Tag: energy prices

Half a million households at risk of fuel poverty as prices soar

  • GB energy consumers face the biggest ever increase to the energy price cap
  • Fuel poverty charity National Energy Action (NEA) warns that the average increase of £153 for prepayment customers and £139 from those paying by direct debit using a default tariff is likely to result in more utility debt, 500,000 extra households in fuel poverty and an increase in preventable deaths this winter
  • Suppliers are putting their prices up in October when millions of people will see a reduction in their incomes, as uplifts to Universal Credit are withdrawn
  • Charity says new Household Support Fund welcome but not enough to prevent needless deaths this winter
  • Calls on UK Government to take more action to directly reduce higher prices for the poorest this winter and for Ofgem to do more to protect the most vulnerable consumers when suppliers fail.

Adam Scorer, Chief Executive at fuel poverty charity National Energy Action (NEA), said: “The massive devastating increases in energy prices will drive over 500,000 more households into fuel poverty, leaving them unable to heat or power their homes.

“Just when they were needed most, the uplifts to Universal Credit are also being withdrawn and inflation is soaring. The new Household Support Fund will provide some welcome support for those who can access it, but on its own it is not enough to halt the erosion in incomes and deal with rising prices.

“Without a wider package of support – keeping UC uplifts and more rebates to protect those on the lowest incomes from spiralling energy prices – vulnerable people are still at dire risk of premature death this winter”.

“Falling through the gaps when suppliers fail”

NEA warns that the current crisis is likely to badly affect vulnerable customers when their suppliers fail. The charity is warning that households on older prepay meters are at risk of not being able to top up with their new supplier if their current supplier fails.

In addition, people in debt who transfer over to their new suppliers may also immediately risk aggressive debt recovery tactics from their previous suppliers’ administrators. People eligible for Warm Home Discount are also falling through the gaps when they move to their new supplier. They often can’t access all elements of this vital support.

Adam Scorer continued: “We know this situation is preventable, but Ofgem must act fast to protect the most vulnerable consumers when suppliers fail. The UK Government must also use the upcoming Budget to provide more additional emergency support so we can guard against the consequences of soaring bills and hits to millions of low incomes.

“This means enhancing current schemes and taking new steps to accelerate the repayment of utility debts across the UK”.

 “Many of those on the lowest incomes live in the least efficient homes”

NEA has also stressed that one of the key reasons the situation is bleak for the poorest households is the vicious overlap between the households who live on the lowest incomes and who also live in the least energy efficient homes.

They say in England alone, more than 680,000 households on the lowest incomes also live in the least efficient homes making the impact of the price rises much more severe. Over 3 million fuel poor households will need to be prioritised for retrofits if the goal to meet Net Zero is to be met at the same time as statutory fuel poverty targets.

Adam Scorer again: “These quick emergency fixes are vital to get struggling households through this winter, but we can’t lose sight of the long-term solution to reduce the energy waste in our homes.

“We have some of the least efficient housing in Europe. This has left the UK more exposed to the current soaring gas price than many other countries and we are wasting billions of pounds each year as heat escapes through leaky roofs, floors and ceilings”.

 What needs to be done

As a summary, NEA is proposing emergency provision to help fuel poor households to stay warm at home this winter, including:

  1. Providing additional funding towards the Warm Home Discount scheme this winter as an emergency provision to guard against significantly increased gas prices
  2. Supporting more households with the Winter Fuel Payment, especially for those eligible for the Cold Weather Payment in Northern Ireland
  3. Helping accelerate the repayment of utility debts across the UK by enhancing Fuel and Water Direct
  4. Continuing the Winter Grant Scheme through this winter

Additionally, through the Spending Review, NEA propose the following longer-term actions to ensure that fuel poor households can be warm at home for years to come:

  1. Fully implement the Conservative Manifesto for the Home Upgrade Grant Scheme (HUG) and Social Housing Decarbonisation Fund (SHDF)
  2. Ensure the Shared Prosperity Fund (SPF) helps end cold homes across the UK
  3. Extend and strengthen the £20 a week uplift in Universal Credit and Working Tax Credit for low-income households.  

How to keep heating costs down at end of energy price-cap

With the combination of more people working from home and the current colder temperatures, heating bills for most people across the UK are rocketing.

Energy bills will rise further for millions more after the regulator, Ofgem, lifted the price cap on standard tariffs back to pre-pandemic levels but there are lots of simple things you can do to keep cosy and reduce your fuel bills during the current chilly period.

Here are some top tips from NHBC, the UK’s leading warranty and insurance provider for new build homes, to help you save on your winter bills:

·       Reduce draughts – an important job as winter approaches is to make sure that your house does not have any unintended draughts. Floorboards and skirtings usually go ignored but cold air can easily filter through, so check for gaps and fill them in. Check to see if your letterbox is draughty, which can lead to cold hallways – installing a letter box draught excluder that fits onto the inside of your front door is an inexpensive easy DIY job. If you have an open fireplace and chimney which is not used, this can be draught proofed to stop warm air escaping and cold air entering your property. Remember that openings for ventilation should not be blocked.

·       Bleed your radiators – trapped air or gas prevents hot water from heating your radiators fully so, if you have a radiator that is warm at the bottom but cool at the top, this may well mean there is air in the system, which may require bleeding to ensure maximum efficiency of the heating system.

·       Loft insulation – insulating your loft is a simple, inexpensive and effective way to reduce energy waste and lower your heating bills. All new houses are fitted with loft insulation that meets the latest building regulations but, if you are in an older property, you may want to think about renewing it or topping it up.

·       Thick curtains – they can help to protect your home from losing heat through windows. It’s important to try to get as much sunlight into your home during the day as possible but, as soon as dusk falls, remember to close curtains to reduce the need for additional heating.

·       Keep radiators free – a common mistake we often make is to place our sofas in front of the radiators which can absorb the heat.

·       Cavity wall insulation – around a third of all the heat lost in an uninsulated home escapes through walls so, if you live in an older property, considering thermal insulation of cavity walls could save you lots of money.

·       Loft hatches – energy loss through the loft hatch is often overlooked. Insulating the hatch and ensuring that an effective draught seal is in place will help to keep heat energy in and your home warm.

·       Windows – energy-efficient glazing keeps your home warmer, allowing less heat to be lost. Double glazing is fitted as standard to new-build homes but, if your house is older, replacing windows could be a good investment as they help to keep warmth in and reduce external noise.

·       Service your heating system – all central heating boilers should be serviced and safety checked at least once a year by a Gas Safe Registered engineer. If your boiler is old, then consider an upgrade. According to the Energy Saving Trust, a new A-rated condensing boiler can save up to £315 a year on heating bills – most new homes have this type of boiler.

·       Room temperature controls – your thermostat should typically be set between 18°C and 21°C, but by installing thermostatic radiator valves you can set different temperatures in different rooms (turn down the radiators in unoccupied rooms), according to individual preference. These will be standard in new homes but are easily fitted to existing radiators.

·       Floor insulation – insulating your ground floor or floors above any unheated spaces e.g. integral garages will assist in keeping your home warm.

·       Insulating tanks, pipes and radiators – Lagging water tanks and pipes and insulating behind radiators reduces the amount of heat lost, so you spend less money heating water up, and hot water stays hotter for longer.

Standards and Policy Manager at NHBC Giles Willson, said: “People living in new homes typically benefit from lower energy bills because their properties are built in line with the latest Government regulations for energy efficiency.

“However, whether you live in a newly-built home or an older property, there are a lot of ways that could save money on utility bills during the coldest part of the year when many millions of us are also working from the kitchen table and home-schooling our children.”

In the dark: Scots at risk of surprise energy hikes by ignoring bills

Energy customers in Scotland are failing to open their bills – putting them at risk of unwittingly falling victim to gas and electricity price hikes. And ‘bill-literacy’ means even more customers are sticking their heads in the sand and are clueless about the cost of their energy supply, new research has shown. Continue reading In the dark: Scots at risk of surprise energy hikes by ignoring bills

Energy companies urged to cut bills NOW

‘Consumers must see lower bills’ – Energy Minister Fergus Ewing

oilrigAConsumers should be benefitting from lower energy bills as a result of lower oil prices, Energy Minister Fergus Ewing said yesterday.

Mr Ewing has written to ScottishPower, SSE, E-on, EDF, RWE/Npower, Centrica and Energy UK to seek reassurance that lower wholesale energy costs, linked to the fall in the price of oil, will be passed on quickly to households and businesses.

The letter reads:

Dear Sir

The price of oil on world markets has moved substantially lower in recent weeks in response to changes in the pattern of global demand and production. The Scottish Government is working closely with the oil and gas sector to understand the implications of these changes for activity and employment in the North Sea.

Another aspect of falling oil prices is, of course, the consequent impact on energy prices more generally. Clearly, the wholesale price of energy, for both electricity and gas, is linked closely to the world price of oil and energy customers are therefore entitled to know when they can be expected to feel the benefit.

In the interests of transparency and fairness, I would be grateful to understand from you when and to what extent the lower oil price is likely to be reflected in lower energy bills for households and businesses in Scotland. I also seek your reassurance that any cost savings will be passed on to customers at the earliest opportunity and to the fullest extent possible.

I do not ask you to reveal any commercially sensitive information but I would be grateful for your high-level perspective as an industry leader on the expected scale and timing of oil price impacts on domestic and business energy bills.

I am writing in similar terms to the Chief Executives of the UK’s other leading energy suppliers and I look forward to your response.

Yours,

Fergus Ewing

Scotland needs ‘radical approach’ to tackle fuel poverty

gasSingle markets in electricity and gas covering the whole of Great Britain should continue if Scotland became independent, a new report has said. First Minister Alex Salmond has welcomed the report from the independent Expert Commission on Energy Regulation and said that Scotland needs a ‘radical approach’ to tackle fuel poverty.

The commission, which examined possible regulation of energy markets in an independent Scotland, says independence would give Scotland new powers to tackle fuel poverty, high energy costs and prices. It also highlights that a single GB energy market is the best option for consumers in Scotland, England and Wales.

The Commission’s report will be discussed by industry experts at a meeting of the Scottish Energy Advisory Board (SEAB) in Aberdeen today. Speaking ahead of the meeting the First Minister, said:

“This is a detailed and authoritative report and I am grateful to Robert Armour and his fellow Commissioners for their time, expertise and dedication. The Commission rightly recognises that independence will give Scotland new powers to tackle fuel poverty and reduce the impact of high energy costs and prices.

“This Government will continue to build on all its achievements in delivering energy efficiency and cost effectiveness and continue to improve delivery to disadvantaged and vulnerable consumers. The report rightly highlights that independence will open up new possibilities which could better address Scotland’s energy needs, and recognises that it is in our common interest to share energy resources across our borders.

“Scotland is a resource rich country and it offers safe and secure supplies of electricity and gas, and can continue to assist the rest of the UK in meeting its legally-binding renewable energy targets.

“It’s clear that a strategic energy partnership between our governments after independence represents the best outcome for all concerned and the Commission has clearly identified examples from across Europe – in Ireland, Iberia and Scandinavia – which show that this can be done.”

The Commission, comprising energy industry, consumer experts and academics, and headed by senior counsel and former SCDI chairman Robert Armour, was set up last year to offer independent advice on energy in an independent Scotland. Robert Armour, Chair of the Expert Commission, said:

“In the event of independence there are undoubtedly issues that will have to be settled between the two administrations. We share a common integrated system and have a common interest in energy security. Looking to Europe and beyond we found working models of cross-border partnerships delivering jointly-regulated integrated markets that show single markets can work with goodwill and cooperation.

“Eradicating fuel poverty has proved an intractable challenge. We believe a more radical approach is now needed. We see an opportunity to better target delivery to disadvantaged and vulnerable consumers through accessing data already held on social need. In the future we will be able to take this approach further using the improved data that will come from the roll out of smart meters.

“Scotland’s natural potential makes it a cost-efficient place to develop renewable resources. We see a benefit to both Scotland and the rest of the UK in enabling this economically efficient development of renewable potential to continue.”

The Commission’s report highlights:

  • A continuing single GB energy market, which the Scottish Government has consistently supported, is the best outcome for consumers and investors in Scotland, England and Wales.
  • Working models of combined energy markets, built on partnerships between separate countries and Governments, exist across Europe.
  • An independent Scotland will need its own energy regulator, and that the Scottish Government’s combined regulatory model could successfully deliver this.
  • The existing costs of renewable support mechanisms at the point of independence should continue to be spread across GB as at present.
  • Importance of continued efforts and additional measures to tackle fuel poverty and energy efficiency.

Green Yes, the Scottish Green Party’s campaign for a Yes vote in the independence referendum, also welcomed the report recommending that an independent Scotland remain part of the GB-wide market for electricity and gas.

A Green Yes briefing on jobs points out that more than 11,000 people are already employed in the renewables industry and most firms are expecting to grow. Scotland has the offshore engineering skills to make marine renewables a success and create thousands more jobs in construction, grid development and research.

Alison Johnstone, Green MSP for Lothian and a member of Holyrood’s economy and energy committee, said:

“Energy is an issue that all countries are facing up to, and with our renewables potential Scotland has a chance to generate not just what we need but also energy for export to enable our neighbours to meet their low carbon targets. Encouraging the trading of energy not just within these islands but across the North Sea makes sense, and I see a Scottish Parliament with responsibility for energy policy much more likely to prioritise these issues.

“By contrast Westminster is locking us in to new nuclear with its massive costs and toxic legacy, and a dash for fracked gas that risks our local environment and our carbon budget. What today’s report from the Expert Commission on Energy Regulation underlines is that it’s sensible to co-operate on such a crucial issue but it’s vital that Scotland gets to decide the direction it wants to go in.”

Learn about collective switching to cut your energy bills

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Are you paying too much for gas and electricity? Like to find out what you can do to change that? Then read on …

Scots Together offers householders and their communities the chance to save hundreds of pounds on energy bills as part of a collective buying initiative. Scots Together is currently the only Scottish pilot to be funded by the Department of Energy and Climate Change.

Representatives from the Scots Together initative will be at Community Renewal’s office in Pennywell Court (i.e. the shops!) tomorrow (Tuesday) from 2 – 5pm to talk about collective switching.

Organisers explained: ‘Collective switching involves getting people together to sign up to reviewing their electricity and gas tariffs, making sure they are on the best deal that they can get.  Many people continue paying expensive tariffs simply because they don’t realise they can switch their supplier for gas and electricity. Reviewing your energy tariffs should be something you do as simply and regularly as reviewing your home or car insurance.

There will be options provided to each customer including, the price obtained through the collective switch auction, a comparison of the whole market and a greener tariff.

There will be no obligation to switch suppliers and we’ll let you know if you are already on the best tariff for you’.

Interested? Call in at Community Renewal tomorrow afternoon or you can get more info online – check out www.ScotsTogether.com

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