The week’s economic news has again been dominated by the implications of inflation, and in particular of huge increases in household energy bills.
Projections for the energy price cap have again been revised up. The latest projections indicate that the price cap could reach around £3,500 in October, and increase further to around £4,400 in April. It is incredible to think that the cap was £1,277 earlier this year (having now increased to £1,971).
Such levels of increases will have severe impacts on households. In Scotland, a quarter of households were already in fuel poverty in 2019, the year in which the Fuel Poverty (Targets, Definition, Strategy) (Scotland) Act received Royal Assent.
That Act determines that a household is in fuel poverty if two conditions hold:
First, that in order to heat the home to a satisfactory level, the household would need to spend more than 10 per cent of its net income on fuel; and
Second, if, after deducting those fuel costs, and other essential costs associated with disability, care needs or childcare, the household’s income is below 90% of the UK Minimum Income Standard.
The definition therefore is not based on what a household actually spends on fuel, but on what they need to spend to heat their home to an acceptable level.
The daunting projections for energy bills will undoubtedly lead to a substantial increase in fuel poverty throughout 2022 and 2023. Quite how many households will be in fuel poverty according to the official definition will depend in part on what further action the government decides to take. But it is clear that a broad swathe of low and middle income households will be placed under severe financial strain.
The political debates this week have again focussed both on the level and targeting of further support the government should provide.
There is a clear case for targeting. In Scotland, almost all households (96%) with incomes below £200 per week were already in fuel poverty in 2019; but amongst households whose incomes were above £500 per week, fuel poverty rates were negligible. Further targeting via the social security system therefore seems appropriate.
But it should also be remembered that the financial distress caused by the energy price crisis will extend well beyond the poorest, and further broader-based support would also be justified. This is where the delivery mechanism becomes more challenging. Government could subsidise bills universally, although this would be expensive, providing support to some households whose need for support is relatively less.
But trying to provide support to low and middle income households only is tricky. Using the council tax system is far from ideal given the weak links between council tax band and income.
Households in bands A and B are relatively more likely to be in fuel poverty, but over 14% of Scottish households in bands F, G and H were in fuel poverty in 2019. On this basis, using council tax band as a way to limit the breadth of financial support provided has clear disadvantages.
It now seems unlikely that the UK government will announce its next round of support for households until the Conservative leadership contest has concluded. Depending on the mechanisms it chooses for delivering that support, the Scottish government may be allocated additional resources of its own which it can prioritise as it deems fit, or the support may be delivered at UK level (via energy bills or the social security system).
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.”
Energy regulator Ofgem has told a number of energy suppliers to take immediate and urgent action, after a review found a range of weaknesses or failings in the way they charge customers direct debits.
Out of a total of 17 large suppliers in the market, the majority were found to only have minor issues, but five were found to have ‘moderate or severe’ weaknesses with Ofgem demanding immediate action.
This is an initial snapshot of findings and suppliers affected will now have to submit action plans within two weeks to set out how they will take the required actions, which Ofgem will scrutinise for effectiveness and comprehensiveness.
Although we have not found evidence of unjustifiably high direct debits, as an additional reassurance for consumers, the regulator will require all suppliers that increased their customers’ direct debits by more than 100% (impacting over 500,000 customers) to review them.
Where appropriate, Ofgem also expects suppliers to adjust any miscalculations, including making repayments if needed, and consider whether a goodwill payment is warranted.
The review of domestic energy suppliers found that:
Over 7 million energy consumers on a Standard Variable Tariff (SVT) saw an increase in their direct debit between February and April 2022
On average, direct debit levels for customers on an SVT increased by 62% in this period. Most of this reflects the increased cost of gas*
8% of SVT customers seeing an increase (around 500,000 households) experienced an increase of more than 100% and Ofgem is concerned by this and wants to ensure there is good reason for it (e.g., coming off an SVT, increase in energy use etc)
Evidence that some suppliers’ processes are not as robust as they could be, and that this could lead to inconsistent, incorrect or poor treatment for customers
A lack of formally documented policies and processes within some suppliers, which risks inconsistent and poor consumer outcomes.
Ofgem recognises that increases experienced by consumers will differ depending on a range of factors, and that some of these, such as recent tariff changes, high debit balances or recent meter reads, can drive large adjustments to customer direct debits.
But it is for suppliers to ensure that direct debits are set correctly based on all relevant information available, and that they clearly communicate any changes in a way that helps consumers understand their payments.
Jonathan Brearley, Ofgem CEO, said:“We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money.
“Suppliers must do all they can, especially during the current gas crisis, to support customers and to recognise the significant worry and concern increased direct debits can cause.
“We know there is some excellent service out there, but we want to make sure that it’s consistent and standard across the board. It’s clear from today’s findings on direct debits that there are areas of the market where customers are simply not getting the service they need and rightly expect in these very difficult times.
“Today’s findings show that with the urgent changes we are now expecting, the current system will be much fairer for consumers. Bringing down the price of gas is not in Ofgem’s control; however, we will do all we can to have a fair system and ensure suppliers look after their customers.”
The Ofgem assessment divided supplier findings into three groups:
No significant issues (four suppliers)
Minor weaknesses (seven suppliers)
Moderate to severe weaknesses (five suppliers)
Suppliers in the first group, with no significant issues found, are British Gas, EDF, ScottishPower and SO Energy. Our review found that these suppliers generally had robust processes in place, although we did make some recommendations for improvement, and Ofgem will work with these suppliers for continuous improvement. We are asking these suppliers to review customer direct debits to ensure they are correct, as an additional assurance for consumers.
The second group, with minor weaknesses, consisted of Bulb, E.ON, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse. For this group of suppliers, we identified some weaknesses or gaps in their processes that could lead to poor consumer outcomes.
Examples include lack of documented policies or guidance for staff, potentially not taking account of all relevant factors when setting customer direct debits, or risks that some customers’ direct debits are not assessed when appropriate. We have started compliance engagement with these suppliers to secure improvements.
Suppliers in the third group had moderate to severe weaknesses identified. This group includes Ecotricity, Good Energy, Green Energy UK and Utilita Energy, and covered a spectrum of weaknesses, ranging from inadequately documented or embedded processes, weak governance and controls, to an overall lack of a structured approach to setting customer direct debits.
Ofgem is concerned that in some cases this could lead to customer direct debits being set incorrectly, or not being evaluated for a long time, which can cause the build-up of either unnecessarily large credit balances or debt, depending on whether the customer is under- or overpaying.
Ofgem is starting compliance engagement with these suppliers to drive rapid and robust improvements to processes and reassess customer direct debits where necessary. If these suppliers don’t take action fast enough, Ofgem will consider enforcement action.
Also in this group, with severe weaknesses were TruEnergy and UK Energy Incubator Hub (UKEIH). In both cases we found suppliers did not have a consistent and structured approach to setting customer direct debits, and found severe concerns over the maturity of their processes, putting consumers at a serious risk of inconsistent or poor outcomes, with need for rapid and significant improvement.
To this end, we are considering whether enforcement action is warranted. Since the findings were made, UKEIH have ceased to trade and so we will not pursue any further action against them.
If Ofgem does not see swift and sufficient improvement, as well as redress for consumers where necessary, the regulator will not hesitate to initiate enforcement action against more suppliers, which can include fines, enforcement orders and banning the acquisition of new customers.
Ofgem has now instructed suppliers to:
· review the accounts of all customers whose direct debit was increased by 100% or more between 1 February and 30 April 2022, to assess whether the uplift was appropriate
· adjust any miscalculations and consider whether a goodwill payment is warranted in the circumstances
· address any process issues which may have incorrectly led to significant increases or other poor consumer outcomes, such as systemic over- or underpayment, and
· submit action plans within two weeks to set out how they will take the required actions, which Ofgem will scrutinise for effectiveness and comprehensiveness.
Journalistic website Money Saving Expert (MSE) sent Ofgem a dossier of information earlier this year on the same issue, after it was raised by consumers.
This is all part of the wider work that Ofgem is doing to make the energy market fairer, including a robust recent review into lessons learnt from Storm Arwen, a more frequent and fairer price cap, and most recently, action to improve the financial resilience of companies.
Rocio Concha, Which? Director of Policy and Advocacy, said:“The cost of living remains consumers’ number one priority, yet Which? has heard concerning stories of consumers having their energy direct debits miscalculated or increased by huge amounts, while our research shows many customers are struggling to understand their bills and pricing.
“It’s encouraging to see the regulator taking action over poor performance and Ofgem should not hesitate to impose penalties on any suppliers that fail to make the necessary improvements.
“At a time when consumers are paying more than ever before for energy, the regulator must also work with government and suppliers to explore ways of using data proactively to offer targeted support to those in most need of help before they have to turn to debt charities.
“Which? will seek to work with businesses in energy and other key sectors to find more ways to support consumers through the tough times ahead.”
A CHARITY is offering a £200 grant to former coal miners to help them cope with the rise in fuel costs in 2022.
CISWO – the coal mining charity – has launched the scheme to provide some support towards combatting the huge hike in the energy price cap which came into effect in April.
The one-off grant will be available to former coal miners, or their partners or widows, who are identified as being particularly vulnerable due to being on a low income, live in their own home and are responsible for paying for energy costs.
It is also only available to those former mineworkers who have ten years’ service in the industry or those whose last place of work was in the industry. Only one grant is available per household.
The price rises will see millions of people having to pay around £700 more each year to heat their homes.
And with former miners often suffering from health issues, poor mobility and managing on low incomes, they may be disproportionately impacted by the changes.
Nicola Didlock, Chief Executive at CISWO, said: “We are very aware that many of our beneficiaries are vulnerable and susceptible to the cold, especially those on low incomes and trying to cope with ill-health, mobility issues and older properties to maintain.
“We want to ensure that those individuals are identified and supported to keep warm and healthy, particularly during the colder months as the energy price rise begins to impact those most affected.”
CISWO’s Personal Welfare team will be identifying people in need and supporting them to get the help they are entitled to. As well as the CISWO grant, they will help people to obtain other financial aid and subsidies from the government.
The team will also be on hand to provide information about other support on offer from CISWO for former coal miners and their dependants, including:
Confidential home visiting service
Advocacy, information, advice and guidance
Emotional support
Benefit applications
Access to mobility equipment
Reducing loneliness and isolation
Access to holidays and convalescence
For more information about claiming the £200 CISWO grant, visit:
With home energy costs rising, many of us are worrying about our gas and electricity bills. The City of Edinburgh Council is working in partnership with Changeworks and Home Energy Scotland to help keep you and your home warm for less.
Their friendly advisors are on hand to give you:
free energy saving advice to help save money on your bills
support with fuel debt
help to find out if you’re eligible for any grants or funding for energy efficiency home improvements.
Personal Finance Expert at CashLady.com, Paul Wilson, shares his top tips on how Brits can reduce their fuel usage and save money this Energy Savings Week:
It looks like energy prices are likely to rise higher than ever before in 2022. Making sure you’re getting the best deal has never been more important, and taking steps to cut back your fuel usage should be on everyone’s agenda.
Even small changes can help put some money back in your pocket and big tasks, like moving to a new tariff, are worth looking into. This Energy Savings Week, why not try some of these nine ways to reduce your fuel usage and help keep your finances on track.
1. Draught excluders
Make sure your doors aren’t letting out valuable heat and letting in the cold. You can buy permanent solutions that attach to the bottom of your door, or decorative excluders that are a quick and easy option. Draught excluders are an inexpensive and effective way to quickly tackle any lost heat from your home.
2.Seal your windows
In the same vein as draught excluders, making sure your windows are sealed against the cold is a quick win. Older houses especially can have less efficient windows. Window sealing strips can be bought from most DIY stores and are available in various styles to also complement home decor. Additionally, if you have curtains, use them! Lined curtains will keep your room warm in winter and cooler in summer, meaning less need to rely on your heating or cooling systems.
3.LED Bulbs
The initial outlay may be a little steeper when it comes to LED bulbs. However, they use 75% less energy than their incandescent counterparts, so it’s a switch worth making. They also last longer and so you won’t need to buy them as often which results in long-term savings and less waste.
4.Plan and prepare
Simply being mindful of how and when you use energy can lead to some simple savings. Many of us have our heating on a timer; regularly reassess if the times you use the heating still make sense. Perhaps you still have the same settings you had over the Christmas break, but now you’re home less during the day. There may also be evenings when you’re out and don’t need the heating at all. Turn it off before you leave so you aren’t wasting unnecessary energy.
5.Be mindful
Just as you can plan and prepare when to have your heating on, you can also consider where in the house you actually need the heating. If the spare room is used for the rare times you have guests, then you can turn that radiator off and shut the door. Radiator valves are also there to be used. Smaller box rooms may be fine with a lower setting. Not everyone you live with will like the same level of heat; children’s rooms may need a lower temperature if they tend to get hot in the night. Think carefully about how you are using your heating, not just when you use it.
6.Other appliances
There are a whole host of things we use daily in our homes that burn fuel. Make sure lights are switched off when rooms are not in use, put post-it notes on the switches as a reminder if needs be. Try not to use the dryer as this is a huge energy burner, instead put clothes on radiators that are being used anyway. Washing your laundry in large loads rather than little and often is another way to be more efficient. Consider batch cooking some of your weekly meals and freezing them. That way, you’re having to cook less which means using the oven less.
7.Credit where it’s due
Find out from your energy company if you’re in credit. If you have regular meter readings and pay by direct debit, you may have been paying too much. This can result in you being in credit. You can choose to carry this credit over, which may reduce your monthly bills, or you can ask for a refund. Energy companies have to issue a refund if you are in credit and you could save this towards future bills or just put it aside for a rainy day.
8.Your tariff
Traditionally, moving onto a company’s default tariff has been the most expensive option. As soon as your fixed tariff is coming to an end, you should speak to your energy company about a new deal. However, with energy prices now so high, the capped default price may actually be cheaper than the fixed option. Do your homework and find out if you may now be better off staying with the default tariff until prices (hopefully) decrease, or if your specific usage means you would be better off with a new fixed deal.
9.Change providers
As with moving to a different tariff, switching providers is now not as cut and dried as it used to be. As many as 20 energy firms have gone bust recently, so you need to make sure you choose a provider that is stable. Use price comparison sites to see if moving companies could be a good thing, but be sure to do your sums first and don’t assume it will lead to savings. You should also only switch at the end of your contract as, quite often, firms charge an exit fee if you still have several months left on your deal.
Paul Wilson is a Consumer Finance Expert at Financial Conduct Authority authorised and regulated credit broker Cash Lady.
Customers encouraged to contact supplier for support and switch to better deal if possible
Support available for customers struggling to pay bills or in vulnerable circumstances with additional help for those on prepayment meters
Energy suppliers sign up to industry commitment to reach out to those who most need help this winter
Customers can avoid the increase by shopping around or asking their supplier to put them on a better deal
The energy price cap will increase from 1 October for the 15 million customers it protects. Those on default tariffs paying by direct debit will see an increase of £139 from £1,138 to £1277. Prepayment customers will see an increase of £153 from £1,156 to £1309.
This increase is driven by a rise of over 50% in energy costs over the last six months with gas prices hitting a record high as the world emerges from lockdown.
Surging global fossil fuel prices are already driving up inflation for consumers, making fixed rate energy tariffs not covered by the price cap, as well as petrol and diesel more expensive.
The price cap offers a safety net for customers who haven’t switched by making sure that suppliers only pass on legitimate costs.
Those on default tariffs are saving an estimated £75-£100 or £1 billion every year as a result.
Any customer in vulnerable circumstances or worried about paying their energy bill should contact their supplier to access the support available.
Customers may be eligible for extra help such as affordable debt repayment plans or payment breaks, emergency credit for prepayment meters and a £140 bill rebate under the Warm Home Discount.
Last week suppliers also signed up to an industry commitment to reach out to those who most need help this winter.
Customers can also shop around to save money before the increase takes effect on 1 October.
Those who don’t want to switch supplier or are unable to can ask their supplier to put them on a better deal.
Jonathan Brearley, chief executive of Ofgem, said: “Higher energy bills are never welcome and the timing and size of this increase will be particularly difficult for many families still struggling with the impact of the pandemic.
“The price cap means suppliers only pass on legitimate costs of supplying energy and cannot charge more than the level of the price cap, although they can charge less.
“If you’re struggling to pay your bill you can get in touch with your supplier to access the help that’s available and if possible, shop around for a better deal.
“We have put tough rules in place to ensure suppliers treat customers who are struggling with bills fairly, and welcome their commitment to reach out to those who most need help this winter. Where help is not forthcoming, we will not hesitate to act.
“I appreciate this is extremely difficult news for many people, my commitment to customers is that Ofgem will continue to do everything we can to ensure they are protected this winter, especially those in vulnerable circumstances.”
Ofgem adjusts the price cap twice a year based on the latest estimated costs of supplying energy.
The biggest and most unpredictable factor is the wholesale cost of electricity and gas paid by suppliers and influenced by global markets. This accounts for roughly 40% of the overall price cap level.
Gas prices have risen to a record high in Europe due to a recovery in global demand and tighter supplies. This is increasing the cost of heating homes and pushing up electricity prices.
Last winter, the level of the cap fell by £84 after passing onto customers the savings from lower wholesale energy costs as countries went into lockdown and demand fell.
Businesses in Edinburgh are being encouraged to bring their costs down with free, one to one, virtual support available from Zero Waste Scotland.
Through the recently launched Energy Efficiency Business Support Service, which is supported by the European Regional Development Fund (ERDF), Zero Waste Scotland is offering small and medium-sized businesses (SMEs) energy assessments to identify where simple actions could result in significant financial savings.
Support can begin immediately, and assessments typically find 24% savings on business energy bills. For a typical SME in Scotland that’s around a £2,500 saving on energy costs.
Iain Gulland, Chief Executive of Zero Waste Scotland, said: “We know businesses are exploring every measure that could benefit their budget at the present time, as well as helping to futureproof their operations.
“I would encourage any business in Scotland to contact our advisors and see where we can work together to identify savings.
“Lighting can account for over 20% of a business’ total energy bill, and more than half for offices with gas central heating. It’s clear that energy can be a significant cost to a small business, and with many in Scotland negotiating the unprecedented effects of the coronavirus pandemic on their bottom line addressing energy inefficiency could be a welcome solution to reducing overheads.
“There’s a strong argument to be made that economic recovery must go hand in hand with environmental responsibility, and our work with SMEs in Scotland reflects that too. Our advisors have already supported organisations to identify over £200million in savings – that’s a clear demonstration of the demand for sustainable opportunities for growth.”
Businesses interested in a virtual energy assessment can receive a dedicated, expert advisor who will work with them on a one to one basis and assess current energy use data to identify and quantify savings.
Examples of savings typically identified include:
installing more efficient heating systems,
improving the insulation of a building or investing in more energy efficient equipment, such as a state of the art oven or a more efficient refrigeration unit, and
investing in LED lighting.
Dedicated support from Zero Waste Scotland’s Energy Efficiency Business Support Service identified annual savings of nearly £1,800 for Goldenace Mini Market in Edinburgh.
A detailed assessment undertaken by expert advisors appointed to the convenience store on a one-to-one basis recommended several energy-saving actions that would both reduce costs and help the environment. These included investing in LED lighting and replacing fridge and freezer units with more modern, efficient models.
Aleem Farooqi, owner of Goldenacre Mini Market, said: “I am absolutely delighted with the new double-glazed refrigeration cabinets and the LED lighting. I have already seen my electricity bills drop by about 30%, saving me about £1,800 a year.
“The support from the service helped me to identify and fund the changes to my shop and I am really happy with the results.”
The Energy Efficiency Business Support Service is part of Zero Waste Scotland’s Resource Efficient Circular Economy Accelerator Programme, which will invest £35million in Scotland in resource efficiency projects thanks to support from the European Regional Development Fund (ERDF).
