"What we need to see is action from the government and more pressure on... these very big lazy companies who think it's OK to clobber people with above-inflation price rises at the very time when they can least afford it," he said.

Watchdog Consumer Focus said two price rises in one day would add to householders' worries that they were not getting a fair deal.

"Unless they can be reassured about the relationship between costs, prices and profits, consumer distrust will continue," said Consumer Focus director Audrey Gallacher.

British Gas managing director Phil Bentley claimed that 85% of the price it charged to customers was outside its control.

"Britain's North Sea gas supplies are running out and British Gas has to pay the going rate for gas in a competitive global marketplace," said Mr Bentley.

"Furthermore, the investment needed to maintain and upgrade the national grid to deliver energy to our customers' homes, and the costs of the government's policies for a clean, energy-efficient Britain, are all going up."

It said that winter wholesale prices it pays were proving to be some 13% higher this year.

Speaking to the BBC, Mr Bentley pointed out that although wholesale prices are actually currently lower than a year ago, British Gas, like most utilities, fixes the price at which it buys gas well in advance, and these fixed prices had risen.

The company reported £345m profit in the first half of the year, but the chief executive said that he expected profits to be down in the second half.

"Our margins are 5p in the pound," he told the BBC. "That 5p is going into jobs for Britain, investments in new wind farms, investments in new gasfields."

Insulation
 
Despite rising prices, the number of people switching suppliers is falling, which consumer groups suggest is more evidence of lack of trust in the market.

"The recent price increases mean it is more important than ever that consumers are able to shop around for the best deal," said regulator Ofgem.

"Next week we will be announcing the next steps in introducing major reforms to make the household energy market simpler, clearer and fairer for customers," it said.

Consumer Focus said that the government and the energy regulator should do more to protect households from the effect of growing energy costs.

"From next year, an average of £4bn will be taken from consumer bills in the form of carbon taxes," Audrey Gallacher said.

"Using a proportion of that revenue to fund a much more ambitious energy efficiency programme could start to tackle fuel poverty and provide a jump start to our energy efficiency industry."

All the energy utility firms are obliged under the government's "Certified Emissions Reduction Target" (or "Cert") programme to cut the carbon dioxide output by households.

British Gas extended its offer of free loft and wall cavity insulation to non-customers earlier this year. Consumer groups suggested the company had done this because it risked missing targets.

British Gas claimed that customers that had already implemented energy saving measures had seen their fuel consumption drop by up to 40%, and as a result the average total fuel bills of its customers had not risen faster than inflation, despite the increases in fuel charge rates.

In addition, under the government's Warm Home Discount Scheme which began last year, energy suppliers agreed to give discounts on energy bills to older households who receive certain benefits.

Speaking to the BBC, energy minister Greg Barker said the scheme would mean two million of the poorest families would get £130 towards energy bills.

Labour said it would introduce a new energy regulator with powers to force energy companies to pass on savings to consumers and automatically put over-75s on the cheapest deal.
Around 2.3 million more households were told they face higher energy bills today when Scottish Power became the fourth major firm to announce rate hikes with winter just around the corner.

The firm, which trades as Southern Electric, Swalec and Scottish Hydro, said it will charge an average of seven per cent more, pushing a typical customer's direct debit payments on their annual dual fuel bill up to £1,271.

The news came as British Gas faced a customer backlash after its own price rise last Friday and price rises for nearly 9.5 million households supplied by energy firm SSE came into force. Npower also announced increases in its customers' bills last week, prompting fears of a "long, cold winter" for some.

Industry analysts said customers would be asking themselves if the firms – four of the "Big Six" - were displaying "pack behaviour", rather than responding to volatile commodity costs. The comments, made by Consumer Focus director of energy Adam Scorer, came after the Chancellor George Osborne urged energy suppliers to reconsider last week.

And many British Gas customers are still posting messages of protest on the firm's Facebook site saying they will not be able to heat their homes in the cold weather – three days after its own price hike was announced.

"British Gas, in these difficult times of austerity, do you have to hike prices when we are struggling? You will still be a profit making business if you don't put up prices. Please be considerate of your customers - not greedy," Posted Wendy Ollett on the company's Facebook profile.

Another Ralph Coutts, wrote: "I hope your all stay warm this winter, unfortunately your customer's won't." [sic] Shaun Finn wrote: "…with your prices there are more and more innocent people put into fuel property while you fat cats getting fatter with our hard earned cash."

However, some offered a more supportive view. Jez Armstrong wrote: "I'll just do what most people with common sense do and put a jumper on."

British Gas added £80 to its typical annual dual fuel bill after an average increase of 6% affecting 8.5 million customers from November 16. Around 4,000 customers on its sustainable energy tariff, which provides power from renewable sources, will be affected by an additional 11 per cent leap in their electricity bills. Rival Npower followed with an average rise of 8.8 per cent for gas and 9.1 per cent for electricity. SSE added 9 per cent from today, costing the average customer an extra £102.

Scottish Power blamed the price hike on increased costs, especially for transporting gas and electricity to customers' homes and the cost of energy efficiency programmes. Neil Clitheroe, chief executive of retail and generation, said: "We work hard to protect our customers and we regret that we've had to announce a price increase today."

British Gas has not yet addressed the slew of complaints posted online but, last week, managing director Phil Bentley said: "Britain's North Sea gas supplies are running out, and British Gas has to pay the going rate for gas in a competitive global marketplace.

"Furthermore, the investment needed to maintain and upgrade the national grid to deliver energy to our customers' homes, and the costs of the Government's policies for a clean, energy-efficient Britain, are all going up."

Swalec increases gas and electricity charges

SSE said there would be no more price rises until at least the second half of next year Continue reading the main story
 
Gas and electricity charges are going up for one million customers of energy provider Swalec in Wales from Monday.

The price increase, which averages 9%, was announced by its parent company Southern and Scottish Energy (SSE) in the summer.

SSE has partly blamed the decision on the increased cost of using the electricity and gas networks.

The company said there would be no more price rises until at least the second half of next year.

Chief executive Ian Marchant said SSE had tried to keep energy bills as low as possible in a time of economic difficulty.

End of cap
 
The company pledged last summer to cap energy prices until at least August this year, then in January extended it to October.

However, Mr Marchant said the increases in costs could no longer be absorbed and prices had to rise.

SSE blamed increases in the cost of using the electricity and gas networks; the cost of mandatory government-sponsored schemes; and the price the company has paid for energy in the wholesale markets for the winter.

A customer with an average standard dual-fuel bill will now pay an extra £102 for the year, or £1,274 in total.

The company reported a 2% rise in annual pre-tax profits to £1.33bn earlier this year. Profits in its division which supplies electricity and gas to homes and businesses fell 20% to £321.6m.

The main energy suppliers all raised their prices last year, in some cases twice.

However, they all carried out small price cuts earlier this year, with SSE cutting its gas prices by 4.5% in March.

Npower and British Gas raise energy pricesComments (836) Richard Lloyd of Which? talks about his "shock and disbelief" at the price rises

Npower has joined rival British Gas in announcing it is increasing gas and electricity prices in the UK.

Npower will increase the price of gas by an average of 8.8% and electricity by 9.1% from 26 November.

Earlier, British Gas, the UK's biggest energy supplier, raised its charges for both types of fuel by an average of 6%, adding £80 a year to the average dual fuel bill.

The firms both blamed the government's policies as well as wholesale prices.

SSE - which trades as Scottish Hydro, Swalec and Southern Electric - has already said it will raise its prices by an average of 9% from Monday.

"There is never a good time to increase energy bills, particularly when so many people are working hard to make ends meet," Npower's chief commercial officer Paul Massara said.

"But the costs of new statutory schemes, increases in distribution charges and the price of gas for the coming winter are all being driven up by external factors, for example government policy."

British Gas recognised that its increase, which will take effect from 16 November, would be "unwelcome".

It also warned that the rising cost of government energy policies, including boosting renewable energy, improving households' energy efficiency and helping the poorest customers, was likely to add even more to household bills next year.

The cost of government policies and the national grid upgrade added £50 to the average household bill this year, and is expected to add another £60 next year, British Gas said.

British Gas customers Heather and Gabriel Manzolini are a retired couple from Romford.

We're already paying £1,750 for council tax while our home fuel bill is nearly £1,200 a year and now it's just going to go up.

We only renewed our contract with British Gas two weeks ago so we're not happy at all.

An Ofgem spokesperson said the regulator will not examine distribution network operator (DNO) investment in flood resilience until next year. This was despite conceding in April that most DNOs showed "slow progress" against expenditure commitments under the current five-year price controls. Ofgem at the time told Utility Week that it would "look at progress in July".

DNOs have acknowledged that recent weather patterns create a significant threat to power infrastructure: "Dry conditions, followed by heavy rainfall is actually a prime trigger for flash flooding so it is important that our protection in high-risk areas is ready for the challenges the changeable weather may throw at us," said Energy North West's asset manager Eddie Hamilton.

Ofgem made a commitment to ensure network flood defences were improved after major flooding in 2007 came close to depriving thousands of household of their power supply. The networks' trade body, the Energy Networks Association told Utility Week that "Extensive risk assessments" have been taking place on flood mitigation "to minimise the impact on customers.

"Network operators continue to make progress towards the targets set for the end of the five year price control period."

The regulator in its distribution annual report showed ENW to be the only DNO whose flood defence work was ahead of schedule.

In the year to end of March 2012 the overall operating profit was up 2 per cent to and the company confirmed an increased dividend and plans for further dividend growth this year.

In the retail business operating profit fell 19.7 per cent to £321.6 million, while wholesale profit rose by 6.4 per cent to £607.9 million and the networks division, which includes transmission in Scotland and electricity and gas networks across Great Britain, rose by 6 per cent to £737.1 million.

In the retail business SSE lost around 1 per cent of customers, finishing the year with 9.55 million customers - and it announced that it would acquire 130,000 more gas customers in Northern Ireland from Phoenix (see separate story). In the year to March gas consumption fell by 19 per cent and electricity consumption fell by 6.9 per cent.

Alistair Phillips-Davies, generation and supply director, said the company aims to maintain a profit margin of around 5 per cent in the supply business, but this year margin was just over 3 per cent. He said the company had made provision of £60 million to cover the costs of doorstep selling and metering issues.

Phillips-Davies complained of Ofgem "seeming to turn a blind eye to unfair pricing by our customers," and said the regulator's Retail Market Review had been "overtaken by events" and he hoped that the RMR would move from a "heavy " version to a "light" option as suggested by Ofgem, and could become irrelevant.

In the wholesale business renewable energy generation rose by 73 per cent, partly due to favourable weather conditions and partly because of an increase in wind capacity. The company said it hoped to bring the Glendoe hydro project back on line in the summer.

Gas prices were up 20 per cent over the year, SSE said, and spark spreads had fallen by 75 per cent and the company had carried out work at its Keady and Medway gas stations so they could be operated with more flexibility.

In the networks division, which represents the largest slice of SSE's business at 44 per cent, SSE highlighted network extensions at both distribution and transmission level - notably the start of construction of the controversial Beaully to Denny transmission line, where pylons stared going up early this year.

The company also noted that it had competed six new inset water supply appointments, and Gregor Alexander, finance director for the network sector, said "the ability of this business to offer a genuine multi utility service to customers will stand it in good stead."

Source: Utility Week

Wide package of reforms to electricity market and water industry promised in Queen's speech

The government has confirmed plans for "revenue support" to benefit nuclear power, through a complex new system of feed-in tariffs and long-term contracts as part of a wider package of reforms to the electricity market.

There will also be a shakeup of another system of privatised utilities, through a water bill that will make it easier for organisations to switch water suppliers and encourage new entrants into the market.

But the proposals set out in the Queen's speech held no surprises, and few details of how the reforms will work in practice. On both sets of new regulations, large areas of policy detail remain unclear.

Some energy experts fear "contracts for difference" in the electricity market – the centrepiece of the electricity market reforms – may be too complex in practice.

The government said the system – by which suppliers of low-carbon electricity, from nuclear or renewable sources, could sign long-term contracts of supply at a preferential rate – "would provide more certainty of revenues for low-carbon generation and make investment in clean energy more attractive".

Keith Allott, head of climate change at WWF-UK, said: "While it is great that the government have accepted the principle of legislating for carbon emissions, the way it is currently drawn up simply won't work. You are not on a diet if you allow yourself 5,000 calories a day. You shouldn't be surprised if it has no effect."

As yet there is no clarity on how the price for such contracts will be set, and how long the contracts will be allowed to run.

John Cridland, director general of the CBI, said more detail was needed. "Business investment in low-carbon will only happen when the detailed market framework is in place. Today's announcements are an important stepping stone," he said.

Some welcomed the proposals. Nick Winser, executive director of National Grid, which is hoping to play a central role in brokering the contracts, said: "There is a lot of work to do to ensure we are ready to deliver these mechanisms and we remain committed to playing our part and working closely with the Department of Energy and Climate Change, the energy industry and other stakeholders to ensure they are delivered on time."

Other aspects of the energy bill include an emissions performance standard that would prevent the construction of new coal plants emitting more than 450 grams of carbon dioxide per kilowatt hour; a capacity mechanism that is supposed to ensure security of electricity supply and prevent blackouts; and a new regulator for nuclear power, the Office for Nuclear Generation.

The water bill, which would reform aspects of the privatised water industry, is likely to attract particular attention given the drought crisis over much of England. The aims of the bill include stimulating the market for water resources, "potentially unlocking new sources of water supply and reducing the impacts of future drought", and reforms to the ways in which rights to take water from rivers and underground sources are allocated.

However, it is unclear how these aims would be achieved. One of the chief problems facing water companies in the worst affected areas is the difficulty of gaining planning permission for infrastructure projects, such as new reservoirs and waste water treatment systems.

There was no mention of water meters, which some experts believe will be essential to saving water. Phil Burston, water policy officer at the RSPB, said: "It's disappointing we won't actually see a real draft water bill for some considerable time, which we consider a sad reflection on the priority government is giving water management issues." He said the RSPB urgently wanted to see commitments on full water metering for households.

Rose Timlett, WWF-UK's freshwater expert, said: "With half the country in drought and aquifer levels still resoundingly low, time is running out for the government to take action on water. It is enormously welcome that the bill includes powers to reform the water abstraction system – which is currently unfair, out of date and a threat to our rivers and wildlife."

She added: "The government also needs to ensure that the bill addresses the huge amount of water that is currently wasted, putting an end to the red tape that currently prevents water companies from installing water meters, even when it's in the best interest of customers and the environment."

E.ON has announced a series of improvements for its small and medium business customers, including new industry standards for business sales by energy brokers and a customer panel to reflect the views of business. The changes form part of the company's Reset Review which was launched in January to examine every aspect of its relationship with its customers.

Tony Cocker, Chief Executive of E.ON UK, said: "One of our key aims continues to be the improvement of sales standards for small business customers across the entire industry, which is why we're launching a full code of practice for business energy brokers and will be approaching other energy suppliers to invite them to sign up to this single code too."

Reset Review update on initiatives for small businesses

Changes that have been made within the first three months of the Reset Review as well as new measures to be implemented over the coming weeks and months include:

New Code of Practice

Over 50% of all small businesses use a broker to switch energy supplier but there are currently no minimum standards in place to protect small businesses throughout the sales process. To improve sales standards across the industry E.ON is launching a full Code of Practice for SME business energy brokers which sets out the standards it expects them to adhere to when selling to customers and hopes that other energy firms will adopt this single independent set of principles. 

The code will ensure the product offered is appropriate to the needs of the customer and make the entire sales process a more transparent and positive experience. The energy supplier will be working with all of its SME business energy brokers/consultants to implement the set of principles as part of their sales processes and intends to operate these principles as standard from 31 July.

Improved billing standards

In the small number of cases where this is necessary, E.ON will not back bill SME customers over three years and aims to reduce this to one year by the end of 2013.

Fairer debt repayment

Where a SME customer gets into debt, E.ON gets in touch with the customer earlier to discuss their circumstances, ability to pay and set up a realistic repayment plan.

Smart metering

The energy company has assisted 550 by fitting pay-as-you-go smart meter and intends to install a further 2,500 pay-as-you-go smart meters in businesses by the end of 2012.

Better Direct Debit policy

Small and medium business customers joining E.ON and paying by fixed Direct Debit will have their payments reviewed regularly to ensure that their account balance is at zero on their anniversary of joining the company, rather than in spring.

Contract renewal

The energy supplier will be working to enhance communication to its SME business customers as they near the end of their contract period to help them make more informed decisions.

Bill improvements

The company will be looking to change its bill format and working with customers over the coming months to design a new, clearer bill format for SME businesses.

Increase in Regulatory Charges

Why have these charges increased?

The UK regulator, Ofgem, has agreed that the transmission and distribution companies can increase their charges in order to fund future investment in the UK electricity network. This enables network operators to invest in upgrades to the systems and to support the connection of new renewable generators to the network.

What is Climate Change Levy?

Climate Change Levy (CCL) is a tax applied to UK businesses who consume more than 12,000 kilowatt-hours (kWh) of electricity per year or more than 53,000 kilowatt-hours (kWh) of gas per year.

The levy is collected by electricity suppliers and is passed to the Government. Its purpose is to encourage businesses to be more energy efficient in order to reduce greenhouse gas emissions.  It is expected to cut annual carbon emissions by 2.5 million tonnes a year and was introduced in April 2001. Opus Energy collects the Climate Change Levy on behalf of HM Revenue and Customs via your electricity invoice. You can find more information about CCL on our Cleaner Energy pages.

What are distribution and transmission charges?

These are the regulated charges of the regional electricity distribution companies and the National Grid – they cover the costs involved in transporting gas and electricity around the country and to your business. These charges are built into your electricity and gas prices and are recovered via your electricity or gas invoice. Transmission and distribution charges typically make up approximately 20% of your electricity invoice.

These charges are not related to the wholesale element of your electricity price – this was fixed by Opus for the duration of your contract and has not changed.

When will the change become effective on my energy invoice?

You will see the change on your invoice effective from the 1st April 2012.
Where can I get further information?

If you would like to find out more about the distribution companies and how their charges are regulated, you can find more about the regulation of transmission and distribution charges on Ofgem's website. Alternatively for more information about the regulation of gas transmission and distribution charges you can visit the Gas Governance website.

Source:
http://www.opusenergy.com/business-customers/opus-energy-electricity/customer-focused-care/faqs/faq--smart-metering/#when_will

This week Scottish and Southern Energy (SSE) are beginning to put up their first turbines at their Gordonbush wind farm in Sutherland. The site will be home to 35 wind turbines which will generate around 70MW of renewable electricity. SSE aim to have completed the construction of Gordonbush wind farm, which will cost over £100m to construct by mid 2012. This is all part of their aspiration to create greener energy for a more sustainable future.

SSE has responsibly taken local communities into consideration, keeping them updated with each phase of construction and dealing with any queries they may have. As a result the first two weeks of deliveries to the construction site seem to have gone smoothly and disruption to the communities has been kept to a minimum.

SSE has 3 major wind farms which are currently under construction. There is Clyde wind farm based in South Lanarkshire which will produce 350MW of electricity and Griffin in Perthshire, which will produce 156MW of electricity.

SSE like most major energy companies has intentions to reduce their carbon emissions. They are currently on their way cutting their carbon dioxide output which is produced from their power stations and aim to have cut down by 50% by 2020.

Today, SSE have made public, that they have made £300m on the European bond market even though the European capital markets are constantly fluctuating with little stability. With this money they want to continue to help support more energy projects.

Last month 300 members of the British Gas' sales team was suspended along with 900 members of Scottish and Southern Energy's doorstep sales team.  SSE had been prosecuted for misleading customers with the advice they had given and now EDF is the third company to suspend members of their sales team as they have come under scrutiny about their techniques and tactics to encourage people change their current supplier.

On another occasion, E.ON, has publicly announced that Paul Golby, its UK Chief Executive is to be replaced by the chief executive of E.ON Energy Trading in Dusseldorf, Tony Cocker due to the resignation of Mister Golby.
Further to the scandal and public scrutiny of the "Big 6" energy companies, Chris Hulme, the Energy Sectary has reminded the energy suppliers that in order to reach government targets, they must at least double the rate at which they are insulating homes or these targets could be missed. This will only lead to further damage to the reputations of these huge organisations.

Energy Secretary Chris Huhne’s has warned David Cameron that within 10 years time, there will be a 30% rise in consumer energy bills. This is backed up by the idea that the costs will cancel out due to the amount of energy that will be saved by the energy efficiency practiced by consumers, this being that consumers will begin to use less energy saving resources and money. Advisers at Downing Street have warned that Green energy policies could cause increases of more than £300 for the average annual household energy bill.

These policies intend to encourage the use of renewable resources and nuclear power and they are responsible for the proposed rise of almost a third. There are new requirements for energy firms to use more electricity from renewable sources and to assist low-income houses become energy-efficient.

It is said to be worrying to know that the 30 per cent increase is described just as a ‘mid-case’ projection and not more like a worst case scenario. Mr Moxham believes that the impact of the coalition’s policies on consumer energy bills will turn out to be considerably greater. He warns that the size of energy consumption savings which were worked out by the DECC seem to be unconvincing. The projected rise in energy bills is a key concern for Mr Cameron; he made a promise before last year’s general election, he would work to tackle the rising prices by giving more power to regulators.

Mr Huhne has continually brushed off claims that energy bills will rise by hundreds of pounds, calling them ‘absolute nonsense’ and claiming the calculations to be rubbish too.
The increase which is projected by Downing Street is still much lower than the ones made by independent experts.
Earlier in the year, professionals at Unicredit banks alleged that a number of sustainable measures could mean fuel bills could double within just four years.
Their report claimed that an average UK fuel bill could increase from a current level of £1,000 annually to more than £2,000 per year by 2015.

Energy Secretary Chris Huhne’s has warned David Cameron that within 10 years time, there will be a 30% rise in consumer energy bills. This is backed up by the idea that the costs will cancel out due to the amount of energy that will be saved by the energy efficiency practiced by consumers, this being that consumers will begin to use less energy saving resources and money. Advisers at Downing Street have warned that Green energy policies could cause increases of more than £300 for the average annual household energy bill.

These policies intend to encourage the use of renewable resources and nuclear power and they are responsible for the proposed rise of almost a third. There are new requirements for energy firms to use more electricity from renewable sources and to assist low-income houses become energy-efficient.

It is said to be worrying to know that the 30 per cent increase is described just as a ‘mid-case’ projection and not more like a worst case scenario. Mr Moxham believes that the impact of the coalition’s policies on consumer energy bills will turn out to be considerably greater. He warns that the size of energy consumption savings which were worked out by the DECC seem to be unconvincing. The projected rise in energy bills is a key concern for Mr Cameron; he made a promise before last year’s general election, he would work to tackle the rising prices by giving more power to regulators.

Mr Huhne has continually brushed off claims that energy bills will rise by hundreds of pounds, calling them ‘absolute nonsense’ and claiming the calculations to be rubbish too.
The increase which is projected by Downing Street is still much lower than the ones made by independent experts.
Earlier in the year, professionals at Unicredit banks alleged that a number of sustainable measures could mean fuel bills could double within just four years.
Their report claimed that an average UK fuel bill could increase from a current level of £1,000 annually to more than £2,000 per year by 2015.

The Climate Change Levy (CCL) is a tax on the use of energy by business and the public sector.  It was introduced on 1st of April 2001 and is intended to encourage energy efficiency in business, reduce pollution and stimulate investment in new low carbon technology.

The CCL is the direct result of the legally binding commitment made by the UK Government at the 1997 Kyoto Conference to reduce greenhouse gas emissions by 5.2% below 1990 levels by the period 2008/2012.

The CCL affects most UK businesses, however there are some exceptions, but in the main will be charged to all businesses subject to VAT at 17.5%.  Some businesses may receive discounts on the levy, provided they achieve energy saving targets agreed between the government and their relevant trade unions.

CCL is applied at different rate depending on the energy source.  For Electricity it is applied at 0.470 p/kWh and gas at 0.164 p/kWh. (Figures effective 1st April 2009)

It is intended CCL will rise to 0.485p/kwh and 0.167p/kwh from 1st April 2011.

How is my business charged?

As your energy supplier, ScottishPower is responsible for collecting the CCL from your company and passing it directly on to HM Customs and Excise.  It is shown as a separate sub-total on your bill so that you can see exactly how much you are being charged.

How will the CCL be used?

The levy is intended to be fiscally neutral with all revenues collected recycled to business in two ways:

 Through reduction of 0.3% in Employers' National Insurance contributions paid on employees' earning in excess of £84 per week;
 By making £150 million available to provide additional support for energy efficiency initiatives

The Climate Change Levy (CCL) is a tax on the use of energy by business and the public sector.  It was introduced on 1st of April 2001 and is intended to encourage energy efficiency in business, reduce pollution and stimulate investment in new low carbon technology.

The CCL is the direct result of the legally binding commitment made by the UK Government at the 1997 Kyoto Conference to reduce greenhouse gas emissions by 5.2% below 1990 levels by the period 2008/2012.

The CCL affects most UK businesses, however there are some exceptions, but in the main will be charged to all businesses subject to VAT at 17.5%.  Some businesses may receive discounts on the levy, provided they achieve energy saving targets agreed between the government and their relevant trade unions.

CCL is applied at different rate depending on the energy source.  For Electricity it is applied at 0.470 p/kWh and gas at 0.164 p/kWh. (Figures effective 1st April 2009)

It is intended CCL will rise to 0.485p/kwh and 0.167p/kwh from 1st April 2011.

How is my business charged?

Your energy supplier is responsible for collecting the CCL from your company and passing it directly on to HM Customs and Excise.  It is shown as a separate sub-total on your bill so that you can see exactly how much you are being charged.

How will the CCL be used?

The levy is intended to be fiscally neutral with all revenues collected recycled to business in two ways:

1. Through reduction of 0.3% in Employers' National Insurance contributions paid on employees' earning in excess of £84 per week;
2. By making £150 million available to provide additional support for energy efficiency initiatives

More needs to be done to support small businesses at this time, an internet marketing company has said.

Banks' position is that they are giving a lot of funding but many small firms are experiencing problems with cashflow.

The comments come in response to an announcement from business secretary Vince Cable that the government understands the importance of access to finance.

Dr Cable added that the coalition will work with the financial services industry and businesses to ensure organisations' needs are being met.

"What we need is action on the ground, [which] filters down to real small businesses," said Mario Lafond, director of BrightSet Media.

"Legislation or a stronger code of practice about the time larger companies take to save smaller companies [can help businesses continue trading]," he added.

Earlier this week, a survey from the Forum of Private Businesses revealed that small firms are struggling to access finance to fund their operations.

Small business owners around the UK could be among those to be encouraged by recent comments regarding profits at a sate-owned bank.

Royal Bank of Scotland (RBS), which is largely owned by taxpayers after a government bailout, recently posted pre-tax half-year profits of GBP1.1 billion.

Stephen Williams, co-chair of the Liberal Democrats' Treasury policy Committee, said businesses around the country should be the ones to benefit from the profits.

"RBS is almost entirely owned by the taxpayer, so these huge profits must be used for the national interest and not just to pay massive bonuses to senior staff," he said

"There is no excuse for RBS not to loan to good British companies that are struggling to get credit. We cannot simply allow banks to go back to business as usual while viable British firms are suffering."

Small business owners in the UK could be encouraged by the news that small business rate relief is set to increase later this year.

With VAT set to increase in the early stages of 2011 and a number of businesses being exempt from the government's new tax scheme because of where they are based, there has been little to lift the spirits of many small businesses owners of late.

However, one measure announced in the most recent Budget could serve to benefit a number of the UK's smaller firms.

As announced by the previous administration, the government is to increase small business rate relief later this year.

Business Link, the government's enterprise information platform, explained: "Between October 1st 2010 and September 30th 2011 eligible ratepayers will receive small business rate relief at 100 per cent on properties up to £6,000 rather than 50 per cent and a tapering relief from 100 per cent to 0 per cent for properties up to £12,000 in rateable value for that period."

The government stated that there will be no other adjustments to the scheme and confirmed that the eligibility criteria will remain the same.

Businesses have been urged to continue paying their rates in accordance with the latest bill they received and await contact from their local authority with information on how the changes will affect them.

The news comes shortly after small business rate relief thresholds were increased following the most recent revaluation on April 1st.

Since then small business in England have been entitled to rate relief in instances when they occupy just one property and the rateable value of that premises does not exceed £18,000 or £25,500 of those based in London.

Further properties with values lower than £2,600 are disregarded.

These rates for the financial year 2010-11 replace the £15,000, £21,500 and £2,200 figures set between April 2005 and March 2010.

Business link also informed firms that they no longer need to reapply for small business rate relief at the start of a new five-year valuation period, as was previously the case.

The department explained: "If you become ineligible for the relief, you must notify your billing authority.

"If the rateable value of your business premises increased as a result at revaluation, your billing authority will adjust the relief accordingly."

A number of other businesses could be encouraged to seek the advice of a specialist tax accountant after Business Link advised that certain organisations are eligible for further relief.

The information service said that charities and amateur sports clubs can have their business rate bills reduced by 80 per cent or more.

Businesses based in rural areas such as village shops can claim relief if the rateable value of their premises is less than £8,500, while sole pubs and single petrol stations in rural areas can claim relief on properties valued up to £12,500.

Business electricity prices are in the spot light as energy suppliers prices are creeping up once again. The business electricity prices service negotiates the best rates with energy suppliers for businesses. We find the cheapest business electricity prices in the UK, so you don't have to go any where else or be hanging on the phone waiting to get through to speak to some one.

Our service is free; we get a small administration fee from which ever supplier wins your business. You can be totally confident that business electricity prices are completely independent and work for you NOT the supplier.

Business electricity prices are one of the UK's leading, fully independent, energy brokerages. We have been serving businesses cut energy costs for over 5 years.

We help over 15,000 Business customers a year either by renewing their energy contracts at more competitive rates or switching them to a cheaper supplier. This experience and deep market awareness means we have authority and purchasing power within the industry. Our customers vary from small, local businesses to large industrial manufacturing sites and anything in between.

Call 0845 226 0046 and reduce your business electricity prices today

A global leader in wind turbine manufacturing has completed its work on two Scottish wind farms, helping to edge the country closer to its ambitious renewable energy targets.

REpower UK, the Edinburgh-based business, has completed installation and achieved commercial handover of two large wind farms located at opposite ends of the country.

The move means that the wind farms are now connected to the national grid and are being operated by their respective owners.

In the north-east, 20 turbines have been delivered to Fairburn wind farm in Ross-shire for Scottish and Southern Energy, while in the Scottish Borders 19 turbines were handed over to EDF Energy Renewables at Longpark near Galashiels.

Combined, the two sites have a rated capacity of 80mW, creating enough energy to power almost 46,000 homes a year.

Rick Eggleston, managing director of REpower UK, commented: “These wind farms are both large sites with complex grid connection requirements. This element was of particular significance at Fairburn, where we took on full responsibility for the grid compliance.”

He added: “Both wind farms use the MM82 turbine, which is specially adapted to thrive in high wind locations bringing an efficient result in terms of wind energy.

“We’re very confident that they will make a very valuable contribution to meeting the renewable targets in Scotland.”

REpower is currently working on eight onshore wind farms across the UK after completing 26 onshore wind farms in Scotland, England and Wales and one offshore wind farm, Project Beatrice, in the North Sea.

The company has also been appointed as supplier for 30 offshore turbines for Vattenfall’s Ormonde wind farm in the Irish Sea which, on completion, will have a total rated output of 150mW.

German-owned REpower employs 75 people at its UK subsidiary in Edinburgh and a total of 2000 worldwide.

Ofgem, the energy regulator, found EDF Energy in breach of the regulations between October 2008 and March 2009.

Energy companies must handle complaints effectively and with the attention they deserve 
During this time the company had not maintained all its records in the way that the new standards require when handling customer complaints.

However Ofgem said that EDF Energy acted promptly to address the problem, according to Ofgem, and voluntarily made payments totalling £200,000 to Money Advice Trust and the Citizens Advice scheme Energy Best Deal.

As a result the regulator decided not to impose a financial penalty on EDF Energy, but warned all suppliers to take their obligations on handling customer complaints seriously.

This is the first time Ofgem has found a breach of the new regulations which took effect in 2008.

The new regulations also support consumers’ right to take a dispute to the Energy Ombudsman where it cannot be satisfactorily resolved with the energy company.

“It is vital that energy companies handle complaints effectively and with the attention they deserve.”

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.

MORE than 40 private and public sector organisations have banded together to promote the Highlands and Islands as a "hub" for the renewable energy industry.

The group will set out its case at next week's All-Energy Conference in Aberdeen, the largest renewable power event in the UK.

There are almost 600 companies and organisations with an interest in energy in the Highlands and Islands, operating in a wide variety of sectors including oil and gas to wind, tidal, wave, bio-mass, hydro and hydrogen.

What is Reactive Power?

Some equipment used in industrial and commercial applications requires an amount of ‘reactive power' in addition to the ‘true power' requirements. This reactive power generates the magnetic fields which are essential for inductive electrical equipment (such as transformers, motors and welders) to operate.

Reactive power is measured in units of kVAr (kiloVolt Amperes reactive), whilst ‘true power' is measured in kW (kiloWatts). In general terms the lower the power factor, the greater the amount of reactive power required. The highest power factor is unity, 1.0 however some equipment can operate at power factors as low as 0.4. The power factor can be calculated from the power triangle shown below:

Reactive Power Charges
A number of Distribution Network Operators levy a reactive power charge if the number of reactive units consumed exceeds a pre-determined percentage of kilowatt hours consumed, which means that the amount of charges will vary from site to site, and even from month to month. These charges are passed on to our customers at cost as levied by the distribution company and are not included in the rates agreed on your quote.

As an example, in the former Eastern Electricity area (EDF) such charges only apply to the number of reactive units in excess of 33% of the total number of kilowatt hours consumed e.g. Assume 10,000 kWhs consumed and 5,000 reactive units recorded over a billing period, then charges would be based on 1,700 reactive units;

i.e. 5,000 – (0.33 x 10,000).

Energy suppliers will invoice these charges separately from your main bill, in accordance with the terms of your contract with them. Payment for these invoices is due promptly according to the payment terms and method agreed on your contract.

Can you reduce  Reactive Power Charges?
Customers wishing to reduce or even eliminate reactive power charges can consider doing so by improving the site's power factor, to a level close to unity, i.e. 0.95-0.97.

This is possible by installing power factor correction equipment. Power Factor Correction equipment consists of capacitors with associated control and switchgear. Capacitors draw reactive power, but in an ‘opposing direction' to that drawn by typical business plant and equipment. The net effect is a reduction in the amount of reactive power, and therefore a lower level of kVA which may in turn lead to a lower available capacity charge each month.

In addition to reducing Reactive Power charges there may be other benefits in Power Factor Correction;

•Potential Reduction in any kVA leading to possible reduction in demand related charges.
•May provide additional capacity from existing connections without the need for system reinforcement.
•Likelihood of reducing overheating electricity distribution equipment.
Of course there are costs associated with the installation of PFC equipment. Systems can be installed from £500 but this may be negligible when compared against the reactive power charges that would otherwise have been incurred.

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 review had a number of outcomes that might affect your business. The following list gives an indication of the most significant changes:

Before entering into a new business gas and electricity contract with a supplier, the supplier must give details of the key terms and conditions to the customer and make it clear that the contract is binding.

Within 10 days of the contract being agreed or an existing contract being extended, the customer should receive a written copy of the terms and conditions.

Approximately 60 days before the end of a fixed term period, business energy suppliers must send customers a statement of renewal terms.

Upon receipt of the renewal terms, the customer has 30 days to switch or negotiate a new deal.

If customers do nothing within the 30 day notification period, their contract can only be rolled over for a maximum of 12 months.

Customers who don't want to have their contract automatically rolled over at the end of a fixed term period can now stop this from happening by writing to their supplier at any point and requesting to ‘opt out' of the contract.

Will the new rules apply to my business?

The new rules will apply to your business if it fits into any one of the following criteria. Your business must:

Consume less than 200,000 kWh of gas a year, or
Consume less than 55,000 kWh of electricity a year, or

have fewer than ten employees (or full-time equivalent) and an annual turnover or annual balance sheet total not exceeding €2m.

Ofgem refers to any business that fit the criteria as micro-businesses. But don't assume that your business energy supplier will know that you're a micro-business; you must make sure you tell them.

Why is the rules good news for my business?

From January 18th 2010, it is the energy supplier's responsibility to make sure that the terms and conditions of your contract are presented to you clearly. Previously, they may have been difficult to find and translate. This means you should always know where you stand with your business energy supplier and your contract terms.

Also, suppliers have been prevented from automatically rolling customers onto contracts any longer than 12 months. This gives your business protection from getting stuck on a long-term contract that might not be the cheapest or the right contract for your business. This puts you in a much better position to negotiate new contracts and better gas and electricity prices on a more regular basis.

What should I do next?

We've put together a few quick tips to make sure you and your business can take full advantage of the new rules:

Make sure you read any paperwork from your energy supplier thoroughly, and make a note of any important dates that are stated.

Make sure your supplier is aware that you are a micro-business customer.

When you renew or take out your next business energy contract, it may be a good idea to opt out of it. This means that when the term of your contract is over, you won't be automatically rolled over onto another long-term contract. Instead, you'll be placed on a 28 day rolling contract (with potentially higher prices) that you can switch away from at any time. This can be an advantage if you accidentally miss your renewal date, so simply write to your supplier and request to opt out if you want to do this.

As a result of the probe OFGEM has increased the protection for Micro Businesses with the following new rules:

» Before entering into a contract a customer must be informed of the key terms and conditions

» Within 10 days of the contract being agreed the customer should receive hard copies of the full terms and conditions and a statement of renewal terms if the contract is fixed length

» Customers will be contacted a minimum of 30 days before the end of the contract period with an explanation of the options available and including advice on what a customer should do to terminate their current contract and stop the supplier from assuming contract renewal for a further fixed term contract period.

» Customers at any point from when the contract is agreed until the end of the notice period can give notice that they wish to terminate it at the end of the fixed term period.

These rules come into force on 18th January 2010, however they will not apply retrospectively and so will only affect existing customers when they come to terminate or renew their supply contracts.

Switch to get a better deal today

Use our business energy form to request a quote or simply call 0845 226 0046 One of our experts will be happy to help you find the best business energy deal right then and there – and we'll handle all the paperwork too.

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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.

Compare Gas and Electricity Prices now!

British Gas joins controversial shale gas hunt

British Gas owner Centrica is entering the controversial shale gas business as part of its strategy to double the size of its North American operation, Direct Energy, to a turnover of £12.2 billion within five years.

It is likely that the energy giant will either enter a joint venture or acquire a company with the skills to extract the gas from soft shale rock found in North America.

Chris Weston, Direct Energy's new chief executive, told analysts last month: 'We are interested in shale gas - it is a phenomenon.'

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.

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."

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 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.

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.

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.

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.
 
 

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.

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."