Tag: energy companies

Ofgem: Welcome fall in the price cap but high debt levels remain

Energy regulator Ofgem has today (Friday 23 February, 2024) announced a significant reduction of the energy price cap for the second quarter of 2024. 

The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 12.3% on the previous quarter from 1 April to 30 June 2024. For an average household paying by direct debit for dual fuel this equates to £1,690, a drop of £238 over the course of a year – saving around £20 a month.  

This will see energy prices reach their lowest level since Russia’s invasion of the Ukraine in February 2022 caused a further spike in an already turbulent wholesale energy market, driving up costs for suppliers and ultimately customers. 

However, despite reaching this welcome milestone, Ofgem recognises that the cost of living remains high and many customers continue to struggle with their bills as standing charges rise and energy debt reaches a record figure of £3.1 billion. 

Therefore, today Ofgem is also announcing: 

  • Confirmation of the levelisation of standing charges to remove the ‘PPM premium’ previously incurred by prepayment customers.  
  • A decision to allow a temporary adjustment to the price cap to address supplier costs related to increased levels of bad debt. 
  • A decision to extend the ban on acquisition-only tariffs (BAT) for up to another 12 months. 
  • Confirmation of the end of the Market Stabilisation Charge (MSC) from April 1. 
  • A decision not to change wholesale cost allowances following a review conducted in late 2023. 

Jonathan Brearley, CEO of Ofgem, said: “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers. 

“That’s why we are levelising standing charges to end the inequity of people with prepayment meters, many of whom are vulnerable and struggling, being charged more up-front for their energy than other customers.  

“We also need to address the risk posed by stubbornly high levels of debt in the system, so we must introduce a temporary payment to help prevent an unsustainable situation leading to higher bills in the future. We’llbe stepping back to look at issues surrounding debt and affordability across market for struggling consumers, which we’ll be announcing soon. 

“These steps highlight the limitations of the current system – we can only move costs around – so we welcome news that the Government is opening the conversation on the future of price regulation, seeking views on how standard energy deals can be made more flexible so customers pay less if using electricity when prices are lower. 

“But longer term we need to think about what more can be done for those who simply cannot afford to pay their energy bills even as prices fall. As we return to something closer to normality we have an opportunity to reset and reframe the energy market to make sure it’s ready to protect customers if prices rise again.” 

Affordability remains the most significant issue, as people continue to struggle with bills over the last two years, which has led to record levels of energy debt. 

 

To address this challenge in the short-term, Ofgem will allow a temporary additional payment of £28 per year (equivalent to £2.33 per month) to make sure suppliers have sufficient funds to support customers who are struggling.

This will be added to the bills of customers who pay by direct debit or standard credit and is partly offset by the termination of an allowance worth £11 per year that covered debt costs related to the Covid pandemic.  

Prepayment meter (PPM) customers will not be impacted by the extra charge, reflecting the fact that many do not build up the same level of debt as credit customers because they top up as they go. 

Ofgem also confirmed plans to maintain the equalisation of standing charges across payment methods so that customers are not charged more depending on the payment method they use.

Since October 2022 the so-called ‘PPM premium’ was removed by government support via the Energy Price Guarantee. However, with that support coming to an end on April 1, Ofgem has taken steps to provide a lasting solution, which must be funded by bill payers rather than tax payers, to maintain fairness in the system. 

This means PPM customers will save around £49 per year while direct debit customers will pay £10 per year more. 

Increasing network costs has also contributed to the rise in standing charges – and in anticipation of this we published a call for input in November 2023 and are currently reviewing more than 40,000 responses. 

Today Ofgem is also publishing a decision to extend the ban on acquisition-only tariffs (BAT) for another 12 months, but intends to open a consultation to consider shortening this extension to just six months. 

The BAT was introduced in April 2022 to provide more stability at the height of the energy crisis, removing often risky short-term discounted tariffs intended to attract customers from other suppliers. 

As competition returns to the market, Ofgem is encouraging rising numbers of customers switching with a number of measures, including shortening the time suppliers are given to complete a customer transfer from 15 days to just five. 

Additionally, from 1 April, the Market Stabilisation Charge – introduced in tandem with the BAT – will come to an end, meaning suppliers are no longer required to compensate a new customer’s previous supplier when they switch. 

This influenced the regulator’s decision to temporarily extend the BAT rather than remove both safeguards at the same time, ensuring a phased and responsible return towards normality in the market while preventing a return of the risky behaviours which contributed to the high number of supplier failures during the energy crisis. 

Ofgem is also publishing a decision following its wholesale adjustment review. Following unusually high volatility in wholesale prices between October 2022 and September 2023, the regulator examined whether suppliers experienced differences between wholesale costs and the allowances they were allowed to recover via the price cap. 

However, after careful consideration the regulator has concluded to take no further action as wholesale costs did not systematically differ from allowances. 

Citizens Advice Scotland has responded to today’s announcement by Ofgem, setting the energy price cap at £1,690.

The charity is stressing that even though prices are coming down they are still way too high for many households.

CAS Social Justice spokesperson Matthew Lee said: “Today’s announcement has to be seen in the context of peoples’ incomes and how badly households have been battered by the cost-of-living crisis of the past 18 months.

“Even if prices are coming down they are still way too high for many people to be able to afford, particularly the many who have had to go into debt to cover their energy costs since the price surge in 2022.

“It’s important that we don’t become complacent about the lower cap. The fact is that too many people are still struggling to pay these bills, and more targeted financial support like a social tariff is needed for the most vulnerable households.”

Previous CAS research on energy affordability has found that: 

  • Nearly 3 million people report switching the heating off when it’s cold, wrapping themselves in blankets and extra layers instead.
  • 1.4 million people regularly sit in the dark, with no TV or laptop/tablet on, to save on energy bills.
  • Nearly 3 million people in Scotland have cut back on food as a result of rising energy bills.
  • Tens of thousands of people in Scotland have been forced onto pay as you go energy meters against their will.
  • Over 300,000 people say they are concerned about energy debt.
  • In December the average energy debt for people seeking complex debt advice was £2,307 – up nearly £500 compared to the same time last year.
  • 185,000 people say they have changed their bathing habits to save on hot water – they’re sharing bathwater or showering at work or at the gym.

Energy price cap rise will “hammer households even harder” in 2024

  • The energy price cap has increased to £1,928 raising the average bill by £94
  • Union body says UK is “feeding foreign firms’ profits” while British households struggle 

Commenting on Monday’s energy price cap announcement, TUC General Secretary Paul Nowak said: “No one should struggle to get by in one of the richest countries in the world. 

“But 13 years of wage stagnation and cuts to social security have left millions badly exposed to sky-high bills this winter. 

“Energy bills are already 50% higher than two years ago, so today’s rise will just hammer households even harder in the coming year. “ 

“It doesn’t have to be this way.  

“Other governments are investing in publicly owned clean power and insulating homes.” 

“The UK is feeding foreign firms’ profits and subsidising cheaper bills abroad, while British households struggle to heat their homes and pay their bills.” 

First Minister to convene summit with energy suppliers and campaign groups

The First Minister will convene an urgent summit with energy supply companies and consumer groups later this month, to discuss how advice and support for people struggling with energy bills can be improved.

The summit will consider what collective action can be taken by government, energy companies and the third sector to help businesses and consumers access advice, and get support with debt issues.

Scotland’s major energy suppliers including Scottish Power, OVO Energy, Centrica, Octopus and E.ON, as well as industry bodies and key consumer and poverty organisations will attend.

The summit follows last week’s meeting of the Scottish Government Resilience Committee on the cost living crisis and will take place ahead of OfGem’s next energy price cap announcement on 26 August.

First Minister Nicola Sturgeon said: “I know that this is an incredibly unsettling time for households and energy consumers across Scotland and the Scottish Government will continue to do everything we can to support those affected.

“There is a not a single solution to this problem and government, industry and the third sector in Scotland needs to work collaboratively together to ensure the right support is in place for householders and businesses during this challenging winter. This could include improving the availability of help and advice and considering a more compassionate approach to debt management.

“However, it remains the case that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government.

“Only the UK Government can access and make available resources on the scale required. They need to take action, now. As I said last week, a first step would be to cancel the energy price cap rise this autumn.”

Peter Kelly, Director, The Poverty Alliance said: “We are pleased that the First Minister will be convening this summit of energy companies, along with the Poverty Alliance and Energy Action Scotland.

“Across the country, people are increasingly being swept up amid a rising tide of hardship. But with the energy price cap due to increase in October, that tide threatens to become a flood.

“Households up and down Scotland are terrified of what the colder months will bring and the likelihood is that – without further action – lives and life chances will be at risk. The situation could scarcely be more urgent.

“But it is a situation we can do something about, by taking action to protect people most at risk of poverty and deeper hardship. It is that much-needed and urgent action that we are hoping the summit can bring about.”

Frazer Scott, CEO of Energy Action Scotland said: “With our colleagues at the Poverty Alliance, we welcome the First Minister’s intervention in gathering energy companies together to talk about how we can best support households struggling to afford spiralling energy bills.

“Fuel poverty will affect over one million Scottish households this winter requiring urgent intervention focussed on targeting those most in need.

“Cold, damp homes affect health and wellbeing and will put thousands of lives at risk as well as adding additional pressure to the NHS, making this a vital intervention for Scotland.”

The Scottish Government estimates that 906,000 or 36% of all households will be in fuel poverty in October 2022, based on an Ofgem price cap of £2,800 and taking into account previously announced government mitigations.

Downing Street showdown does nothing to address energy cost fears

The Prime Minister, Chancellor Nadhim Zahawi and Business and Energy Secretary Kwasi Kwarteng met industry leaders from the electricity sector yesterday to discuss what more they can do to help people struggling with rising energy prices – but the meeting did nothing to resolve the impending crisis.

The Prime Minister, Chancellor, Business and Energy Secretary stressed the need to act in the interest of the country in the face of rising energy prices caused by Putin’s illegal invasion of Ukraine and how vital it was that the Western world continued to stand by the Ukrainian people during their battle for survival.

The Chancellor and energy firms agreed to work closely over the coming weeks to ensure that the public, including vulnerable customers, are supported as unprecedented global events drive higher energy costs.

Government support worth £37 billion is being provided this year to help people with the rising cost of living, including £1,200 for the most vulnerable households over the course of the year and £400 discounted off everyone’s energy bills from October.

It was noted that the market is not always functioning for consumers, and extraordinarily high bills will ultimately damage energy companies.

As set out in the Energy Security Strategy, the Government has launched a consultation to drive forward market reforms and ensure the market works better for consumers. Discussion focussed on how Government and industry can collectively drive forward reforms to ensure the market delivers lower prices.

The Prime Minister, Chancellor and Business and Energy Secretary emphasised the importance of investing in North Sea oil and gas, renewables, biomass and nuclear to strengthen our domestic energy security.

The Chancellor added the Government continues to evaluate the extraordinary profits seen in certain parts of the electricity generation sector and the appropriate and proportionate steps to take.

The Prime Minister set out that it will be for the next Prime Minister to make significant fiscal decisions.

Prime Minister Boris Johnson said: “Countries around the world are feeling the impact of Putin’s damaging war in Ukraine. We know that this will be a difficult winter for people across the UK, which is why we are doing everything we can to support them and must continue to do so.

“Following our meeting today, we will keep urging the electricity sector to continue working on ways we can ease the cost of living pressures and to invest further and faster in British energy security.

“We are continuing to roll out government support over the coming months, including the second £324 instalment of the cost of living payment for vulnerable households, extra help for pensioners and those with disabilities, and the £400 energy bills discount for all households.”

Chancellor of the Exchequer, Nadhim Zahawi, said: “This morning I hosted industry leaders from the electricity sector to discuss what more they can do to work with Government and act in the interest of the country in the face of rising prices caused by Putin’s illegal invasion of Ukraine.

“We have already acted to protect households with £400 off energy bills and direct payments of £1,200 for 8 million of the most vulnerable British families. In the spirit of national unity, they agreed to work with us to do more to help the people who most need it.”

The meeting was attended by representatives from:

  • EDF
  • RWE
  • E.ON
  • Drax
  • Orsted
  • Uniper
  • National Grid
  • SSE
  • ScottishPower
  • Centrica
  • Octopus Energy
  • Vitol
  • Intergen
  • Greencoat Capital
  • Energy UK

Scottish Government Resilience Room convened to discuss ‘cost emergency’

The First Minister chaired the Scottish Government Resilience Committee yesterday (August 11) to discuss urgent steps to mitigate the growing cost emergency which is affecting people and businesses.

Ministers assessed the current situation and likely scenarios in the months ahead and agreed a number of immediate actions. The Scottish Government will:

  • Continue to maximise the direct financial assistance available to those most in need, principally through ongoing work to extend eligibility for and increase the value of the Scottish Child Payment
  • Undertake an emergency budget review to assess any and all opportunities to redirect additional resources to those most in need, reduce the burdens on business and stimulate the Scottish economy
  • Consider urgently all options within devolved powers for regulatory action to limit increases in costs for people, businesses and other organisations
  • Bring together energy companies, banks and food retailers to examine what further help can be provided by these businesses to limit cost increases and protect those most vulnerable 
  • Work with partners to strengthen the safety net of emergency food/fuel provision, prioritising a ‘cash first’ approach
  • Provide further advice to households on using energy more efficiently and reducing consumption

The Resilience Committee will meet on a weekly basis for the foreseeable future to oversee and direct progress on these immediate actions and keep under ongoing review any further steps that the Scottish Government can take.

In addition to doing everything possible within its powers, the Scottish Government is renewing its call for urgent and substantial action from the UK Government including:

  • An immediate doubling of the direct financial support already provided, with payments made by October. It is estimated that for an out-of-work couple with two children, the payments already announced by the UK Government fall around £1,600 short of meeting the recent changes to benefits and living costs – a gap that must be filled
  • Cancellation of the forthcoming increase in the energy price cap, followed by urgent work between the government and energy companies on energy market reforms and associated financing options to ensure sustainable costs for consumers in the long term
  • The urgent introduction of an energy price cap for Small and Medium Enterprises
  • Support for business to prevent closures due to energy price rises and investment in economic stimulus to minimise the scale of the projected recession
  • A further windfall tax to ensure nationalisation of the profits being made out of the current pressures
  • Additional funding to support public sector pay increases and protect the recovery of public services from the pandemic

The First Minister said: “It is clear that the UK currently faces a rapidly escalating emergency that goes beyond simply the cost of living and is now a more general cost of everything crisis. This emergency may be of a different nature to the COVID-19 pandemic, but it is on a similar scale.

“In the absence of substantial and urgent action, this emergency will cause acute deprivation and suffering. It will affect access to practical necessities for millions of people across the UK. Bluntly, it will cost lives.

“To illustrate the severity of the situation, the Scottish Government estimates that, even with current UK Government mitigations, at least 700,000 households in Scotland – 30% of all households – will be living in extreme fuel poverty by October. That number could be even higher, if the Ofgem price cap for October 2022 is above £2,800. 

“It is essential, therefore, that the response from government at every level is commensurate, in scale and speed, to the nature and magnitude of the emergency.

“In developing a response, governments must first and foremost address immediate need. We must all focus on supporting individuals, businesses and jobs by addressing the principal root causes of the problem.

“Scottish Ministers are clear that the powers and resources needed to tackle this emergency on the scale required – access to borrowing, welfare, VAT on fuel, taxation of windfall profits, regulation of the energy market – lie with the UK Government. This is reflected in the actions we have proposed and set out today.

“At the same time, the Scottish Government will continue to do everything within our resources and powers to help those most affected.”

Latest update on UK gas market and soaring fuel prices

Statement to Parliament on the UK gas market by the Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng:

With permission, Mr Speaker, I will make a statement on the UK Gas Market.

As Honourable and Right Honourable members will be aware, over the weekend I held meetings with Ofgem and energy companies, and this morning I held a further roundtable discussion.

Today I will set out the government’s approach to manage the impact of high global gas prices affecting the UK – and countries across Europe.

To begin, I want to make two points extremely clear.

Firstly, Mr Speaker, I must stress that protecting consumers is our no.1, our primary focus – and will shape our entire approach to this important issue.

Secondly, I also want to reassure the House that while the UK – like other countries in Europe – has been affected by global prices, Britain benefits from having a diverse range of gas supply sources.

We have sufficient capacity and more than sufficient capacity to meet demand, and we do not expect supply emergencies to occur this winter.

There is absolutely no question, Mr. Speaker, of the lights going out, or people being unable to heat their homes.

There’ll be no three-day working weeks, or a throw-back to the 1970s. Such thinking is alarmist, unhelpful and completely misguided.

To begin I’d like to set out some context for the global situation we are now witnessing.

As the world comes out of COVID-19 and economies begin to reopen, we are seeing a dramatic uptake in global gas demand, much faster than many people had anticipated.

High demand in Asia for Liquified Natural Gas (LNG), transported globally by freight, means that far less LNG has reached Europe. Weather events in the US have also affected LNG exports to Europe.

So therefore, increased demand, coupled with reduced variety of supply globally, has put upward pressure on the price of gas traded globally.

High wholesale gas prices have subsequently driven an increase in wholesale power prices, with a number of short-term markets trading at, or near, record levels.

While we are not complacent, we do not expect supply emergencies this winter. This is a very important point. This is not a question of security of supply.

The GB, the Great British, UK gas system has delivered securely to date and is expected to continue to function effectively, with a diverse range of supply sources and sufficient delivery capacity to more than meet demand.

The National Grid Electricity System Operator has the tools within itself to operate the electricity system reliably, to balance that system and we remain confident that electricity security can be maintained under a very wide range of scenarios.

We aren’t reliant on any one particular source for our gas, like many of our friends in Europe.

Domestic production, and member and right honourable members should know, is still our largest single gas supply source, and accounted for about 50% of total supply last year.

However, the UK also benefits from an excellent relationship with Norway, one of our most important and reliable energy partners, and that delivers nearly 30% of our total gas supply. Just in the past half hour, I was privileged enough to speak to the Norwegian Energy Minister to welcome the announcement from Equanoir today that gas production will significantly increase from 1 October to support the UK and European demand.

Our remaining supply, Mr Speaker, is sourced from global markets via two interconnectors to the Continent, and also through our LNG infrastructures, which is as many of you know, the largest in Europe.

Obviously, the global gas situation has had an impact on some energy suppliers. We have already seen four suppliers exit the market in recent weeks, and we may well expect to see further companies exiting the market over the coming weeks.

I have to say, Mr. Speaker, at this point that having been energy minister for nearly 2 years before I became Secretary of State, we saw in those two years, at around this time, companies exiting the market. It may well be more this year, but this is something that, as this time of year, and ahead of the renewable obligation, is often seen in the market.

I want to make clear today, however, that it is not unusual for smaller energy suppliers to exit the market – particularly, I may add, when wholesale global prices are rising.

The sector has seen regular entry and exit over the last five to 10 years, that is the feature of a highly competitive market.

The current global situation may see more suppliers than usual exiting the market, but this is not something that should be cause for alarm or panic.

We have clear, processes in place to make sure all customers are supplied with energy. When an energy supplier typically fails, Ofgem appoints another supplier to take on serving the customers and there is no interruption to supply. I reiterate, our first and primary concern is for the customer.

I’d like to stress three further principles, which are guiding my and the government’s approach in this matter.

Firstly, the government will not be bailing out failed companies. There will be no rewards for failure or mismanagement. The taxpayer should not be expected to prop-up companies who have poor business models and are not resilient to fluctuations in price.

Secondly, customers, especially and most particularly vulnerable customers, must be protected from price spikes.

And thirdly, Mr. Speaker, we must ensure that the energy market does not pay the price for the poor practices of a minority of companies, and that the market still maintains the competition that is a feature of today’s current system. We must not see a return to, I quote, the “cosy oligopoly” of years past, where a few large suppliers simply dictated to customers conditions and pricing.

I’d like to reassure all members, and honourable members and their constituents that the Energy Price Cap – which still saves 15 million households up to £100 a year is staying – isn’t going anywhere.

As I said earlier, our priority in this situation has to be the consumer, the Great British public, and the cap has done that effectively. It protects, and has protected, millions of customers from sudden increases in global gas prices this winter. We are committed to the Price Cap and it will remain in place.

Meanwhile, our Warm Home Discount, Winter Fuel Payments and Cold Weather Payments will continue supporting millions of vulnerable and low-income households with their energy bills.

It is absolutely vital that the energy supply sector remains a liberalised competitive market in order to deliver value and good service to consumers.

As a result of high global gas prices, members and right honourable members will have read, two fertiliser plants shut down in Teesside and Cheshire last week. They suspended the production of CO2 and anomia. A decision which has affected in the short-term our domestic supply of CO2, which is used in the food and drink, as well as the nuclear and health sectors.

Yesterday, I met Tony Will, the global chief executive of CF Industries. We discussed the pressures the business is facing and explored, quite thoroughly, possible ways to secure vital supplies.

Work is ongoing across departments in Whitehall, across government to ensure that those sectors impacted and affected by this announcement have appropriate contingency plans in place to ensure that there is indeed minimal disruption. To maintain our domestic supplies of CO2, we are in constant contact with relevant companies who produce and supply CO2 and we are monitoring the situation minute by minute.

Over the past few days, as has been widely reported, I have held several discussions with chief executives of the UK’s largest energy suppliers and operators, and also with Ofgem to discuss this vital issue.

Just this morning, I chaired a roundtable with UK energy companies & the representatives of consumer groups, in which I reiterated as I have on the floor of this house, the need for us all of us in government and industry to prioritise customers, in short to protect the consumer.

Meetings continue across government today and throughout the course of this week.

In terms of further actions and statements, this afternoon, shortly after the statement presented here, I will be making a joint statement with Ofgem setting out the government’s next steps following healthy and illuminating discussions with them and suppliers.

Mr Speaker, our security of gas supply is robust. But it is the case that the UK is still too reliant on fossil fuels. Our exposure to volatile global gas prices underscores the importance of our plan to build a strong, home-grown renewable energy sector to strengthen our energy security into the future.

Thanks to the steps that we have made as a government, renewable energy has quadrupled in terms of gigawatts capacity since 2010, far more than quadrupled in fact – but there is clearly a lot more we can do in this area.

That is why we committed to approve at least one large-scale new nuclear project in the next few years, and are backing the next generation of advanced nuclear technology with £385 million, helping to attract billions of pounds in private capital and create tens of thousands of jobs.

Consumers come first. We must protect our constituents.

Gas market and soaring fuel prices: joint statement from Government and Ofgem

Joint statement on the UK gas market from Business and Energy Secretary Kwasi Kwarteng, and Ofgem chief executive Jonathan Brearley:

The recent increase in wholesale global gas prices continues to be a cause of concern for consumers, businesses and energy suppliers across the UK.

We want to be clear that this is not an issue of supply – the United Kingdom benefits from having a diverse range of gas supply sources with capacity that can more than meet demand.

This morning we hosted a roundtable with leading energy suppliers and consumer groups to hear about the challenges they currently face. There was overarching consensus among meeting participants that the top priority must be ongoing support for energy customers, especially the elderly and vulnerable. In the event an energy supplier fails, we are committed that consumers face the least amount of disruption possible – and there are clear and well-established processes in place to ensuring this is the case.

In the coming days, we will also meet with smaller and challenger energy suppliers and set out the next steps for protecting consumers, businesses and energy suppliers from these global prices rises. Central to any next steps is our clear and agreed position that the Energy Price Cap will remain in place.

Scottish Power confirms major recruitment drive

180 posts to include first ever apprentices in onshore wind business

ScottishPower today announced its highest trainee recruitment drive since 2016 as it welcomed COP26 President Alok Sharma to the UK’s largest onshore wind farm on the outskirts of Glasgow.

Today’s announcement will see 180 separate opportunities for young people to join the company’s operations in Scotland, England and Wales. For the first time in the company’s history, apprenticeships in its ScottishPower Renewables’ onshore wind arm are on offer.

A Principal Partner for the United Nations climate change conference (COP26) to be held in the city later this year, ScottishPower is investing £10billion in the UK over five years – £6 million every working day – to double its renewable generation capacity and drive forward decarbonisation.

Its plans include new solar, wind and battery infrastructure, green hydrogen facilities and undertaking the mammoth task of upgrading parts of the country’s energy network to accommodate the expected rapid increase in demand for electricity.

The posts, which range from renewables to networks; procurement and IT, vary from graduate apprenticeships to pre-apprenticeship programmes for school leavers as well as opportunities for those looking to retrain from other industries.

They include:

·         Graduates across Engineering, Procurement & IT

·         Apprenticeships across Craft & Project Management

·         Trainees programmes for Adult Craft & Engineers

·         Graduate Apprenticeships

COP26 President Designate Alok Sharma said: “Growing our economy while becoming greener provides fantastic opportunities and I am pleased to see ScottishPower, a Principal Partner of COP26, will be adding so many new green jobs to its current workforce.

“As we move towards our net zero 2050 target, it shows we don’t need to choose between cleaning up our environment and growing our economy. I look forward to continuing to work with ScottishPower and others as we move towards COP26.”

Keith Anderson, Chief Executive of ScottishPower, said: “Roles like these will sit at the very heart of delivering the UK’s net zero ambition as well as the wider green economic recovery. With COP26 coming to the UK this year, there couldn’t be a better time to join us and be part of the green industrial revolution.

“Increasingly people want to work for an organisation that shares their values and strives towards a clear and common purpose they can get behind. Everything we do at ScottishPower is about helping tackle the climate emergency and build a better future, quicker for everyone. It’s a big challenge, but it also makes ScottishPower a hugely inspiring place to work with opportunities to innovate and challenge yourself at every turn.”

Sheila Duncan, ScottishPower HR Director, added: “There are so many opportunities within an energy company that people might not think of, from project managers to quantity surveyors.

“They all share one thing in common, and that’s helping us play our part in decarbonising the UK’s energy. Whether someone is starting out on their career or looking to retrain from elsewhere, there’s never been a more exciting time to join us.”

ScottishPower is one of the largest employers in Scotland and currently has around 5,500 staff at sites across the UK, including 1650 at its Glasgow-based HQ. is the first integrated energy company in the UK to switch to 100% clean energy generation and produces all its electricity from offshore and onshore wind. 

Earlier this year, ScottishPower signed up to the new Young Person’s Guarantee and committed to furthering opportunities for young people and those from disadvantaged backgrounds around the UK. This includes grassroots pre-employment schemes in local communities for young people in and around Glasgow.

It is a Principal Partner for the COP26 conference and is developing an energy model that will play a significant role in reaching the UK’s world-leading climate change targets.

‘Your call is important to us …’

Some of Britain’s biggest energy companies are keeping customers waiting on the phone for longer than 20 minutes, while one firm in Which?’s latest snapshot investigation had callers holding for more than 40 minutes on average.

In a mystery shop investigation, the consumer champion made 384 calls to 32 energy providers to reveal how long it took for customer service teams to answer. Which? called each provider 12 times at different times of the day and days of the week.

Many call centres have faced challenges as they adapted to new ways of working due to the pandemic. However, at the time of the Which? investigation in September and October, it was clear that while some were coping well, others were struggling to provide an acceptable level of customer service.

Boost Energy, a pay-as-you-go supplier owned by Ovo Energy, was the slowest to answer calls. On average customers were left waiting for 40 minutes and 58 seconds before their calls were answered. That’s longer than the entire first half of a rugby match.

One caller was left waiting for two hours, 39 minutes before their call was answered – the longest single call waiting time. In the time taken to answer this call, a disgruntled customer could have driven from Plymouth to the Bristol headquarters Boost shares with its parent company Ovo to make their complaint in person.

On four other occasions, Boost took more than an hour to answer phone calls to its customer service team.

British Gas was the second slowest provider to answer calls in Which?’s snapshot investigation. It took 23 minutes and 32 seconds on average to pick up calls – longer than a typical episode of Coronation Street (minus the ad breaks).

This was closely followed by Orbit Energy, a small energy company, that left customers waiting for 23 minutes and 15 seconds on average.

Around a third of energy firms kept customers waiting for more than 10 minutes on average before their calls were answered – including three other large energy companies. On average, Npower took 21 minutes and 46 seconds to answer calls, while Eon only picked up calls after 19 minutes and 40 seconds. EDF Energy customers were left waiting 13 minutes and 26 seconds on average before their calls were answered.

So Energy was the fastest company last year answering calls in 38 seconds, on average. However, the challenger brand struggled to maintain its top spot and slipped to the slowest 10 this year after it left callers waiting for 16 minutes and 52 seconds on average.

Together Energy, which recently acquired the domestic customer base of Bristol Energy, was the fastest energy provider to pick up calls, with customers left waiting for just 51 seconds on average.

Octopus Energy, which has rapidly grown its customer base since launching in 2016, was the fastest of the energy firms with the largest market share and only left customers waiting for two minutes and four seconds on average.

Of the 10 energy companies with the largest market share, Scottish Power was the second best and on average answered calls in two minutes and 28 seconds. This is a massive improvement compared to last year when the Glasgow-based energy firm was the worst provider for answering calls and left customers waiting for 21 minutes and 24 seconds, on average.

Which? also contacted the 18 energy suppliers that offered a live chat function for customers and found Shell Energy was the worst when it came to responding – it took 33 minutes and 39 seconds on average to respond to queries on live chat.

Outfox the Market was the fastest energy company on live chat and only left customers that contacted them through this channel waiting for 10 seconds on average.

Many people have seen their circumstances change due to the pandemic and may need support from their energy company to pay bills.

This makes it more important than ever that companies answer calls and respond to customer queries quickly, and strive to offer customers who may be struggling a good level of customer service – so Which? is urging energy providers to redouble their efforts in this area.

Consumers who are concerned that they are not getting a good deal or level of customer service on their gas or electricity should look at the results of Which?’s annual satisfaction survey and consider using Which? Switch to move to a cheaper and better provider.

Natalie Hitchins, Head of Home Products and Services at Which?, said: “We know the pandemic has made things difficult for call centres, but it is unacceptable that some firms are still wasting customers’ time with such long waits, especially at a time when consumers may need additional support from their provider.

“Customer service is an important factor when choosing an energy provider. Those who face lengthy waits just to speak with a customer service adviser should consider moving to a provider that can offer better service – customers could also save hundreds of pounds a year by switching.”

Consumers looking for a better deal can compare deals with Which? Switch, a transparent and impartial way to compare energy tariffs and find the best gas and electricity provider for your needs.

Responses from energy firms

A Boost spokesperson said: “With our waiting times during the last quarter averaging 8 minutes, we’re disappointed not to meet our usual high standards for our customers. During this period, we had a higher number of customers contacting us to ask for support.

“We’re always looking for ways to improve and have planned for additional resources over winter. We also offer a call-back service that allows customers to receive a call from one of our team, rather than have to wait. To support those who can’t pay their energy bills because of the effects of Coronavirus we also launched a Hardship Scheme.”

British Gas said it faced challenges with staff at overseas call centres working home, such as broadband and connectivity issues, and power cuts.

It said it is recruiting more staff and supplying home workers with new tech.

An E.ON spokesperson said: “Over recent months, we’ve worked really hard to make sure our customers get a good level of service as we’ve adapted to a new way of working in the wake of the pandemic.

“We’ve moved the vast majority of our office based call centres to remote working in a very short space of time. Our own data shows that our average call wait times are significantly lower than the figures stated here, and we’ve worked hard over recent months to ensure customers are aware of our other contact methods – including our app, online self-serve, social media channels and information on our website eonenergy.com.

“We apologise to any customer who has experienced a long wait time and continue to work to ensure all customer queries are handled as swiftly and effectively as possible.”

Npower said: “We experienced an increase in calls in September compared to the previous month due to a slight delay in correspondence going out to our customers. This had a cumulative effect on call waiting times towards the end of the month.

“Our own data shows an average wait of around seven minutes and although over half of all calls were answered within 60 seconds the week Which? have stated, it is unfortunate that they had a longer wait than average.

Orbit Energy said it was improving their response times daily and have just moved to a 7 day a week operation, open at weekends to support customers

So Energy said at the time of the investigation it was training new staff remotely and taking on customers. It said waiting times are improving.

Government agrees measures with energy industry to support vulnerable people

The UK Government has agreed new emergency measures with the energy industry to protect the domestic energy supply of those most in need during the disruption caused by COVID-19.

From today, customers with pre-payment meters who may not be able to add credit can speak to their supplier about options to keep them supplied. This will benefit over 4 million customers.

This could include nominating a third party for credit top ups, having a discretionary fund added to their credit, or being sent a pre-loaded top up card so that their supply is not interrupted.

More broadly, any energy customer in financial distress will also be supported by their supplier, which could include debt repayments and bill payments being reassessed, reduced or paused where necessary, while disconnection of credit meters will be completely suspended.

Secretary of State for Business and Energy, Alok Sharma, said: “While friends and family will play a role in helping people impacted by the Coronavirus, we recognise there will be many customers who will need additional support and reassurance, particularly those who are financially impacted or in vulnerable circumstances.

“The government has committed to do whatever it takes to get our nation through the impacts of this coronavirus pandemic. Today those most in need can rest assured that a secure supply of energy will continue to flow into their homes during this difficult time.”

The government and energy industry have agreed to prioritise those existing customers most in need, while identifying customers whose circumstances may have changed as a direct or indirect result of COVID-19.

Chief Executive of Citizens Advice, Dame Gillian Guy, said: “This is an uncertain time for many people. Energy suppliers need to play their part by communicating clearly and supporting their customers as much as possible.

“Keeping people on supply, making sure they have warm homes and don’t face additional financial or other stresses about their energy supply will be essential.

“Suppliers will need to put in place support measures for people on prepayment meters, people and families who need to self-isolate or take steps to reduce social contact, and people who may otherwise be in vulnerable situations.”

The measures set out and agreed will be implemented immediately by energy suppliers to alleviate pressure on energy customers.

Chief executive of Energy UK, Audrey Gallacher, said: “As providers of essential services and critical infrastructure, the energy industry has well-practised contingency plans in order to ensure the delivery of services and is working closely with the Government on a daily basis to ensure there is no disruption to the generation and supply of energy to customers during these extraordinary circumstances.

“The sector is very conscious of the potential consequences for customers confined to their homes for prolonged periods and in particular those customers in vulnerable circumstances or on prepayment meters who may need additional help. Suppliers will be doing all they can to identify such customers and provide additional support wherever possible.”

Ofgem will continue to ensure suppliers meet their regulatory obligations. However the government also recognises this will be a challenging time for many supply businesses.

The Chancellor has this week set out a package of targeted measures to support businesses through this period of disruption caused by COVID-19. This includes £330 billion for companies to access loans, a business rates holiday, and help for small firms without insurance. In addition, a new temporary Coronavirus Business Interruption Loan Scheme is to be launched in days to support businesses access £1 billion of additional bank lending.

Chief Executive of Energy Networks Association, David Smith, said: “These are unprecedented times but the energy industry is working hard to keep gas and electricity flowing, look after our vulnerable customers and keep customers and staff safe.

“The UK’s electricity and gas network is one of the most reliable in the world and over 36,000 employees are working flat out to continue to provide a safe and reliable supply of energy during this time.”

Customers that are unable to top up their pre-payment meter are advised to contact their supplier immediately to discuss how they can be kept on supply.

Ofgem recommends consumers leave the meter box unlocked if they need someone else to top up the meter. Smart meter customers should be able to top-up remotely, such as by phone, mobile application or online.

Natalie Hitchins, Head of Homes Products and Services, Which?, said: “Hardup energy customers will breathe a sigh of relief that these new emergency measures will protect them from steep bills and losing their energy supply during these uncertain times.

“If you are worried about your ability to pay your energy bill because of the impact of coronavirus on your circumstances, it’s important to talk to your supplier as soon as possible to discuss your situation and find out what kind of support they can offer you.”

The UK government is working in lock step with the Devolved Administrations, World Health Organization, and international partners to keep the whole of the UK safe. Its approach is clinically led, based on the expert advice of the UK’s Chief Medical Officer for England, the NHS and Public Health England.

Octopus tops as energy giants brought down to size

Small and medium-sized energy firms have cemented their place at the top of the rankings in the annual Which? customer satisfaction survey, while less impressive ratings left the biggest providers stuck among the also-rans yet again. 

The consumer champion surveyed more than 8,000 people across the UK about their energy supplier and asked them to rate companies on a number of criteria including value for money, customer service, bill accuracy and digital tools.

Octopus Energy, which now supplies more than a million homes, topped the table for the second year in a row. It received an outstanding 83 per cent customer score and five-star ratings for billing accuracy, customer service and complaints handling.

Only a small margin separated the next five energy companies – Ebico, Bulb Energy, Pure Planet, People’s Energy and Powershop. They all performed exceptionally well when it came to billing accuracy.

Among the top six companies were three newcomers – People’s Energy, Powershop and Pure Planet. Despite only entering the market within the last three years, they were all rated very highly for billing accuracy, and well on bill clarity and value for money, equalling more established rivals.

The biggest six energy companies – British Gas, Eon, EDF, Npower, Scottish Power and SSE (now part of Ovo) – all finished in the lower third of the table, with Scottish Power languishing in the bottom three after achieving a lowly customer score of 51 per cent.

Customers with these six energy giants were more likely on average to have encountered problems with their provider. A third of British Gas customers, three in 10 Scottish Power customers and around a quarter of EDF Energy, Eon, Npower and SSE customers told us they had experienced a problem within the last year. In comparison, just one in 10 (11%) Octopus Energy customers said they had a problem with their provider.

SSE and Eon were the highest-scoring among the biggest energy firms and came in joint 24th with smaller firm E. SSE’s household energy business was recently purchased by Ovo, which means customers could see changes in their service in the future.

Eon is also set to take over Innogy, Npower’s parent company, in the next 12 months. These two major acquisitions could shake up the market and mean customers see changes.

Robin Hood Energy suffered the biggest fall in the rankings after it plummeted from second place last year to a mid-table ranking, tied with Boost Energy and Utilita.

While Robin Hood customers were generally positive about value for money and billing, a smaller proportion of people told us they would recommend the firm compared to last year.

Although a number of small companies dominated the top of the rankings, not all of the small and medium-sized firms performed well. Newcomer to the survey Ampower performed badly with a disappointing customer score of 53 per cent. Customers rated its billing, customer service and digital tools as poor.

Together Energy finished bottom of the table, despite having secured a mid-table position last year. It scored poor two-star ratings from customers for billing accuracy, clarity, customer service and value for money.

Last year, First Utility was rebranded as Shell Energy, and it has since dropped from a mid-table position to the bottom seven. While customers praised it for billing accuracy, its customer service was rated poorly.

Natalie Hitchins, Head of Home Products and Services at Which? said:  “Consumers have dozens of energy suppliers to choose from – and it is clear that some newer challenger providers are better than their larger counterparts at keeping customers happy and delivering a better service.

“Customers shell out hundreds, sometimes thousands, of pounds a year on their gas and electricity bills so it is right that they expect good service from their energy supplier.

“If you are one of the many customers out there who feels their supplier is falling short, consider moving to one that can offer a better service as well as cheaper prices – you could save hundreds of pounds a year.”

For the full results, including how customers rank their energy supplier’s customer service, value for money, bills, complaints handling and more go to www.which.co.uk/energy-table 

Partnership delivers more electric vehicle charging points

A £7.5 million project between the public and private sectors has been established to deliver more electric vehicle charging points and ensure the infrastructure needed to support these is put in place.

The new strategic partnership will include Transport Scotland, SP Energy Networks and Scottish and Southern Electricity Networks (SSEN). Continue reading Partnership delivers more electric vehicle charging points