Category Archives: Electricity

Cold Snap Will Push Up Energy Bills But Not Household Energy Prices

Households could see their winter fuel bills increase by GBP60 if the cold snap continues into February, but reports that energy prices could go up are a red herring says uSwitch.com, the independent price comparison and switching service.

It costs £3 a day on average to heat a home, but uSwitch.com estimates that this could increase by GBP1 a day as consumers contend with the current freezing conditions. If the cold snap lasts a fortnight it will add GBP14 on to household winter fuel bills. But if it lasts two months it could cost households an extra £60.

However, reports that household energy prices could go up as a result of increased demand are misleading – energy suppliers buy their energy around a year in advance and can meet the current short-term increase in demand by topping up on the daily spot market. This means that consumers do not need to worry about their prices going up in the short to medium term.

Tom Lyon, energy expert at uSwitch.com, says: “If the cold snap continues through February it could add £60 on to household energy bills, but the cold snap would have to continue for far longer to have an impact on energy prices. Higher demand because of sub zero temperatures and the current rationing of energy to certain businesses does not mean suppliers will need to increase household energy prices. Hopefully this will reassure consumers, but our advice would be to think now about budgeting for an extra £60 for when the winter fuel bill drops through your letter box.”

Via EPR Network
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Opus Energy Launches Gas Market Service

In response to customer demand, the UK’s largest independent business energy supplier, Opus Energy, has expanded its market portfolio to offer a new gas service to small and medium (SME) businesses.

The gas service offers customers a clear alternative to existing market suppliers and includes many of the popular benefits already available with Opus’ successful electricity products. Customers will have access to competitively priced, fixed-term contracts, shielding them from gas market price fluctuations. Existing electricity customers will continue to receive the same high standard of customer care with the ease of only having one supplier.

The energy supplier currently provides electricity to over 60,000 sites across the UK and entry into the gas market is proving successful. Since the first supply went live in the middle of October 2009, sales have exceeded expectations, with over 1,000 customers already signed up.

Opus Energy has the flexibility to buy gas from a number of market sources and is therefore able to respond quickly to market price changes, and pass cost-savings directly onto customers. The gas service will initially be marketed to existing and new SME customers.

Charlie Crossley Cooke, founder and Managing Director of Opus Energy, said:

“Opus Energy has successfully been supplying electricity to the business market for seven years. We’ve experienced significant growth based on our competitive pricing, exceptional level of customer service and an incremental growth strategy. We have responded to the high level of customer demand for gas products and will apply the same principles to ensure that we become a first rate gas supplier.

“The expansion of the gas service will be developed to ensure we continue to see overall company growth and maintain the high levels of customer service expected from Opus Energy.”

Businesses can receive a competitive online quote for gas services by visiting www.opusenergy.com or calling 0845 0405810.

Via EPR Network
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Thin End of Wedge As GBP4.30 Added onto Electricity Bills

Energy regulator Ofgem has signed off investment in the regional electricity networks that will add GBP4.30 a year onto household electricity bills. However, this is just the thin end of a wedge warns a uSwitch.com as it is a small part of a much broader GBP233.5 billion energy investment programme that is expected to add GBP548 a year in total onto consumer energy bills.

This could see household energy bills hit as high as GBP4,733 a year by 2020, nearly four times higher than they are today. Ofgem itself calculated that household energy bills could hit GBP2,000 a year as a result of investment, but recently described this as ‘over optimistic’.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “GBP4.30 a year may seem small fry, but in fact it’s a wake-up call for us all. This is just the beginning of a huge investment process that will lead to significantly higher household energy bills. The GBP5,000 a year energy bill may seem like an outside possibility, but we have to remember that energy bills doubled in the last five years alone and that the huge investment needed just to keep the lights on in Britain will alone add GBP548 a year onto our bills. The fact is we are entering a new era of high cost energy and households will have to adapt their behaviour accordingly.

“The Government has been banging the drum for energy efficiency for a while now, but consumers have been reluctant to spend money on these measures. As a result, energy efficiency has been massively underperforming even though it is one of the biggest defences we have against escalating energy costs. We also have a competitive energy market, and yet less than 5% of consumers are on the most competitive energy plans – most people are paying far more than they have to for the energy they use.

“This has to change. My advice to consumers is to invest in making your home more energy efficient, reduce the amount of energy you use and make sure you are paying the lowest possible price for it. Big projects such as a new energy efficient boiler or home insulation can be expensive, but the savings you make through cutting the price of your energy could be re-invested into energy efficiency measures so that you reap even greater rewards in the future.

“Don’t be put off. If cost is an issue, speak to your supplier to see if they can help – they have a pot of money available to help households with energy efficiency. Or contact the Energy Saving Trust for advice. The key thing is to start future-proofing yourself against higher energy bills now.”

Via EPR Network
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uSwitch.com Comments on Today’s Announcement on Smart Meters

uSwitch.com, the independent price comparison and switching service, welcomes today’s announcement on smart meters, but believes there are still a number of issues that need to be ironed out before the launch. Prime importance is to ensure that the final specification of the meters will meet consumers’ needs and that enough focus is given to educating consumers on their use.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “The introduction of smart meters is a positive step forward in the drive to ensure that all households get accurate, up-to-date energy bills and have the information they need to be able to monitor and lower their energy usage.

“Today’s announcement shows that the Government and the energy industry are picking up the pace, although there are still a number of issues to iron out. The key concern for consumers is cost and how much the roll out of smart metering is likely to add to household energy bills. Our research shows that only 19% of consumers believe that a significant increase in household energy bills is a price worth paying and 57% of people are not even aware of what smart meters are. This suggests that without a proper education and consumer engagement programme there could be an uphill battle persuading households that they should be picking up the tab.

“There is much to be gained from the roll-out of smart meters so it’s vital that all parties involved keep their eye on the main prize which is the benefit it will bring to consumers and the competitive market. If households are to get maximum value the specification has to be right and designed to put easy-to-understand information at people’s finger tips, including historical usage data so they can manage their energy more easily, compare prices and find an energy plan or supplier that suits their needs. This is a huge opportunity for the industry to get consumers engaged in managing household energy, but there will only be one opportunity to get it right.”

Via EPR Network
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Concentration:FLABEG pools Know-How

FLABEG, the international glass finishing specialist, now provides its customers with even more transparency. With the formation of FLABEG Deutschland GmbH the company will concentrate its key competences in the field of automotive and technical glass, in future FLABEG GmbH will focus simultaneously on the development of the solar mirror business.

“The significant expansion of our worldwide business locations made it necessary to re-organize our key competences,” said Axel Buchholz, CEO of the FLABEG Group, explaining the new structure. The automotive and technical glass divisions will operate under the umbrella of FLABEG Deutschland GmbH. The mission: to create a powerful, flexible center of competence for partners in the automotive, consumer electronics and aerospace industries.

For FLABEG customers the pooling of expertise in the solar mirror business and the automotive, technical glass has distinct advantages. FLABEG provides its partners from consulting to support up to the individual precision solution all from one source. “Even with expansion, it is important for us to retain the flexibility and structure of a medium-sized company,” said Axel Buchholz. “Utilizing the concentrated development expertise of our all locations, we are able to produce tailor-made high-tech glass products for our customers in a timely manner. A key competitive advantage for FLABEG customers.”

FLABEG, founded in 1882, is an independent company with production facilities in Europe, America and Asia. FLABEG is an expert in all types of glass processing. Precision bending and coating are among the core competencies of the company.

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40% Drop In Heating Cover Could Leave Consumers Out In The Cold

•Financial gamble: number of people taking out heating cover on their boilers has dropped 40% in the last year

•Safety gamble: 42% ignore industry safety advice to get boilers checked once a year, risking carbon monoxide poisioning

•No peace of mind: two thirds of households (65%) don’t have any form of emergency heating cover

•Paying the price: nearly one in three boilers breaks down within six years of being installed, cost of replacing four key boiler parts can reach £1200.

As winter bites and with people still feeling the bitter chill of recession, new research from uSwitch.com, the independent price and comparison switching service, reveals a 40% drop in the number of people taking out or renewing heating cover compared to this time last year. As a result more than two thirds (65%) of households do not have any type of heating or boiler cover in place, potentially taking a risk with their finances and their health.

Nearly one in three boilers breaks down within six years of being installed, and the cost of repair can spiral up to £1,200 to replace the four key boiler parts. In comparison, the average yearly cost of heating cover comes in at £122 or just over £10 a month.

However, this isn’t the only risk. Gas boilers should be serviced every year to minimise the risk of carbon monoxide poisioning, but 42% of households ignore these guidelines. Worryingly, one in ten – almost three million households – have never had their boiler serviced while the same number again have only ever had their boiler looked at when it’s gone wrong. According to the Gas Safe Register (which has taken over from Corgi), in the last year 14 people have died from carbon monoxide poisoning and 234 have suffered health problems after being exposed to the deadly gas. Recommended counter measures include having an annual gas safety check and installing a carbon monoxide alarm.

Will Marples, energy expert at uSwitch.com, says: “Household budgets continue to be stretched, but what seems like an easy saving could cost you dearly in the long term. Those who have cancelled or decided against cover might think they are just taking a chance with their money, but if they are also not getting their boiler checked they are taking a chance with their health.

Via EPR Network
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FLABEG Solar U.S. Corp. Opens New Solar Mirror Plant

FLABEG, global leader in high-tech glass and mirror applications, is opening a new production facility for solar mirrors which are used to help generate electricity at large-scale solar power plants. The new 209.00sq.ft manufacturing facility is erected in the Clinton Commerce Park near Pittsburgh International Airport.

The factory will have a annual capacity to deliver parabolic curved mirrors up to 450 MW for PT plants. This production site is therefore equipped to produce tempered solar mirrors in addition to the established monoliths, untempered mirrors.

“Our philosophy has undergone no change, nevertheless we want to be fully prepared for all possible changes in the law,” commenting FLABEG CEO Axel Buchholz on the extended production range. “We expect some federal states will introduce standards for safety glass for Concentrated Solar Power applications. Our core production will remain with untempered solar mirrors.”

Field tests indicate a breakage rate of 0.027% for FLABEG untempered solar mirrors. At such low levels breakage is not an issue.

“As always FLABEG continues to keep abreast oft he changing demands of the market,” says Buchholz. The facility will in future also be home to thinglass applications for Solar Dishes and Concentrated PV and also flat mirrors for Power Tower heliostats and Linear Fresnel power plants.

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Home Owners Find Energy Bill Cuts in Surprising Ways

Again, San Diego Gas & Electric raised its base rates for electricity and natural gas by some $136 million in 2008. We are also expecting successive annual base rate hikes of $44 million in 2010 and an additional $44 million in 2011. For the average residential customer, that translates to a 7% increase in their electricity bills from last year with additional raises in years ahead. While some homeowners are getting into buying expensive solar panels that will pay for themselves in 10 to 30 years, other rate-hike victims are finding energy cuts in surprising ways.

Your Solar Link was started by a LEED accredited professional and designers in an effort to educate local homeowners on the best available solar gadgets on the market.

“As a homeowner, I never thought that those little garden electric lights that are placed along my garden pathway actually can cost me up to $140 a year on my electricity bill? I do not need so much light to light up that trail, but the benefit of using solar pathway lights is enormous”, says Barbara White, who just purchased her first solar pathway lights that cost her only $64.99 for a set of 4.

Your Solar Link started as a hobby but quickly grew into something more. It became a place of contribution by its members and their clients. Your Solar Link doesn’t just sell solar powered products; it plants a TREE for every solar light that is purchased. So not only do you get the benefits of free energy, but you become part of a bigger movement for the future of our planet.

“It’s that simple, replacing your outdoor electric water fountain pump with a solar powered pump will save you around $100 a year. You can find little things around your house that can generate a pretty substantial amount of cash in your pocket by the end of a year: your garage light, your motion sensor lights, your lit home address or lit mailbox, spot lights for your trees, you name it! It adds up every quickly” says Mario Villalobos, one of the founders of Your Solar Link. “I am also surprised that the government, which is so concerned about night sky light pollution, is not interested more in using solar lights. Solar lights are easy to install, cost almost as much as a regular lights and are not as expensive as solar panel systems. Solar lights don’t emit as much light into the atmosphere as conventional electric lights, thus clearing up the sky at night. ”

What’s next for Your Solar Link? “We are in the process of setting up a recycling program for used solar lights. Some of the old solar lights that were sold before us, because of the poor quality, will be thrown out soon. We are looking into figuring out a way to take them apart and to recycle solar lights components,” the Team of Your Solar Link concluded.

For more information on Your Solar Link products visit: http://www.yoursolarlink.com.

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npower Funds Solar Panels For Swimming Centre

Funding from npower means that a swimming pool that is part of a multipurpose centre on the Stackpole Estate in Pembrokeshire has been installed with enough renewable technology to make it the largest collection of solar thermal panels across the National Trust.

npowersolarpanel.jpg (182×120)

Funding from npower – as part of the National Trust Green Energy Fund – enabled a total of 19 flat-plate solar panels to be installed on the roof of the pool at the Stackpole Centre by local contractor West Wales Solar Heating. The Green Energy Fund project invests in small scale renewable energy generation and other carbon saving projects at Trust sites across Wales and England.

The Welsh produced solar panels now provide free heat to a pool that used to cost thousands of pounds a year to heat. The result is not only lower running costs for the Trust but another important small step towards lowering environmental impact and reducing climate changing carbon emissions

The project, which cost £18,000, will enable the pool’s water to be heated by the power of the sun; supplemented for now with a gas system but with plans to move to a biomass heating system in the near future. The system works by water continually being pumped from the pool into a storage tank where it is heated up by energy created from the solar panels.

Keith Jones, Environmental Practices Advisor for the National Trust in Wales, said: “The National Trust is committed to reducing our own energy footprint and in developing projects that can enable people to learn about adaptation and efficient resource use and saving money. This is the largest solar panel system of its kind within the National Trust, and it is estimated it will produce 58,400Kw every year or the equivalent of almost 160 electric heaters left on for an hour every day of the year (saving over a third of its previous energy consumption).

“As far as we were concerned this was a very simple calculation – an investment equivalent to 18 months’ worth of gas costs to heat the pool and it will have paid for itself in six years. In summer and the warmer days this system will provide most if not all the heat for the pool.”

The solar panels also have a digital display, which will enable members of the public and resident guests using the pool at Stackpole Centre, to see exactly how much energy is being produced by the solar panels during their visit.

Allan Robinson from npower said: “npower is proud to have funded the National Trust’s largest ever solar heating system at Stackpole. In partnership with the National Trust, npower is providing expertise and financial support to help those looking for ways to be more energy efficient and make financial savings along the way.”

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Energy Price Cuts This Year – 12% For Online Customers But 4% For Everyone Else

•Energy price cuts in 2009: 4% or £54 for standard plan customers, but 12% or GBP133 for online customers

•At the beginning of the year, online plans were £170 cheaper than standard plans – today they are £249 a year cheaper

•Best kept secret: despite consistently lower prices only 1.3 million or 5% of households are on online energy plans

•Winter worry: two thirds (65%) of people are worried about the cost of their energy bills as we head into winter

•Affordability concerns: almost two in ten households (19%) are finding it difficult to afford their energy bills

•Cutting back: 57% of households are already cutting back on energy to make bills cheaper while a further 17% are planning to join them.

While the majority of households have seen energy prices drop by 4% or £54 this year, new research from uSwitch.com reveals that households who are on suppliers’ online plans have enjoyed cuts three times this size. Since the beginning of 2009 their prices have been reduced by a healthy 12% or £133, leaving online customers paying £249 less than standard customers.

While the debate about whether suppliers should be cutting prices again in light of lower wholesale costs rumbles on, households on online plans are sitting pretty. They have seen bills drop from £1,123 on the 1st January to £990 today. However, households on standard plans have not fared so well – their prices have dropped from GBP1,293 at the beginning of the year to £1,239 today, barely making a dent in the 42% or GBP381 increase in energy prices seen last year.

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Combined Cycle Performance Analysis Conducts On Site Training

COMBINED CYCLE PERFORMANCE ANALYSIS will conduct power plant training at the customer’s site. The training course PERFORMANCE AWARENESS TRAINING is designed to familiarize the plant Operations and Maintenance staff with plant performance. Custom power plant training is also available upon request.

The company provides consulting to the Combined Cycle power industry. Services include Plant Performance Evaluations, power plant training, and custom power plant consulting.

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Four Suppliers Join in Energy Price Fray Today

Today has officially been the busiest day of the year for energy price cuts with four suppliers announcing changes. The day started with E.ON knocking smaller rival First:Utility off the cheapest supplier spot by cutting its online prices by £19. But in a David and Goliath move, First:Utility hit back, cutting its online prices by £13 from £967 a year to £954 a year on average.

The move sees First:Utility back in place as Britain’s cheapest supplier, although E.ON’s plan is available countrywide while First:Utility’s plan is only available in 12 out of 14 energy regions.

ScottishPower also ventured into the fray, but its move was more cautious. It has cut its gas rates in 5 regions taking the annual bill on its Online Energy Saver 7 plan to £972 from £975.

The final moves of the day are on mainstream rather than online plans. EDF Energy has changed its direct debit discount for standard customers from a fixed annual discount to a 6% discount. This will cut bills for the average customer from £1,147 to £1,118. It is also cutting prices for gas only customers. These moves mean that EDF Energy now offers the cheapest dual fuel standard plan paying by monthly direct debit and is thecheapest gas only supplier.

Will Marples, energy expert at uSwitch.com, says: “Given the amount of speculation and debate about price cuts this week, these moves could be seen as a bit of a peace offering. They don’t have the impact of a full blown price cut, but in the run up to winter they will be welcome. Whether consumers will be completely appeased remains to be seen, but the key thing now is to move to one of these competitive plans to make sure you benefit from lower prices in time for winter.”

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E.ON Now Cheapest Energy Supplier

The online price war has claimed another casualty. E.ON has cut its prices on its FixOnline3 plan, knocking First:Utility off the cheapest supplier spot. The move ends First:Utility’s winning bid to go head-to-head with the big six suppliers on price. At £962 E.ON’s plan undercuts the smaller supplier by £5, but E.ON’s plan is also available countrywide while First:Utility’s plan is only available in 12 out of 14 energy regions.

E.ON’s price cut comes at the same time as it is writing to customers who are coming to the end of a fixed price deal. E.ON is moving them onto a new fixed price plan which costs £1,198 a year. However, customers would be better off moving to the supplier’s more competitive online plan instead, saving £236 in the process. There are no exit penalties to take into account before making the move.

Will Marples, energy expert at uSwitch.com, says: “This is great timing for E.ON customers who are coming to the end of their fixed price plan. The supplier has already contacted them with a view to moving them onto a new fixed price deal, but its online plan is now £236 cheaper. I suspect that many customers will be taking this option instead.

“Thankfully there are no exit penalties, so even if you have already been moved onto the fixed price plan it’s not too late to change your mind. All you have to do is let your supplier know.”

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Concentrated Solar Power: No Breakage Issue for Untempered Solar Mirrors

Field tests from the project „Nevada Solar One“ indicate a breakage rate of 0.027% for FLABEG’s solar mirrors: In the course of three years only 50 needed to be replaced from a total 183.400 installed mirrors. This erases the erroneous fact that tempered glass is necessary to mitigate breakage. However, there are no commercially available mirrors for parabolic troughs that are able to match the precision of curvature that FLABEG manufactures.

FLABEG redefines mirror bending precision by achieving FDx≤10 mm (measured by DLR). This is equivalent to a hit rate of 99.95% (focal line d=70mm). With this quality parameter FLABEG has achieved a unique standard of excellence and technical preeminence.

FLABEG’s parabolic mirrors are produced by a special sag-bending process, which results in the highest possible degree of precision. On the other hand, tempered glass can only be press bent, which does not allow to come to the same outstanding precision of bending as the sag bending process can provide.

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uSwitch.com Calls For Tougher Rules And Regulations To Govern Energy Doorstep And Direct Salesmen

uSwitch.com, the independent price comparison and switching service, is calling on industry regulator Ofgem to bring out tougher rules and regulations to govern energy doorstep and direct salesmen, after new research revealed that their sales tactics are leaving people feeling pressured, intimidated and on the wrong energy plan for their needs.

According to the research, almost 7 million UK households have taken out an energy plan on their doorstep or through a direct salesperson. However, less than a quarter of people who have done so (22%) believe they got a good deal. Of these, only 6% said that it reduced their bills significantly while just 16% said that they were very pleased with the deal they took up. On the flip side, 17% found that their new deal cost them more money than the one they switched from and almost a quarter (22%) said that they could have done better elsewhere.

Over four in ten people (44%) think that direct sellers on their doorstep, high street, at the local supermarket and on the phone are a nuisance. But for some consumers it crosses the line into something altogether more sinister with 22% finding salespeople intimidating and 59% finding the process too pressured, preferring time to think and make their own mind up.

More than a third of people (37%) think that salespeople don’t present them with enough information to make an informed choice, while almost half (45%) don’t like the fact that salespeople only represent one energy supplier – they would prefer to know what all the companies are offering instead.

As a result of growing unease and, in some cases, outright distrust, 82% of consumers would not buy directly from a salesperson. Almost a third (32%) would like to see tighter regulation, but over half (53%) would like to see the practice banned. Despite the fact that many elderly and vulnerable customers prefer to buy face-to-face or with direct human contact, almost three quarters of consumers (72%) say that direct selling does not have a valuable role to play in helping these groups to switch.

According to Ofgem, over half of consumers who switched in the past year did so through a direct or doorstep seller and vulnerable and prepayment meter customers are more likely to switch in this way. This suggests that rather than an outright ban, the regulator should be looking to keep open this important route to market for vulnerable consumers, but make sure they are fully protected and able to get the same level of information as those consumers who are able to shop around or do their own research.

Although Ofgem is bringing in rules to ensure that direct sellers have to provide consumers with a written quotation, uSwitch.com would also like to see consumers given more information about the types of deals available to them and a prompt to research the market before signing on the dotted line.

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Only 52% of Energy Customers Satisfied with Customer Service

A year of price cuts has seen the energy industry improve its image in the eyes of consumers, according to the latest independent Customer Satisfaction Report published today by uSwitch.com, the price comparison and switching service. 65% of energy customers are satisfied with their supplier – a 6% increase on last year when suppliers’ popularity suffered because of eye watering price hikes totalling 42% or £381.

However, while overall satisfaction levels have improved, there are still some key areas for concern, including customer service which remains a thorny issue with consumers. In fact, little over half of energy customers (52%) are satisfied with their supplier’s customer service and, tellingly, only 45% of people would recommend their supplier to somebody else. Despite price cuts averaging out at 4% or £54 in total this year, only 51% of customers think their supplier is giving them value for money. Although a 6% improvement on last year, it is still 5% lower than in 2007 when suppliers last cut prices.

Suppliers are engaged in an online price war, bringing out increasingly competitive new plans. But consumers are sceptical about whether their supplier has their best interests at heart. Only 40% of customers are satisfied that their supplier has them on their best deal.

The report, based on responses from over 5,000 energy customers in the UK, suggest that suppliers are gradually getting back on track, with satisfaction levels almost as high as those of October 2007, another price cut year. However, there are clear differences between the big six suppliers. While Scottish and Southern Energy (SSE) satisfies almost three quarters (73%) of its customers, poorest performer npower only satisfies 54%.

npower has been rated bottom for satisfaction by consumers for the second year running, but despite this has still seen an 8% improvement on last year. British Gas, which previously held the bottom slot (in 2007), has seen an 11% improvement in customer satisfaction this time.

Ann Robinson, Consumer Policy Director at uSwitch.com, says: “Last year’s hefty price increases damaged the public’s perception of energy suppliers. As a result, the industry saw a noticeable drop in satisfaction levels. This year, suppliers are starting to get back on track, winning customers over by cutting prices and bringing out increasingly competitive new plans. But if they are to make a real dent they have to focus on customer service – just 52% of people are happy with customer service, which is poor by any industry’s standards.

“With such clear differences between suppliers there is no excuse for consumers putting up with bad service. If you are not happy that you are on the best deal or getting value for money – speak to your supplier. Only around 1.3 million or 5% of households are on online energy plans and paying the cheapest energy prices in the market – consumers can do something about this. If you are still unhappy with the service you are getting, then it’s time to look around for a new supplier. There’s some good news here. Not only could you save up to £425 on your energy bill, but switching is also the one thing that suppliers consistently do well. Almost three quarters of customers (74%) are satisfied with this part of suppliers’ service.”

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Consumers Will Welcome News That Small Energy Suppliers Are Challenging Their Bigger Rivals With Market Beating Plans

The move will give more choice, especially for those looking for an alternative to the big six energy suppliers who dominate the market.

Two challengers - OVO Energy and First:Utility – have launched highly competitive online energy plans. OVO’s plan averages out at GBP978 a year, while First:Utility’s plan is market beating, averaging out at GBP967 a year. This makes it GBP16 cheaper than EDF Energy’s online energy plan, which costs GBP983 a year on average and is the cheapest plan offered by one of the big six.

First:Utility’s plan is available in 12 out of 14 energy regions and, unlike its other plans, does not require consumers to have a smart meter installed. In the remaining two regions, its smart meter online plan is available and it has just announced that it is dropping the price on this too. OVO’s plan is a fixed price plan, which means that customers will continue to benefit even if prices go up during the duration of the plan. However, there is an exit penalty attached.

Will Marples, energy expert at uSwitch.com, says: “This is the first time that a ‘challenger’ energy provider has gone head-to-head with major suppliers on price and beaten them. This is because their size works in their favour – they are quick and nimble and able to react to falling wholesale prices quicker than their bigger rivals. It’s good news for those consumers who have been looking for a viable alternative to the big six, but who are concerned about paying more for their energy as a result.

About uSwitch:
uSwitch.com is a free, impartial online and telephone-based comparison and switching service, helping consumers compare prices on gas, electricity, water, heating cover, home telephone, broadband, digital television, mobile phones, personal finance products and car insurance.

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86% of People Fail Test to Make Energy Bill Add Up

A straightforward test to see whether consumers can calculate an energy bill correctly has thrown up some shock results – with 86% of people getting it wrong. Of more than 2,700 people taking part almost 2,400 failed to make the bill add up correctly, even though they were allowed to make notes and use a calculator.

The test is being run by uSwitch.com, the independent price comparison and switching service, and is based on a mock-up of an energy bill with sub-totals blanked out. Consumers have to work out the missing numbers and calculate the end total. So far, it has left most people flummoxed. Despite being a common household bill only 379 people have arrived successfully at the correct total – a pass rate of only 14%.

Now more consumers are being urged to take part to see if they can do any better. The test can be found at: www.uSwitch.com/bill-challenge. People can also sign a petition for energy bills to be made simpler, clearer and easier:http://petitions.number10.gov.uk/betterbills/ – over 7,000 concerned consumers have already signed.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “You shouldn’t need to be an ‘A’ grade student to be able to understand your energy bills. It’s deeply worrying that only 14% of people have passed what should be a straightforward test – it serves to highlight the fact that large numbers of consumers are in danger of being excluded because energy bills are far more complicated than they need to be. Ofgem is looking to address this, but it’s vital that consumers make their voices heard too.”

E.ON Fires Latest Salvo in Online Price War

E.ON has launched a new fixed price online energy plan – FixOnline 3 – which allows consumers to fix their prices until 1st December, 2010. The plan is only available to those who will manage their account online and pay by monthly direct debit. In return, they will be paying the second lowest energy prices currently available in the market and will only be paying £1 more than if they were on the cheapest plan in the market.

E.ON’s new plan averages out at £984 a year, while EDF Energy’s average bill size comes in at £983. However, EDF Energy’s plan is only available in 10 out of 14 energy regions, which means that many households, including those in London, will not be able to benefit. E.ON, and British Gas which brought out a new competitive online plan only yesterday, will be able to target those areas missing out.

With suppliers cutting online prices, hopes are that it will encourage consumers to start paying by direct debit again. New uSwitch.com data revealed a 7.3% decline in the number of switchers opting to pay by direct debit. If the trend continues, it could result in 342,000 households ditching direct debits this year – and losing £33.5 million in discounts on their energy bills as a result.

Will Marples, energy expert at uSwitch.com, says: “To see two of the big six suppliers launch competitive new energy plans in as many days is great news both for consumers and the market. The price war is injecting new life into the market and making consumers sit up and take note. If they take advantage of the lower prices now available it will help them to manage their energy costs going forward.

“If consumers want to benefit they need to ditch their expensive standard plans and move to one of the new online energy plans. The average standard plan is £1,239 a year while the average online plan is now £1,015 a year – this is an easy saving of £224 a year for the average household. With winter fast approaching, it’s a saving households should definitely be looking to make.”

Via EPR Network
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Direct Debit Fears Could Cost Consumers £33.5 Million

Ofgem is being urged to act quickly to stem the flow of consumers ditching direct debits and opting to pay energy bills by cash or cheque instead. New data f r o m uSwitch.com, the independent price comparison and switching service, shows a 7.3% drop in the number of switchers paying by fixed monthly direct debit, falling f r o m 92% a year ago to 85.3% today. Across the market it could mean 342,000 households less a year taking up the option and losing out on discounts totalling £33.5 million as a result.

According to Ofgem, over 40% of customers pay their energy bills by direct debit. Not only is this payment method convenient, but it is cheaper too as suppliers give discounts to customers paying in this way. These amount to £98 a year on average. The impact on household bills is noticeable – while the average household energy bill for a customer on a standard plan paying by cash or cheque is £1,239, this drops to £1,141 on average for those paying by direct debit.

More importantly, paying by direct debit is the gateway to suppliers’ cheapest tariffs – these can be found on their online energy plans. To get them, consumers need to pay by direct debit. The average household energy bill for an online customer is £1,021 – £218 cheaper than for a customer on a standard plan paying by cash or cheque.

But despite the cost implications, consumers are starting to shun direct debits. According to uSwitch.com this stems back to last year’s 42% or £381 price hikes which only hit many direct debit customers this year. Almost a third (30%) only had their direct debits increased in the first three months of this year – even though the price increases happened last year. As a result, many were playing catch up to make up for months of under paying and so were shocked when their supplier advised them how much their direct debit had to be adjusted by to compensate.

Not surprisingly, when advised of increases to direct debits a third of people (33%) felt compelled to contact their supplier. Following this 4% cancelled their direct debit even though this would increase the cost of their energy. And they’re not alone – according to the new data there has also been a 217% increase in people choosing prepayment meters (up f r o m 0.6% to 1.9%) and a 106% increase in people choosing variable direct debits – up f r o m 1.6% to 3.3%. In total, these shifts in payment methods could see 351,900 households paying more for their energy than they need to this year.

“Paying by direct debit opens the path to the cheapest energy prices in the market – this is not something to give up without a fight. If you are worried about the amount you are paying, contact your supplier to find out whether the monthly payment can be lowered. Make sure you are paying the lowest possible price for your energy by shopping around, cut down on the amount of energy you use and make sure you or your supplier is taking regular meter readings. Above all, be aware that coming off fixed monthly direct debit and paying by cash, cheque or variable direct debit will cost you money. This should always be a last resort.”

Via EPR Network
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