already feeling the pinch from higher gasoline prices at the pump, will have to pay more than ever before to heat their homes this winter, according to a recent prediction by the National Energy Assistance Directors Assn.
Premium on Prepayment Plans
The first step is to check with your heating oil dealer to see if it is offering a prepayment plan this year. Natural gas and electricity prices are regulated by public utilities, which don't usually offer such plans. Heating oil prices are set by local suppliers, and some will still let homeowners lock in the price of heating oil months before they need it if they purchase a prepayment plan. With No. 2 oil—the kind used to heat homes—recently topping $4 per gallon for the first time, it's a risky move if prices drop, but a smart one if they continue to climb.
Some prepayment plans offer a cap, which puts a ceiling on how much the homeowner will pay for heating oil, regardless of how much prices rise. Scaran, a New York-based oil dealer, offers homeowners two choices. One plan lets them pay the market price for heating oil without ever paying more than $4.89 per gallon, and the other sets the maximum at $4.59, says General Manager Tom Scarangello. However, these plans come at a premium: Enrolling in Scaran's first plan costs $99, and the second costs $249, both of which cover July 2008 to July 2009. Last summer, Scaran customers could set the maximum price at $2.99 per gallon for just $69.
However, many heating oil dealers are so worried about paying more for supplies that they're not offering the capped plans this year. Some dealers, who used to offer summer-long enrollments in prepayment plans, now have their enrollment open for just a few days so they can collect the money from customers and purchase the oil immediately, before the price jumps. Dealers usually purchase oil in 42,000-gallon increments, and a 20¢ swing in the market price (unheard of until recently) can wreak havoc on their profit margins. "Now you're seeing dealers offering three- and four-day offers," says Matt Cota, executive director of the Vermont Fuel Dealers Assn. "And people are signing up."
One dealer in Vermont recently offered prepayment contracts on heating oil well above the roughly $4-per-gallon price today and sold them all in one day, says Shane Sweet, president and CEO of the New England Fuel Institute. He recommends contacting your local oil suppliers to see if they're offering prepayment plans this summer.
BY Ricky McRoskey
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Thursday 10 July 2008
Unwrapping the Puzzle of Home Insulation
Given what's happening with oil prices, anyone building a new home now would be crazy not to make it as energy efficient as possible.
But what's most energy efficient isn't always what's most cost efficient: The tough part is figuring out the point where the return of lower energy costs will offset the up-front expenditures on newer materials and techniques.
As we consider what kind of insulation to use in our home, we're struggling to figure this out.
Heating and cooling account for 50% to 70% of the energy used in a typical home, according to the U.S. Department of Energy. And much energy and money is wasted when air leaves or enters the house because of poor insulation.
For the new house we are building we picked out insulation six months ago based almost entirely on how much it would cost to buy and install. We chose the most common form: fiberglass batt sheeting along with another form of fiberglass that's blown in, called the "Blow-In-Blanket System."
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But what's most energy efficient isn't always what's most cost efficient: The tough part is figuring out the point where the return of lower energy costs will offset the up-front expenditures on newer materials and techniques.
As we consider what kind of insulation to use in our home, we're struggling to figure this out.
Heating and cooling account for 50% to 70% of the energy used in a typical home, according to the U.S. Department of Energy. And much energy and money is wasted when air leaves or enters the house because of poor insulation.
For the new house we are building we picked out insulation six months ago based almost entirely on how much it would cost to buy and install. We chose the most common form: fiberglass batt sheeting along with another form of fiberglass that's blown in, called the "Blow-In-Blanket System."
continue
Improved high-efficiency showerheads make the most of lower flows
Justin Wilson has been specifying ultra-low-flow showerheads for more than three years. But his biggest surprise when comparing water-efficient fixtures to typical builder-grade showerheads is that there is no surprise at all.
"Most people don't know the difference," says the president of Colorado Springs, Colo.-based Building Performance Solutions, a building science consulting firm. Perhaps the pattern of water is a little different or less water goes down the drain, but most homeowners think they're just getting the regular showerhead, he says. "It's a showerhead," he states. "It works."
That seemingly mundane statement reveals just how far water-efficient showerheads have come from the days when the low-flow experience felt more like a trickle than a refreshing, drenching flow. These days, manufacturers are providing a satisfying experience with a lower flow than the standard 2.5 gallons per minute (gpm), and some even offer styling options that match a variety of bath hardware.
Go Low
The move to ultra-low-flow shower fixtures is particularly imperative in areas like Colorado and the Southwest, where water conservation is critical, Wilson says. Not only is water there relatively scarce, many homes in those regions use solar hot water systems, which are most cost-effective when the homeowner uses less hot water. It's a growing necessity elsewhere, as well, as anyone living in northern Georgia, which declared a drought emergency last year, can attest.
What's more, water utility rates and energy costs to heat water are going up every year, points out Rob Zimmerman, senior staff engineer for water conservation initiatives at Kohler. "Water is going to get more expensive," he says. "People are looking for more options to use less water in their homes."
Despite water-supply issues, few locales mandate showerhead flow rates lower than the national standard of 2.5 gpm. But environmentally savvy builders and organizations are starting to take notice. The EPA's WaterSense program, which already labels high-efficiency toilets and bathroom sink faucets and which some manufacturers believe will become the industry standard, is developing a specification for high-efficiency showerheads that should be released this year. Manufacturers believe the standard could be anywhere from 1.3 to 2.0 gpm.
The U.S. Green Building Council's LEED for Homes program allocates certification points for showerheads that operate at 2.0 gpm or less, and additional points for "very high efficiency" showerheads that operate at 1.5 gpm or less. The NAHB's Model Green Home Building Guidelines also provide points for low-flow shower fixtures.
Local Utilities Want to "Empower Your Shower"
The program, known as "Empower Your Shower,” will offer the efficient showerheads and aerators to single-family residential households of the four utilities beginning today and continuing as long as supplies last.
"With these free, efficient showerheads, our customers can better manage their energy and water use, save money and help protect the environment,” said Cal Shirley, vice president of energy efficiency services for PSE, noting that surveys of participants in previous showerhead giveaways found the overwhelming majority were highly satisfied with the efficient models.
"High-efficiency showerheads help homeowners by reducing both their water and energy consumption,” said Mary Smith, PUD senior manager of conservation. "They can cut the energy needed to heat showers by as much as 20 percent.”
As a provider of both water and electric service, Tacoma Public Utilities sees the showerhead program as a vital tool for its customers. "The average home uses between 80 and 100 gallons of water per person each day,” said Dan Muir, Tacoma Public Utilities water conservation program specialist.
"An efficient showerhead will reduce water, sewer and energy costs.” With many homes using natural gas water heaters, Lisa Espinosa, Director of Conservation for Cascade Natural Gas Corporation believes its customers will find the new showerheads have a real impact.
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"With these free, efficient showerheads, our customers can better manage their energy and water use, save money and help protect the environment,” said Cal Shirley, vice president of energy efficiency services for PSE, noting that surveys of participants in previous showerhead giveaways found the overwhelming majority were highly satisfied with the efficient models.
"High-efficiency showerheads help homeowners by reducing both their water and energy consumption,” said Mary Smith, PUD senior manager of conservation. "They can cut the energy needed to heat showers by as much as 20 percent.”
As a provider of both water and electric service, Tacoma Public Utilities sees the showerhead program as a vital tool for its customers. "The average home uses between 80 and 100 gallons of water per person each day,” said Dan Muir, Tacoma Public Utilities water conservation program specialist.
"An efficient showerhead will reduce water, sewer and energy costs.” With many homes using natural gas water heaters, Lisa Espinosa, Director of Conservation for Cascade Natural Gas Corporation believes its customers will find the new showerheads have a real impact.
continue
Wednesday 9 July 2008
EU proposals to reduce standby electric power consumption
Stand-by and off-mode losses
Standby functions (e.g. remote control activation of a television set) and off mode losses (occurring when a product cannot be switched off completely when providing no service/function) are a common feature of electrical and electronic household and office equipment (consumer electronics, information and communication technology equipment, personal care products, etc.). In general these products compete on highly price sensitive markets. On the other hand users are often not aware of the electricity consumption and costs of standby/off mode, which are usually small for a single product[3], therefore low power consumption in standby/off mode is not an important purchasing criterion. However, a typical household is in general equipped with dozens of products featuring the standby/off mode, and the resulting energy consumption and related costs are significant.
Technical solutions that reduce energy consumption in standby/off mode are frequently not applied, mostly due to possible additional costs for the manufacturer albeit in general very low (i.e. several Euros). Nonetheless, a slightly higher purchasing price pays off for the user because the overall life cycle cost, i.e. the purchasing cost plus the costs for operating the product, is reduced. This leads to electricity consumption and related costs being (much) higher than necessary.
Electrical and electronic household and office equipment featuring the standby and off mode is sold in vast numbers throughout the Community. Electricity consumption related to standby and off mode is significant, and significant cost effective improvement potentials exist.
continue
Standby functions (e.g. remote control activation of a television set) and off mode losses (occurring when a product cannot be switched off completely when providing no service/function) are a common feature of electrical and electronic household and office equipment (consumer electronics, information and communication technology equipment, personal care products, etc.). In general these products compete on highly price sensitive markets. On the other hand users are often not aware of the electricity consumption and costs of standby/off mode, which are usually small for a single product[3], therefore low power consumption in standby/off mode is not an important purchasing criterion. However, a typical household is in general equipped with dozens of products featuring the standby/off mode, and the resulting energy consumption and related costs are significant.
Technical solutions that reduce energy consumption in standby/off mode are frequently not applied, mostly due to possible additional costs for the manufacturer albeit in general very low (i.e. several Euros). Nonetheless, a slightly higher purchasing price pays off for the user because the overall life cycle cost, i.e. the purchasing cost plus the costs for operating the product, is reduced. This leads to electricity consumption and related costs being (much) higher than necessary.
Electrical and electronic household and office equipment featuring the standby and off mode is sold in vast numbers throughout the Community. Electricity consumption related to standby and off mode is significant, and significant cost effective improvement potentials exist.
continue
10 cool energy-saving tips for around the house
Rising gasoline prices will probably mean fewer escapes this summer to the shore or the mountains. And for those on fixed incomes, the cost of keeping cool may stretch finances to the limit.
With that in mind -- and with assistance from the U.S. Department of Energy and the nonprofit Alliance to Save Energy -- here are some tips for being more efficient as the heat rolls in:
Chill out.
On days when air-conditioning isn't crucial, open the windows and use portable or ceiling fans. When air-condition you must, use a fan with your window unit to push the cool air farther.
Keep TVs and lamps away from your thermostat.
The heat they generate can make central air-conditioning run longer.
If your air conditioner is old, upgrade to a newer model.
It could save you up to 50 percent on your electricity bills. Look for a SEER (Seasonal Energy Efficiency Rating) of 14 or higher on central systems and the Energy Star label on room units.
Consider installing a whole-house fan or evaporative cooler.
Ceiling and other fans provide additional cooling and better circulation, so you can raise the thermostat and cut air-conditioning costs. Energy Star-rated ceiling fans do even better, moving air up to 20 percent more efficiently than other models.
Why get warmer?
Air-dry your dishes instead of using the dishwasher's drying cycle. Use the microwave or barbecue grill instead of the range or oven.
Lower the thermostat on your water heater.
Set it at 115 degrees.
Take showers instead of baths.
This will reduce hot-water use. Wash full loads of dishes and clothes; use cold water to wash clothes, and do it at non-peak hours.
Avoid using lots of unshaded rock, cement or asphalt as landscaping on the south or west sides of your house.
It will raise the temperature around the house and radiate heat to it even after sunset.
Proper insulation can increase your comfort and reduce your cooling costs up to 30 percent.
Start in the attic, where temperatures can reach 115 degrees, followed by exterior and basement walls, floors, and crawl spaces. Insulate and seal attic air ducts, too.
During the cooling season, keep your house closed tightly in the daytime to keep heat and humidity out.
Don't run a dehumidifier at the same time as the air conditioner. Dehumidifiers give off heat and will force the air conditioner to work harder.
Prescription: Sunblock.
Sunny rooms mean air conditioners must work harder. Put up light-colored window shades, drapes or blinds to reflect heat away from the house. Close south- and west-facing window curtains during the day.
Think ahead.
A well-maintained cooling system will run more efficiently and use less energy. So be sure to clean or replace AC filters monthly, or as needed. Also, keep both outdoor and indoor air-conditioning coils clean. Dirt buildup on the indoor coil is a major cause of poor operating efficiency.
Back to nature.
Shrubs should shade air-conditioning units -- a shaded unit uses less electricity -- but be sure the shrubs don't block airflow.
Plant leafy trees on the house's south and west sides.
They'll help keep things cool in the summer and, after the leaves drop in the fall, let the sun's warmth shine in.
continue
With that in mind -- and with assistance from the U.S. Department of Energy and the nonprofit Alliance to Save Energy -- here are some tips for being more efficient as the heat rolls in:
Chill out.
On days when air-conditioning isn't crucial, open the windows and use portable or ceiling fans. When air-condition you must, use a fan with your window unit to push the cool air farther.
Keep TVs and lamps away from your thermostat.
The heat they generate can make central air-conditioning run longer.
If your air conditioner is old, upgrade to a newer model.
It could save you up to 50 percent on your electricity bills. Look for a SEER (Seasonal Energy Efficiency Rating) of 14 or higher on central systems and the Energy Star label on room units.
Consider installing a whole-house fan or evaporative cooler.
Ceiling and other fans provide additional cooling and better circulation, so you can raise the thermostat and cut air-conditioning costs. Energy Star-rated ceiling fans do even better, moving air up to 20 percent more efficiently than other models.
Why get warmer?
Air-dry your dishes instead of using the dishwasher's drying cycle. Use the microwave or barbecue grill instead of the range or oven.
Lower the thermostat on your water heater.
Set it at 115 degrees.
Take showers instead of baths.
This will reduce hot-water use. Wash full loads of dishes and clothes; use cold water to wash clothes, and do it at non-peak hours.
Avoid using lots of unshaded rock, cement or asphalt as landscaping on the south or west sides of your house.
It will raise the temperature around the house and radiate heat to it even after sunset.
Proper insulation can increase your comfort and reduce your cooling costs up to 30 percent.
Start in the attic, where temperatures can reach 115 degrees, followed by exterior and basement walls, floors, and crawl spaces. Insulate and seal attic air ducts, too.
During the cooling season, keep your house closed tightly in the daytime to keep heat and humidity out.
Don't run a dehumidifier at the same time as the air conditioner. Dehumidifiers give off heat and will force the air conditioner to work harder.
Prescription: Sunblock.
Sunny rooms mean air conditioners must work harder. Put up light-colored window shades, drapes or blinds to reflect heat away from the house. Close south- and west-facing window curtains during the day.
Think ahead.
A well-maintained cooling system will run more efficiently and use less energy. So be sure to clean or replace AC filters monthly, or as needed. Also, keep both outdoor and indoor air-conditioning coils clean. Dirt buildup on the indoor coil is a major cause of poor operating efficiency.
Back to nature.
Shrubs should shade air-conditioning units -- a shaded unit uses less electricity -- but be sure the shrubs don't block airflow.
Plant leafy trees on the house's south and west sides.
They'll help keep things cool in the summer and, after the leaves drop in the fall, let the sun's warmth shine in.
continue
Tuesday 8 July 2008
Fuel cells will help energy security United States Senate told
The drive to expand renewables will also benefit the fuel cell industry according to a presentation to the United States Senate by the chief executive of UK based Intelligent Energy.
The Senate briefing on ‘Building Markets for Hyrdogen and Fuel Cells: UK – US bridging Technology’ was told by the company’s chief executive Henri Winand: “Together, hydrogen and electricity have the potential to offer significant additional profit opportunities for national electricity and power generating companies, both in terms of reduced capital expenditure and increased energy efficiency.”
The briefing was organised in Washington DC by the National Hydrogen Association, the US Fuel Cell Council and the Methanol Institute.
During the session Mr Winand detailed various projects including the joint venture between Loughborough based Intelligent Energy with Scottish & Southern Energy to deliver small scale Combined Heat and Power systems for the light industrial, commercial and residential markets in the UK and Ireland.
Fuels cells are also being developed for motorcycles, hybrid cars and air transport.
He added that he believed the potential for the introduction of fuel cells was increasing due to fuel prices and issues over energy security.
A company spokesman said: “Hydrogen and electricity work best together when significant amounts of renewable electricity are introduced on to the grid, as is now the case.
“Hydrogen then acts as a buffer between intermittent renewable power generation and end consumer demand.”
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The Senate briefing on ‘Building Markets for Hyrdogen and Fuel Cells: UK – US bridging Technology’ was told by the company’s chief executive Henri Winand: “Together, hydrogen and electricity have the potential to offer significant additional profit opportunities for national electricity and power generating companies, both in terms of reduced capital expenditure and increased energy efficiency.”
The briefing was organised in Washington DC by the National Hydrogen Association, the US Fuel Cell Council and the Methanol Institute.
During the session Mr Winand detailed various projects including the joint venture between Loughborough based Intelligent Energy with Scottish & Southern Energy to deliver small scale Combined Heat and Power systems for the light industrial, commercial and residential markets in the UK and Ireland.
Fuels cells are also being developed for motorcycles, hybrid cars and air transport.
He added that he believed the potential for the introduction of fuel cells was increasing due to fuel prices and issues over energy security.
A company spokesman said: “Hydrogen and electricity work best together when significant amounts of renewable electricity are introduced on to the grid, as is now the case.
“Hydrogen then acts as a buffer between intermittent renewable power generation and end consumer demand.”
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Monday 7 July 2008
Conserving energy and saving money
CUTTING DOMESTIC ENERGY COSTS
With energy bills rising, fixed-rate tariffs, which typically guarantee that prices will not rise for a year or more, have become a more enticing option.
"If you're on a standard tariff you can avoid price increases for at least the next year by moving to a fixed-price tariff," said Scott Byrom, utilities manager at Moneysupermarket.com. "On average, there is only 16p a year difference between standard and fixed tariffs, so consumers should have no excuse for not protecting themselves from future increases to their energy bills."
Among the best fixed-rate deals are ScottishPower's Fixed Price Energy 2009 and a fixed tariff from 31 August this year to 31 December 2009 from British Gas.
Another money saving option if you're on a standard tariff is to switch to an online tariff. This involves paying monthly by direct debit and reporting meter readings on the internet. But they are variable rates, so whether it's worth it depends on your perception of how much prices will rise by. If they increase by around 20 per cent instead of 40 per cent, for example, using an online tariff could be worth considering.
f you haven't switched supplier before, you can save hundreds by shopping around, unless you're on a fixed tariff. Unlike banks, energy companies aren't obliged to tell customers when better rates become available, so it's always worth asking what your supplier can offer and shopping around to see what else is available.
By Jeff Salway
continue
With energy bills rising, fixed-rate tariffs, which typically guarantee that prices will not rise for a year or more, have become a more enticing option.
"If you're on a standard tariff you can avoid price increases for at least the next year by moving to a fixed-price tariff," said Scott Byrom, utilities manager at Moneysupermarket.com. "On average, there is only 16p a year difference between standard and fixed tariffs, so consumers should have no excuse for not protecting themselves from future increases to their energy bills."
Among the best fixed-rate deals are ScottishPower's Fixed Price Energy 2009 and a fixed tariff from 31 August this year to 31 December 2009 from British Gas.
Another money saving option if you're on a standard tariff is to switch to an online tariff. This involves paying monthly by direct debit and reporting meter readings on the internet. But they are variable rates, so whether it's worth it depends on your perception of how much prices will rise by. If they increase by around 20 per cent instead of 40 per cent, for example, using an online tariff could be worth considering.
f you haven't switched supplier before, you can save hundreds by shopping around, unless you're on a fixed tariff. Unlike banks, energy companies aren't obliged to tell customers when better rates become available, so it's always worth asking what your supplier can offer and shopping around to see what else is available.
By Jeff Salway
continue
British Gas prices expected to increase 15%
British Gas, the country's largest energy supplier, is preparing for a fresh round of energy price rises of at least 15 per cent, which could hit its 16 million customers within a matter of weeks.
Centrica, the owner of British Gas, is struggling to maintain profitability in its retail energy business as gas prices have trebled over the past year. Wholesale gas prices soared to a fresh record last week, adding to the pressure on Sam Laidlaw, the chief executive, to act swiftly to ensure the business is not forced into a loss this year.
UK forward gas prices for delivery in January 2009 touched a high of £1.13 per therm last week, up from 50p per therm a year ago. The price of gas is closely linked to crude oil, which rose to a new record of nearly $146.69 a barrel on Thursday.
Compounding the pressure on Britain's power companies, wholesale coal prices were also driven to record levels last week. The price of the benchmark contract for a tonne of coal for European delivery in the third quarter of this year hit $225 this week, up from less than $80 a year ago. Coal is still used to generate 30 to 35percent of UK electricity.
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Centrica, the owner of British Gas, is struggling to maintain profitability in its retail energy business as gas prices have trebled over the past year. Wholesale gas prices soared to a fresh record last week, adding to the pressure on Sam Laidlaw, the chief executive, to act swiftly to ensure the business is not forced into a loss this year.
UK forward gas prices for delivery in January 2009 touched a high of £1.13 per therm last week, up from 50p per therm a year ago. The price of gas is closely linked to crude oil, which rose to a new record of nearly $146.69 a barrel on Thursday.
Compounding the pressure on Britain's power companies, wholesale coal prices were also driven to record levels last week. The price of the benchmark contract for a tonne of coal for European delivery in the third quarter of this year hit $225 this week, up from less than $80 a year ago. Coal is still used to generate 30 to 35percent of UK electricity.
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Sunday 6 July 2008
Watchdog will probe high cost of our electricity
THE energy watchdog is to probe why Welsh consumers are paying more for their electricity than the rest of the UK.
Ofgem says it will examine the situation in Wales as part of an investigation into the energy supply market following lobbying by Environment Minister Jane Davidson.
Independent research commissioned by consumer watchdog Energywatch found Welsh consumers typically pay £408 – 3% more than the £396 charged in Scotland, and 7% more than the average £381 paid in England.
And customers in South Wales pay around 5% more for electricity than North Wales – equivalent to an extra £20 per year on bills.
Around 240,000 households in Wales are believed to be in a state of fuel poverty – spending more than 10% of income on fuel.
Victoria Winckler, director of the Tredegar-based Bevan Foundation, said children in such homes were more likely to suffer from asthma and chest infections.
She said: “The number of households that are affected is appalling.
“What’s clear is fuel poverty is caused by a vicious mixture of things – high fuel prices, inefficiently heated homes and low incomes.”
Ms Davidson said: “At a time when more people are at risk of fuel poverty due to rising prices it is important that Ofgem looks at regional price differences to ensure that Welsh consumers are charged the same as other parts of the UK.
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Ofgem says it will examine the situation in Wales as part of an investigation into the energy supply market following lobbying by Environment Minister Jane Davidson.
Independent research commissioned by consumer watchdog Energywatch found Welsh consumers typically pay £408 – 3% more than the £396 charged in Scotland, and 7% more than the average £381 paid in England.
And customers in South Wales pay around 5% more for electricity than North Wales – equivalent to an extra £20 per year on bills.
Around 240,000 households in Wales are believed to be in a state of fuel poverty – spending more than 10% of income on fuel.
Victoria Winckler, director of the Tredegar-based Bevan Foundation, said children in such homes were more likely to suffer from asthma and chest infections.
She said: “The number of households that are affected is appalling.
“What’s clear is fuel poverty is caused by a vicious mixture of things – high fuel prices, inefficiently heated homes and low incomes.”
Ms Davidson said: “At a time when more people are at risk of fuel poverty due to rising prices it is important that Ofgem looks at regional price differences to ensure that Welsh consumers are charged the same as other parts of the UK.
continue
Saturday 5 July 2008
Sort the Winter Fuel Bills While the Sun is Shining
With warnings of 40 per cent rises in gas and electricity prices in coming months, now is the time to limit the impact of dearer bills ahead of winter. "Review energy costs and switch to a cheaper supplier where possible," says Tim Wolfenden, head of home services at energy comparison website uSwitch.com.
"It is worth giving serious consideration to fixed-rate and capped tariffs," he says. "Though you may pay a premium for that peace of mind, the deals could more than pay for themselves over the next year or two if energy prices do rise by 40 per cent."
ScottishPower, Eon and British Gas are offering tariffs fixed until the end of August 2009, while npower will fix rates until the end of December 2010.
A household using 3,300 kWh of electricity and gas a year -- the typical usage of the average household -- could get a fixed bill of £1,022 with ScottishPower. The same household could fix at £1,046 a year with npower until 2010.
But Joe Malinowski at energy price comparison website TheEnergyShop.com says consumers who want a fixed or capped deal should not delay.
Wholesale gas prices are outstripping retail prices and this is a clear indication that bills will have to rise. This will mean providers will withdraw their current competitive rates and reprice them.
"The last time wholesale gas prices broke above retail gas prices was three years ago, in June 2005," he says. "In the following 18 months, energy bills rose by a record 47 per cent. Do not ignore these warning signs. They spell bad news and you need to take steps to protect yourself now.
"We don't know whether average energy bills will be £1,300, £1,500 or even £1,700 in a year, but what we can be sure of is that they will be a lot higher than the £1,050 you can typically fix at today with some of the most competitive tariffs," he says.
continue
"It is worth giving serious consideration to fixed-rate and capped tariffs," he says. "Though you may pay a premium for that peace of mind, the deals could more than pay for themselves over the next year or two if energy prices do rise by 40 per cent."
ScottishPower, Eon and British Gas are offering tariffs fixed until the end of August 2009, while npower will fix rates until the end of December 2010.
A household using 3,300 kWh of electricity and gas a year -- the typical usage of the average household -- could get a fixed bill of £1,022 with ScottishPower. The same household could fix at £1,046 a year with npower until 2010.
But Joe Malinowski at energy price comparison website TheEnergyShop.com says consumers who want a fixed or capped deal should not delay.
Wholesale gas prices are outstripping retail prices and this is a clear indication that bills will have to rise. This will mean providers will withdraw their current competitive rates and reprice them.
"The last time wholesale gas prices broke above retail gas prices was three years ago, in June 2005," he says. "In the following 18 months, energy bills rose by a record 47 per cent. Do not ignore these warning signs. They spell bad news and you need to take steps to protect yourself now.
"We don't know whether average energy bills will be £1,300, £1,500 or even £1,700 in a year, but what we can be sure of is that they will be a lot higher than the £1,050 you can typically fix at today with some of the most competitive tariffs," he says.
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Watchdog criticises firms' transfer policies
Two small business energy suppliers have been heavily criticised by the industry watchdog for taking advantage of the inefficiencies of their larger rivals and imposing "savage" time restrictions on their contract transfer policies.
Energywatch has singled out gas provider Business Energy Solutions (BES) and Electricity4Business (E4B) for censure, referring multiple customer complaints against both suppliers to Ofgem, the regulator, for consideration.
Both use contract conditions to insist customers switch to new suppliers within a certain timeframe after contracts expire: in the case of BES this is 24 hours and E4B has a seven-day cut off. Any that have not managed to switch by then are automatically renewed on new long-term contracts with BES and E4B. The problem is that switching takes longer than many small business owners think.
The market is dominated by six big suppliers - British Gas, Powergen, Npower, EDF, Scottish Power and Scottish & Southern - and between them they control over 95pc of the market. Energywatch says it takes on average four weeks for the process to complete, although this is contested by E4B, which says it can switch customers to a new supplier "at the press of a button".
Industry regulations mean suppliers can only begin the transfer process 28 days before the end of a contract, so on Energywatch's calculations the terms imposed by BES and E4B leave little margin for error.
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Energywatch has singled out gas provider Business Energy Solutions (BES) and Electricity4Business (E4B) for censure, referring multiple customer complaints against both suppliers to Ofgem, the regulator, for consideration.
Both use contract conditions to insist customers switch to new suppliers within a certain timeframe after contracts expire: in the case of BES this is 24 hours and E4B has a seven-day cut off. Any that have not managed to switch by then are automatically renewed on new long-term contracts with BES and E4B. The problem is that switching takes longer than many small business owners think.
The market is dominated by six big suppliers - British Gas, Powergen, Npower, EDF, Scottish Power and Scottish & Southern - and between them they control over 95pc of the market. Energywatch says it takes on average four weeks for the process to complete, although this is contested by E4B, which says it can switch customers to a new supplier "at the press of a button".
Industry regulations mean suppliers can only begin the transfer process 28 days before the end of a contract, so on Energywatch's calculations the terms imposed by BES and E4B leave little margin for error.
continue
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