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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