British Gas is set to help up to 50,000 of Britain's most hard-pressed households cut their energy bills.

This summer, Britain's largest domestic energy supplier is offering around £10 million-worth of free energy assessments and energy efficiency measures which could cut energy bills by around £250 per year for each home.

British Gas customers who want to request a free home energy assessment should call 0800 980 5 999.

The Clean Energy Ministerial is a new US-led initiative which aims to bring forward transformational activity in clean energy technology.  The Secretary of State will be joined by Mr Horler to discuss the UK's work to encourage CCS developments at a panel meeting that will also include Ministerial representation from nations such as China, Canada and Germany.

Nick Horler said: “The UK remains at the forefront of encouraging CCS developments and innovation. The Government's commitment to help fund up to 4 demonstration projects is one of the most ambitious in the world. Policymakers in nearly all industrialised nations recognise that CCS will play a hugely important role in meeting the twin challenges of producing secure supplies of electricity whilst reducing harmful carbon emissions.

“ScottishPower has been operating a successful carbon capture test project at Longannet Power Station for over a year, and we have made a number of major breakthroughs that will be of benefit to the worldwide development of this technology. The meeting in Washington will provide an opportunity for the countries with the highest CO2 emissions from across the world to share knowledge and to discuss cohesive strategies to help reduce carbon output.”

ScottishPower has today removed Online Energy Saver 9 from the market and launched Online Energy Saver 10.

With Online Energy Saver 10 prices are guaranteed to remain a minimum of 2% below ScottishPower's standard monthly Direct Debit gas and electricity prices until 31st October 2011.

Early termination fees do apply for anyone joining them leaving before 31st October 2011.

As with all ScottishPower tariffs at the moment on Switchit4u Online Energy Saver comes with £25 cashback per fuel. This is on top of any other offers in the market at this time.

Britain's churches and other religious buildings could raise £34 million a year for their coffers by installing solar panels, according to new figures from the British Gas Green Streets programme, which are unveiled today.

"The Government's Feed-In Tariff scheme is the key to unlocking the potential of solar power in Britain.  As Britain's energy company, we at British Gas are committed to helping households, business and community and faith groups make the most of this opportunity to cut their carbon footprint and earn money for the electricity they generate."

The company will donate and install solar panels - worth between £20,000 and £40,000 per school - in up to 750 schools.  Each school will be able to generate its own free, green electricity, cutting as much as 20% off its annual electricity bill.

The schools receiving solar panels will receive a British Gas smart meter, offering real time information so pupils can see the difference their solar panels are making.  Specially created Generation Green lesson plans will help teachers engage their pupils in learning about renewable energy, and schools will be able to track their performance against others and share tips and advice via a specially designed website.

All schools in the UK can register for an application form at http://www.generationgreen.co.uk/. 

The chancellor George Osborne claimed the "unavoidable" hike will generate £13 billion towards clearing the deficit as he delivered his emergency Budget.

The tax is considered regressive because it impacts on purchases rather than income, and therefore tends to hit the poor harder than it does the rich.

Right-wing group the Taxpayers' Alliance found itself agreeing, perhaps for the first time in its history, with the TUC, which also opposes the move.

In a campaign video posted across the internet, the Taxpayers' Alliance said: "VAT hits the poor twice as hard as the rich. David Cameron and Nick Clegg have no mandate to hike VAT."

Brendan Barber, TUC general secretary, said: "VAT increases don't just hit the poor more than the rich, they also hit small firms, threaten retail jobs and by boosting inflation could also lead to higher interest rates."

Retailers and economists have voiced concerns over the possibility the move could derail the recovery. The British Retail Consortium said the increase will cut consumer spending by £3.6 billion and cost 163,000 jobs.

The first phase of the London Array wind farm has a capacity of 630MW slated to commence operation in 2012 to be able to provide renewable energy for the London Olympics.

The company claims that once completed, the wind farm will be the world's largest offshore wind farm. Dong Energy owns 50% of the farm with E.ON (30%) and Masdar holding the remaining stake.

Carsten Thomsen, chief financial officer of Dong Energy, said: "Dong Energy's goal is to reach at least 3,000MW of wind turbine capacity by 2020, and London Array is a cornerstone in this transition towards a greener future. The EKF guaranteed EIB funding of the project supports our robustly financed investment program".

Business Electricity Prices

A joint review carried out by energy regulator Ofgem and Consumer Focus has found that suppliers continue to make good progress in the way they deal with customers in debt and have made genuine efforts to help those struggling to manage bills in difficult economic times.

Nevertheless, there is more suppliers can do and although the report particularly highlights progress suppliers are making, it also raises concerns about the way they take into account customers‟ ability to pay when setting debt repayment levels. While it is important that debt is recovered, it must be done in a way which takes account of the individual customer circumstances.

Ofgem has established a set of key principles which suppliers should consider to ensure they are properly and proactively taking account of a customer‟s ability to pay. These include making proactive contact with the customer and ensuring they understand the repayment arrangements. Ofgem and national charity Citizens Advice met with suppliers who gave their support to the key principles and suppliers are due to meet with the Energy Retail Association to discuss implementation.

Sarah Harrison, Ofgem‟s Senior Partner for Sustainable Development, said "While the number of energy customers in debt has remained relatively stable over the past 18 months, the amount that they owe has been increasing. In these difficult economic times it is particularly important that suppliers set debt repayment levels appropriate to individual customers‟ circumstances and ability to pay. We are pleased that the industry supports the key principles we have identified to improve the way suppliers deal with indebted customers."

Audrey Gallacher, Head of Energy Policy, at Consumer Focus said: „We welcome commitments from energy suppliers to improve how they treat consumers in debt. However, there are still problems with suppliers setting unaffordable debt repayment levels.

On a daily basis customers contact both us and Consumer Direct saying they are worried about paying their debts. Given the continued difficult economic situation, it‟s more important than ever that suppliers understand their customers‟ personal circumstances and agree realistic and affordable debt repayment plans.‟

Teresa Perchard, Director of Policy at Citizens Advice, said "It is clear that many people continue to struggle to pay for their gas and electricity bills – our latest statistics reveal that fuel debt problems dealt with by bureaux were up 33 per cent last year. Energy suppliers should do all they can to help people who are in debt. We are pleased to be collaborating with Ofgem and the energy industry to make this a reality, and are particularly keen to ensure that suppliers set repayment rates based on a customer‟s ability to pay, in keeping with Ofgem rules."

Currently a 51% shareholder in SPE-Luminus, the second largest energy company in Belgium, EDF has concluded agreements with the three Belgian shareholders having exercised their sale option, in full or in part. These agreements bear on the purchase amount for their stock in SPE, which has been fixed at 215 million Euros.

Germans pay the second highest rates for electricity in Europe, right behind Denmark, new statistics showed on Friday.

While the average cost of a kilowatt hour of electricity in Europe for the second half of 2008 and the first half of 2009 tallied €0.165, Germans paid €0.229, the European Union statistics office Eurostat reported from its headquarters in Luxembourg.

When adjusted for purchasing power, Germans paid the third-highest prices to power their country, the study added.

The Danes paid the most at €0.255 per kilowatt hour, while Bulgarians paid less than half the price at €0.08 per kilowatt hour, Eurostat reported.

Against the overall European trend, which saw electricity prices go down by 1.5 percent during that time period, German consumers bore a 4.5 percent increase.

The biggest reduction in electricity prices were in Cypress (20 percent) and Italy (10 percent), while the steepest increases were in Poland (18 percent) and Luxembourg (17 percent).

Meanwhile German electricity taxes of 41 percent were also found to be the second highest in the EU. Denmark’s electricity tax of 56 percent was the highest, while the European average was much lower at just 26 percent.

Germans did get a break on gas prices, though, which dropped by 22.8 percent, a bit more than the Europe-wide average decrease of 16 percent.

UTILITY giant Scottish & Southern Energy yesterday pledged to continue pushing through above-inflation dividend increases for the next three years, but said it could not rule out energy price rises.

Ian Marchant: Has pledged to raise dividends until 2013.

Ian Marchant, chief executive of the Scottish Hydro owner, which now boasts more than nine million customers across the UK, said the firm would hike dividends at least two percentage points above inflation in each of the three financial years to March 2013.

That is below the increase of at least 4 per cent above inflation in the period 2007 to 2010. Marchant said the partial reining-in was because SSE was entering a period of greater capital investment that meant "we need a little bit more cash in the business".

However, unveiling a steady rise in annual profits, he said the Perth-based group was one of only seven British companies that had increased dividends above the retail prices index every year in the past decade.

"We are an income stock," Marchant said. "You don't buy us for the ethereal view of superior financial returns. Instead, you get a good dividend yield you can hang your hat on."

He added that the latest divi pledge time frame was "long enough to be worth having" but not so long as to be hedged by uncertainty on the trading climate to fulfil it.

Marchant's comments came as SSE boosted its latest annual dividend to end-March 6 per cent to 70p, via a 49p final payment, on the back of underlying pre-tax profits edging up nearly 3 per cent to £1.29 billion.

Operating profits at SSE's generation and supply business jumped by more than £60m to £896m, accounting for more than half of the group's overall operating profits.

SSE, which has 9.2 million customers, said underlying demand had stopped falling for industrial customers but for domestic customers it was still dropping because of energy efficiency.

On future prices, Marchant said his "best guess" was that there would be no change in this calendar year. He added: "It's not in my gift. It depends on what happens to gas wholesale prices." The SSE boss said in the past six weeks gas prices had gone up quite significantly to 53p a therm "which is in quite difficult territory" from a price "in the low 40ps (per therm] where there might be scope for a price reduction".

SSE, which also owns Southern Electric and Swalec in England and Wales, cut gas bills 4 per cent in March.

Marchant said a drive on safety had cut working days lost from injury from 361 to 73.

Meanwhile, the bad winter meant water held in its hydro-electric reservoirs slumped to 52 per cent of the maximum from 73 per cent in the previous year.

There are many thrilling aspects to the British election due to be held on May 6th. A hard-fought battle over environmental priorities is not one of them. Climate is the top environmental issue across the board, and the three major parties, Conservatives, Labour and Liberal Democrats, broadly agree on the need for measures to cut carbon dioxide emissions steeply. So, for that matter, do the regional parties and most of the minor parties.

The most notable exception, out towards the fringe, is the UK Independence Party. UKIP speaks for those opposed to membership of the European Union, a group that has a lot of overlap with climate sceptics, and is the political home of Christopher Monckton, the highest-profile climate sceptic of the "it's all an outright fraud" persuasion that Britain can boast. UKIP is proud of its own climate scepticism, and says it would repeal the 2008 Climate Change Act, remove Al Gore DVDs from schools, allow wind turbines only offshore, and so on. (Met Office funding in UKIP-land will be calculated on the basis of the accuracy of the organisation's weather forecasts.)

Even so, the party is firmly, indeed fervently, pro-nuclear, wants more high-speed trains and enthuses over electric vehicles. It would build more coastal and flood defences and invest in clean coal. Leaving aside rhetoric and renewables — both things which British climate discussions might be said to overemphasise — even UKIP isn't that far out of the consensus.

So when the energy, environment and climate spokesmen of the major parties meet to debate in public, as they did on April 21st at the Guardian newspaper, and again on April 26th under the aegis of Ask the Climate Question, an assortment of green charities and pressure groups making common cause, there was more dull worthiness than high drama. The major parties all agree on reductions to Britain's emissions, increases in the deployment of renewables, investments in carbon capture and storage systems for coal-fired power stations, a big nationwide push to increase the energy efficiency of people's homes, new high-speed-train lines and the creation of a Green Investment Bank.

The shared level of commitment and wonkiness is, in its way, inspiring (though it must be a bit dispiriting for the Green party, which to stay distinctively unelectable has had to move towards a thoroughgoing social-justice agenda funded with tax increases no-one else would touch). As George Monbiot, an activist who writes a column for the Guardian, wrote after that paper's event, "They all had the kind of detailed knowledge of green issues that just a few years ago would have been perceived as superfluous to a political career... any one of them could have been fronting a Friends of the Earth campaign from a few years ago. The issues that were once marginal or excluded have gone mainstream." Which may be nice, but hardly produces fireworks, unless you consider the correct way of applying business rates to onshore wind farms an incendiary issue.

Where there are differences, they are sometimes smaller than they seem. Labour is in favour of a third runway at Heathrow, which the other main parties point to as evidence of its poor green credentials. But Labour rules out all other new runways, which the other major parties have not. Which party's position would actually result in the lowest emissions from aircraft is not clear. Nor is it that obvious that runways are the key factor. Arguing for a tighter cap on emissions for the industry is probably more important, not least because it has effects Europe-wide.

The issue where there is the largest substantive issue is on nuclear power. The Liberal Democrats oppose it, and would try to meet the already ambitious carbon reduction targets that the country has subscribed to (a 34% reduction in carbon emissions, measured from a 1990 baseline, by 2020) without it. The Conservatives and Labour are in favour; one of the reasons that the Conservatives are planning to institute a "floor" on carbon prices is presumably that it will make nuclear power look plausible to investors without being seen directly to subsidise it. But both Conservatives and Labour are pro-nuclear with some reluctance, aware both of the technology's costs and its unpopularity. This awareness may be why they do not attack the Liberals on the subject as strongly as they might. Though the Liberals have a point that nuclear is in no way a quick fix, nor is climate change a short-term crisis. To ignore an established, widely used low-carbon technology a priori when committed to massive long-term decarbonisation makes no sense.

There are also areas where the consensus between the parties falls short of what green lobbies and others want. All three main parties have included some sort of Green Investment Bank in their plans. But they are not interested in capitalising it to anything like the extent that the people pushing the idea — notably Climate Change Capital, an investor and advice company — would like. Backers of the bank want to see the £40 billion ($62 billion) that is likely to be raised from the sale of carbon allowances between 2012 and 2020 to go into its coffers to do good infrastructural work. None of the parties likely to have a say in government will commit to that, leaving the prospect, at present, of a small and rather ineffectual organisation.

Amid all this consensus, for good or ill, the biggest difference between the parties lies not in the area of policy, but in the extent of their internal unity on green matters. A significant number of voters are sceptical enough about climate change to doubt the wisdom of any costly action, and they probably vote disproportionately Conservative. The blogs that Conservative activists follow have a strong tendency to scepticism — so do some of the party's incoming MPs, and more of them simply seem to see the environment as a low priority.

The Conservative manifesto looks green in exactly the way that you would expect of a party where the leadership has set out to use environmental issues as a way of "detoxifying" its brand, and the consensus shown at the various events which the environmental spokesmen have graced during the campaign clearly works to the Tories' advantage. It shows that they are quite acceptable to "progressive" voters on a set of issues that the Liberals long owned and that Labour has invested a great deal in. But how much of a green agenda the Conservative leadership would be able to get through if it had only a small majority, and there was genuine dissent within its ranks, is hard to say.

Climate scepticism is hardly likely to be the problem to David Cameron, the Conservative leader, that euro-scepticism was to his predecessor John Major — not least because, as UKIP shows, you can be climate sceptic and still find quite a lot to like in carbon-cutting policies. But there could be resistance to policies which actually cost a lot of money, such as the support of offshore wind on a massive scale. That in turn opens the question of whether, denied support on its own benches, the Conservatives might receive support from other parties on such issues. A consensus before the election is one thing. Afterwards, when there is political damage to be done, it could become harder.

Ofgem makes sure that business Gas and Electricity customers are well protected. Ofgem has conducted a review of business energy practises and implemented a set of new rules and guidelines that will come into effect from 18th January 2010.

However it's important to note that these changes are not taking effect retrospectively; so if you're still in a business gas and electricity contract, the rules do not apply until you renew your existing contract or take out a new one. Your business energy supplier can choose to apply these changes retrospectively, so the safest thing to do is check with them directly.

The Renault-Nissan Alliance and EDF confirm an experimental electric vehicle project in Yvelines with the financial support of the demonstration fund managed by ADEME

EDF
To coincide with the presentation of the plan to deploy public charging infrastructure for carbonfree vehicles (announcement made by Jean-Louis Borloo, Minister of State for the Environment, Energy, Sustainable Development and the Sea), ADEME (the French Environmental and Energy Management Agency) has confirmed that it will support the project with €6.5 million funding.

2010 could be the year of energy bill cuts as pressure mounts on suppliers to pass on lower wholesale costs to customers. The 'big six' suppliers have all taken heed and cut bills.

In February, British Gas cut gas bills by 7%. Just weeks later, Scottish and Southern Energy cut its gas bills by 4%, E.ON announced a 3.3% reduction to gas bills and npower decreased gas prices by 7%.

ScottishPower and EDF Energy have also cut gas bills by 8% and 4% respectively. However, concerns remain about what will happen to energy prices down the line.

Why are bills being cut?

When retail energy prices jumped across the board during 2008, energy suppliers pointed the finger of blame on the huge spike in wholesale costs.

But this situation has now been reversed. Ahead of the most recent cuts, Andrew Wright, senior partner for markets at Ofgem, told suppliers that the regulator would expect them to pass recent falls in wholesale energy costs on to consumers.

While cuts have been forthcoming, the size of these has come as a disappointment. Audrey Gallacher, energy expert at Consumer Focus, says the days of cut-throat price competition are a distant memory.

"All suppliers cut by almost identical margins within days of each other," she says. "There are no sprinters in this race, all we have are long distance trudgers desperate to stay in the safety of the pack."

But Graham Bartlett, managing director of E.ON's retail business, says: "The fall in current wholesale prices is only part of the pricing story as our customers are using gas bought over a number of years at much higher prices than today."

Are households really benefiting?

British Gas was the first major energy supplier to announce it was cutting gas bills this year – however, just a few weeks later it announced a 58% jump in its annual profits, thanks to the falling wholesale cost of gas and electricity.

But the energy giant isn't alone in seemingly raking in the profits. An investigation by Ofgem found that the net margin for a typical standard dual fuel customer rose by £30 during the three months to February 2010.

Mike O'Connor, chief executive of watchdog Consumer Focus, says: "At a time when householders are worried about their winter energy bills, they will no doubt wonder why margins have increased for the fifth quarter in a row, while wholesale costs continue to fall.

The answer seems to be depressingly simple – energy companies are pushing up their profits by cashing in on the cold spell."

Although Ofgem's figures don't take into account the latest price cuts, a quick look at energy price movements over the past two years shows the impact of rocketing wholesale energy costs in 2008 is still being felt by many households.

For example, British Gas only cut gas prices by 10% last year and 7% this year, compared with a 50% hike in 2008.

The future of energy prices

While energy bills appear to be 'heading south', this is sadly only a short-term trend. A recent report by Ofgem warned that far-reaching energy market reforms are needed in order to ensure energy supplies are sustainable, and affordable, beyond the middle of this decade.

Without this investment, energy could become unaffordable. However, with an estimated £200 billion needed, it is likely some of the cost will filter through into domestic energy bills.

There are also fears that consumers may have to pick up the cost of smart meters, which every house must have within the next 10 years. 
What you should do

According to energy experts, people on standard tariffs are probably better off switching regardless of pending price cuts.

"Online energy plans currently cost around £300 a year less than suppliers' standard plans, offering households a real opportunity to take their energy bills back to pre-2008 levels.

As well as switching, there are a number of other things you can do to reduce your bill. For example, you're likely to be charged less if you opt for paperless bills and pay by direct debit.

However, one of the best ways to cut your bill is to simply use less energy. Making your home more energy efficient is also an option, although this can be costly.

The government does offer grants to households to help them meet the cost of energy efficient home improvements.

New rules

Currently, energy suppliers are allowed up to 65 days to notify a customer following a decision to increase prices. If a customer is notified after the event, then suppliers must allow them to switch supplier and avoid any backdated increase.

However, the energy regulator Ofgem is now considering amending the statutory time limit. Under the proposed new rules, it may insist on energy suppliers notifying customers of price changes in advance or, alternatively, it may reduce the time limit from 65 days to 10.

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Green business leaders remain divided on the scale of the impact that environmental and low carbon issues are likely to have on the election campaign, which was formally kicked off yesterday when Prime Minister Gordon Brown confirmed the election would take place on May 6.

Speaking last month, energy and climate change secretary Ed Miliband said that the environment and climate change could emerge as a "top three" issue during the campaign as each party seeks to tout its green credentials. However, he predicted that businesses and the electorate would have to display higher levels of interest in the low carbon economy if the leading parties are to make it a central feature of their campaigns.

Green business leaders are increasingly sceptical that this will be the case and are predicting low carbon policies will slip down the agenda as politicians choose to focus on the economy.

"What we'd like to see is the whole thing being fought on the architecture of a Green New Deal," Solarcentury founder Jeremy Leggett said  "The only person who has really articulated that approach so far is Vince Cable. Peter Mandelson talks about a low carbon revolution, but it is not a revolution of a scale anyone on Silicon Valley would recognize."

He added that there was a strong case for the parties to make low carbon policies a central part of their manifestos, particularly given the scale of the economic opportunity clean technologies represent. "I would not even couch it in terms of climate change and would solely focus on the opportunity," he said. " But I would be very surprised if I am not disappointed by the campaign."

Juliet Davenport, founder and chief executive of green energy firm Good Energy, expressed similar scepticism about the likely role of environmental issues in the forthcoming campaign.

"We're pleased to see the election has finally kicked off but disappointed to see that environment and energy policies seem to be taking a back-seat for all parties," she said. "The environmental business sector should be seen as one of the key drivers of jobs and growth to lead us out of the recession, not as an afterthought or add-on. Environmental matters are central to many voters concerns – it's a shame that political parties seem to have forgotten that."

However, others are convinced that environmental issues could yet emerge as a somewhat surprising electoral issue, particularly at a local level.

The Green Party announced today that it would for the first time put forward a full slate of candidates for London seats and is riding high in the polls in Brighton and Cambridge with a genuine chance of securing its first parliamentary seat.

Meanwhile, insiders have suggested that Ed Miliband's role as Labour's manifesto co-ordinator could result in many of the low carbon policies he has pioneered at the Department of Energy and Climate Change being adopted as part of the manifesto.

In addition, Miliband has repeatedly attempted to highlight lukewarm Conservative support for wind farms and renewable energy targets as an electoral issue, and the contentious topic of wind farms, as well as the credibility of the Conservatives' commitment to environmental issues, could yet play a key role in the campaign.

Margaret Ounsley, head of public affairs at WWF, said that a number of NGOs were working on an Ask the Climate Question campaign designed to encourage voters to ask their prospective candidates about their stance on climate change issues - a campaign fuelled in large part by polls and anecdotal evidence suggesting that some prospective MPs do not regard climate change as a significant issue.

Like more and more 'standard' type tariffs SOLv18 does come with early termination fees should customers decide to leave before 30th June 2011.

Price Guarantee offers the customer the ability to cap their energy prices up to 31st May 2011. Surprisingly this tariff carries no exist penalties.

With these tariffs npower has made its position clear that it clearly wishes to operate in the competitive arena. All indications would suggest that these tariffs will create a bit of a stir.
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Britain will not build state owned gas storage to ensure energy supply as this would raise gas prices, unsettle gas the market and harm commercial investments, the Department of Energy and Climate Change (DECC) said.
"In light of these challenges, the Government has decided not to pursue this option," it said on Thursday in a report on gas security.

Instead, it is considering asking gas producers to provide gas production figures ahead of the high winter demand period to assess the risk of a gas shortage, and improving communications with the Norwegian energy network operator.

Britain has a lower ratio of storage as a percentage of demand than France or Germany, prompting calls for more storage to be built to buffer against unexpected supply cuts like those caused by a Russia-Ukraine gas dispute two winters ago.

The country imports a large amount of gas from Norway, and a technical problem at a Norwegian gas field set off a gas balancing alert in Britain last winter when exceptionally cold weather sent demand soaring.

Other security measures under consideration include giving financial incentives to balance supply and demand in emergencies and possibly strengthening suppliers' obligations to provide gas for homes and small to medium sized businesses.

Sam Laidlaw, the chief executive of utility Centrica, said the government needed to back development of commercial gas storage facilities.

"The policy statement rightly recognises the success of the liberalised energy market in delivering the necessary investment in new infrastructure," Laidlaw said.

Centrica operates Rough, the largest gas storage facility in Britain, and is also investing in other storage projects.

Scottish and Southern Energy (SSE), through its wholly-owned subsidiary SSE E&P UK, has entered into an agreement with Hess to acquire its natural gas assets and infrastructure in three regions of the North Sea.
The regions include Everest/Lomond area, Easington Catchment area and Bacton area. SSE will pay a total cash consideration of $423m for Hess' assets. The transaction is subject to the receipt of all necessary partner and regulatory approvals.

The total gas and liquid resources, which SSE is acquiring, total around 383 billion cubic feet (bcf) or 64 million barrels of oil equivalent (mmboe). The headline transaction price for these resources is $6.6/barrels of oil equivalent (boe) or $1.1/million cubic feet (mcf).

Additional less certain resources of gas may also be identified through further exploration. The main production asset operators are BG Group, BP and Perenco.

SSE currently needs on average around 1300mcf of gas per day to supply its customers and to fuel its power stations and gas from the acquired assets will provide around 8% of that initially, declining over the next ten years.

According to SSE, while the upstream gas assets represent the large majority of the transaction, the company will also acquire other assets from Hess including its 17.7% equity interest in the Central Area Transmission System (CATS) pipeline, which delivers approximately 10% of the UK's total gas demand through a 400km pipeline from the central North Sea to a processing terminal in Teesside. The CATS pipeline is operated by BP.

Ian Marchant, chief executive of SSE, said: "This timely acquisition will enable SSE to enter the upstream gas sector in a measured way by buying proven and geographically diverse production assets.

"These assets will provide a new source of primary fuel and a hedge for our gas generation and supply activities. The acquisition will also give us involvement throughout the gas chain – production, transmission, storage, distribution and supply."

Shipley Parish Council has celebrated the installation of energy efficient measures at its parish room, following a £15,500 grant from energy company E.ON.

The previously unusable room received a major overhaul thanks to E.ON's Sustainable Energy Fund, which helped fund the installation of an air source heat pump, insulation in the ceiling, cavity wall and floor, double glazed windows and dry-lining of the walls.

Tony Jenkin Jones, Community Relations Executive for E.ON, said: "This is a great example of how community organisations can benefit from our Sustainable Energy Fund and contribute to a more sustainable, low carbon future."

Judy Mallaber, MP for Amber Valley, officially opened Shipley Parish Room to celebrate improvements made. She said: "I'm delighted to see the opening for community of this historic parish room built in 1897, which has stood empty for the past 10 years and is now reopened thanks to the hard work of local community groups.

"It's great to see the real changes E.ON's Sustainable Energy Fund is bringing to local communities by helping them become more energy efficient."

Leni Cooper, Secretary of Shipley Parish Room Trust, said: "Local community groups have been keenly awaiting the opening of the parish room as, up until now, there has not been a meeting place in the area since our parish room closed more than a decade ago.

"E.ON's grant has made a tremendous difference to our project.  A building that was once a very cold, draughty and unwelcoming place has been thoroughly insulated throughout and heated by an energy efficient heat pump.  We are now able to provide a modern venue that is energy efficient, warm and low cost."

E.ON's Sustainable Energy Fund helps community groups and not-for-profit organisations develop sustainable energy measures.

It is supported by a dedicated web resource which provides top tips on energy efficiency and sustainability and full details of how to apply for a grant.

SSE (Scottish and Southern Energy plc) has completed the in-sourcing of its meter reading and electricity meter operation services throughout Great Britain, a year ahead of schedule.

It has also completed the first community-wide energy reduction trials in the UK, featuring ‘smart’ meters, and through this has helped two partner communities achieve a 10% reduction in their energy consumption.

In-sourcing
In line with its general preference for services and operations to be carried out ‘in-house’, SSE decided to in-source metering services in a programme which started in 2007. This programme has now been completed, creating 750 new jobs within SSE as a result. SSE’s metering team now comprises 1,500 directly-employed people working in all parts of Great Britain.

In addition to securing annual cost savings of at least £5m, the in-house metering team delivers more reliable metering services, allows more effective management of customer data and creates face-to-face contact between SSE and its customers.

Before the metering in-sourcing was completed, SSE relied on a combination of its own employees in central southern England and the north of Scotland and up to nine external agencies elsewhere in the country to read electricity and gas meters and install and repair electricity meters.

Energy reduction
Longer-term, SSE’s Great Britain-wide metering team will be able to support the transition to ‘smart’ meters which will take place over the next 10 years and will help SSE deploy other energy-related services and products during that time.

SSE has been one of the largest participants in the UK Government’s Energy Demand Research Project (EDRP), since it began in July 2007.  SSE’s projects have involved the long-term trial of over 10,000 smart meters in several locations across the UK and community-wide energy reduction trials involving three communities in Wales, Scotland and England.

SSE has been the only energy supplier in the EDRP to hold trials involving engagement with entire communities. These trials were held in North Leigh in Oxfordshire, Alyth in Perthshire and St Athan in South Wales.

SSE has today announced the communities of North Leigh and Alyth have successfully achieved their target of a community-wide 10% reduction in energy consumption. The trial in St Athan started later, and is therefore not due to be completed until later this year. The community is, however, working hard to achieve their target, and good progress is being made.

A range of measures was available to each community including smart meters, real-time display devices (which show energy use in monetary value), energy efficiency advice and insulation offers. As well as the support provided by SSE,  the communities arranged various events locally, designed to involve the whole community.

The EDRP trials, which were announced in July 2007 and started later that year,  have been managed by industry regulator, Ofgem, on behalf of the Department of Energy and Climate Change (DECC), and aim to gain an understanding of how consumers react to improved information about their energy consumption. The trials consist of different elements using different methods to provide feedback on energy consumption.

Natalie Bruce, Head of Metering at SSE, said:

“The key independent surveys confirm that SSE already sets the benchmark for good customer service in the energy supply sector, but we want to build on that.  Metering is the foundation of good customer service in energy supply, and I am very pleased that SSE now has its own nation-wide team.  This will stand us in very good stead as we prepare for the installation of smart meters and other new services and products that energy customers will rightly expect over the next decade.”

Richard Westoby, SSE’s Director of Energy Demand, said:

"The information that we have obtained during our smart metering trials will be extremely useful in helping to shape the future of the energy industry. The primary purpose of our trials was to understand how people use energy and how savings can be made when more control is given to individuals and communities.

“We firmly believe that there must be radical changes in the way that energy is produced and consumed and the results of these trials, which have used a number of innovative technologies, will help us assist all customers in reducing their energy consumption in the future.”

Energy minister, Lord Hunt, said:

“Smart meters will help people manage their energy better and the energy demand research project is an important part of understanding how consumers respond to them. Every home will have one of the meters by the end of 2020 under our plans. It’s great to see the success that these communities have had in cutting energy use as part of these trials.”

British Gas has today confirmed plans to speed-up its smart meter programme by installing two million smart meters in customers' homes by 2012 in an attempt to enable British householders to take an early advantage of smart meter technology which consists of real time, on-screen information – thus helping to reduce energy use, cut carbon emissions and lower fuel bills.

British Gas, whose parent company is Centrica – a leading integrated energy company, has also unveiled the world-leading companies it will be working with to reach this target – consisting of mobile phone giant, Vodafone; billing systems leader, SAP; software and communications firms, OSIsoft and Trilliant; and global smart meter manufacturer, Landis+Gyr. Plus the Zigbee Smart Energy global wireless home area network standard will be used to connect the in-home devices.

British Gas believes that like all new technology innovations, implementing agreed standards within the industry is a vital step, especially in the highly competitive energy supply market, where over 100,000 customers' change suppliers each week. Therefore, all suppliers will need to be able to operate all smart meters – and that is why British Gas has also declared to share its technical standards with the rest of the industry in an attempt to build momentum for an earlier roll-out, thus beating the Government's target date of 2020.

Phil Bentley, MD of British Gas, Stated:

"At British Gas, we already have the largest smart meter trial in the country. We want all our customers to have smart meters as soon as possible, so they can take advantage of this technology and use it to help them cut their energy use, carbon emissions and fuel bills"

No U-turn on biofuel policy say's the EU!

The European Union has bowed to pressure from environmental groups and published its first major impact assessment into the effect of biofuel on indirect land use change, following concerns that it could undermine the fuel's stated environmental benefits.

However the EU is sticking by its target requiring 10 per cent of all road transport fuel to come from renewable sources by 2020, with the vast majority likely to come from biofuels and has all but ruled out a U-turn on its biofuels policy, despite some media reports to the contrary.

The new environmental impact study for the EU Biofuels Mandate was published yesterday, and details how different scenarios, such as the use of electric cars and second generation biofuels that do not use agricultural land, would affect the emission reductions that are expected to result from the 10 per cent target.

The EU said that although models in the report show that an increase in the proportion of biofuel results in higher indirect greenhouse gas emissions, the net outcome is still positive compared to use of fossil fuels and would not undermine the environmental viability of biofuels.

However, according to Friends of the Earth, the new report shows that if the proportion of biofuels used rises above 5.6 per cent of all road transport fuels, "there is a real risk that indirect land use change could undermine the environmental viability of biofuels".

The 5.6 per cent figure is obtained by deducting the expected share in 2020 of other renewable road transport fuels from the 10 per cent target. But critics said that the anticipated contribution from other forms of transport, such as electric cars, had been inflated to bolster the case for retaining the 10 per cent target.

Friends of the Earth seized on the report as evidence the EU strategy on biofuels is fundamentally flawed and reiterated its calls for the 10 per cent target to be scrapped.

Adrian Bebb, agrofuels campaign coordinator for Friends of the Earth Europe said: "The EU's biofuel policy is looking more and more unsustainable and if not urgently reviewed will lead to deforestation, more climate changing emissions and damage to the environment. It is time to end this madness and bring in real solutions to the climate crisis."

He added that the new report should trigger an urgent review of EU biofuels policy. "How is the EU going to restrict use so that biofuels do not damage the environment or people?" he asked. "The case against the current 10 per cent target is as strong as it ever was."

However, Marlene Holzner, a spokeswoman for EU Energy Commissioner Guenter Oettinger told BusinessGreen.com that the report "provides no basis for calling [the 10 per cent target] into question", and rejected speculation that the EU is preparing a U-turn.

"The aim of the studies is to look into different scenarios and review the effects of the use of biofuels," she said. "This includes for example the change of land use and the impact it has on carbon emissions. Once we know what the impact is, we can minimise the impact if necessary. But there is nothing in this report that tells us that promoting biofuels is wrong."

The report does however conclude by admitting that considerable uncertainty remains regarding the impact of new sustainability criteria on biofuels markets and says that more empirical research into the role of certification and differentiation of biofuels is required.

New entrant energy supplier Ovo has become the cheapest supplier of gas and electricity after undercutting the 'Big 6' companies.

Ovo now offers the cheapest standard tariff gas and electricity after cutting bills by 7%. It makes it cheaper than any of the 'Big 6' – British Gas, Npower, Scottish & Southern, Scottish Power, E.On and EDF.
The average family in the UK can expect to save around £355 by switching to Ovo's New Energy Fixed Tariff, paying £855 per year.

However, while the Ovo tariff jumps ahead of the Big 6's standard tariffs, those looking for the very cheapest deal are likely to find an 'online' tariff costs them less.

Online tariffs mean you apply and get your bills on the internet.

Of the online tariffs, fellow new supplier First:Utility offers the cheapest deal.

The Conservatives say they will force electricity and gas suppliers to provide sufficient gas and electricity supplies as part of a plan to guarantee energy security.

The Tories plan to incentivise firms to build added capacity and intervene over supply contracts and storage facilities to protect gas supplies in the winter.

Tory leader David Cameron said energy policy was "out of date" and Labour had failed to modernise key infrastructure.

Labour said the policy approach was "simplistic and ill-thought through".

Publishing a consultation paper on energy security, the Tories said they supported government plans to build a new generation of nuclear power stations to replace the majority of existing plants which are due to cease operating by the middle of the next decade.

However, the Tories said Labour had "consistently ducked" the challenge of reforming power infrastructure and diversifying energy sources to offset the fall in North Sea oil and gas production.

'Lights off'

The party has warned that the "lights could go off" at some point over the next 15 years if existing capacity is not replaced and says its priority is to deliver secure, sustainable and affordable supplies of energy.

Under a new electricity capacity guarantee, regulators would be able to issue long-term supply contracts to generators to stimulate investment while gas suppliers could be required to build extra storage facilities to prevent strains on the network at times of peak consumption.

  We are setting out a Conservative programme for long-overdue reform of energy policy, together with the actions we will take to mobilise the investment required to enact those reforms

David Cameron
The Tories are also recommending a overhaul of the climate change levy, to charge firms on the basis of their emissions and to provide a "floor" price for carbon to encourage emissions trading.

Ministers will be required to deliver an annual energy policy statement to Parliament while energy regulator Ofgem will lose its competition and consumer protection powers - to be handed to the Office of Fair Trading - and focus solely on executing policy.

"British energy policy is out of date," Mr Cameron said.

"It was designed almost thirty years ago for a world in which Britain had an excess of generating capacity, in which we enjoyed the benefits of growing North Sea oil and gas production and in which neither local pollution nor climate change were the concern they are today.

"We are setting out a Conservative programme for long-overdue reform of energy policy, together with the actions we will take to mobilise the investment required to enact those reforms and our strategy for minimising the cost to consumers."

'Staggering'

Labour have accused the Tories of dithering over energy policy and offering lukewarm practical support for both nuclear and renewable.

"Today's paper bears all the hallmarks of Tory policy in the past few months: it is simplistic and not thought through," said Energy and Climate Change Secretary Ed Miliband.

"It is staggering that in a paper on energy markets the Tories have nothing to say about consumer fairness or fuel poverty," he added.

The Lib Dems said the Tories had performed a "massive U-turn" on nuclear development and it was now the only one of the three largest parties to oppose what it said was a wasteful and environmentally hazardous plan to replace the UK's ageing nuclear infrastructure.

British Gas welcomes the attempts by the End Fuel Poverty Coalition to keep fuel poverty on the political agenda and we urge politicians of all parties to undertake a radical review of the measures to tackle fuel poverty.

We believe that available resources must be targeted at those who need it most. The Government currently spends £2.7bn per annum on the Winter Fuel Allowance. This is a helpful handout to all pensioners, but it makes no sense for wealthy pensioners and people living on the Costa Del Sol to receive it when millions of hard pressed low income families go without. British Gas calls on the Government to reform the winter fuel allowance to target it at those most in need and to ensure that the allowance is credited directly to the recipient's fuel bill. Together with the support available to customers through their energy supplier, this could more than halve energy bills for the poorest.

British Gas has been working with NGOs and the voluntary sector over a number of years to alleviate fuel poverty. We are spending over £500 million to help our most vulnerable customers between 2008 and 2011, more than any other company in Britain. Already this year we have helped more than a million hard-pressed families with reduced rate tariffs, access to free impartial debt advice and free energy efficiency measures.

Many small to medium-sized enterprises (SMEs) in the UK may be considering a business electricity price comparison in order to cut costs, as research has highlighted the extent of problems caused by adverse weather. According to Lloyds TSB Commercial, the freezing temperatures seen in the winter had an impact on seven out of ten such firms. And for 56 per cent of SMEs a direct financial effect was felt - with more than a third stating that they lost up to £10,000 and seven per cent saying it cost more than £30,000. Cutting back by switching business electricity tariffs could help offset the problems, with just 23 per cent of companies saying they were unaffected. Head of external affairs at Lloyds TSB Commercial Stephen Pegge commented: "The combined impact of both the recession and winter will inevitably have caused cashflow problems for many businesses." E.on recently launched its Business EnergyManager, designed to help SMEs understand how electricity is being used in an organisation. Find out how you could switch suppliers and make sure you're not caught out by the small print with your business electricity prices.

Under Ofgem's new ‘Green Energy Supply' Guidelines, launched in February, suppliers offering ‘green electricity' to consumers under the voluntary tariff system must demonstrate that their green tariff involves a commitment above and beyond what is required from existing Government targets for sourcing renewable electricity and reducing emissions. In most cases that will involve some sort of fund to support additional projects, which might include community-scaled renewables or energy saving projects, or even carbon offsetting projects.

The rules for domestic tariffs in the new scheme require that offsetting projects save or avoid the emission of at least 1 tonne of carbon a dioxide equivalent annually, and 50kg of CO2 equivalent emissions p.a. for all other environmental activities, such as community-scaled renewable electricity projects, these all having to be additional to that saved from any existing programmes e.g. as counted within the Renewable Obligation (RO). Basically they can't just use power already credited under the RO. To meet the new rules they must do more, and the new scheme provides specifications, which will be accredited by an independent panel, overseen by the National Energy Foundation.

The voluntary green power market has always sat uneasily on the margins of the UK Renewables market- which is driven by the Renewable Obligation. All electricity consumers already pay their suppliers extra for that, so the voluntary green power schemes have to offer something else to give extra value - they just can't charge extra twice for the same electricity used to meet the suppliers RO requirements. Most suppliers have already been offering additional green benefits to justify premium prices- some have set up funds to support green projects. But not all have charged more. For example, npower set up a self -financed fund for its Juice scheme to support new marine renewables projects- it's reached over £2m so far.

Quite a range of schemes have emerged, with there being some confusion and indeed scepticism about the validity of some of the claims to ‘green-ness' being made. The new rules puts these schemes, and the additional elements, on a more formal basis.

All the large main suppliers- British Gas, E.On, EDF Energy, RWE Npower, Scottish and Southern Energy and Scottish Power, and linked groups, have signed up to the new scheme, as well as independent supplier Good Energy.

Unlike the ‘big six' suppliers, who also sell non-green power, Good Energy buys in and sells 100% green power from mostly local independent sources- and retires any Renewable Obligation Certificates (ROCs) it gets, rather than selling them on. So it claims that it will help renewables to expand, since the value of ROCs will rise proportionately. The other main independent, Ecotricity, sells a roughly 50/50 mix of green/conventional power, which it sees as being reasonable since it is still four times as much green power than currently required by the RO targets. It also charges a premium green tariff rate, but says the income helps it to invest in new renewable energy projects- and it certainly has been pushing ahead with major wind projects.

However Ecotricity has been very critical of the new OFGEM scheme and has not joined. It argues that the renewable energy used under the new tariffs will still all come from Britain's same pool of RO linked renewable electricity, which meant that the big energy companies would not be required to build any extra major source of renewable energy. They will simply provide added-on schemes such as carbon offsetting, help with micro-generation or energy efficiency schemes.

When the guidelines were first proposed last year, Ecotricity's CEO Dale Vince said: ‘In these guidelines Ofgem are accrediting everything you can imagine except the thing that really counts- green electricity. Of course we believe in planting trees, protecting wildlife and cutting carbon, all of these things have an important role to play- but not in green tariffs. Green tariffs and consumer choice of green-tariffs- people power- could play a crucial role helping us to reach government renewable energy targets. But Ofgem have sidelined the consumer in one fell swoop by excluding real green electricity from their definition of so-called green-tariffs.'

After the launch earlier this year he reaffirmed his view: ‘Green electricity tariffs should be about more than feel-good charity schemes. If suppliers want to plant trees or even help old ladies across the road, I'm all for that but not under the guise of green electricity. Ofgem's new ‘rules' set an artificial standard of what green electricity really is. This can only result in them becoming an expensive niche product in a charity ghetto, doing more harm than good. Consumers will get poorer, but Britain won't get any greener as a result of this'.

That may be overstated, after all the new scheme does require real carbon emission reductions, but he may be right in principle- while some small community project may get some support, it won't lead to extra capacity in the mainstream renewables sector. Basically the problem is that the government wants the Renwables Obligation to be the main vehicle for supporting renewables and sees the green consumer tariff as additional and voluntary. Certainly, so far, the uptake has been marginal- only about 2% of UK consumers have signed up to such schemes. What's not clear is what will happen when the new Feed-In Tariffs (FiTs) for small projects come on line from April onwards . Since it's outside the RO, will that power, including some from community projects, be available for ‘voluntary' tariff schemes? That might change things, even though the FiT is also only seen as a small, marginal exercise, leading to at most to 2% contribution to UK electricity by 2020.

Elsewhere in the EU, Feed In Tariffs and green energy certificates schemes used by consumers are taken seriously, and have had major impacts. I the UK though they are still seen as marginal- the focus remains on the competitive market orientated RO, despite the fact that, so far, this has been poor at delivering much renewable energy capacity.

Business Energy Prices

Gas tariffs will remain unchanged, EDF Energy said, arguing its prices were still competitive.

The reduction in electricity bills will come into effect on 31 March and will affect 2.3 million of the firm's customers.

E.On cut its electricity bills by 9% on average on Thursday. It also decided to keep gas prices unchanged.

"These reductions will apply in London, South East, South West, Wales and Scotland, benefiting the vast majority of our standard rate customers across the country," EDF said in a statement.

"In other regions, EDF Energy is already offering some of the lowest tariffs on the market".

'Volatile wholesale prices'

Apart from EDF and E.On, competitors British Gas and Scottish & Southern Energy have also announced price cuts.

British Gas is to cut its gas prices by 10%, effective from 19 February while Scottish & Southern will cut the price of electricity by 9% and gas by 4% from 30 March.

The cost of wholesale gas is linked to the price of oil, which has fallen significantly from the peak it reached in summer 2008.

"Although wholesale prices have fallen recently, the market remains volatile. As a result, the outlook for retail prices is still challenging," EDF said.

"Forward annual wholesale prices for electricity and gas remain at relatively high levels."

ScottishPower today announced reductions in its gas prices for around 1.6 million domestic gas customers and a new winter rebate for vulnerable customers who heat their homes with electricity.
From 31st March 2010 ScottishPower's gas prices will fall by an average of 8% or £66 per annum*, one of the highest price cuts announced by any major supplier this year. These latest reductions follow recent cuts to ScottishPower's Online and Fixed Price offers and will make ScottishPower cheaper on average than British Gas for gas^.
Announcing the cuts, Raymond Jack, ScottishPower's, Director of Energy Retail, said:
“We understand that household budgets are tighter as a result of the economic recession and recognise our customers are concerned about the effect of the recent cold weather on their heating bills. With this in mind we are pleased to be able to pass on lower prices and offer additional support to those most in need.
“We must remember though, that despite reductions in wholesale prices, the gas we are using today was bought well in advance when prices were much higher. It is important that we do this to ensure we have sufficient supplies when customers require them and to protect customers from volatile spot market prices.
“Typically, less than 60% of a bill is now based on wholesale costs. Investment, government obligations and the delivery of energy to the home make up a significant portion of our bills. Over the next few decades, the energy industry will need to invest over £200 billion to ensure that we have a modern and reliable low carbon electricity network.
“To get the most from our new lower prices we would also encourage all of our customers to make sure they are taking advantage of our best deals. By making simple changes to the way they pay and by choosing to manage their account online, ScottishPower customers could make further savings of up to £382#.”
In addition to the gas price cuts, ScottishPower has also announced support for those vulnerable customers who heat their homes with electricity through a new £50 winter rebate**. Under this program 60,000 vulnerable customers will receive a £50 rebate by the end of March 2010 to help with the cost of their winter fuel bills. This package is in addition to the existing Fresh Start social tariff scheme, which already helps around 80,000 customers over 60 and in receipt of qualifying state benefits with savings of up to £382 per year. ScottishPower also remains the only UK supplier to set standard prepayment prices significantly below standard cash rates for both gas and electricity.

*  8%, £66 reduction is based on a domestic customer using 20,500 kWh of mains gas annually, averaged across payment methods and regions.
^  Based on customers paying monthly by Direct Debit or via a Prepayment meter.
#  Annual saving of £382 is based on an average of ScottishPower's Gas & Electricity Offer customers across Britain with annual mains gas usage of 20,500kWh and annual Standard Rate electricity usage of 3,300kWh, who pay quarterly (excluding prompt payer discounts) and switch to ScottishPower's Online Energy Saver 8 Offer, paying monthly by Direct Debit.
** The £50 winter rebate will be applied to multi-rate electricity accounts. Vulnerable customers have been identified using an Experian Fuel Poverty index. The rebate will be automatically credited to relevant customers accounts by 31st March 2010.

Npower Cheapest Gas Prices!

Npower have today announced reductions in domestic gas prices for approximately 2 million standard domestic gas customers averaging 7% or £50. These cuts will take effect from 26 March 2010 and will make npower cheaper on average than British Gas for gas*

Thousands of households will soon get the chance to receive more accurate energy bills as the one company to offer smart meters extends its reach. First Utility last week became the cheapest energy company in the country with its internet iSave tariff, undercutting British Gas. At the same time, it announced customers on the new iSaveV3 tariff will be offered a free smart meter in coming months, with the aim of nationwide coverage by the end of the year. Only households in the Midlands presently have access to these.

Smart meters that monitor exact energy usage multiple times a day, resulting in accurate bills, have to be in all households by 2020, the government said last year. It is hoped they will also cut carbon levels by encouraging householders to pay more attention to energy usage and make more effort to control it. So should you switch to a smart meter now, and will it really save you money?

As First Utility is the only company offering smart meters it's hard to accurately assess their impact. However, householders should not automatically expect bills to drop.

"Bill shock" is a typical initial reaction of smart meter users, says First Utility, as customers used to smoothing out costs with fixed monthly direct debits are suddenly hit with bills reflecting actual usage over a cold winter. "People who were paying estimated bills before can find they were paying less," says a customer services representative.

First Utility is also struggling with customer service issues, according to a number of postings on web forums including moneysupermarket.com, Google and MoneySavingExpert.com. The company scaled back its initial national smart meter rollout after complaints about service in the early days, but seems to be still dogged by problems. Its customer rating is four out of 10 on moneysupermarket.com, compared with eight for Ebico, an energy company with a similar number of reviews.

One industry insider told the Observer First Utility is beset by complaints and that "customer service is terrible". Another said it is only communicating by email and that this is causing problems, while it is also rejecting a higher-than- average number of customers.

Mark Daeche, First Utility's chief executive, acknowledges it has been struggling with the volume of business and that customer service has suffered. "We have been a victim of our own success," he says.

"However we are expanding staff numbers and I expect to sign the lease for new offices in the next few weeks."

First Utility is still ahead of the game with its smart meters. Other companies are set to follow its lead but will have to learn from its experience when it comes to customer service issues.

British Gas is expected to lead the major push in smart meter installation after announcing it wants to recruit 2,600 "smart meter experts" by 2012, while other companies, such as npower, are testing the meters in different parts of the country. Even relatively tiny newcomer Ovo Energy has said it will be installing such meters this year.

Once smart meters are a regular fixture in UK households, bills should be cheaper, say industry specialists. They will give energy companies better understanding of people's energy usage and allow them to make better decisions when buying energy wholesale. These costs savings should, in theory, be passed on to households.

However, substantial savings will only be made if customers learn from the meters. "If I gave you a smart meter now you wouldn't save a penny," says a spokesman for npower. "It's about encouraging you to interact with it and that's what energy companies need to be doing. The benefits will only come when you start paying attention to it." By this he means making energy-saving decisions after seeing how much is being used by certain actions, such as switching on a hairdryer or taking a long shower.

Some remain sceptical about how much smart meters will change behaviour. Scott Byrom, utilities manager at moneysupermarket.com, says his company has recently tested energy monitors, devices connected to your electricity supply to tell you how much your energy costs each day but which are not used for billing. "We found that people are fascinated by how much turning on their kettle costs for the first week but they soon lose interest and stop looking at it," he says. "The only real benefit I see is that they will give you accurate billing. But we've almost already got that."

All the cheapest tariffs are online, he says, and most of these require customers to enter monthly meter readings.

Householders keen to get a more accurate view of bills might be better taking a "transitional approach", says Joe Malinowski of the energyshop.com. "I would advise householders to pick the cheapest tariff they can and then buy an electricity monitor to keep track of their daily usage," he says.

Energy companies are generally becoming more proactive in helping customers keep track of their energy usage, which can't come too soon. A report out this weekend from Britain's only not-for-profit energy company, Ebico, reveals more than 80% of the British public do not know how much they pay for their gas and electricity, and one in 10 never looks at their meters.

"Attempts to persuade people to reduce their energy use cannot be successful until consumers can make a simple correlation between the amount of energy used and cost," says Phil Levermore, managing director of Ebico. "People need to relate to household energy use in the same way they do to fuel consumption in a car."

Ebico has teamed with Oxford University to promote an energy-measuring tool. This lets you monitor real energy use and carbon emissions by submitting regular meter readings. You are given results as a £-spend-per-week and an A-E carbon rating. You can compare results with friends, family or other households.

Business Electricity

A shopping mall in the centre of Liverpool is to trial an innovative scheme that would see used cooking oil from the centre's restaurants turned into biofuel onsite.

The Liverpool ONE retail, leisure and residential centre announced last week that it is to build a biofuel room in the mall's basement that will be used to convert waste oil into biodiesel within 24 hours. The fuel will then be used by the company that manages the centre to run the fleet of estate vehicles that are used to clean the site.

The company said that it expects to produce around 200 litres of biodiesel a week, potentially cutting carbon emissions by an estimated 54 tonnes a year.

Under the scheme, used cooking oil will be collected each day and fed into an onsite Fuelpod, which pumps the oil through a series of filters and heats it overnight to 65 degrees. The warmed oil will then be mixed with methanol and potassium hydroxide, which act together to bind the fats within the oil, creating biodiesel and a glycerine-laden oil that can be used to accelerate the development of compost.

A growing number of firms, including fast food giant McDonalds, are now using old cooking oil to create biodiesel, but Liverpool ONE said the use of onsite refinery equipment would serve to cut the carbon footprint of the process still further by removing the need for the oil to be transported.

"As a vital part of Liverpool's economy, we feel that Liverpool ONE should play a role preserving the environment," said estate director Chris Bliss. "The Biofuels Initiative will help lower the carbon footprint of Liverpool ONE and individual retailers. It also forms another element of Liverpool ONE’s overall environmental strategy."

The average annual household bill for those paying by direct debit will drop by £42 as a result, E.On said.

The move comes after British Gas and Scottish & Southern cut their standard household gas prices by an average of 7% and 4% respectively.

The changes come after a period of lower wholesale costs. The move meant E.On would be offering the cheapest standard tariff for gas users. However, the cheapest average dual fuel bill - covering gas and electricity - is currently with British Gas.

E.on has about 5.5 million UK customers. It said many of those would not be affected by the cuts as they either received only electricity, or were on fixed-rate deals.

Gas providers have come under pressure to cut bills after prices that they pay on the wholesale markets fell.

However consumer groups have criticised the sector for not moving faster to cut prices in the face of a bitterly cold winter.

And British Gas's price reductions came into force immediately - while Scottish & Southern and E.On customers must wait until the end of the month.

The latest moves are expected to push the others in the "big six" energy providers into cutting prices.

"This will heap pressure on the remaining three major suppliers to follow suit." 
 

Scottish and Southern Energy will cut its gas bills for domestic customers by 4% from 29 March, the company has announced. The average annual household bill will drop by £30 as a result, the energy provider said. The move comes a month after British Gas cut its standard household gas prices by an average of 7%, and others are expected to follow suit. The changes come after a period of lower wholesale costs. The company said that its average dual fuel standard credit bill would stand at £1,162, although prices alter depending on where people live in the country.

'Challenging business'

Scottish and Southern has 3.5 million gas customers but nearly 10 million customers across the UK who use gas or electricity or both. Electricity prices will remain unchanged.   We will never get back down to levels enjoyed a few years ago. Those customers who have relatively low gas usage will not see the full effect of the price cuts. Fixed charges - the initial charge for the first tranche of gas used - will increase from £53 to £98. Prices will be cut for gas used above this level, leaving a net effect of a 4% cut for the average customer. "Energy supply is still a challenging business, with significant upward price pressures which run counter to reductions in wholesale costs," said Alistair Phillips-Davies, the company's energy supply director.
"We will do everything we can to make sure customers get value for money from energy supply, with energy efficiency and customer service continuing to be top priorities." The company has also followed demands from the regulator and consumer groups by removing the price differential for pre-payment gas meters. Pre-payment meter customers will see their annual bill fall by 9%, or £70 a year on average. "This is a great day for social justice and means that almost 300,000 people, many of whom are on lower incomes, will now find it easier to pay for their energy and heat their homes," said David Orr, of chief executive of the National Housing Federation.
Single fuel gas rates will fall by 7% or £56 a year on average, moving single fuel gas prices in line with dual fuel.

Other suppliers

Gas providers have come under pressure to cut bills after prices that they pay on the wholesale markets fell. The latest moves by Scottish and Southern and British Gas should push the others in the "big six" energy suppliers into cutting prices

Energy companies in the UK could meet targets for renewable energy generation, if they invested only £30 a customer for the next ten years, according to a new study.

The green supplier Ecotricity has called for "people before profits" in order to pre-empt the energy crisis in 2020 predicted by the regulator Ofgem.

Ecotricity calculated in its report, based on publicly available figures from Ofgem, that none of the UK's suppliers were investing enough money to meet the government's target for 15 per cent energy from renewable sources by 2020.

Of the two biggest suppliers, Scottish Power was the closest to the minimum with £25.79 per customer, while Centrica fell almost a third short of the target at £11.07.

The 'not-for-dividend' model of Ecotricity means that it topped the league in 2009, by investing around £76.88 per customer.

Dale Vince, the founder of Ecotricity, said: "The Big Six energy companies in Britain haven't even come close to meeting their minimum legal obligation to build more new sources of green energy.

"We're calling on them to adopt our business model for the next ten years, forgo dividend payments and spend

British Gas today announced it is creating 80 full time jobs at a new insulation depot in Reading, which is due to open in March 2010. The new depot in Basingstoke Road is the first of 12 that British Gas will be opening across the UK over the next 14 months to help its customers become more energy efficient. 

Based in Reading, the new roles will cover Berkshire, Surrey and Oxfordshire and will involve the installation of cavity wall and loft insulation in homes and businesses.

Wayne Smith, Head of Insulation at British Gas said: "In today's economic climate, I'm delighted to talk about the creation of 80 new jobs in Reading.  There is much talk about utilising green technologies and cutting our energy usage, but we can only do this if we have enough people with the right skills.  Insulation is one of the easiest and cheapest ways to cut carbon emissions, which is why British Gas is investing in insulation depots right across the UK."

Martin Salter, MP for Reading West said: "I am delighted that British Gas is investing in Reading and creating much needed engineering, technical and blue collar jobs in my constituency. This is welcome news and a real vote of confidence in the economic recovery that we are starting to see. It is clear that there is a bright future in these new green jobs and in the business of creating better energy efficiency".

ScottishPower provoked a furious backlash from consumer groups yesterday when it announced an 8 per cent rise in profits to £1.3 billion last year.

The energy company's announcement, which came as bitter winter weather continued to affect much of the UK, was branded "indefensible" by one energy consultancy.

Consumer Focus accused the Spanish-owned utility of failing to pass on to consumers the benefits of plummeting wholesale gas and electricity prices last year.

Philip Cullum, deputy chief executive of Consumer Focus, said: "Wholesale prices have decreased dramatically but have not been passed on to consumers. If energy firms persist in not doing the right thing by their customers, it is time for the industry to be investigated by competition experts in order to identify what needs to be done to deliver fairness."
 
David Hunter, an analyst at McKinnon & Clarke, said: "Despite wholesale prices going into freefall, ScottishPower hasn't cut standard energy tariffs in almost a year. The failure of the ‘big six' suppliers to pass on to customers the massive reductions in wholesale business electricity prices, which they have been enjoying since 2008, is scandalous."

Iberdrola, Spain's largest utility company, which bought ScottishPower in 2006 for nearly £12 billion, said that profits from its UK business had improved because of an 8 per cent reduction in costs after a shake-up of its groupwide IT operations.

But John Hall, an independent energy analyst, argued that lower wholesale prices were the main reason for the rise. "They could have cut prices by 20 per cent a year ago, but instead they held them all year. They were under no pressure to do anything from the Government."

The announcement came as ScottishPower revealed that it had shed more than 100,000 customers in the UK last year, bringing the total to 5.24 million by the end of 2009. Many of these customers are likely to have gone to British Gas, which is expected to announce today that it gained about 150,000 customers last year.

This month British Gas became the first of the big six to trim prices this year, with a 7 per cent cut in its gas tariffs. ScottishPower has not cut prices since February 2009, when it lowered its average gas bills by 7.5 per cent and electricity by 3 per cent.

A ScottishPower spokesman said: "We constantly evaluate our costs and our retail prices and compare our position against the competitive market. We are committed to offering our customers value for money and are the only supplier to actively encourage existing customers to make sure they are on our most suitable tariff."

The profit announcement follows figures from Ofgem this week, which showed that profits per household earned by the big six had soared by 40 per cent this winter to £105 — the highest level since 2004.

Annual results from Centrica today are expected to show that operating profits for its British Gas business rose by nearly 50 per cent last year to £554 million, up from £379 million in 2008.

As a whole, Iberdrola, which is striving to reduce a €29 billion debt pile, said that 2009 profits had hit €2.8 billion, down 1.3 per cent on 2008.

Earnings before interest, tax, depreciation and amortisation rose 6.3 per cent to €6.8 billion. José Ignacio Sánchez Galán, its chairman, did not give a new target for cutting debt but said that overall levels would remain stable until 2012.

Wind assisted

Britain's embattled renewable energy industry received a boost when it was revealed that two European companies are in talks about the construction of a new factory to manufacture offshore wind turbines in the UK.

Ignacio Galán, chairman of Iberdrola, the Spanish utility that owns ScottishPower, said it had signed an agreement to take a minority stake in Bard, a German wind turbine maker. He said they were considering investing in a new UK plant to feed the growing market for offshore wind turbines.

The Government wants to raise the share of generation from offshore wind energy to 33 gigawatts by 2020 from less than 1 gigawatt today. Gordon Brown claimed last month that this would make Britain the No 1 market for offshore wind development and create about 70,000 jobs by 2020.

Sam Laidlaw: "Gas prices in the UK are a third lower than in the rest of Europe"

Operating profits at British Gas jumped by 58% in 2009 to a record high, its parent company Centrica has said.

British Gas's residential energy arm saw its operating profit climb to £595m last year from £376m in 2008, beating the previous high of £573m in 2007.
The announcement comes just days after energy regulator Ofgem reported that energy firms' profit margins had risen in recent months.
Earlier this month, British Gas said it was cutting its by 7%.
Adjusted operating profit at Centrica fell 7% to £1.86bn.
Centrica chief executive Sam Laidlaw said British Gas's profit margin had been about 8% for 2009 and the company was aiming for about 7% this year. The group also said British Gas would create 1,100 jobs in 2010.
Centrica said it realised 2009 was "a difficult year for many of our [British Gas] customers".
British Gas is the UK's largest energy supplier. It gained 141,000 residential customers last year, taking the total number of households it serves to 15.7 million.

Transparency needed

Centrica chairman Roger Carr said: "British Gas was the first of the major suppliers to reduce prices in 2009 which, combined with reduced average consumption, provided a welcome reduction in bills."
The company also said that British Gas had reduced its prices three times in the past 12 months.
However, campaign group Consumer Focus called for "immediate and significant price cuts across the market".
"Energy companies have no excuses for not cutting bills for their customers. It is clear the problems in the energy market are profound and that it requires fundamental reform," said Consumer Focus deputy chief executive Philip Cullum.
"Unlike the other members of 'Big Six', British Gas reports its results in detail and so takes much of the flak that deserves to be shared with the other companies. If ever a market was crying out for greater transparency it is the current UK energy market." 

Rising margins

On Monday, Ofgem published a report saying that profit margins at energy suppliers had risen by an estimated £30 a year.
The average margin for dual fuel customers had risen to £105 a year in February, from £75 a year in November, the regulator said, although the energy industry disputed the figures.
And on Wednesday, Ofgem chief executive Alistair Buchanan warned companies not to "short change" customers.
Energy suppliers have faced questions about their prices at a time when wholesale costs have been falling.
Centrica chief Sam Laidlaw admitted: "We did get squeezed in 2008 as commodity prices rose."
But he added: "With the price reduction that we have just made we've passed reductions [in wholesale prices] back to consumer prices."

Five of Britain's biggest energy companies were facing mounting pressure to cut prices last night after figures from Ofgem, the industry regulator, showed the average profits they earned per household leapt 40 per cent this winter to the highest level in five years.

Ofgem said that net profit margins earned by the so-called Big Six companies — British Gas, ScottishPower, EDF Energy, N-Power, Scottish & Southern Energy (SSE) and E.ON — widened from £75 per average dual fuel customer last November to £105 at the start of this month.

The figure represents the highest average margin enjoyed by the industry since 2004, although Ofgem said that the increase was likely to be short-lived after the decision by British Gas to trim its gas prices by 7 per cent. Its move is expected to open the floodgates to further cuts from rivals.

Nevertheless, the report triggered fresh criticism of the industry for failing to pass on wholesale price cuts sooner as Centrica, the owner of British Gas, prepares to report an estimated 50 per cent increase in 2009 profits to £550 million on Thursday.

Mike O'Connor, chief executive of Consumer Focus, the industry watchdog said: "Householders will no doubt wonder why margins have increased for the fifth quarter in a row, while wholesale costs continue to fall."

Ed Miliband, Energy and Climate Change Secretary, also called for the remaining companies to reduce prices. "Householders facing high winter fuel bills deserve to see the benefits as soon as possible," he said. "British Gas's cut was a welcome first move, but we need to see all suppliers passing on the benefits of lower wholesale prices."

Between 2007 and 2010, the average UK energy bill for a dual fuel customer soared from £912 to £1,223, according to MoneySupermarket.com.

Andrew Wright, Ofgem's senior partner for markets, acknowledged that the companies need to be profitable to afford huge infrastructure investments — estimated at £200 billion by 2020 — to secure supplies and reduce carbon emissions. But he added that Ofgem "would also expect recent falls in wholesale energy costs to be passed on to consumers".

Britain's energy companies reaped huge profits this winter because they left the prices they charge consumers largely unchanged from last year while wholesale prices they paid for gas and power plummeted in the recession. By the end of 2009, the wholesale price of gas had fallen to below 40p per therm, down from more than 100p per therm during mid-2008.

Demand for gas and electricity was also high because of unusually cold weather.

Christine McGourty, director of Energy UK, which represents the leading gas and electricity companies, said the Ofgem figures omitted many of the basic costs faced by energy companies.

MPs call for reform of "flawed" electricity market

Britain's electricity markets are "inherently flawed" and anti-competitive practices may be forcing up the costs paid by consumers, MPs have said.

The study from the Energy and Climate Change Committee on the future of Britain's electricity networks also called for the introduction of a more efficient "smart grid" capable of intelligently managing demand and supply.

Paddy Tipping MP, a committee member said: "Our existing regulatory and policy frameworks, along with the grid infrastructure we rely on, were developed to serve the fossil fuel economy of the 20th century. The future looks very different."

Mr Tipping called for a review of the British Electricity Trading and Transmission Arrangements, which have formed the foundation for UK power activity since 2005. He also said that by 2020 the UK network would need to accommodate a more diverse energy mix.

Energy Suppliers

The extreme weather during the first month of 2010 saw average temperatures slip below 3c with widespread heavy snowfall and sharp frosts across most of the UK. According to the Met Office the minimum temperature recorded was (minus) -22c. The extraordinary weather over the winter period is estimated to have caused a 30 per cent surge in energy consumption, as families and the elderly struggled to cope with the freezing temperatures.

Economically it means the UK’s 27 million households will pay out a total of £6.1 billion on their energy bills for the last month, an increase of £1.89 billion despite the decrease in the cost of fuel. Wholesale gas prices fell by 60 per cent during 2008/9, but the savings have not been passed on to consumers with customer bills being reduced by less than ten per cent. Critics argue that the major energy suppliers are waiting until the summer to bring down prices rather than risk a cut in profits during the peak energy consumption over the winter months.

The UK’s largest energy supplier, British Gas with 15.7million customers, is set for a 50 per cent rise in annual profits to more than £500million, while Scottish and Southern Energy’s profits rose by 36 per cent in the past six months. Thousands of elderly, meanwhile, have been unable to afford to keep warm during the coldest spell in 30 years. One energy expert commented “There is still scope for significant price cuts for both gas and electricity to ease the burden on hard-pressed households. A lot of people, especially the old, poor and vulnerable, were already struggling to pay their bills even before the sharp drop in temperatures and they need help.”

There were 36,700 more deaths among the elderly during winter than in warmer months, according to the Office of National Statistics, up 12,000 on the previous year. At the same time there are millions of pensioners among the 5.4million who are in fuel poverty. The Age Concern and Help the Aged charity condemned the rise in winter deaths, which it links to ‘cash-strapped older people turning down the heating’. Energy watchdog group Consumer Focus commented: ‘All of the suppliers will be enjoying rocketing profits while millions of consumers worry about how to afford to keep warm.’

The windfall for gas and electric companies comes on the back of an the energy regulators Ofgem critical report that found energy suppliers waiting 65 days after putting up prices before informing customers of the increase, leaving many in the dark over the true cost of their energy consumption.

This is an increase of 40 per cent over the last three months, according to Ofgem, the industry regulator, and the highest level since at least 2004, when records started.

It is also, experts believe, the most money energy companies have made since they were fully deregulated by the Conservative government at the end of the 1990s.
The figures come just a few days before British Gas is expected to unveil a bumper set of profits. Helped by strong demand for gas during the cold weather in December, annual profits at British Gas could beat the record of £571 million set in 2007.

Ofgem said it had concerns about the very high profits that companies were now making. Over the last year, though customer bills have fallen slightly, they have not fallen nearly as much as wholesale gas and electricity prices.

Ed Miliband, the Energy and Climate Change Secretary, called on all the suppliers to cut their bills as soon as possible,

Mike O’Connor, chief executive of Consumer Focus, the Government-backed watchdog, said: “At a time when householders are worried about their winter energy bills, they will no doubt wonder why margins have increased for the fifth quarter in a row, while wholesale costs continue to fall. The answer seems to be depressingly simple – energy companies are pushing up their profits by cashing in on the cold spell.

“There is mounting evidence – and mounting demand from consumers – that price cuts should be passed on. We agree with Ofgem: energy companies should play fair and bring bills down to offer some respite to their hard pressed customers.”

This winter has been the coldest for thirty years, according to the Met Office, and most consumers have been forced to use more gas and electricity to keep their homes warm.

Mark Todd at the energyhelpline, the price comparison site, said: "I can't believe that in absolute terms profits for energy companies have ever been higher. We have to hope that this means there is plenty of potential to cut bills."

Since last summer, the only company to trim customers' bills is British Gas, who knocked off 7 per cent from its gas bills earlier this month. However, this still makes them considerably more expensive than they were two years ago.

According to Ofgem, the average dual fuel bill across the country – combing both gas and electricity – totals £1,130 a year, cheaper than 12 months ago when it was £1,205. However, in that time the wholesale cost of energy has fallen substantially.

This means that, after the companies have paid for their energy, as well as tax, staff wages and other operating costs, they are left with far higher profits.

A year ago the average customer generated no profits whatsoever, because of the high wholesale energy costs. They are now generating profits of £105, on average.

Energy companies insisted they were not profiteering, pointing out that over the last five years there had been long periods when they made no profit, or even substantial loses from supplying customers with gas and electricity.

Christine McGourty, director of Energy UK, which represents the leading gas and electricity companies, said: “The regulator Ofgem has pointed out before now that the business of supplying energy to the home moved into profit last year, but admitted this came after three years in which the companies were earning close to nothing from supplying dual fuel customers."

The rise in customer numbers, together with rock-bottom wholesale gas and Business electricity prices, should help British Gas to report profits of more than half a billion pounds for the year.

City analysts predict that British Gas Residential, the nation's biggest retail energy supplier, generated profits of £554 million in 2009 for its parent company, Centrica — up 46 per cent from £379 million in the previous year.
 
British Gas comes in from the cold

Centrica, due to publish its annual results on Thursday, is expected to reveal that with 150,000 new accounts, British Gas has finally reversed a seven-year run of falling customer numbers, bringing the total to 15.7 million.

Bobby Chada, utilities analyst at Morgan Stanley, said British Gas was in a "sweet spot" following a 7 per cent price-cut in its gas tariff this month and predicted that the group would continue to win new accounts in 2010.

Between the end of 2003 and 2008 Centrica shed a total of three million customers, amid accusations of uncompetitive pricing and poor quality service. Desertions reached a peak after a botched new IT system in 2006 that reduced the customer billing process to chaos.

Profits at British Gas were also boosted last year after wholesale gas and electricity prices plunged as the recession sapped demand. The wholesale price of gas fell to below 40p per therm in the second half, down from more than 100p per therm during mid-2008.

Sam Laidlaw, chief executive of Centrica, is expected to use Thursday's results to unveil details of a new strategy focused on selling home services, including insurance products, energy efficiency and renewable energy products such as wind turbines and solar panels.

But while British Gas enjoyed brisk growth in both profits and customer numbers in 2009, profits across the wider Centrica group are expected to have fallen back. Other, less well recognised businesses such as Centrica Energy, which operates power stations and acts as a wholesale gas supplier, are expected to report steeply lower earnings.

Average forecasts from City analysts predict total operating profits of £1.82 billion for the whole Centrica group, down 7 per cent from £1.94 billion in 2008.

Nevertheless, the announcement of a big rise in profits for British Gas is likely to fuel anger from consumer groups who accused the company of delaying retail price cuts last year, despite a steep fall in wholesale prices.

They have also attacked Centrica for profiting from increased demand for gas during the recent cold snap.

The results next week will not include earnings from January, when Britain was hit by some of its worst winter weather since the early 1980s. On January 7, UK daily gas demand hit a record high of 454 million cubic metres, up 30 per cent from a seasonal average of 350 million cubic metres.

Microgeneration is the new buzz word

British Gas seems finally to be on something of a roll. The company, which now claims to be the UK's cheapest gas supplier after trimming retail prices this month, is tempting new customers and winning market share from its Big Six rivals.

The strength of the British Gas brand and the company's hefty marketing spend during the downturn have no doubt helped.

But the strategy pursued by Centrica, its parent, of bundling gas and electricity supply together with home services, such as boiler, plumbing maintenance and appliance insurance products has also proved remarkably effective in drawing in new customers.

Now Sam Laidlaw, Centrica's chief executive, is planning to open up a new front in the battle for customers by capitalising on government plans to improve home energy efficiency and to encourage so-called microgeneration of renewable energy, which will see households producing some of their own power from small-scale wind and solar generation.

He believes that by offering customers "home energy audits" and with the use of new technology such as smart meters, Centrica can build a whole new market installing and maintaining these sorts of products.

Meanwhile, two shrewd deals last year could mark a turning point for Centrica by permanently reshaping the business.

Historically, Centrica has suffered from a shortage of its own gas and electricity production. That has forced the company to buy supplies on the open market, leaving it exposed to volatile wholesale prices.

The £1.3 billion purchase of Venture Production, a North Sea gas producer, and a 20 per cent stake in British Energy, the UK nuclear generator, from EDF for £2.3 billion, have helped to solve this problem.

Centrica is now more vertically integrated and more independent than it has been since its creation in 1997 after a demerger from the old British Gas.

In time, that should also improve Centrica's ability to compete on price.

Business electricity

Biomethane will make a contribution to decarbonising the gas grid by delivering renewable heat to households through the existing gas network and central heating boilers.  According to a study by National Grid, it could account for at least 15 per cent of the domestic gas market by 2020.

Biomethane is a mixture of gases (predominantly methane) that are sourced from organic material, such as cattle slurry, food and household waste.  It has similar thermal characteristics to natural gas and, once upgraded to grid specification, can be injected into the gas grid for end use by customers.

The first project will involve British Gas working with Thames Water and Scotia Gas Networks to build plant at Didcot sewage works.  Thames Water already makes and flares raw biogas from sewage processing.  The project will design and build a plant to clean the gas and inject it into the grid.

First gas from this project could flow into the grid in summer 2010.  Upon completion, British Gas will also enter into a long-term gas purchase contract with Thames Water.

British Gas has also signed development agreements with four other companies to carry out feasibility studies with a view to delivering biomethane to grid.  The agreements are with GWE Biogas (using food waste and farm crops), Potters Waste (manufacturing waste), Dillington Biogas (farm waste slurry) and Adnams Brewery (brewery waste).

Assessment and development of these projects will start immediately.

Gearóid Lane, Managing Director of Communities and New Energy, British Gas, said: "We're delighted that the Government will provide support to make investment in biomethane commercially viable.  With 85 per cent of homes heated by natural gas, this is a fantastic opportunity to deliver renewable heat through our existing gas network and central heating boilers."

"These five projects demonstrate once again British Gas' leadership in renewable energy.  By making early investments in biomethane we intend to drive forward the opportunity to deliver green gas to our customers."

Government support for biomethane injection into the grid is part of the Renewable Heat Incentive (RHI), which sets out proposed financial incentives for the generation of renewable heat by households, communities and industry

Mel Karam, Thames Water's director of asset management, said:

"Our  project  with  Centrica and Scotia Gas Networks at Didcot marks a big step  forward  for  our ‘poo power' endeavours. For decades we've generated electricity  by  burning  sewage  sludge or methane derived from it, saving £15m  in power bills last year alone. Next on our renewable energy hit list is  using  biomethane  from  sewage  as another source of gas, so to see it become  a reality later this year will be great for customers and great for the environment."

Charlie Mullins, managing director of Pimlico Plumbers, says most people would be far better off avoiding the scheme if it involves ripping out an inefficient, but functioning boiler. He warns that new models can be problematic, expensive to repair and often don't last.

Mullins, known as the plumber to the stars with his company's vans usually found in London's wealthiest areas, also questions whether the £50m scrappage scheme will help the people who most need it. He argues that it gives the well-off an unnecessary grant.

Under the terms of the scheme, households in England can get a £400 grant towards the cost of installing a new A-rated condensing boiler. To be eligible, most households have to be prepared to spend the typical £2,000 cost of replacing their old but working boiler. Only the over-60s can trade in a defunct model.

To get the cash voucher your existing oil or gas model has to be one of the 4m G-rated boilers. If it has a pilot light it's probably eligible.

When the scheme was launched earlier this month, the government said it would help 125,000 homes, and save as much carbon as taking 45,000 cars off the roads. It quoted Energy Savings Trust figures showing that those taking it up would see their gas bills fall 30%, cutting the average household's energy bill by £234 a year.

So far around 16,000 households have received a £400 voucher. However, there are growing concerns that thousands of functioning boilers will be replaced with more efficient, but less reliable or durable models, that in some cases will last just a few years before they have to be replaced.

Mullins says consumers should know what they are getting into before they sign up. "Boilers of old would typically last 10 to 15 years, if not longer. But some of the new condensing models just don't last, and when they go wrong they are complicated and expensive to repair. We have been ripping out boilers that have done just three to six years' service, and have become uneconomic to repair," he says.

"Clearly condensing boilers are much more energy efficient, use much less gas and are better for the environment, but if you look at the scheme purely in economic terms, it is madness to spend around £2,000 to scrap a boiler that's working perfectly well."

He wonders who the scheme, which is not means tested, is designed to benefit. "Labour's £400 subsidy is only going to help people who could have afforded a new boiler in the first place. They say it will help poor families cut their heating bills by £200 a year, but where are they going to get the other £1,600 from?"

A glance at the various plumbing and DIY websites shows that many buyers are unhappy with their condensing boilers. It also bears out a recent Guardian Money report that found reliability levels vary enormously according to the manufacturer.

Some postings claim poor installation is responsible for a large share of breakdowns. However, some models appear to have known weaknesses. The recent spate of cold weather call outs to the owners of condensing models because of frozen outlet pipes, hasn't helped.

Clearly, there is little point in spending £1,600 on a boiler that is only going to last six years – even if it does reduce your annual gas bill by more than £200. Also, to get that saving you've got to be spending at least £780 a year on gas. Many people living in small homes are unlikely to get anywhere near the promised savings.

Choice to be limited to A-grade models

Pimlico Plumbers says that for anyone needing to replace a broken boiler, two brands – Worcester Bosch and Vokera – stand out as the most reliable. Its views mirror a recent Which? report, which named Worcester Bosch, Vaillant and Vokera boilers as the most reliable, although 26%-29% of the consumer group's members with those brands had reported some kind of problem during the previous four years.

 Only A-rated boilers can replace old ones Carl Arntzen, director of the Worcester Bosch Group, says that from October, UK consumers' choice of boilers will be limited to A-rated condensing models following a change to building regulations.

"Condensing boilers got a bad reputation for reliability when they first appeared in the late 80s and early 90s, but they have dramatically improved in recent years and we think the models we produce today are more reliable and longer lasting than the models we were selling a decade ago." He says the claimed 30% efficiency savings are based on trials by the Energy Saving Trust.

If you are going ahead, it will pay to research the reliability of any boilers on your short-list. Installers tend to have favourites and you should check them with a Google search, which should show up known weak spots.

In the long run it may pay to choose a more expensive boiler. The brands above do cost more, but who wants to spend weeks without heating in the middle of a cold snap?

Boiler fix required a kettle of hot water

Thousands of condensing boilers stopped working during the spell of sub-zero temperatures, but in many cases, the fix was just a kettle-full of hot water away.

In most cases, the problem was caused by condensate (moisture from the flue) that had gradually frozen and was blocking the outlet pipe. Boilers are designed to shut down if the pipe becomes blocked, to prevent damage.

The problem caused thousands of call-outs to British Gas. The company responded by putting a page on its website advising customers what to do, complete with a YouTube video clip showing viewers how to defrost their pipes. Once the ice plug was removed, the boilers would have restarted.

Installed free … but what about the £573 repair bill?

When disabled pensioner Heather Campbell had a new condensing boiler installed, organised by her local authority, she was delighted.

However, just three and half years later, the housebound 65-year-old, who lives in south-west London with the help of a carer, has been presented with a bill of £573 to get her Glow Worm 30cxi working again.

It broke down on 27 December and she called out British Gas. Despite two attempts, the engineer could not fix it.

Local plumbers, ThermoServ, then came to her rescue and got it working but only after replacing the motherboard and the display – at a total cost, including labour, of £573.

Campbell says: "I was only able to pay the bill because I had recently received a tax rebate – although British Gas has since agreed to pay almost half the bill as its staff appear to have made matters worse.

"If it happens again, I simply won't be able to pay to repair it – I've lost confidence in it and have since bought a fan heater just in case."

Her story raises the question of whether vulnerable consumers, who have a boiler given to them, also need free backup for the lifespan of the unit. A spokesman for Coldbusters,­ part of CEN, the body which installed her boiler, said customers­ are now given two years aftercare, although this was not the case when she took delivery. After that, it is down to the householder to pay for servicing and any repairs that are required.  Warm Front, the national scheme which similarly provides boilers to those in need does the same.

British Gas  Business

Tel: 0845 600604 Fax: N/A

The Retention Team, British Gas Business, Spinneyside, Penman Way, Grove Park, Leicester LE19 1SZ

contract.renewals@centrica.co.uk (can also email the account manager named on each bill)

CNG Business

Tel: 01423 502554 Fax: 01423 502556

Contract Natural Gas Ltd, CNG House, 5 Victoria Avenue, Harrogate, North Yorkshire HG1 1EQ

info@cngltd.co.uk

Corona Tel: 08442 646464 Fax: 0870 2429665

Corona Energy, Edward Hyde Building, 38 Clarendon Road, Watford WD17 1JW

mail@coronaenergy.co.uk

EDF Business Energy

Tel: 0800 096 2255 Fax: 01273 793 114 (marked ‘Site Loss')

EDF Energy, Southdown View Road, Worthing, West Sussex BN14 8NL

customer_correspondence@edfenergy.com

Eon Business

Tel: 0800 068 6516 Fax: 0115 877 7514

Eon Contract Terminations, PO Box 9042, Sherwood Park, Annesley, Nottingham NG15 5AZ

smecontractterminations@eonenergy.com or business@eonenergy.com

Haven Power

Tel: 01473 725943 Fax: 01473 726788

Haven Power, The Havens, Ransomes Europark, Ipswich IP3 9SJ

info@havenpower.com

Npower Business

Tel: 0845 166 3360 (3320 for gas) Fax: 01482 495 305 (for both)

Npower Business, Contract Terminations, Bridge House, 200 Clough Road, Hull HU5 1SN

smeconsultant.renewals@npower.com

Opus

Tel: 0845 3302655 Fax: 0845 223 5445

Opus Energy Limited, Royal Pavilion, 2 Summerhouse Road, Northampton NN3 6BJ

contactus@opusenergy.com

Shell Gas

Tel: 0207 257 0100 Fax: 0207 257 3410

Shell, 1-3 The Strand, London WC2N 5EJ

user@shell.com

Scottish Power Business

Tel: 0845 2700 700 Fax: 0141 568 3383

Scottish Power, SME Contracts Manager, Section 12, Cathcart Business Park, Glasgow G44 4BE

customer.services@scottishpower.com

Scottish & Southern

Tel: 01256 304278 Fax: 01256 304270

Energy Sales Dep, Scottish & Southern, Centenary House, 10 Winchester Road, Basingstoke RG21 8UQ

terminations.Reboot@scottish-southern.co.uk

Notice: at least one calendar month ahead of contract end date

Notice periods and contact details are correct @ the time of publication.

Business electricity prices

UK-based coal bed methane developer IGas Energy (IGas) has revealed that the company has met its stated objectives for 2009, which keeps it on track for commencement of full scale UK Gas Production next year.

IGas has said that the harshest winter for some 40 years in the UK has lead to gas interruptions and highlights the need for an alternative to imported gas to maintain security of supply. However, IGas now has the funds, the technical knowledge and the sites close to major industrial areas to start delivering secure gas commercially.

The company said that despite severe weather conditions it continues to produce at Doe Green where it has three lateral and one vertical wells. One of these laterals (Doe Green well 2) has been in production for over a year, the other laterals and vertical are currently dewatering. Gas produced at Doe Green is being used to generate electricity, which is being sold via the electricity grid.

In October 2009, IGas finalised the well design for its site at Keele University Science Park and the land agreements were in place. The company said that work started on the site as planned during December.

The objective of this well is to produce gas from a lateral in the Great Row seam, which is at a depth of 1,757 feet from surface and is around 11feet thick at this location. Logs from the group's well at Willoughbridge, 5.5 miles south west of the location, provide encouragement as to the permeability of the coals in this area and the group is expecting that the production results will be at least in line with those experienced at Doe Green.

Planning has now been granted for a full production site at Ellesmere Port. The decision was made under delegated powers. Before the end of 2009, planning permissions were submitted for a further four full production sites dispersed in the company's acreage in the North West of England. A typical full production site is expected to produce between four and ten million standard cubic feet of gas per day. These are the first applications to be made under the framework agreement announced in 2008 with Peel Environmental.

As part of the agreement Peel has given unlimited access to their entire land holdings in the North West for the purpose of identifying those sites suitable for CBM operations. The agreement includes commercial arrangements for leases of sites once planning permission has been granted.

In August 2009, IGas acquired 100% of PEDL 78-2, which lies to the south and west of the company's existing Swallowcroft area. This increased the company's total acreage by around 100sqkm.

In December 2009, the company concluded an agreement with Nexen in which it increased its interest in each of the point of Ayr Licences to 75% and should assume operatorship. The increase in the company's percentage interests in the Point of Ayr Licences increases its exposure not only to the gas in coal but also to possible conventional and shale opportunities.

IGas expects to drill a well in Point of Ayr later this year. Depending on the final well design, it may be possible for data acquired, whilst drilling such a well, to address the reservoir quality of these leads and hence any further potential upside.

"This claim by the GMB is untrue. 

"While we did remove around 300 non customer-facing roles last year, we also announced the creation of more than 4,000 new roles - including engineers and smart energy experts who will lead the roll-out of smart meters and energy efficiency measures.

"Just this week we briefed the GMB on our plans for growth as a business. It is very disappointing that the GMB has now seen fit to tell the media, incorrectly, that we have plans to make major redundancies, as this will cause concern among our people who are all working flat out to keep our customers homes warm and lit during this cold snap."

. The government's new green initiatives are unlikely to come online fast enough to plug our growing energy gap

It was supposed to be a great leap forward in Britain's green energy revolution. Three of Labour's biggest beasts – the prime minister, Lord Mandelson and Ed Miliband – lined up in London on Friday to launch a new wave of offshore wind turbines the government hopes will create up to 70,000 "green collar" jobs over the next decade. But as snow brought Britain to a halt, the green dream had little hope of dominating the headlines.

Thursday had already brought an unwelcome reminder of the more mundane reality of Britain's energy policy today: almost 100 factories were ordered to shut off their gas supplies, to prevent the prolonged cold snap leaving households in the dark, in what energy experts said was the clearest evidence yet of a looming power crisis.

The dire winter weather may have been impossible to predict, but the fact that it forced the National Grid to trigger so-called "interruptible contracts" for scores of large firms, underlines just how short supplies already are.

"The whole situation is very, very difficult and we have got to stop pretending we have got anything other than chaos," says Andrew Bainbridge of the Major Energy Users' Council. He says some major retailers have reported dips in electricity supplies as the temperatures have plunged, adding to the problems of coping with the cold.

Even if the £100bn wind-power revolution hailed by Brown and his colleagues is a stunning success, it will do nothing to alleviate a formidable short-term squeeze, resulting from the fact that many older electricity plants – both nuclear and coal-fired – are due to be scrapped over the next few years, leaving Britain increasingly dependent on gas power, at the same time as its own reserves in the North Sea are being rapidly run down, so that the gas-fired plants will have to be heavily reliant on imported supplies.

"We've got all the nukes and most of the coal going off the system in the next 10 years," says Professor Dieter Helm, an expert in the economics of energy at Oxford University. He says without the worst recession in 50 years, which has reduced economic output this year by more than 5%, "our CO2 emissions would look much worse, and our energy security problems would be pressing". He describes last week's rationing as "a little wake-up call".

None of the problems facing the government this winter are new: energy consumers, including many of Britain's biggest businesses, have been warning for years that there is little supply to spare. Even with the interconnector pipeline now bringing gas directly from the continent, a lack of storage capacity means there is no guarantee that Britain's needs will be served, and prices can swing dramatically.

There is little indication of how the government hopes to fill the gap between the clunky old plants being mothballed, and the shiny new future of renewables in a decade's time. Labour has announced a new generation of nuclear plants, but few analysts expect them to come on stream in time.

The latest electricity generation data, released on Friday, showed that as the temperatures dropped, 45% of output was being produced from coal, 37% from gas, 15% from nuclear power — and just 0.2% from wind.

Energy consumers say governments have for decades delayed the costly decisions needed to guarantee a smooth switchover from the old generation of plants to a new, greener era. "Everybody's blaming the Labour government, but the problem started with the Tories: no government has really grasped the nettle of an energy mix to make sure that we have got secure supplies," says Bainbridge.

Meanwhile, many analysts fear rationing, like that which took place last week, will become an increasingly common occurrence. Firms voluntarily sign up to interruptible contracts, which give them cheaper bills; but when a blackout is triggered, as it was last week, companies can suddenly be forced to look for supplies elsewhere at short notice, and often at painfully high cost. Steve Radley, head of policy at manufacturers' group the EEF, says: "It's going to be about the signal that this sends to potential investors in this country, and multinationals that are already here and thinking about whether to make that next investment."

And, despite Brown and his colleagues' enthusiasm for offshore wind, and the jubilation of the firms, including Centrica and Siemens, that formed the winning consortiums, there are profound doubts among some in the industry about whether it can solve even Britain's longer-term energy challenges.

A report prepared by consultants BVG Associates for the Crown Estate, which granted the new round of wind farm licences, highlighted a series of potential problems, from lack of affordable finance to a shortage of skills and to technical problems with servicing installations sited many miles offshore.

There are also questions about how much the British economy will benefit. Some regions, including Brown's constituency in Fife, are hoping to see hundreds of jobs created building and servicing the new turbine platforms, using skills developed for the offshore gas industry.

But the EEF estimates that 90% of the €2bn being spent on the vast London Array – the largest example of a wind project already under way – has leaked overseas. There is no turbine manufacturing capacity in the UK, after the closure of the Vestas factory on the Isle of Wight — though the government is known to be trying to persuade manufacturers, including Germany's Siemens, to locate a new turbine plant here.

Perhaps the biggest doubt about the dash for wind, however, is that it only provides an intermittent power supply, which is hard to store – so some back-up alternative is needed for times when the wind is low. Jeremy Nicholson, director of the Energy Intensive Users' Group, says: "Wind is a particularly useless form of power generation if you don't have a way of storing the energy. It just seems the politicians have been taken in by the wind lobby, and they've taken leave of their senses."

Radley says: "If you're going for more renewable energy, a lot of it is intermittent, and you need back-up with gas. For the foreseeable future we are going to become more dependent on gas, so it's absolutely vital that we get this right."

Almost all analysts are agreed that solving the short-term energy crunch, as well as achieving the target of 30% of power produced from renewable sources by 2020, will be expensive. The energy market regulator Ofgem published a review of Britain's future energy requirements last year, which suggested an eye-watering £200bn of investment would be necessary to secure the UK's energy supplies by 2020 and meet its carbon targets. This means that customers could face potential price rises of anywhere between 14% and 60%.

Ofgem chief executive Alistair Buchanan said: "Chief among the challenges this country faces are growing exposure to a volatile global gas market and power stations nearing the end of their life. Early action can avoid hasty and even more expensive measures later."

But Helm suggests it may be a forlorn hope to expect the government to take radical action upfront to secure supplies. He draws a parallel with financial regulation. For many years, he says, governments simply stood back and expected the market to provide — but collective problems such as making sure the lights don't go out will never be solved by individual firms, which have an incentive to keep prices high. "Security of supply is a public good: it's a system property; it will not be provided by the market left to its own devices," he says.

He warns that it could take the energy equivalent of a credit crunch to force politicians to wake up. "Energy policy never changes in advance of a crisis, it only ever changes after a crisis."

The average American consumes more than his or her weight in products each day, fuelling a global culture of excess that is emerging as the biggest threat to the planet, according to a report published today. In its annual report, Worldwatch Institute says the cult of consumption and greed could wipe out any gains from government action on climate change or a shift to a clean energy economy.

Erik Assadourian, the project director who led a team of 35 behind the report, said: "Until we recognise that our environmental problems, from climate change to deforestation to species loss, are driven by unsustainable habits, we will not be able to solve the ecological crises that threaten to wash over civilisation."

The world's population is burning through the planet's resources at a reckless rate, the US thinktank said. In the last decade, consumption of goods and services rose 28% to $30.5tn (£18.8bn).

The consumer culture is no longer a mostly American habit but is spreading across the planet. Over the last 50 years, excess has been adopted as a symbol of success in developing countries from Brazil to India to China, the report said. China this week overtook the US as the world's top car market. It is already the biggest producer of greenhouse gas emissions.

Such trends were not a natural consequence of economic growth, the report said, but the result of deliberate efforts by businesses to win over consumers. Products such as the hamburger – dismissed as an unwholesome food for the poor at the beginning of the 20th century – and bottled water are now commonplace.

The average western family spends more on their pet than is spent by a human in Bangladesh.

The report did note encouraging signs of a shift away from the high spend culture. It said school meals programmes marked greater efforts to encourage healthier eating habits among children. The younger generation was also more aware of their impact on the environment.

There has to be a wholesale transformation of values and attitudes, the report said. At current rates of consumption, the world needs to erect 24 wind turbines an hour to produce enough energy to replace fossil fuel.

"We've seen some encouraging efforts to combat the world's climate crisis in the past few years," said Assadourian. "But making policy and technology changes while keeping cultures centred on consumerism and growth can only go so far.

"If we don't shift our very culture there will be new crises we have to face. Ultimately, consumerism is not going to be viable as the world population grows by 2bn and as more countries grow in economic power."

In the preface to the report, Worldwatch Institute's president, Christopher Flavin, writes: "As the world struggles to recover from the most serious global economic crisis since the Great Depression, we have an unprecedented opportunity to turn away from consumerism. In the end, the human instinct for survival must triumph over the urge to consume at any cost."

Businesses are proving to be savvier, as there has been no let up in the number of enquiries for business electricity and gas quotes. As the cold sets in and is looking to get worse, energy bills are on every ones minds businesses and home owners.

Companies looking to better their renewal prices will be surprised just how much they can save with a quote from one of our energy advisors, simply fill out our quote form and relax, we beat all other comparison sites and brokers on price.

Business electricity and gas customers need to remember to cancel their contracts in the specified times each supplier have different cancelation periods unfortunately this is not helpful but the good news is that Ofgem is pushing to get this changed to a more unilateral  time scale. Until then, as a smart business you should be aware of your contract end dates, forgetting to cancel your business electricity and gas contract can cripple a business especially if your company is a restaurant, dry cleaners, take away or any commercial building.

Why use switchit4u.biz

We are fast becoming, the leading comparison site for business electricity and gas our quotes are on average 45% cheaper than your renewal prices and 18% cheaper than any other comparison site or broker. So you can relax knowing we work hard 4u not the supplier.

Is there a charge to use this service?

There is no charge to use our service, it is completely FREE!

How does switchit4u make money?

We will receive a small introducer fee, from witch ever energy supplier win your business. We are completely impartial and independent, our main goal is to get the cheapest electricity and gas tariffs for your company, on the belief that you will tell your friends and other business associates and more importantly that you will come back year after year.

Electricity and Gas for Churches

Now that you have found the leading comparison site for reducing your energy bills the good news is we have exclusive business electricity and gas tariffs for churches.

All you have to do is complete our quote form with as much information as possible regarding your energy supply, to receive the best prices available.

On average we can reduce your renewal price by as much as 45% and 18% better deals than any other comparison site or broker.

Compare business electricity and gas prices now

Electricity and Gas for Farms

Now that you have found the leading comparison site for reducing your energy bills the good news is we have exclusive business electricity and gas tariffs for farms.

All you have to do is complete our quote form with as much information as possible regarding your energy supply, to receive the best prices available.

In some cases farmers don’t get a better deal than other businesses because of their meter type, which in some cases it is usually classed as a domestic meter.

On average we can reduce your renewal price by as much as 45% and 18% better deals than any other comparison site or broker.

Compare electricity and gas prices now

Business Electricity and Gas for Charities

Now that you have found the leading comparison site for reducing your energy bills the good news is we have exclusive business electricity and gas tariffs for charities.

All you have to do is complete our quote form with as much information as possible regarding your energy supply, to receive the best prices available.

In some cases charities don't get a better deal than other businesses because of their meter type, which in some cases it is usually classed as a domestic meter.

On average we can reduce your renewal price by as much as 45% and 18% better deals than any other comparison site or broker.

Compare electricity and gas prices now

British Gas Business

One of best things you can do for　your business　UK energy is to check　British Gas commercial electricity rates and prices because they really want your business and estimate that if you switch to one of their fixed price contracts that they can save your business around £850 per year in electricity costs alone.

If you don't currently use British Gas for your electricity then switching is easy as we will handle all of the paperwork and switching process and did you know that they supply electric to nearly 1 million commercial businesses already in the UK ?

Most business contracts are on fixed rates so if prices increase then yours won't. British Gas offers various contract periods and the minimum length is one year. So this won't tie your business into long term contracts that you can't get out of.

Larger businesses spending over £100,000 per year have more flexibility with their contract length and prices and you can get more information by requesting a call back and speaking directly with an account advisor. And apart from saving from electricity you can also save an estimated £850 per year if you switch to their business gas products as well. It's very easy to get a quote as you can get this instantly from our website or get one of their account managers to call you back to discuss your options.

As part of the government commitment to reducing the reliance on legacy fuel and increasing renewable energy British Gas is investing millions in wind technology which will be used to power commercial businesses in the future. Currently about 6% of electricity supplied is from renewables and this is set to increase in future years. The current mix of fuel type for British Gas is as follows:

As with domestic customers commercial businesses can manage their entire account online and undertake tasks such as viewing their bill, changing the business address and submitting meter readings. The last item is essential to ensure your business doesn't receive over estimated bills and you can manage your cash flow better.

Once you have chosen the right type of meter it's time to choose your tariff. There are 3 tariff rates under the business first branding that EDF use.　 These all have services such as automated price review after your contract ends, a choice of fixed priced contract and terms, all have business advisers on hand to help you save energy and carbon emissions (key for the new legislation due to be rolled out by the UK government) and if you pay by direct debit an additional 2% discount will apply.

The types of business first tariffs on offer are as follows:

Business First Green Saver – supplies electricity only from renewable sources and therefore your business will be exempt from the climate change levy that's to be introduced (where you pay a fee for each kg of carbon your business is supplied with from non renewable sources). EDF will also supply your business with a free certification and posters for internal and external communication to customers and suppliers of your commitment to the environment.

With EDF the first thing to think about is when you are going to use most of your electricity and this is down to the type of business you run. It's a bit like the rates offered for domestic customers and their website makes it easy to choose. The types of meter on offer are:

Like most other major UK energy suppliers EDF also provides help and advice to try and reduce the amount of electricity companies use and thus reduce the level of bills and the volume of carbon used. You can also get instant quotes online from their website and manage your account online so you can post your meter readings so your bills are accurate and not estimated.

Eon is one of the UK's largest energy suppliers and currently supplies over 500,000 business customers for business electricity and gas supplies. For small business owners with an annual consumption level under 100,000 KWH their tariffs are geared towards fixed priced annual or three yearly contracts.

Eon supply all types of businesses with electric and gas energy services mainly on fixed price contracts. Here's our review on what's on offer for UK businesses.

Like most of the energy companies finding out what your quote would be for business energy supplies is a little harder than for domestic properties. Although with Eon you can get an online quote through switchit4u. For electricity they offer the following:

The same applies for Eon Business Gas tariffs in that you can obtain a quote via switchit4u website and their offer the same type of terms as with their business electricity tariffs.

Every energy supplier in the UK wants your business as the volume is higher than from domestic customers and generally easier to service. So Eon helps you make an informed decision by offering the following additional benefits:

Eon also operates what they call a price promise although there are quite a few exclusions and you have to be quick if you want any recourse from them, but overall they promise the following on pricing for your business electricity and gas supplies:

You can also access renewable energy for your business by choosing Eon's green tariff named "easygreen". Although not all energy supplied is currently 100% from renewable sources any energy you do use as a business customer from non renewables is offset via the climate care programme. This tariff is based on a one year contract at fixed prices.

Npower is committed for businesses to meet the new government legislation requirement to reduce the UK's carbon emissions where they will help you with their expertise and if required will install their comprehensive smart meters to collect and manage data and other options such as their encompass monitoring system.

Npower is owned and managed by RWE who supplies electricity and gas to over 350,000　businesses in the UK (when compared to British Gas's 950,000) and includes many household names including Marks and Spencer's, Ikea and British Telecoms. They have over 1,300 staff in the business section and the main head quarters are based in the West Midlands.

Apart from the standard electricity and gas supplies Npower have a vast array of services that will help you reduce your energy consumption to be more efficient but also reduce your carbon emissions at the same time. From a recent survey they undertook however they found that 97% of businesses were more interested in reducing costs at present rather than concentrating on the environment. However with legislation due to take effect in 2010 almost 20,000 businesses in the UK have no choice especially if they are on half hourly metering.

The carbon trust estimates that most businesses can save 10% of their annual energy costs with simple changes and many up to 20% in savings. And the Npower enlightened energy efficiency program titled e3 is designed to help businesses undertake this. They also have renewable fuel programs also.

Companies are on half hour meters if their peak load is above 100khw and this information is fed back directly to the energy company.

You can easily apply online or call our call centre to get everything moving along. Npower business electricity rates are a competitive product and with them supplying many hundreds of thousands of businesses in the UK are worth getting a quote from and using their range of monitoring services to reduce your annual energy bills. Call 0845 226 0035 for an instant quote.

Your supplier may use estimates to calculate your monthly payments unless you prove how much you use each month. Therefore learning how to read a gas meter and how to read your electricity meter is crucial - as is ensuring that you are using the best type of meter for your needs. However, what are the different types of gas and electricity meters, how do they work and how do you read them? This guide to gas and electricity meters will explain.  Standard gas meters and standard electricity meters are the most common types of meters in homes across the UK.  To be technical, the most common form of standard meters are electromechanical induction meters. These count the number of revolutions on an aluminium disc which rotates at a speed that is proportional to the power used. Therefore, the number of revolutions indicates the energy used. There are three different types of electromechanical induction meters which display the readings in different ways - they are standard, digital and dial meters.

•Standard gas meter and standard electricity meter

Both standard gas meters and standard electricity meters use a mechanical display with numbers. When reading your electricity meter or reading your gas meter you must work from left to right recording any black numbers and ignoring any red numbers if present.

•How to read a digital gas meter or a digital electricity meter

Digital meters are arguably the most straightforward. You simply read the first five figures on the digital display - but be sure to ignore a final figure if it begins with 0.1. You may need to press a button to get the reading to display.

•When reading  a dial gas meter or a dial electricity meter

Dial meters are a little more complicated. You should read the numbers displayed on each dial from left to right but ignore a final red dial if it is present. If the needle on the dial is positioned between two figures then it is the figure it has just past that should be noted down. You should also adjust the reading to account for any variations - for example if the dial is directly over a figure, for example four, you should note that down and underline it. Then if one of the numbers is followed by a nine, reduce the underlined figure by one - so four, becomes three.

If you choose to take your own meter readings you can contact your power company by telephone, the internet or post. Usually they will send out a representative at least once a year to verify your readings and to perform a safety check.

If you're looking to save money on your electricity bills you may wish to consider the Economy 7 meter/tariff. However, just what is Economy 7 and how does it work? This section of the gas and electricity meters guide will explain.

What are Economy 7 meters and how do you read them?

Economy 7 (also referred to as variable rate meters) customers generally use more energy at night than during the day to save money on their energy bills. This is because from the period that lasts from midnight to 7am (times can vary dependent on suppliers and regions), electricity costs less than the standard daytime rate - these are effectively the ‘off-peak' hours. So, just as you can make cheaper phone calls during off-peak hours, you can do the same by using your electricity at off-peak times too.

Roughly, the charge for using electrical appliances during these hours is around a third of the regular cost - exact costs vary but you could be charged 8p per unit for a standard rate and 4.55p per unit with Economy 7. However, you will need to use at least 20% of your energy consumption at night to make a saving. To make these tariffs work for you, you will usually need to install timing devices on key electrical appliances such as dishwashers, washing machines and so on. You'll also need to switch on your hot water boilers and storage heaters overnight.

One of the criticisms of Economy 7 is that even though you may heat your water and storage heaters continually overnight, there still may not be sufficient heat generated to last throughout the day. You will need to take baths and showers in the morning and your home could be cold in the evenings. Additionally, some Economy 7 tariffs charge double for daytime use meaning that savings can quickly be cancelled out. However, if you decide that Economy 7 is right for you then you'll need to know how to read your meter accurately. Moving to Economy 7 will mean a change of meter (sometimes at a cost). Economy 7 meters feature both night and daytime readings - you will need to record both. There are two types of Economy 7 meters - one which features two sets of numbers (daytime on top, night-time on the bottom) and the other which has one set of numbers that displays the ‘day rate' - you will need to press a red button to display the ‘night rate'. There will also be a timing system that is used to switch over the recordings from night to daytime. If you are still interested in Economy 7, contact your current supplier about making the move.

Paying for your gas and electricity by using standard meters can lead to a nasty shock - when the estimated bill arrives you may find that you've used much more energy than you expected and could therefore be paying out more than you can afford. However, this issue need never arise if you take advantage of prepayment meters.

What are prepayment meters and can they help you save?

The concept behind prepayment meters is simple - instead of paying after you have used your gas and electricity, you pay before you use it. According to research conducted in 2007, there are 5.8 million prepayment meters in Great Britain with 14% of electricity customers using prepayment meters and 10.4% of gas customers also using the prepayment system.

Prepayment meters are usually installed by the gas and electricity supplier, if it feels that the customer cannot keep up payments on their energy bill. However, they can also be requested by the customer themselves - and are often seen as a good method of budgeting. Generally speaking they are used by lower income households, such as people on welfare benefits, lone parents or those with no bank account. There are several different types of both gas prepayment meters and electricity prepayment meters available. Standard prepayment meters can come with a single or two-rate reading, similar to that of Economy

 You can top it up based on how much you wish to use.

Also available is the Pay Point network. With this system you receive rechargeable tokens that can be loaded with whatever amount of money you choose. These tokens will usually take the form of Quantum cards for gas meters and plastic keys for electricity meters.

There are disadvantages with prepayment meters, however, such as access to charging facilities. In addition, many suppliers add on additional charges that they claim are necessary to finance and maintain the meters themselves. According to Consumer Focus estimates, prepayment meters can cost on average an additional £195/year for gas and electricity.

Nevertheless, there are exceptions to the rule and some suppliers will not invoke additional charges for prepayment meters. That is why it is crucial to shop around for the best rates. Such additional charges are known as 'back charges'. These charges are incurred, through no fault of the customer, when a provider changes its unit rates but fails to recalibrate prepayment meters accordingly, As a result, customers may be paying less than is necessary and be oblivious to a build up of energy debt on their account. Once the provider finally gets round to updating the meter, an additional charge will be added to the meter to clear any outstanding debt. This type of practice has been abolished by British Gas, Scottish & Southern and EDF but is still in place for E.ON, Npower and Scottish Power.

Despite this issue, customer satisfaction with prepayment meters is high, although around half of prepayment customers believe they are using the cheapest payment method and this is not necessarily true.

Traditional gas meters and electricity meters have been taken to a new level thanks to the invention of smart meters. These advanced devices offer more detail than conventional meters and could help us save cash by altering the way we use our gas and electricity. So are smart meters as clever as they sound, or is this all hype?

What are smart meters?

The purpose of smart meters is straightforward - to match consumption with generation. Traditional electricity meters (smart meters are available as gas meters too) only tell you how much energy you have used. However, by contrast, smart meters give you information on how and when the energy was used.

Depending on the customer, and how you adjust your energy use as a consequence of receiving this information, smart meters could help you save significant amounts on your energy bills - estimates are between 3% and 15%.

It's not just about cutting bills either. Smart meters also help the environment because the more we are encouraged to be energy efficient, the lower our carbon emissions are likely to be. As a result, their implementation has been strongly backed by consumer groups such as Consumer Focus and the Energy Retail Association (ERA).

Though it is expected that smart meters will soon become the standard in all homes, they can already be bought from specialist providers. They work using a wireless transmitter that is clipped between the fuse-box and the electricity meter. This then transfers information to a wireless display which you should place somewhere prominent in your home - this will tell you how much energy you are burning every second.

There are many additional functions on smart meters including the ability to read remotely, thus eliminating manual and estimated readings; meaningful displays which show you how much money you are using; and in the most sophisticated meters, internet readings which show you exactly where energy is being wasted. All of this information should encourage you to turn off unused lights, or switch off devices that are left on stand-by. The main barrier for smart meters is standardisation - but manufacturers are drawing closer to a conclusion and it is expected that smart meters will soon be the standard across the UK.

Hopefully by reading this gas and electricity meters guide you now have a greater understanding of how each meter works and which is right for you.

The price of carbon – paid by heavy polluters such as power plant operators – plummeted yesterday by almost 10% on Europe's emissions trading market. This was in response to the EU scrapping a planned commitment to cut emissions by 30% by 2020 because other countries failed to show similar ambition.

E.ON and Centrica warned that they would not invest the tens of billions of pounds to build expensive new nuclear reactors and clean coal plants at today's carbon price, which is supposed to penalise dirty coal and gas plants.

Spot prices are now around €12 (£10) a tonne, close to a six-month low, and experts say that to make building new nuclear reactors financially viable, a price closer to €40 is needed.

A spokesman for E.ON said that without government action to tighten carbon markets, companies would wait until ageing reactors and coal plants close over the next decade and until power prices rocket before they made the investment.

"It is taking a hell of a risk of the lights going out," he said. "Power prices would go through the roof – they would have to get at a level where we think 'there's money to be made'. But we will get very, very tight [on security of supply]. It's the worst case scenario."

Some companies including Centrica repeated calls for the UK government to intervene and put a floor – or higher minimum price – on carbon to guarantee them a profit on building the expensive low carbon emitting power plants. The Guardian reported in October that senior government officials had promised the nuclear industry to fix a higher carbon price in the event of a failure at Copenhagen. A spokeswoman for Ed Miliband, the energy and climate change secretary, last night would not comment on his plans.

Centrica also pointed out that the failure by the EU to increase its commitment from a 20% reduction in carbon emissions to a 30% cut by 2020 left the UK at a distinct disadvantage. Gordon Brown has already set a much higher target for the UK to cut emissions by 34% by 2020. This will make it harder for heavy polluters in Britain, such as manufacturers, to be competitive with their European rivals, who have less onerous pollution targets. The EU's lower reduction target – which determines the price of carbon on the EU emissions market – also makes it much harder for the UK which needs a higher carbon price to meet its own target.

Global energy companies such as Shell have also been pushing for a global market for carbon as the best way to stimulate investment in low carbon technologies. But analysts said the Copenhagen talks made this less likely, because countries did not sign up to individual binding emissions targets as they did under the Kyoto protocol. Countries also split into negotiating blocks, epitomised by the final agreement drawn up by the US, China, India, South Africa and Brazil, which excluded the rest of the world, making it harder to set up a global carbon trading system.

Andreas Arvanitakis, senior analyst at Point Carbon, said: "In some respects, it looks as though a single international carbon market is less and less likely, with a patchwork of regional price signals emerging instead."

A spokeswoman for Shell was downbeat about the Copenhagen summit. "The Copenhagen accord is just a step towards a global framework, but much more is required. We appreciate the difficulties of the process and recognise that the accord reflects a true political willingness to combat climate change. However, it remains unclear how this political willingness will translate into concrete steps and drive an international process to deliver a global framework." business gas prices

How would you like £10,000 to make your home more energy efficient? British Gas is looking for 100 households to take part in a new scheme called Pay as You Save. The trial will help the government decide how it delivers on its pledge to make the UK's homes more energy efficient.

Although the launch was rather lost, by coinciding with the first day of the Copenhagen talks, the pilot scheme will see householders given a loan to allow them to install either energy efficiency measures or micro-generation projects, such as photovoltaic solar panels.

The householder pays back the loan over as much as 25 years, through the money saved by reduced gas and electricity bills, or the income generated by the energy they produce. The consumer can therefore pay for the energy- and climate-saving measures without incurring extra monthly costs.

The government has pinned its hopes on this scheme as it struggles to upgrade the nation's housing stock and produce more electricity from renewable sources. This week the Conservative party said it would launch a similar scheme in partnership with Tesco and Marks & Spencer if it won the next election. It was apparently unaware of this trial.

The Energy Saving Trust, an independent non-profit body that offers advice to government and the private sector, says its research shows that householders are more likely to make larger investments if the costs can be spread through the savings they make on their energy bills. It couldn't say whether the loans would be interest-free, as the details are "yet to be properly established".

In total, 500 households will benefit from the pilot scheme – 100 each in Birmingham, Sunderland, Sutton, and Stroud. A further 100 can join the scheme through British Gas, although only households in the south-east are eligible.

The pilot scheme will be used to evaluate which delivery method provides the greatest benefits. The loans will start going out next spring, and the trial will run until April 2011.

British Gas is especially keen to hear from householders who are interested in micro-generation projects.

A spokesman says those applying do not have to be British Gas customers. The company is looking for different types of homes that would benefit from measures such as photo voltaic solar panels, air source heat pumps, solar water heaters, or solid-wall insulation.

If you are interested in applying email British Gas. Your email should include your postal address and phone number, as well as giving an indication of what measures you are interested in and brief details about your house.

Because the trial runs for two years, it would help if you are not planning to move during that period, although if there is a mass take-up of the scheme, the debt might stay with the home if the household installing the measures moves before it is paid off.

Speaking at the launch, energy and climate change secretary Ed Miliband said: "Many British householders want to reduce their emissions, but are put off by the upfront cost of installing insulation, solar panels or ground source heat pumps. Pay As You Save will trial different ways of paying for this work. One quarter of the UK's total emissions come from homes, so householders have to be a part of the solution to climate change. Increasing the energy efficiency of homes not only helps reduce emissions, but will also help reduce fuel bills."

Business Electricity

Since market reforms in 1996, wholesale gas has been traded like any other commodity. Suppliers buy gas from shippers - companies who contract with offshore producers to bring gas onshore - in order to meet the demands of homes and businesses.

The Gas Industry in the UK has four main elements. They are:

Producers/Importers - responsible for bringing gas onshore from the North Sea offshore gas fields, interconnector pipelines or LNG terminals - or take it from gas storage facilities.

Shippers - responsible for bringing gas onshore to the pipeline system, and trading gas and capacity with suppliers.

Xoserve Ltd- responsible for transporting gas on the high-pressure National Transmission System. Transporting gas on the Local Distribution Zones is done by National Grid and four other gas distribution companies.

Suppliers - are the companies who supply and sell gas to the consumer. The suppliers are the first point of contact when arranging a gas supply to domestic, commercial and smaller industrial premises.

Between September 1998 and September 1999 the electricity market was fully deregulated. This meant that any business or residential customer in the UK can now choose to buy their electricity from a number of different suppliers. The suppliers include the Regional Electricity Companies but also include other players such as Centrica (British Gas), direct sellers and affinity deals through supermarket chains, finance companies, etc. This competition means savings as each supplier tries to capture the largest stake in the UK.

The Electricity Industry in the UK has four main elements. They are:

Generation - responsible for generating the energy we use in our homes and businesses.  Although historically, electricity generation was mainly derived from coal consumption, the UK generating industry has moved to a variety of generation methods - nuclear, gas etc. Generated electricity flows into the transmission network and through to the regional Distribution networks.

Transmission - responsible for maintaining and operating the high-voltage transmission network.  This network carries large amounts of power from the generators to the distribution networks - similar to the motorways of the country's road networks. There are three transmission licence holders in Great Britain - Scottish Power and Scottish & Southern Energy in Scotland, National Grid in England and Wales. National Grid operates the network across Great Britain, but only owns the network in England and Wales.

Distributors - are the owners and operators of the network of towers and cables that bring electricity from the high-voltage transmission Network to homes and businesses. Even so, they are not the organisations that sell electricity to the end consumer.  This is carried out by organisations who make use of the distribution networks to pass the energy commodity to your property - the suppliers.

Suppliers - are the companies who supply and sell electricity to the consumer. The suppliers are the first point of contact when arranging an electricity supply to domestic, commercial and smaller industrial premises.

What does the Electricity MPAN or Supply Number mean?

Each separate electricity meter has its own unique identification number known as its MPAN or Metering Point Administration Number. It provides a unique identity reference number for the meter and provides other information as follows:

Profile Class

Every property has a profile class. Profile classes are used where half -hourly metering is not installed and provides the electricity supplier with an expectation as to how electricity will be consumed throughout the day.

Domestic customers are in two classes 01 and 02. Non Half Hourly (NHH) metered sites that exist are 03, 04, 05, 06, 07, and 08. Where Half-Hourly (HH) metering is installed (large consumers) the profile class in 00.

Meter Time Switch Code (MTC)

The Meter Time Switch Code indicates how many registers (set of meter reads or dials) your electricity meter has and what times they will operate during the day. The Meter Time Switch Code will show if your meter has two registers, one which records day consumption, the other night.

Line Loss Factor (LLF)

The Line Loss Factor code stipulates the expected costs the distribution company will charge the supplier for using the cables and network in your region. This Line Loss Factor code will also indicate to the electricity supplier the potential charges incurred, due to loss of energy incurred whilst getting the electricity supplier to your meter.

Distributor ID

The Distributor ID will identify the local Distribution Company for your electricity supply. The Distribution company is responsible for management of the distribution system and electricity wires which transports the electricity to your meter. What Region is my meter in? Look at the grid above, you can see the first box on the second line is called "Distributor Identifier". The numbers in this box identify the Region you are in as follows:

Meter Point ID Number

This is a unique number within the distribution area to identify the actual metering point.

Check Digit

This number is calculated from the Distributor ID and Meter Point ID Number to provide a check digit that other systems can use to validate the both numbers.

Both new tariffs from Npower are available only to customers who can operate an online account and are happy to pay by monthly direct debit.

Web 17 is only available to new customers to Npower whereas `sign online 17 is available to both new and existing customers so long as whatever fuels are being transferred are all with nPower already.

Both tariffs do unfortunately come with early termination fees which mean that should the customer leave the tariffs before 31st March 2011 then they will pay a fee of £20 per fuel. This is a practice that more and more suppliers are adopting, more commonly on capped or fixed price deals however.

*based on a standard profile (3,300 Kwhs of electricity and 20,500 Kwhs of gas.)

Npower Business Electricity Rates Review

The energy supplier Npower supplies all power products for business use including electricity and gas or dual fuel. Here’s our review of their rates and tariffs for businesses in the UK.

Npower is owned and managed by RWE a German company and supplies electricity and gas to over 350,000 businesses in the UK (when compared to British Gas’s 950,000) and includes many household names including Marks and Spencer’s, IKEA and British Telecom’s. They have over 1,300 staff in the business section and the main head quarters are based in the West Midlands.

Npower is committed for businesses to meet the new government legislation requirement to reduce the UK’s carbon emissions where they will help you undertake there with the expertise and if required will install their comprehensive smart metres to collect and manage data and other options such as their encompass monitoring system.

Npower business energy products

Apart from the standard electricity and gas supplies Npower have a vast array of services that will help you reduce your energy consumption to be more efficient but also reduce your carbon emissions at the same time. From a recent survey they undertook however they found that 97% of businesses were more interested in reducing costs at present rather than concentrating on the environment. However with legislation due to take effect in 2010 almost 20,000 businesses in the UK have no choice especially if they are on half hourly metering.

The carbon trust estimates that most businesses can save 10% of their annual energy costs with simple changes and many up to 20% in savings. And the Npower enlightened energy efficiency program titled e3 is designed to help businesses undertake this. They also have renewable fuel programs also.

Companies are on half hour metres if their peak load is above 100khw and this information is fed back directly to the energy company.

A run down of the products:

e3 – designed to reduce your annual electricity and gas bills and carbon emissions by 10-20% and includes a free energy monitoring package

Electricity or gas or both supplied

Able to fix prices if required for up to 12 months

Fixed term contracts offered including non-half hourly and half hourly customers;  and gas – daily metered and non-daily metered customers

Flexible pricing contracts available under their branding of Mid Flex Power Purchasing, Enhanced Mid Flex Flexible Power Purchasing, Full Flexible Power Purchasing and Full Flexible Gas Purchasing.

Generation services available for those businesses that want to generate power themselves

UK based call centre

Pay by direct debit and save a further 2%

How to get connected with Npower

As you can imagine changing business suppliers is a little more complicated that with domestic energy and there is a process that Npower follows to get this undertaken. The whole process can take as little as 2 weeks whereby you would complete a proposal online which Npower would verify and prepare an offer to supply your business. You would need to have this accepted and then Npower would provider metering services which would then be connected.

You can easily apply online or call their call centre to get everything moving along. Npower business electricity rates are a competitive product and with them supplying many hundreds of thousands of businesses in the UK are worth getting a quote from and using their range of monitoring services to reduce your annual energy bills.

An overview of British Gas Business Supplies

Electricity and gas prices supplied by British Gas are still some of the cheapest in the country and they win many awards for their business energy contracts. If you are with another provider you can actually save a lot of money for your business by switching (which is very easy and is all done online now via their website). They currently serve over 950,000 businesses in the UK.

They have a choice of contracts you can have and these come without switching out penalties so if you find they are not for you there are no termination costs associated with these.

You also get expert guidance from their energy team and their call centres are based in the UK. For the average business they suggest you can save £850 per year by switching to them and they do all of this work for you. A quote can be had in less than a minute from their website.

British Gas Business Tariffs

Here’s an overview of the types of tariffs they have to offer to their business customers. In general there are no specific tariff names on their site but if you go online and ask for a quote you’ll be able to see all the special tariffs on offer. These will include the following:

Save up to £850 when you take out an online quote if your annual electricity spend is less than £50,000

Save up to £850 when you take out an online quote if your annual gas spend is less than £50,000

Save if you have more than 20 sites

Get dedicated account managers

Option to fix or cap prices

You can choose to have your energy from renewable sources

UK call centres

Get an online quote in less than 1 minute

British Gas will switch from your current supplier for you

You will also benefit from their energy savings report which will help you cut the amount of energy your business uses each year so not only will you save on prices but save on the volume you use. A win win situation.

Still unsure about British Gas?

In the business market British Gas appears to offer more. More services and more help when needed. With their dedicated account management team they want you to get the best deal and get all your energy supplies from them and they want to keep you as a customer. They already service over 950,000 customers in the UK so it’s worth spending 60 seconds on their website to get a quote and see where it goes from there. You have a 10 day cooling off period in any case before your supplies are moved so why not get a quote today?

The carbon reduction program is a mandatory program for businesses in the UK that fall under the terms of the program. It’s designed to help reduce the UK’s overall carbon emissions by 80% by 2050.

What is the CRC program?

The CRC program or carbon reduction commitment legislation comes into force in 2010 where for companies that have a single half hourly electricity metre installed they need to register for the scheme between April and September 2010.

Additionally if your company uses more that 6,000 mwh of electricity per year not only will you need to register and assessed but you will need to report back on how much energy you are using. Those companies that have at least one half hourly metre but use under 6,000 mwh of electricity in 2008 must make the information disclosure but won’t be involved in the rest of the reporting.

What will it mean for your business?

And it gets worse because not only will you need to appoint someone in your company to measure and report all of this information but you will then need to pay a carbon offset figure back to the government at £12 per tonne of C02 which is estimated to cost around 10% of the total energy bill. If you have purchased too many allowances you can’t give them back and your only option is to sell them to other companies. Scarily after 2013 these allowances will be sold at auction and there will be no cap on the pricing so maybe you could purchase more in the preceding years to hedge the cost ?.

And there is even more bad news. In the first year you will be paying to offset carbon from the first and second years so double the cost. Then the government will publish league tables on companies performances and if they are at the top they will pay less but the bad organisations at the bottom will have to pay a penalty so it could actually cost them 50% more.

Is your business ready for CRC?

All businesses that have half hourly metres installed have already been sent information packs to the named person for the energy supply. These should have been sent by the CRC scheme administrators so if you don’t have a pack then get one quick.

Recent research from SAP the computing organisation found that of 400 businesses surveyed that come under this new legislation only one third are prepared and know what to do. Disturbing in the findings is that companies have suggested they would not invest further in areas of their business that had high carbon emissions because of the additional costs associated with it.

What happens if my company doesn’t register in time?

With the current government you should already know the answer and of course it’s a fine. If your organisation fails to register between April and September 2010 then an automatic fine of a massive £5,000 will be set and for each and every day your business is not registered another £500 will be added. Also don’t expect to receive a reminder each day you miss this if it’s like HMRC you’ll receive a letter some six months later with 6 months of fines added to it.

What should I do now?

If you run a business that has a half hourly metre installed then you need to get this information pack we discussed and get someone nominated in your business to read up and get going with the registration process. More information on the carbon Reduction Commitment Energy Efficiency Scheme (CRC) will be posted when we have it available.

UK households are slowly going green and are now spending more than £250 a year on environmentally friendly products such as low-energy light bulbs and energy-efficient appliances, figures suggested today.

The Co-operative bank's annual Ethical consumerism report showed that expenditure on green products and services topped £6.4bn in 2008.

Despite the recession, spending on green goods increased by 5% on the previous year, with each household spending an average of £251 on environmentally friendly products.

The figure has steadily risen over the past few years, according to the report, but still only accounts for less than 1% of household expenditure.

Spending on energy-efficient appliances, boilers and light bulbs has all risen across the country as a whole, as has cash for green transport, small-scale renewables and green energy tariffs.

Tim Franklin, chief operating officer at the Co-operative bank, said the figures showed political leaders - who are attempting to secure a new deal on tackling climate change at crunch UN talks in Copenhagen - that many people in the UK were working hard to adopt a greener lifestyle.

But he added: "In order for the UK to reduce its carbon emissions by 30% by 2020 there will need to be a step-change in take-up of low-carbon technologies and this will need a new contract between business, government and the consumer."

He said the leadership of ethical consumers and innovation by business worked best when backed up by "thoughtful" government intervention - as in the case of phasing out inefficient light bulbs.

"We now need to see such initiatives in a raft of new areas such as transport and electronic goods," he urged.

In October, the Conservative leader, David Cameron, called for a "green consumer revolution" and companies including Tesco and Coca-Cola suggested climate catastrophe could be averted by "greening" consumer behaviour.

The full Ethical consumerism report will be published later this month.

Renewable technology that uses energy stored in the ground to heat buildings and provide hot water could be installed in hundreds of thousands of homes and offices by the end of the next decade, a report said today.

About 8,000 ground-source heat pump systems were operating in the UK – far fewer than in other European countries, such as Sweden, although the market was expanding rapidly and doubled last year, the Environment Agency report said.

The document concluded that the technology could be installed in 320,000 homes and businesses by 2020 with support from the government.

If enough support was given through the renewable heat incentive, which will be introduced in 2012 and pay homeowners and businesses a guaranteed price for generating renewable heat, more than 1m ground-source heat pumps systems could be put in place.

At the top end of its potential, ground-source heat technology could be installed in more than one in 10 homes and in 40% of commercial buildings, the report said.

Even if growth was limited to 320,000 homes and business – 1% of households and 11% of commercial buildings – it could provide 30% of the renewable heat the UK needed to produce to meet its 2020 target.

"Ground-source heating is a rapidly growing technology that has the potential to produce at least 30% of the country's renewable heat needs – but it needs financial support in order to grow," Tony Grayling, the head of climate change and sustainable development at the Environment Agency, said.

"We would like to see this technology given adequate financial support through the new renewable heat incentive to meet its full potential in the UK."

Whether you're optimistically thriving or barely surviving, the recession has unarguably made businesses more conscious of money. No more frivolous lending, spending, cashing or flashing. When you're surrounded by fallible economies, national inversions, caps, closures, consolidation and a credit clot, there's not much else to do but aphoristically subscribe to belt-tightening, penny-pinching thriftiness and restraint.

But displaced prudence may prove as equally ineffective as doing nothing at all. In fact, it could be counterproductive: cutting costs sluggishly, maintaining the same product-service mix, reducing your marketing, and focusing less on the actual market are all things that seem pragmatic, but should be avoided.

Here are some simple steps to ensure you're saving money the right way; recession or no recession:

Cut Bills & Go Green

Energy-efficient technology and simple practices will help reduce your bills and help the environment too. The tax implications of ecological thinking will also be invitingly felt.

It may sound silly, patronising even, but we're all guilty of it: leaving electrics on unnecessarily. Switching off lights, computers and other electronic devices can save up to half on energy consumption – and lighten your bills.

Switching energy providers could also prove effective.

Cheaper Marketing & Promotion

Whatever you do, don't stop marketing! Just think of innovative, or even less modern, ways of implementing it. To use a lazy truism, word-of-mouth is the best form of advertising, but the hardest to control. But use your associates for referrals and references; link to each other's websites at the very least. Also, create a buzz, run an extravagant promotion, call the local press. Do what it takes to get the word out.

Creating an e-newsletter is an often underrated way of communicating with your customers. It's advertising directly to them; cheaply.

Use YouTube, or video hosting sites that deal exclusively with business, such as Startup TV. As words are slowly supplanted by moving pictures, there's never been a better time to start using online video, communicating to unrestricted audiences worldwide.

Other ways of getting your philosophy to the market are by guest speaking and at business exhibitions, and blogging. More actively, why not become a campaigner: if you disagree with a governmental policy, speak out! Your business will follow your voice.

Credit Control

A quarter of all insolvency is caused by late payments. That's a face-slapping statistic. It can be combated easily, however, through simple, unequivocal credit control practices.

Firstly, make your payment terms clear to your clients and customers. Concur all terms as soon as orders and placed,and document all agreements with invoices, etc, outlining credit periods and interest to be charged on late payment. Make sure you invoice in good time too.

Credit check your customers, investigate their references and credentials.

Financial Fitness

Ensure all bookkeeping is in place and correct. This should always be done at the earliest possible stage, but it's never too late to adopt good practices. Don't procrastinate with paperwork, because you run the risk of forgetting essential costs, or at worse, failing to invoice.

Keep an eye on your VAT and make precise returns. Make a forecast, anticipate all costs, turn unpredictability into inevitability. And do your banking online, it saves both time and money.

Most importantly, perhaps, is a weekly housekeeping of unnecessary expenses. This will very much add up to a dreaded, stark reality, and you may find you can scrap this spending altogether.

If you have office space, then sublet it. And start hiring graduates or people seeking work experience, they'll work hard for little money... or often for free.

Tighten Technology

If you don't have a big budget, or even if you do, smaller internet service providers (ISP) are competitive, and you could be paying far more than your business requires.

If you haven't already, look into VoIP (Voice Over Internet Protocol). Essentially a phone service that employs the internet, it is a much cheaper alternative to the traditional phone-line, and has been known to save 60% on telecommunication bills.

Without wanting to cause mass mutiny against merchant accounts, many businesses are now seeing the viability of switching to online payment services, such as Paypal, who eliminate monthly service or statement fees. Just make sure it's worth swapping before you do.

To receive a quote you will be asked for your supply number this is a unique reference number that identifies the electricity meter installed on your business property. It is officially known as the MPAN (Meter Point Administration Number) but is more commonly called the supply or 'S' number.

The full MPAN is 21 digits long and is printed on your electricity bill in a series of small boxes.

Profile Type

Every property has a profile type and it indicates to the electricity supplier how electricity will be consumed throughout the day.

From a business point of view there are SEVEN profile types:

The first six are known as non half hourly sites

03 - Non-Domestic Unrestricted
04 - Non-Domestic Economy 7
05 - Non-Domestic Maximum Demand 0-20% Load Factor
06 - Non-Domestic Maximum Demand 20-30% Load Factor
07 - Non-Domestic Maximum Demand 30-40% Load Factor
08 - Non-Domestic Maximum Demand >40% Load Factor

00 - indicates that this is a Half Hourly site which means the meter is read automatically every half an hour. To obtain a quote for a 'HH' site we will need a copy of the HH data for the last year. This can be obtained by requesting it from your current supplier, they can email this to you in excel format.

Meter / Time-switch

This number indicates how many registers (meter reads or dials) your electricity meter has and what times they will operate during the day.

Duos / LLF indicator

The Line Loss Factor specifies the expected costs the distribution company will charge the supplier for using the cables and network in your region. It also indicates to the supplier the potential charges due to the loss of energy incurred whilst getting the electricity supply to your meter.

Distribution Identifier

Ranging from 12 to 23 this number identifies the local distribution company for your electricity supply. The distribution company is responsible for the management of the distribution system and electricity wires which transports the electricity to your meter.

10 - Eastern Electricity
11 - East Midlands Electricity
13 - MANWEB
14 - Midlands Electricity
15 - Northern Electricity
16 - NORWEB
17 - Scottish Hydro-Electric
18 - Scottish Power
19 - Seeboard
20 - Southern Electricity
21 - SWALEC
22 - SWEB
23 - Yorkshire Electricity

Unique Reference Number

This is a unique reference number within the distribution area, which identifies the property in your property.

Check Digit

This number is calculated from the distribution ID and meter point ID number to provide a check digit that other systems can use to validate the both numbers.

The rise in pre-tax profits came despite a large fall in energy use over the past year. Across the country, the demand for home and business electricity dropped by about 6.5% compared to the previous year, and demand for gas also fell. This was mostly in response to the huge rises in energy bills over the period.

The pre-tax profit came in at £649 million for the six months up to September, which compares to £558 million for the same period last year. Net profit was also up 64.5% to £696 million, compared to just £423 million last year. This also means that the company is on track to deliver on its £3.4 billion investment programme.

The National Grid also announced that its borrowing costs were low for the first half of the fiscal year. The fall in interest rates has also helped the company because a third of its total debt of £22 billion is at floating rates.

However, despite the good figures, the company's total revenue went down from £6.07 billion last year to £6.04, a drop of £28 million.

According to the company, the overall positive results are evidence of its low-risk business model. Steve Holliday, the chief executive, said in a statement that the company had "made good operational and financial progress against our priorities for this year."

Investment up 40 per cent on the last five years’ spend to £7.2 billion, including sustainability funding (£6.7 billion capex plus £500 million low carbon fund) New £500m fund paves the way for large-scale trials of smart grids and other technology required in a low carbon economy The two most efficient companies can spend the sum they asked for, but overall the bids were cut by 8 per cent as Ofgem ensured value for money for consumers Ofgem sets the companies tougher targets for network reliability, and customer service

The final proposals will govern the revenue of the 14 Distribution Network operators (DNOs) for five years from April 2010. With an average increase in electricity bills of £4.30 a year, householders will get better customer service, improved reliability and a greener electricity supply. The new controls will also open the way for much-needed local power generation and other developments to help tackle climate change.

The regulator’s Chief Executive Alistair Buchanan said: “Our proposals are tough on inefficiency and poor service but are fair in allowing the companies to invest to replace ageing network assets and in improving the environment. The controls provide great opportunities for companies which are more efficient and excel at providing what their customers want - but they will penalise poor performers.

“We have listened to consumers’ expectations of top quality service, reliability, fair prices and environmental improvement for today and for the future.”

As part of the price control Ofgem sets the cost of capital which is the benchmark return on investment for each DNO. Ofgem has set a 4.7 per cent actual (called vanilla) weighted average cost of capital (using a pre-tax cost of debt and a post-tax cost of equity). Our assessment, assisted by Price Waterhouse Coopers, is that low risk utilities like the DNOs can adequately finance themselves at this rate. Additionally, we have set robust incentive mechanisms that give companies significant opportunities to boost overall returns. Alternatively, if DNOs fail these incentives their shareholders, and not consumers, will carry the costs of underperformance.

The proposed investment returns plus the £6.7 billion allowed spend ensure that DNOs can fund the capital expenditure both to replace ageing equipment – some of which is more than 50 years old, and to link the networks to renewable generation.

The DNOs will have an opportunity to bid for cash from a new £500 million fund earmarked for innovative projects that will combat climate change. This Low-Carbon Fund (LCF) will be available to DNOs and partner companies to use over the next five years to help to pave the way for local generation, growth in electric vehicle use and other projects that will be needed to meet our climate change targets.

Ofgem chairman Lord Mogg said: “This fund breaks new ground in regulation. Its objective is to encourage companies to be more innovative with new technologies and commercial arrangements. This will allow energy companies to play a full part in combating climate change. The fund demonstrates Ofgem’s commitment to meeting the challenge of a low carbon economy.”

Ofgem has also reformed the treatment of DNO pension costs to strike a fairer balance between customers, employees and shareholders. This package is inline with incentives faced by other regulated utilities and private companies.

We present immediate electricity quotes for all major electricity suppliers. This means we can compare the electricity market instantly and present you with the cheapest electricity prices for your needs. Our advisors have helped 1000's of customers beat their renewal rates and provide vast savings, as much as 45%.

Business electricity prices – Switched on business pay less

Business electricity prices – keep your running costs down by getting better business electricity prices with Switchit4u.

With businesses trying to save money in as many areas as possible, it's no revelation that business electricity prices have become more competitive. Today's businesses use considerable quantities of electricity to heat and light their buildings as well as to run computers, servers, machinery and much more. As a business owner or manager, you'll want to keep your business electricity prices as low as possible – and that's where Switchit4u can help.

Smarter business electricity prices

Switchit4u can help you to find business electricity prices that save you as much as 45% on your current bills. If you're looking for ways to make savings without affecting your staff or customers directly, changing your electricity or gas supplier could be a great way to start. Switchit4u compares business electricity prices from some of the UK's leading providers, including Eon, Npower, Scottish Power and British Gas. Why wait? Follow the links from this page or call 0800 072 72 84 and get the cheapest quote today.

Business electricity prices reduced as much as 45%

Switchit4u doesn't just find you the best business electricity prices for your business; the company will also handle the switch over from your current supplier to your new supplier so that you don't have to worry about the paperwork. This means you can have the best of both worlds; great savings on your business electricity prices, and no hassle when it comes to changing from one provider to the other. If you keep a regular eye on your electricity bills and continue to look for the cheapest prices, Switchit4u can help you to make long-term electricity savings.

Business electricity prices – don't delay save today today

It couldn't be easier to get a new, low quote for your business electricity. Fill in our simple online form and get a quick quote, or call the company on 0800 072 7284 to talk to an advisor.

Over the next two years, the company plans to increase its trial and install an additional 100,000 plus smart meters, which are designed to help reduce bills and cut carbon emissions.

For the last two years, ScottishPower has been testing new smart electricity and gas meters in approximately 1000 homes. The company is now expanding its trial as it moves to the next stage of progress before the full roll-out.

Smart meters will provide real time information on energy consumption, enabling customers to manage their energy use. Energy companies will also be able to design specifically tailored tariffs that will benefit their customers.

Finlay MacDonald, in-charge of smart meter programme at ScottishPower, said: "Our trials so far have been an invaluable source of information about what smart meters can do. We've learned a great deal about the technology and the capabilities of the meters, and this knowledge will only increase as our trials expand.

"Smart metering will have an impact on virtually every customer process, bringing with it vast opportunities to improve service and extend the range of products and services we provide our customers. There are many challenges yet to be overcome – and a lot of hard work between now and the end of the rollout, but the rewards for the consumer, business and the environment will be significant."

ScottishPower has also been working with project teams in Spain and US, who are also undertaking smart metering deployments over the coming years. This will allow the company to share expertise and maximise its knowledge in the development of smart meters.

Greg Clark, the shadow secretary for energy and climate change, wants to introduce rules to force the big suppliers to divest the bulk of their power plants to allow new entrants into the market.

He is understood to be pushing for the proposals to be included in the Conservatives' new policy paper on energy, which will probably by published by the end of the year and will feed into the party's general election manifesto. The paper will also promise that if a Conservative government were elected next summer, it would ask the Competition Commission to investigate whether consumers' gas and electricity bills are too high.

It is not clear how much support Clark has within the party for his radical break-up plan. But such an aggressive stance from a senior figure in the shadow cabinet shows that the Conservatives are intent on a shake-up of the energy industry. One industry source said the party felt they had "unfinished business" from 1997, when there were more than a dozen independent power generating and supplier companies in the UK.

The industry has since consolidated into EDF, E.ON, RWE npower, Centrica, Scottish Power (owned by Iberdrola) and Scottish and Southern Energy, which control the production and supply of electricity and gas to almost all UK households and businesses. Only a handful of small independent power plant operators and tiny suppliers survive. Energy analysts say the market dominance by the Big Six makes it impossible for anyone else to gain a foothold.

The six will fiercely resist any break-up plan. One company warned that only they had deep enough pockets to make the estimated £200bn investment to replace the UK's ageing energy infrastructure and meet renewable energy targets. One way round this would be to regulate consumers' electricity and gas bills, linking them to wholesale energy prices. This would encourage other players to build power plants as fixing bills would guarantee them a return on their investment.

Industry sources also claimed that investment would be halted during the course of any review by the Competition Commission, which could last four years. The Energy Retail Association, which represents energy suppliers, said: "Nobody wants a prolonged period of uncertainty when about £200bn of investment is needed to improve Britain's energy infrastructure for the future." The Conservatives say they would ask for a limited review that would take less time.

Consumer Focus said the Competition Commission should investigate whether allowing the Big Six to dominate the market resulted in higher utility bills for customers. The Big Six are all vertically integrated, which means they own power plants and source the gas themselves to supply their own customers. This means they will always be profitable at a group level because their retail businesses subsidise their power plant arms when generating costs are high and vice-versa. As a result, companies have not fully passed on the recent falls in wholesale energy prices to consumers. The companies argue they need to keep profits high to invest in new energy infrastructure, but do not say by how much.

More than 100 MPs have signed an early day motion calling for a Competition Commission review of the industry, which is backed by Consumer Focus.

British Gas and other power suppliers have been given responsibility for installing meters in each of Britain's 26m homes by 2020, enabling them to read consumption levels remotely and end the use of estimated bills. The gadgets would also allow homeowners to monitor their own gas and electricity usage – and production if they have solar panels or wind turbines.

However, a row over the £8.5bn outlay for smart meters threatened to overshadow the announcement with critics warning that the energy companies might pocket the benefits.

The Department of Energy and Climate change (DECC) said the cost of the scheme would be dwarfed by the £14.5bn of expected savings as power companies reduce administrative costs and consumers benefit from lower bills.

Lord Hunt, the energy minister, said the international talks in Copenhagen next week on climate change underlined the importance of cutting carbon by changing lifestyles and energy usage.

"Smart meters will put power in people's hands, enabling us all to control how much energy we use, cut emissions and cut bills. Smart grids will help manage the massive shift to low carbon electricity such as wind, nuclear and clean fossil fuels," he said.

The smarter grid, outlined in a new DECC discussion document, entitled Smarter Grids: The Opportunity, sees new IT systems being used to provide much more information on demand flows and allow intermittent power, from wind, or inflexible power from nuclear, to be more easily integrated into Britain's wider electricity system.

The plans were welcomed by power companies and industry bodies. But consumer groups and energy consultants raised concerns that the smart meter rollout was being put in the hands of a sector that was already under fire for high charges and allegedly not passing on previous benefits to customers.

"We're concerned that consumers could be saddled with the entire multibillion pound bill for a project that's going to save the industry hundreds of millions of pounds a year," said Martyn Hocking, editor of Which? magazine.

Energy consultant, McKinnon and Clarke, also raised fears. "We are concerned that this is another example of smoke and mirrors by the energy industry who are clutching at straws to create a positive story, when the real scandal is that they are making a profit of approaching £200 on every home in the country," said analyst David Hunter.

But British Gas promised that savings from smart meters would be passed on to its customers and said there were good reasons for assuming that the 2% of energy-savings predicted by the government would turn out to be a major underestimate.

Petter Allison, director of smart metering at British Gas, said a company from Baltimore, in the United States, presenting at a conference in London was boasting of customers energy use was down by 20% per annum.

It further argued that the roll-out of smart meters would create 2,600 jobs in the company by 2012, including 2,100 experts in the field, 400 support staff and 100 managerial jobs.

Switchit4u.biz, offers small businesses the following top tips on how to keep energy costs to a minimum:

•If you receive an estimated bill, where possible take a meter reading and ensure you pay for what you use rather than what the supplier thinks you have used, which in both cases(paying too much or too little) you will not benefit.  

•Don't get caught unexpectedly: Make a note of when your contract is due to expire so you can be prepared to serve notice in time.

•Know your position: check the terms and conditions on your contract, the termination period and how to advise your supplier of the termination notice

•Be prepared to pay by DirectDebit and clear any balances with your existing supplier so you can switch if you choose to.

Switchit4u.biz is here to help, our service is free, and we do all the searching so you don't have to, remember we work for you not the supplier. Why not call us and get your business electricity quotes or business gas quotes from the comparison site that gets the best deals for its customers time and time again!

Abengoa has already begun work on the plants, which are under construction to the east of Seville in southern Spain and are expected to produce enough power to supply 52,000 homes and avoid carbon emissions equivalent to 63,000 tonnes.

The move, which is subject to approval from ERU competition authorities, marks E.ON's first entry into the thermal solar power market and Frank Mastiaux, chief executive of E.ON Climate and Renewables, said if the partnership proves successful, the firm will look to pursue more projects with Abengoa in Spain and the US.

"Solar power will be the next strong pillar in E.ON's renewables portfolio," he said. "Our entry into CSP complements our recent moves into the photovoltaic business and we will now stand on two feet in solar in the future."

Under the terms of the partnership, the companies will invest €550m (£500m) in the two plants, which are due to start operation in 2011 and 2012.

The plants will use parabolic trough technology, a solution developed in the 1980s and tested extensively by Abengoa Solar at other locations in Spain. The systems use large motorised mirrors which follow the movement of the sun throughout the day and reflect light onto a central point, heating a synthetic oil. The superheated oil is pumped from the solar farm to a nearby power plant, where the oil's heat is converted to high-pressure steam in a series of heat exchangers. This steam drives a conventional steam turbine.

Santiago Seage, chief executive of Abengoa Solar, said the projects would benefit from E.ON's expertise at managing large-scale grid connections. "Having E.ON as a partner in these projects will allow us to continue growing at the speed we want and to improve our capabilities in areas where E.ON has extensive experience," he said.

Both companies are also founding members of the Desertec Industrial Initiative, which plans to install huge solar plants in the deserts of North Africa and transmit much of the resulting energy into Europe.

There is more to being green than driving a Prius and buying local produce. Duncan Clark sheds further light on the eco-friendly messages we've come to take for granted

A closer look at some of the commandments of green living could greatly reduce your carbon footprint.

1. What they tell you: Turning off the lights saves CO2

What they don't tell you: It makes sense for individuals to use less electricity to help reduce the emissions of British power stations. However, it's worth bearing in mind that the total amount of CO2 that can be released by power plants and other industrial facilities across the EU between now and 2012 is fixed by the European Emissions Trading Scheme. This means that if the UK power sector reduces its emissions, extra carbon permits get freed up for use elsewhere, such as German power stations or French cement plants. In other words, the same amount of CO2 will be released, just from different sources. If you want to ensure that your electricity savings do make a real environmental difference, join Sandbag, a charity that will remove CO2 permits from the EU scheme to stop your good work being traded away on the carbon markets.

2. What they tell you: Buy a greener car

What they don't tell you: If you definitely need a new car, it makes perfect sense to buy a small, super-efficient model with low CO2 emissions. However, making a new car – including mining and processing the metals and manufacturing and assembling the components – takes a huge amount of energy. According to an expert at the Stockholm Environment Institute, the production of a typical modern car causes around 8 tonnes of CO2, equivalent to driving 23,000 miles. Because of this, unless you currently drive a lot in a highly inefficient car, it will often be greener to stick to your existing vehicle than to sell it and buy a new one.

3. What they tell you: Going veggie cuts emissions

What they don't tell you: It's true that animal products tend to have much higher carbon footprint than food produced from plants. Hence vegetarianism tends to be a good idea from an environmental point of view. The devil is in the detail, however, because certain dairy products are more "carbon intensive" than some meats. In particular hard cheese, which takes a lot of milk to produce, can have a bigger footprint per kilo than chicken. So while cutting out meat – especially beef and lamb – definitely makes ecological sense, the benefit will be reduced if you make up the calories by consuming more dairy. The most effective way to reduce the emissions of your diet is to go vegan – or as close as you can get.

4. What they tell you: Don't overfill the kettle

What they don't tell you: It's not just how much water you boil that determines the carbon footprint of your tea or coffee, but also the type of kettle you use. Jug kettles are fast and convenient, but their fuel – electricity from the national grid – produces almost three times more greenhouse gas for each unit of heat than burning gas in the home does. Hence switching to a stove-top kettle on a gas cooker will usually reduce emissions – especially in colder months when any heat from the flames that escapes around the side of the kettle will warm the room, reducing the burden on the central heating system.

5. What they tell you: Use more efficient appliances

What they don't tell you: Choosing highly energy-efficient appliances is one good way to ensure that routine tasks such as dishwashing and laundry don't create more carbon pollution than necessary. But there are other ways, too, such as simply running your machines at night. In the daytime, when electricity consumption is at its highest, the dirtiest, least efficient power stations are rolled out to help meet peak demand. At night, when demand is lower, these power stations can be switched off, which means that each unit of electricity has a lower carbon footprint. Turning your washing machine and dishwasher on before you go to bed therefore shaves a little off your carbon footprint by "spreading the load" on the electricity grid – though the difference isn't as huge as some websites have claimed.

6. What they tell you: Sign up with us, we provide 100% renewable electricity

What they don't tell you: Various electricity companies promise to provide customers with power from renewable sources. This gives the impression that by signing up you'll be increasing the amount of clean electricity being produced. The truth is rather more complex. The government requires a certain proportion of UK electricity to come from renewable sources. If an electricity company exceeds this target by generating most or all of its power from renewables it can sell its extra green electricity credits to other companies which in turn can avoid producing any green power themselves. The net effect is that not very much changes. That's not to say don't sign up, but if you do use a green power supplier don't expect your electricity to suddenly be carbon-neutral, no matter what the adverts suggest.

7. What they tell you: Wood fires are green

What they don't tell you: If you burn the wood in an open fire, the majority of the energy in the wood will be lost up the chimney. Assuming it comes from properly managed forests, however, wood is a green fuel because the CO2 released when it gets burned will be sucked from the air by the trees planted to replace the felled ones. The inefficient burning typical in a fireplace also creates plenty of soot. Like CO2, soot warms the atmosphere by absorbing heat from the sun – and it can also travel thousands of miles to settle on Arctic ice, where it accelerates melting by darkening the surface. A much better option environmentally is a log-burning stove. These capture most of the heat from the fuel, greatly reducing the amount of wood required, and they slash soot emissions too. Some modern stoves are so clean-burning that they can even be used in smoke-free zones.

8. What they tell you: Use eco detergents

What they don't tell you: "Ecological" washing up liquids and clothes detergents offer an environmental benefit by favouring rapidly biodegradable, low-toxicity, plant-based ingredients over harsher synthetic ones. However, when it comes to climate change, most of the footprint of washing up or cleaning clothes is not caused by producing the detergent but by heating the water. Hence the most effective way to cut emissions is simply to be sparing with hot water when washing up and to use low temperature cycles for laundry. If you find a 30-degree wash sufficient with an ecological powder, then that's ideal; if not, then arguably it would be better to use a more powerful detergent rather than turn up the temperature dial.

9. What they tell you: Reusable nappies are better for the planet

What they don't tell you: It's true that disposable nappies occupy a lot of space in landfill sites and consume a fairly large amount of oil in their production. However, an in-depth study from the Environment Agency (pdf) found that the total impact on global warming could be slightly higher for washables than for disposables. Washables can have a lower carbon footprint, but only if you have an energy-efficient washing machine, use a 60-degree wash cycle, limit yourself to 24 nappies, and don't tumble dry or iron them. Nappy washing services have the highest footprint of all.

10. What they tell you: Buy local

What they don't tell you: The transport of goods accounts for a small but significant proportion of the human impact on the climate. It generally makes environmental sense, therefore, to favour local food and other products. However, it's not always true that local is best. One study suggested that lamb from New Zealand, with its clean energy and rich pastures, has a lower footprint when consumed in the UK than locally produced lamb, despite the long-distance shipping. Another study showed that cut flowers sold in Britain that had been grown in distant but sunny Kenya had a smaller carbon footprint than those grown in heated greenhouses in Holland. So while transport is important, it's not the only factor to consider.

• The examples above are all drawn from the Rough Guide to Green Living, which was published this month.

The delegation made the comments during a meeting with the enterprise committee on Thursday.

They said the Utility Regulator had publically presented electricity prices and charges which did not reflect the reality experienced by business people. They also said there was a lack of competition in the NI energy market. Bryan Gray, of Northern Ireland Manufacturing, said that while the regulator had said electricity prices had gone down, many of his members had experienced price increases of up to 61%. Wayne McMeekin, of Almac, told the committee that there was no competition in the energy market in Northern Ireland. He said that of the five energy providers in NI, only three or four would provide a quote for costs when asked. He also said that the quotes he obtained were "remarkably similar". Agreeing with this, Mr Gray said that the nature of competition in Northern Ireland was not the same as the comparatively healthier energy market in the rest of the United Kingdom. He said that the fluctuations in the energy market were not being borne by energy providers, who, he said, increased profits despite the fact that the market as a whole was consuming less electricity. Mr Gray added that many of his members were suggesting they would have to close down if the current pressure from electricity prices continued. He said that it was no longer a question of company profitability, but of company survival. Mr McMeekin also questioned the viability of the costs incurred to run the regulators office. He said £6m was spent on consultation fees to advise on regulating a market which was "essentially uncompetitive from a business person's point of view". The committee said the presentations they had received from the energy regulator did not reflect the views given by the NI Manufacturing delegation and agreed to investigate the matter further.

British Gas is changing the way it bills its customers by offering to get rid of unpopular estimated bills. The company said estimates are the biggest source of frustration among customers because they are "hard to predict and budget for". Instead it is encouraging people to use Energy Smart meters, which allow customers to submit readings online or by text, and pay monthly for the exact amount they use. The new service comes with a monitor which displays and updates the household's gas and electricity usage.

The move away from estimated bills is part of a campaign to encourage more customer feedback. British Gas has also invited customers to join a panel "to come into our business, meet our people, ask anything they like - and report back publicly on what they've found". However, the company explained it would not be cutting prices this year as it is still supplying gas and electricity purchased at prices that were fixed more than twelve months ago.

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CAMPAIGNERS have reluctantly admitted defeat in their battle against a major onshore wind farm close to homes in Essex after a Government inspector gave the go-ahead for work to begin. Energy Company Npower Renewables now has permission to build a five-turbine wind farm at Earls Hall Farm between Clacton and St Osyth after it successfully appealed against a council decision to refuse the project. Last year Tendring district councillors rejected proposals for the 410-feet turbines and substation even though they had been recommended for approval by planning officers. But following a Planning Inquiry, Npower's appeal has been granted and work can now begin at the 80-hectare site off St John's Road which could provide electricity for between 5,000 and 6,000 homes.

The announcement has infuriated campaign group STAPLE (South Tendring Acting to Protect Our Local Environment) which said a precedent had been set by allowing a wind farm cluster so close to people's homes. Campaigners said there are 320 homes within 1km and “at least 2,000” within a mile of the site. There was also frustration because regulations did not allow the planning inspector to consider electricity that will be generated by the nearby Gunfleet Sands wind farm because targets for offshore and onshore energy production are totally independent of each other. In his report, Paul Griffiths, the planning inspector, admitted the wind farm "must be harmful" to the character and appearance of the landscape in the area closest to the site.

However, he said: “In a landscape so heavily influenced by human activity, I do not accept that this wind farm would appear altogether alien.”It seems tome that there would be significant resonance between a scheme designed to harvest the power of the wind and a landscape that is, at least in part, characterised by it”. The windfarmonly has a 25-year lifespan and then will be removed. The inspector said he appreciated how some residents must feel they had taken "their share" of development due to the new Gunfleet development off the coast of Clacton. There will be a range of conditions placed on the development, such as ensuring contruction noise is kept to a minimum.

Dave Harrington, spokesman for STAPLE, said the group did not have enough money to appeal the decision and said the campaign had now "come to an end". He said: "We believe that this project is inappropriately situated being so close to so many houses. It looks like the basis for its acceptance is quite simply because, as yet, there are no onshore wind turbines in Essex. "The East of England region is behind in its quota targets for renewable energy generation. It is this which provides a contorted rationale for the scheme. "Ironically, the Gunfleet Sands offshore project, which will eventually deliver 20 times more power than the five turbines planned for Earls Hall Farm, is completely ignored, since in the mind of policy-makers, offshore and onshore quotas are independent of each other."

STAPLE said it “disagreed profoundly” with the decision and said people could now look forward to noise and visual intrusion in their lives. "STAPLE would like to thank the hundreds of supporters who have consistently backed his campaign.”The group does not have the financial capability to appeal against a decision which we continue to believe is not in the interest of local people. Nor do we think that the pursuit of solutions to the pressing issue of climate change is well served by the imposition on local communities of inappropriate projects. “So the campaign against the project has come to an end."

 Campaigners said the firm was making “a killing” while many pensioners were left struggling to pay high energy bills over the winter months. They called for the company to cut energy bills and offer more help to the most vulnerable people. Centrica has revealed profits of over £1.8billion, with British Gas raking in over £540million despite a 7 per cent fall in energy consumption. Chris Brooks, secretary of the Suffolk Pensioners Association, said: “It is hard for pensioners during these winter months because it means that a higher percentage of the state pension is spent on energy.

 “Energy prices have a great impact on pensioners because during these cold times the heat is essential otherwise hypothermia becomes a massive problem. “It's an endless circle because the state pension is below the official poverty level and it just makes it so hard for people. “Poor little, frail old pensioners just don't really stand much of a chance.”

Bob Russell, Liberal Democrat MP for Colchester, said: “I think this indicates how unfair life is. “It shows the abstract failures of this government by highlighting these private industries are making a killing while others suffer. “It won't just be pensioners that suffer but it will also be the millions of children who live in poverty in this country.” Tim Yeo, Conservative MP for Suffolk South, agreed that energy costs were increasingly becoming an issue for older generations. He said: “Energy prices are a real problem and they are going to rise in the next five years - so issues will become a lot worse. “It is the unavoidable outcome that costs will become more expensive as energy supplies become greener.

 “A certain amount can be done, such as insulation, but people really do need cash payments and assistance - I'm very concerned about this issue.” British Gas has also revealed that wholesale gas prices are set to increase from 31p to 49p a therm for the winter period of 2010/11 and could reach up to 57p in the following winter months.

 Wholesale prices are fixed around 18 months to two years in advance, which suppliers argue means that there are often substantial time lags before they pass on changes to customers. A spokesperson for Centrica said: “We cut our gas and electric prices earlier this year by 10 per cent which is more than any other provider. “By doing so, we have become the cheapest supplier in electricity only and the second cheapest for dual fuel - this is why we have gained 200,000 more customers since the end of June. “We have a special tariff particularly for vulnerable people and those with a lower income - this has been widely available and is currently being used by 500,000 of our customers.”

 A spokesperson from the Department of Energy and Climate Change said: “Because of significant increases in fuel bills, we are determined to redouble our efforts to help the most vulnerable. “We will build on the measures we've already brought forward, including the £20billion on benefits and programmes, without which 800,000 more people would have found themselves in fuel poverty. “We plan to legislate to give new powers to the regulator to take action, make social tariffs mandatory not optional, and we are planning new measures on energy efficiency targeted at the poorest.”

British Gas staff manned the phones at their call centre at the Oxford Business Park South, in Cowley, on Friday night to collect charity donations via the Children In Need hotline for the first time this year. Callers pledged £122,296 in the five hours, including one single donation of £5,000. Staff also raised thousands of pounds dressing up for work in their pyjamas and taking part in a sponsored cross-dressing football match and chest waxing. Leena Patel, employee engagement officer at British Gas, said: "It was amazing and so surprising to find people being so generous.

"We had children phone up offering their pocket money and we had to explain they must go to the bank to do it.

"Then we had the other end of the extreme when a guy phoned up and donated £5,000.

"It is just amazing how many different people phoned up to pledge money.

"The office was so busy and so noisy.

"I have never seen the office like that.

"It was the first time we have been a Children In Need call centre.

"We have done Sport Relief and Comic Relief before, but Children In Need is bigger."

About 170 members of staff, including managing director Kanat Emiroglu, were joined by friends and family members volunteering to take the calls. Mrs Patel added: "To get £122,000 is staggering as it is almost double what we would normally receive for Sport Relief and Comic Relief." Nationally, 3,000 volunteers at 52 call centres, including Oxford, took 200,000 calls during the night. The Children In Need campaign had raised £19m by the time the live BBC1 television show presented by Terry Wogan and Tess Daly finished. The star-studded telethon featured appearances by Dr Who and the cast of EastEnders. In Oxfordshire two nursery school nurses sat in baths of custard, rugby players had their chests waxed and children from Woodstock covered themselves in Pudsey-style spots.

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Mirroring its green electricity tariff through which the company provides customers with a mixture of green and brown energy while investing in building new wind farms, the company plans to provide customers with a mixture of natural gas and biogas made from decomposing organic waste such as food and storage, while investing in new biogas facilities.

The company said the proportion of green gas provided would increase as the number of customers signed up to the tariff increases and it invests in bringing more anaerobic digestion facilities online.

It added that UK food waste alone could produce enough biogas to supply 700,000 homes, but revealed that its long-term goal was to develop next-generation anaerobic digestion plants that use fast-growing algae as a feedstock that will then break down to release biogas.

"We're the real British Gas now," said Ecotricity founder Dale Vince. "We're kick-starting the market to move Britain from brown to green gas, turning people's gas bills into green gas mills, just as we've been doing with windmills for over a decade."

He added that there was a strong environmental and financial case for customers to switch to the company's new dual-fuel tariff. "By choosing green gas, customers can help unhook Britain from its addiction to foreign gas supplies, make a positive long-term change to the world we live in, and could also keep thousands of tonnes of waste out of landfill, which could even help keep council tax bills down," he said.

Ecotricity also committed to match British Gas on both its standard gas and dual-fuel price in each region to ensure that customers will not pay a premium for the new service.

The move is likely to significantly strengthen Ecotricity's position in the growing market for green energy. While the company's green tariff model has been widely praised, it has not previously been able to compete directly with dual tariff offerings from larger energy firms, a scenario that has forced Ecotricity customers to buy gas from separate suppliers.

However, the new tariff will allow business and domestic customers to switch more easily to Ecotricity and is likely to provide a boost in sales for the fast expanding company.

Commercial Gas prices have always been higher than domestic Gas prices, commercial Gas prices have remained uniformly high until quite recently. The downturn in the global economy has caused a severe reduction in industrial consumption of Gas and for the first time in quite a while the commercial Gas price is also coming down.

More importantly, the Gas suppliers are competing against each other for the business that is still available which is having a profitable effect on the commercial customers who have to pay the commercial Gas price. Switchit4u has been comparing the commercial Gas prics for customers for many years and has an in depth understanding of the industry and knows how to truly compare the commercial Gas prices between one Gas provider and another Gas provider. Once a good commercial Gas price is found, Switchit4u negotiates a fixed price contract that will stand for one, two or three years. The commercial Gas price contract that is fixed enables financial controllers to know what Gas is going to cost in the future, regardless of the spikes in oil prices and therefore the financial controllers can better predict a company’s future operating costs. This downturn in the global economy and the reduction in the consumption of Gas are jointly providing an opportunity for businesses to fix the commercial Gas price at a favourable tariff and to have the commercial Gas price fixed for a number of years.

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News of the imports prompted the environmental group Greenpeace to say Wednesday that this was further proof that France's policy of producing three quarters of its electricity from nuclear power was a big mistake.

France decided after the 1970s oil crises to rapidly expand its nuclear power capacity in order to build up reliable energy supplies, and has long exported power to its neighbours.

But ever-rising demand for electricity combined with ageing nuclear reactors have brought that policy under increasing scrutiny.

A third of France's 58 nuclear reactors were down and one was operating at 60 percent capacity at the start of November, according to an AFP survey.

A strike at the EDF power firm earlier this year delayed the annual programme to replace fuel rods at the plants, causing a backlog that resulted in output being reduced for several months to come, industry executives said.

And drought this summer lowered water levels in dams and further decreased electricity production, EDF said.

The power grid operator RTE said this month that suppliers might be forced to ask big industrial clients to ration power use and warned it could even resort to rolling power cuts in some regions.

Poorly-supplied Brittany in the northwest and the Nice region on the Cote d'Azur would likely be the worst hit, RTE said.

The grid operator said this week that electricity production was at such a reduced level that in October, for the first time since 1982, France had to import 458 gigawatt hours from Germany, Britain and Switzerland.

"Selling the idea of energy autonomy was commercial dressing for the nuclear lobby," said an expert on France's nuclear industry, who asked not to be named.

The real problem today, he said, is "the lack of investment, particularly in personnel, in nuclear installations."

"We were assured that (nuclear) power stations with a lifespan of 30 to 40 years could last 60 years. Today, that is posing a problem in terms of supply security," he said.

Greenpeace said in a statement Tuesday that "nuclear energy is not among the solutions for the climate.

"Investing in the nuclear sector diverts important financial resources which, if allotted to the development of renewable energy and energy-saving systems, would enable us to fight efficiently against climate change."

EDF said that its inability to meet France's electricity needs has cost it a billion euros so far this year.

France will in all likelihood have to continue importing more energy from abroad. But industry insiders point out a shortage of high-tension lines to carry that much energy across borders will limit its ability to do so.

Safety fears have also taken some of the shine off France's nuclear industry, which is also a key part of its foreign trade strategy.

President Nicolas Sarkozy has made exporting French know-how a top priority, and China and Finland are already building French-designed new generation reactors.

But alarm bells rang this month when French, British and Finnish regulators called on the French state-controlled nuclear engineering firm Areva to review the design of the planned plants' safety and control systems.

With lighting, computers, air conditioning and machinery to run, commercial premises can quickly run up large electric bills before the company has even turned a profit. Switchit4u’s experienced energy advisors are able to calculate your energy usage making sure you are on the correct business tariff.

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Businesses change and evolve. Switchit4u.biz will be able to determine if your meters need an upgrade/downgrade, as the standing charges for the meters themselves is a significant proportion of the cost. We can help organise the de-energising of meters that are no longer required by the company and also with 'New Connections'

For example: if a factory upgraded to more energy efficient machinery and required three meters instead of four, they can potentially save over £1500 per annum, as a maximum demand meter user. For high end users our team can advise on whether max 08 meters or half hourly is required.

We can also help you apply for an Energy Management Carbon Trust Survey and help identify energy savings and provide practical advice on how to achieve these. The Carbon Trust has worked with thousands of companies to identify savings of 10% – 30% of their business electric bills.

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Are you coming to the end of an existing business gas contract and received your renewal reminder from your existing gas supplier? Have you cancelled your existing contract? Are you looking for a gas comparison? Do you want to save money by ensuring you have the cheapest business gas prices in the market?

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An 'evergreen' or 'roll over' contract will automatically renew if you do not serve the correct business gas termination notice within the time stipulated by your current supplier.

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Commercial Gas prices have always been higher than domestic Gas prices, commercial Gas prices have remained uniformly high until quite recently. The downturn in the global economy has caused a severe reduction in industrial consumption of Gas and for the first time in quite a while the commercial Gas price is also coming down.

More importantly, the Gas suppliers are competing against each other for the business that is still available which is having a profitable effect on the commercial customers who have to pay the commercial Gas price. Switchit4u.biz has been comparing the commercial Gas prices for customers for many years and has an in depth understanding of the industry and knows how to truly compare the commercial Gas prices between one Gas provider and another Gas provider. Once the cheapest commercial Gas price is found, Switchit4u.biz negotiates a fixed price contract that will stand for one, two or three years. The commercial Gas price contract that is fixed enables financial controllers to know what Gas is going to cost in the future, regardless of the spikes in oil prices and therefore the financial controllers can better predict a company's future operating costs. This downturn in the global economy and the reduction in the consumption of Gas are jointly providing an opportunity for businesses to fix the commercial Gas price at a favourable tariff and to have the commercial Gas price fixed for a number of years.

So if you need a quote and are looking for the cheapest business gas prices then you have come to the right place, simply fill out the quote form on the site or call 0845 226 0035 and speak with one of our friendly advisors who will be happy to find you the cheapest gas and electricity prices on the UK market.

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For a start there are few surprises. This is a hoovering exercise: a move to round up policies already announced and get them on the statute book before the election. First, there is the formalisation and extension of an existing voluntary agreement with energy companies to provide energy bill rebates to their poorest customers. This will not require any public money because the funding comes from the companies themselves (£150m has already been committed for 2010/11).

Then there are measures to boost the power of the regulator, Ofgem. The government wants to give it new powers to be more proactive in protecting consumers and tackling market exploitation by companies. Important, perhaps, but hardly the stuff of political firebrands.

Most significant, though, are the government's measures to promote carbon capture and storage (CCS) by introducing a 3% levy (equivalent to about £12 on the average annual electricity bill) to pay for four commercial-scale CCS demonstration projects. Some greens are dismayed that any new coalfired power stations should be built without 100% capture of their CO2 – the government has said that only 25% will need to be captured initially.

But it is easy to forget the positive reception the plans got when they were first announced, in April, from some surprising quarters. Greenpeace UK's director John Sauven praised "welcome signs of climate leadership" from energy secretary Ed Miliband. "He is the first minister to throw down the gauntlet to the energy companies and demand they start taking climate change seriously," he said. The proposals didn't and don't go far enough, but they are a leap in imagination from what went before.

Ultimately, though, this ragtag bill is a missed opportunity. With the Copenhagen climate summit just days away and climate change in the public eye as never before, the government should be seizing every last opportunity to act. The Low Carbon Transition plan announced in July included some sensible measures to make real emissions cuts in the next few years by tackling energy efficiency such as investing £3.2bn for home efficiency by 2020 and rolling out smart meters. These were far from being ambitious enough, but they are urgently needed.

Miliband was right to keep cheap politics out of the energy bill, but he missed a chance to send an important signal.

Switchit4u.biz has been comparing electricity suppliers for many years and is experienced in securing competitive business energy rates for its clients. Business electricity prices are not the big problem, but it’s the not knowing what the electricity price will be in the future that makes financial planning so difficult. Switchit4u.biz is an expert at negotiating contracts from one to five years, enabling financial controllers to know accurately what the business electricity prices will be in the near and medium future. While the energy companies are still coming to terms with the business downturn, now is the time to fix the business electricity price with the help of Switchit4u.biz. Companies that know what their business electricity price will be in a year’s time have an advantage over their competitors. Companies that know what their business energy price will be in four years time can really plan for the future.

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Reducing your business Electric prices and fixing business Electric prices just makes good sense. There is no doubt that the electric suppliers have fought very hard to keep prices especially business Electric prices as high as possible. High oil and gas prices was the reason for the huge hikes in business Electric prices. But, now the world has moved on and oil prices have plummeted. Finally, in a world full of turmoil, it is possible for companies to predict what their business Electric prices will be in two years time, but only if they negotiate a good deal with one of the UK electricity companies.
Switchit4u.biz has an in depth understanding of the electricity and gas industry and negotiates business Electric and Gas prices for its clients having compared the prices on offer with the various electricity suppliers. Thanks to the recession, electricity providers are actually having to compete for business which is good news for companies wanting to reduce their business Electric and Gas prices or at least to know for sure what their business Electric prices will be in one, two, or even five years time. For too long, British Energy providers have had to pay high business Electric prices and although there is no guarantee that prices will go down, 95% of the companies that employ Switchit4u.biz experience lower business Electric prices and greater certainty. One of the hardest jobs for financial controllers is predicting profit and loss in future years, but with the help of Switchit4u.biz at least business Electric prices are fixed and will not, therefore, spring any unpleasant surprises in the future.

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As the firm announced a 16 per cent rise in first half year profit, Steve Lucas, National Grid's finance director, said sensible economics would be central to any potential acquisition.

"Would we be interested? Absolutely, provided there are decent, stable, long-term returns. If we can't see a clear way through to that, we won't invest."

In 2008, National Grid was linked with Germany's transmission assets, which were last week sold to Dutch state operator, Tennet. "At the time we said exactly the same thing and walked away because we weren't certain it would generate adequate returns.

"This is a sector that has been bid-up by the financial players. We will see if they are going to bid it up by the same sort of amounts this time around. If they do, we won't play. Frankly, we have enough growth in the portfolio without going hunting for things, and today's results underline that."

Pre-tax profit for the six months ended 30 September were £649 million compared to £558 million for the same period last year.

The European Council of member states, the European Parliament and Commission reached a deal that will see the energy labelling directive, which currently covers only household electrical appliances, extended to cover all energy-related products.

Under the new rules, which are expected to be adopted early next month in the wake of the Lisbon Treaty coming into force, businesses will have to ensure that any advertisements that contain energy-related or pricing information also include a reference to the energy efficiency rating of the product.

Member States said that they would also consider introducing new purchasing criteria for the public sector to ensure only the top rated products are procured.

The move was welcomed by Energy Commissioner Andris Piebalgs, who said the deal "paves the way to adopt legislation on a wide range of products in the future that helps us to honour our commitment on the reduction of CO2 emissions ".

However, some member states, including the UK, are likely to be frustrated at the failure to fundamentally reform the energy rating system. Currently, the rating systems provides A+ to G labels, with the agreed changes opening up possibility of going up to A+++ ratings for the best in class products.

However, British negotiators had argued that the A+ labels risk confusing customers and as a result the labelling criteria should be periodically updated to ensure only the most efficient products carry the A label.

In related news the Council, Parliament and Commission also reached a deal that will see building codes and energy performance requirements for buildings strengthened and an EU wide deadline imposed that will require all new buildings to be rated as nearly zero carbon by 2020.

Under the proposed changes member states will be required to develop action plans to accelerate the roll out of zero carbon buildings, while new rules will require energy performance data to be shown to all prospective buyers and tenants and included in sales and rental advertisements.

Piebalgs said the reforms were critical to meeting the EU's target of cutting greenhouse gas emissions 20 per cent by 2020 and send "a strong message to the forthcoming climate negotiations in Copenhagen" that the EU is taking action to tackle its carbon footprint.

Currently only two of the four demonstration projects, those from Scottish Power and E.ON, are proceeding to the next stage of the CCS competition. Professor Stuart Hazeldine, a geologist at the University of Edinburgh and CCS expert, recently claimed the government's competition to build to such demonstration plants was "dead on its feet."

Shadow energy secretary Greg Clark last week said he supported Miliband's energy plans, but criticised the government for delays on energy policy that had led to a "last minute scramble." He also said industry figures had suggested the CCS competition was likely to be delayed from its 2014 deadline for active demonstration plants.

The bill also includes provisions to establish a mandatory social price support scheme to help more of the most vulnerable households with their energy bills, and strengthen the powers of regulator Ofgem to refer market abuse to the competition commission.

Ed Miliband, the climate change secretary, said the bill would create "a fairer energy market for consumers."

"We know that pressures on prices are going to be upwards in the coming years and we need to take action on behalf of consumers," he said.

Simon Hughes, the Liberal Democrat shadow energy secretary, said he was disappointed that measures on energy efficiency were not in the bill. "If you insulated every home properly in Britain it would be equivalent of taking all the cars of Britain off the roads. What the country needs is a united policy to deliver a warm home for every household," Hughes said.

Green groups called for a legally-binding limit on greenhouse gas emissions from future coal power plants. David Norman, Director of Campaigns at WWF-UK, said: "Our main concern with this bill is that it does nothing to prevent new large coal plants being built with only a small fraction of their emissions being captured. Without a guarantee of a legally-binding policy which limits CO2 emissions, the bill gives the energy companies too much carrot and no stick."

Greenpeace's Jim Footner added: "It will be easier for the Government to sell public funding for carbon capture and storage to cash-strapped British consumers if it goes hand-in-hand with a legal limit on emissions from power stations. And this legal limit would make sure that the coal utilities can't simply get paid to carry on causing climate change."

Head teacher, Ruth Murray, commented, "The change in the school has been astonishing: the old windows were drafty and made the school cold and miserable. The pupils and teachers all really love the new windows – and now we don't have to dread the colder months!"

npower's Climate Cop programme runs green-themed activities for schools right across the UK – and pupils from Francis Askew have already taken part in a ‘Climate Cops Academy' – a highly interactive day about saving energy and the planet. npower also undertook an energy audit in July 2008, which showed that huge amounts of energy were being lost through the old windows – making the school a prime candidate to benefit from one of npower's Climate Cop grants.

Clare McDougall, head of the Climate Cops programme, commented, "As well as educating pupils and surveying school buildings, we're also spending half a million pounds on making physical changes and improvements to schools. The energy audit we did for Francis Askew showed that there wasn't much point in them trying to be more energy efficient whilst loads of warmth was being lost through the windows. Now they've stopped warm air leaking out, any future energy saving measures should have a real impact."

npower's Climate Cop programme has committed £500,000 in energy efficiency measures for schools, 15 projects have been completed so far and - if all the measures are implemented - the participating schools would annually save a total of around £100,000 and 650 tonnes of CO2.
 
 

The price of electricity for business users has risen substantially and they say there were not given enough notice.

The utility regulator met with business customers on Friday and said it would look into how suppliers communicated the change in charges.

The Consumer Council said there was "a lack of transparency in the electricity industry about price rises".

"Northern Ireland's business customers have the right to be concerned," said John French, the council's head of energy.

"The Consumer Council shares these concerns as it is more important than ever that businesses can plan ahead and the cost of electricity is an important element of this.

"We have already been speaking to energy suppliers about this issue and have written to the regulator expressing our concerns."

The regulator said it expected their inquiry to reach a conclusion in early 2010.

The Desertec Industrial Initiative (DII) aims to provide 15% of Europe's electricity by 2050 or earlier via power lines stretching across the desert and Mediterranean sea.

The German-led consortium was brought together by Munich Re, the world's biggest reinsurer, and consists of some of country's biggest engineering and power companies, including Siemens, E.ON, ABB and Deutsche Bank.

It now believes the DII can deliver solar power to Europe as early as 2015.

"We have now passed a real milestone as the company has been founded and there is definitely a profitable business there," said Professor Peter Höppe, Munich Re's head of climate change.

"We see this as a big step towards solving the two main problems facing the world in the coming years - climate change and energy security," said Höppe.

The solar technology involved is known as concentrated solar power (CSP) which uses mirrors to concentrate the sun's rays on a fluid container. The super-heated liquid then drives turbines to generate electricity. The advantage over solar photovoltaic panels, which convert sunlight directly to electricity, is that if sufficient hot fluid is stored in containers, the generators can run all night.

The technology is not new - there have been CSP plants running in the deserts of California and Nevada for two decades. But it is the scale of the Desertec initiative which is a first, along with plans to connect North Africa to Europe with new high voltage direct current cables which transport electricity over great distances with little loss.

Leading European energy industry expert Paul van Son has been appointed chief executive of DII and will recruit staff to build up a framework to make the building of both power plants and the grid infrastructure.

"We recognise and strongly support the Desertec vision as a pivotal part of the transition to a sustainable energy supply in the Middle East, North Africa and Europe," he said.

"Now the time has come to turn this vision into reality. That implies intensive cooperation with many parties and cultures to create a sound basis for feasible investments into renewable energy technologies and interconnected grids."

Desertec has gained broad support across Europe, with the newly elected German coalition government of Angela Merkel hoping the project could offset its dependence on Russian gas supplies.

North African governments are said to be keen, too, to further exploit their natural resources. Algeria and Libya are already big oil and gas suppliers to Europe.

Höppe said Munich Re had been concerned about the potential impact of climate change on the insurance business since the early 1970s. Extreme weather events related to climate change are already a reality and have the potential to be uninsurable against within a few decades, pointing to a possible crisis for the industry, he said.

"To keep our business model alive in 30 or 40 years we have to ensure things are still insurable," he said.

Munich Re also plans to invest in the new initiative and Höppe said banks were confident that they could raise sufficient funding to make the project work.

There are already some small CSP plants in Spain and North Africa, with the power used locally. But Desertec plans to see big power stations of one gigawatt operating in five years' time and exporting some current across the Mediterranean. The consortium stresses, though, that power generated by solar fields in North Africa would be used by North Africans as well as Europeans. North Africa has a small population relative to the size of its deserts. For similar reasons Australia is putting together its own Desertec initiative.

Dan Lewis, head of a new thinktank, the Economic Policy Centre, and author of a forthcoming energy policy paper, said: "This is just the sort of long-term, big-difference, energy security gain project that our UK short-term targets and policy framework can't deliver.

"Instead, we're spending ridiculous sums on no-hoper, marginal stuff like fusion energy and a massive smart meter rollout, that at best will only shave a fraction off peak demand."

Online Energy Version 5

Online Saver Version 2

At the same time they have launched Online Saver Version 3 and for the first time they have launched a gas only version.

The new tariff is very competitive and from a gas perspective places EDF at the number one spot in all 14 areas across the UK, taking them into the same position as British Gas and OVO Energy - who together hold the number one spots for electricity and dual fuel for most areas.

Online Saver Version 3 has been designed to be very competitive rates at time of sign-up, and a minimum 2% discount off EDF Energy Standard prices guaranteed until the end of December 2010.

Customers joining the tariff who do subsequently leave before the end of the December 2010 will be subject to early termination fees of £25 per fuel.

To date, thousands of businesses have successfully applied and received these loans and have already slashed the cost of their energy bills by up to 75% and the demand is growing steadily. 

The minimum loan amount available is £3,000 - enough to install a new energy efficient boiler, refrigerator or lighting and at the higher end, the maximum loan available of £400,000 could enable companies such as manufacturers to install modern, less power hungry production equipment.

The Carbon Trust predict that the savings that most companies realise on their bills will be more than the cost of the loan, effectively meaning they benefit from brand new equipment, increased efficiency and reduced running costs, all at no expense to themselves - whilst of course helping to drive the UK's move to a low carbon economy.

Carbon Trust Chief Executive, Tom Delay said: "Small and medium businesses are the backbone of the UK economy and key to the move to the low carbon world. We are extending a helping hand to them by offering more than £100m in interest-free, unsecured loans at a time when bank funding is hard to come by. Our zero per cent loan offer is as close to free money as a business can get, and is flexible enough to help almost any small or medium business, from the corner fish and chip shop to a factory."

The Carbon Trust also offers advice to businesses, including a free on-site service to help them identify the energy-saving equipment with the greatest potential to reduce their running costs.

Businesses can find more information about interest free Carbon Trust loans by calling 0800 085 2005 or visiting carbontrust.co.uk/loans

E.On said that the new system would make it easier for customers to budget on their gas and electricity bills. There were no plans to change arrangements for existing customers, a company spokesman said. About 40% of existing E.On customers pay by cash or cheque.

Payments

When asked whether this was a tactic to encourage greater take-up of direct debit, the E.On spokesman said that although this automatic form of payment was cheaper for the company, the move was designed to help customers manage their bills. No terms and conditions had been changed, so the amount of time allowed to pay a bill would not change. However, it should be embraced by customers as a way to gain greater control and visibility of their energy bills.  Receiving a bill every month will hopefully encourage customers to become more aware of their consumption and therefore how much they spend, which are the key tools for budgeting. "Frequent billing should also encourage customers to read their meters so that they can start paying for what they use, instead of always paying an estimated bill." No doubt some customers will not be happy about the new system and this could encourage some to leave.

The wholesale price of business electricity and gas has recently hit a three year low. If your contract is coming up for renewal, Switchit4u is pleased to declare our ability to help your business take advantage of these new low business electricity and gas rates.

Business Electricity and Gas Tariffs

Recent quotes for our customers have returned rates of 6.797p/4.249p for electricity (per kWh day/night) and 1.955 for gas (per kWh) - plus standing charge.

To obtain a FREE no obligation quote click here or enquire by telephone: 0800 072 7284. Please be aware the prices we quote are valid at the time of your quote and may go up or down.

The big six energy suppliers have told the regulator Ofgem that there is little chance of any further cuts in their tariffs this coming year.

They were responding to calls from Ofgem for them to pass on more of the recent falls in wholesale energy costs. However, while Ofgem had requested that the companies do so, it has no power to enforce any tariff cuts. Peter Luff MP, chairman of the Business and Enterprise Committee, said energy markets were "not working properly".

The firms say other costs which make up 40% of bills are rising steeply. Consumer Focus said the industry's responses were a "chorus of excuse and self-justification". "In spite of increased margins and lower wholesale gas prices, there is the inevitable talk of higher domestic bills," said Robert Hammond of Consumer Focus.

Response

In August, Ofgem wrote to the chief executives of each of the big six energy firms, urging them to "respond" to falling wholesale prices as some poorer customers would be suffering hardship from high prices during the winter. Depending on how good suppliers were at buying their energy in advance, the regulator says their wholesale electricity costs have fallen in the past six months by more than £7 per megawatt hour, equivalent to £29 per customer's annual bill. Meanwhile gas wholesale costs to the energy companies have dropped by an average of 10p per therm, or £59 for each customer's bill. A spokesman for Ofgem stressed that the regulator did not have the power to force energy firms to trim prices, and instead that it could only act against energy companies if it finds evidence that they have acted anti-competitively. He added that while Ofgem wanted the energy firms to trim their bills, there was no suggestion that the current high prices suggested anti-competitive behaviour. However, Mr Luff, whose Commons committee studies the UK's energy market, said: "Ofgem can't stand by and watch customers pay excessive prices. "My committee warned the government and Ofgem last year that the energy markets were not working properly... this is further compelling evidence that that is the case."

No cuts likely

The big six firms were united in rejecting the suggestion they should agree now to cut tariffs in the coming months. Some even hinted that customers' tariffs might be higher in a year's time. British Gas - "Prices [are] likely to remain at historically high levels, and in fact likely to increase as non-commodity costs rise ever upwards." EDF Energy - "We would of course be prepared to reduce tariffs if market conditions allow." E.ON - "[We] do not believe there is a clear message regarding future wholesale costs movements that can be communicated to customers." RWE - "A retail price commentary cannot be based only on a narrow view of wholesale costs and in any event wholesale costs need to be weighed against increases in other costs." Scottish and Southern Energy - "With forward annual wholesale prices significantly higher, and with upward pressures in terms of distribution, environmental and social costs, seeking to avoid an increase between now and the end of 2010 is an important goal." Scottish Power - "There are no immediate signals that would indicate a fall in retail prices for this winter, and risks of an increase next year."

Falling costs, higher profits

The regulator's previous two quarterly reports on the relationship between wholesale and retail prices found that there was no evidence that suppliers had failed to drop prices when costs fell. However, its third quarterly analysis suggests there is now scope for the firms to do so. Ofgem estimates that the gross profit of each of the big six firms for the next year will amount to an average of £170 per dual-fuel customer. That compares to an average gross profit of £110 over the past three years. Looking ahead by 12 months, Ofgem estimates that the wholesale cost of electricity will fall by around £25 per customer and that of gas by around £40. "If retail prices do not change, these lower cost will be reflected in higher gross margin," Ofgem says.

Volatile costs

The gross margin made by energy firms has to cover their every-day running costs, such as paying staff and selling their services, and so does not automatically translate into profits either for further investment or dividends for shareholders. Ofgem acknowledged that energy firms also have other important costs which push up domestic and industrial bills. Among them are the cost of subsidised "social tariffs" for poorer customers, and the cost of dealing with the bad debts of those customers who cannot pay their bills. The bills that customers do eventually pay are also heavily boosted by the cost of paying for the transportation and distribution of gas and electricity around the national networks, and the cost of meeting the government's environmental obligations. These cannot be controlled by the energy suppliers and are passed straight on to the consumer. Overall, these extra costs now make up £360 of the average annual dual-fuel bill, compared to the £597 wholesale cost of the fuel itself. Ofgem also noted that firms may start to face higher wholesale energy costs in the spring of next year. The firms argue that there will always be a lag between wholesale price movements and customer tariffs. "Prices are very volatile," said Andrew Horstead of energy consultants Utilyx. "If they were fed through immediately consumer bills would naturally be very volatile," he added.

By improving the capacity to meet the requirements of UK customers, EDF Energy has developed a position to grow its retail business. The acquisition also secures EDF group a position in the nuclear revival and is a step forward in EDF's plan to build four EPR nuclear reactors in the UK, said EDF.

Pierre Gadonneix, chairman and CEO of EDF, said: "The process to evaluate ownership options for our UK electricity distribution networks is part of the announced asset divestment programme, aiming to reduce our net financial debt by at least EUR5 billion.

"It is also part of our development strategy in the UK, which is a key market in Europe for the group. This process follows British Energy's acquisition which facilitates EDF's plans to develop new nuclear power in the UK and significantly strengthens our position as a UK energy player."

EDF group financial advisors are Barclays Capital and Deutsche Bank London Branch. Additional support will be provided by BNP Paribas.

The company, which is leading the drive to build the next generation of nuclear reactors in Britain, has begun a sweeping review of its businesses as it aims to cut its €37 billion (£33.5 billion) debt pile.

In May, it sold a 20 per cent stake in British Energy, which it bought only a year ago, to Centrica, the British Gas owner, for €2.5 billion.

Yesterday, officials denied a report in La Tribune that EDF was considering selling a further 20 per cent stake in the company to help to fund its plans to build four nuclear reactors in Britain by 2025. However, they did not rule out the possibility.

A spokesman said that the group was examining a range of possible disposals to fulfil its aim of raising €5 billion from selling businesses by the end of 2010. He said that a sale of the British Energy stake was not being actively discussed "at this point".

EDF, which is 82 per cent-owned by the Government, said that it was in talks with E.ON about a deal that would involve the Paris-based group loosening its grip on France's nuclear industry.

Under the terms of the deal, E.ON would buy stakes in French nuclear power stations in exchange for EDF securing access to German coal-fired power plants.

The deal may soothe concerns of the European competition regulator that EDF and E.ON are too powerful in their domestic markets. EDF operates 58 nuclear reactors in France, generating more than 80 per cent of the country's electricity, and has businesses in Italy, Germany and China.

Its debt swelled after several deals, including the £12.5 billion acquisition of British Energy in September 2008 and the $4.5 billion purchase of 50 per cent of Constellation Energy, an American utility.

Its finances are under extra strain because the Government vetoed its calls for big rises in retail energy prices to fund its future expansion plans.

The regulator has issued a draft spending and revenue programme for the electricity companies, fixing their investment in 2010-15 at £6.5 billion, 17% less than they requested. Ofgem has not, however, cut its requirement for improvements to the networks.

Energy bosses reacted angrily, saying they were being asked to shoulder the responsibility for much of the government's ambitious plans for a low-carbon future but to do it on the cheap.

They are to meet Alistair Buchanan, chief executive of Ofgem, over the next few weeks to make their final pitches for a better deal for 2010-15 before the regulator's final decision in December.

Nick Horler, chief executive of Scottish Power, said he was prepared to take the unprecedented step of going to the Competition Commission unless the regulator changed its mind. "Ofgem is playing yesterday's game, which was sweating these assets and bringing costs down," he said.

"We are at a point where we need to make big new investments. Ofgem has taken a very narrow view of economics and we may have no recourse but to go to the commission."

Many of the networks, which are regional monopolies, were built in the 1950s. They need a radical overhaul to accommodate wind farms, new nuclear stations, small household generators and other technology. "We can cut carbon, we can cut costs, but we can't do both," said John Crackett, networks chief at Eon.

"We need to have fair returns that are attractive to investors. If they are not attractive, we are not going to reach the [government] goals because companies won't invest."

If the draft decision is rubber-stamped by Ofgem, there could be a wave of disposals by companies unwilling to invest billions for small returns.

Ofgem has not told the firms what their allowed profits will be. Andy Cox, energy partner at KPMG, the accountant, said: "A number of players are looking again at their networks and considering whether in a capital-constrained world the returns allowed for the next five years will be sufficient."

Steve Smith, head of networks at Ofgem, said the regulator was not trying to starve the networks of money. Network charges are set to increase by 25% between 2010 and 2015, he said, and the firms had made big profits since privatisation.

"We have 14 networks, and some of them say it is going to cost a lot more than others to do the same thing. So we have challenged that quite hard," he said. "If they disagree they can, of course, go to the commission as an independent referee."