Regulator says energy firms planning payments for another 1,000 customers after reviewing 150,000 forced installations
Only 1,500 people have been compensated by energy companies for the forced installation of prepayment meters over the past year, figures show.
The energy regulator, Ofgem, said that initial information from gas and electricity suppliers showed that 1,502 customers had received compensation totalling £342,450.
Continue reading...Despite a 12.3% cut in April’s energy price cap, there is an important fixed element in your bill that is rising again
“Great news! Your unit rates are going down.” E.ON’s letter to customers starts with glad tidings – but, as it soon admits, there is an element of their bills that is set to go up in most parts of the country.
Despite a headline cut of 12.3% in April’s energy price cap, yet again standing charges are rising. In E.ON’s case, on its Next Flex tariff, electricity charges are due to rise from 62.205p to 67.9041p – an increase of just over 9% – while for gas, charges go up from 29.595p to 31.894p (up almost 8%).
Continue reading...Details of Chris O’Shea’s ballooning package emerge in Centrica’s annual report after company reports bumper profits
The boss of the British Gas owner, Centrica, has seen his earnings nearly double to £8.2m, despite having admitted that his smaller pay packet the previous year was “impossible to justify”.
Chris O’Shea earned a basic salary of £903,000, which was topped up by cash and share bonuses worth an extra £7.3m.
Continue reading...Independent advice provider calls for clarity on funding and says project may offer ‘poor value for money’
Ministers have been urged by Citizens Advice to protect consumers from a hike in household energy bills to pay for the proposed Sizewell C power station, amid international tensions over the rising costs of nuclear projects.
The UK’s largest independent advice provider has raised concerns that the project in Suffolk may offer “poor value for money” and called for greater clarity on its funding, in a letter to the Department for Energy Security and Net Zero.
Continue reading...Price Promise tariff gives discount on current cap and guarantees to be at least £1 per fuel under April one
British Gas has launched a fixed-rate gas and electricity deal that offers a 12% saving over most existing price-capped tariffs, adding a new choice to the hard-to-navigate home energy market.
For the past two winters, consumers have largely been spared having to seek out the cheapest deal, because, in almost all cases, it was their supplier’s price cap-protected standard tariff.
Continue reading...Andrew Bailey says cost of living had been higher than expected in December despite ‘encouraging’ inflation news
The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.
Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.
Continue reading...Campaign groups call on regulator to abolish January bill increase, saying households are facing an ‘assault from all sides’
Midwinter energy price increases should be abolished to protect households from unaffordable bills “at the worst possible time”, according to a coalition of leading charities.
Charities and campaign groups have called on Ofgem, the energy regulator, to scrap future January bill increases as it prepares to raise the cap on energy prices by 5% from Monday.
Continue reading...Global energy watchdog says Russia cutting supplies has prompted efficiency upgrades and move to heat pumps
The Ukraine crisis has marked a turning point for Europe’s gas consumption, which is expected to fall again this year as homes and firms embrace efficiency upgrades and heat pumps, according to the global energy watchdog.
A report from the International Energy Agency found that the continent’s developed economies reduced their gas use by 15% in 2022 after Russia cut off flows after its invasion.
Continue reading...Ofgem increases minimum price for energy suppliers to charge customers after rise in global gas prices
Households will begin the new year with a 5% increase in energy bills after the regulator raised the price cap to an average of £1,928 a year for the typical gas and electricity bill.
Ofgem raised the maximum price that energy suppliers can charge their customers from £1,834 a year for the typical household between October to December, after a rise in global gas market prices after the start of the Israel-Hamas war last month.
Continue reading...Data shows baby boomers have highest emissions and London has lower footprint than rest of UK
• The great carbon divide: charting a climate chasm
Restaurants, pets and foreign holidays are among the reasons why the UK’s most well-off people rack up carbon footprints far greater than those on low incomes, according to data shared with the Guardian.
The biggest carbon divide is in aviation, with the richest 10% in the UK – the 6.7 million people paid more than £59,000 a year – causing more than six times more climate-heating emissions from flights than the poorest 10%. Spending on electrical items, homeware and furniture also contributes to the outsize impact of the wealthy, who splash out four times more on these goods.
Continue reading...Families resorting to ‘desperate measures’ and struggling with ‘frightening’ level of hardship amid cost of living crisis
About 2m UK households have been forced to turn off their fridge or freezer to save money as they continue to struggle with what poverty campaigners called a “frightening” level of hardship.
Nearly half of those households said that since May they had to disconnect their fridge or freezer for the first time, a sign the cost of living crisis was still hurting low-income families, according to the Joseph Rowntree Foundation (JRF) charity.
Continue reading...Government’s Energy Company Obligation has managed to upgrade only 65,000 homes since April 2022, figures show
Labour has attacked the Conservatives over the speed of government efforts to upgrade Britain’s draughty housing stock, as analysis showed a leading household energy efficiency initiative was proceeding at what the party called a “glacial pace”.
Just 65,000 homes have been upgraded under the government’s Energy Company Obligation (Eco) scheme since it was relaunched in April last year, according to analysis of statistics released by the Department for Energy Security and Net Zero (DESNZ).
Continue reading...Rishi Sunak signalled changes in the king’s speech that create a policy divide with Labour
The government has confirmed its plans to grant new North Sea oil and gas licences every year at the opening of parliament, deepening a political fault line between the Conservatives and Labour, and angering environmental campaigners who argue it undermines efforts to reach net zero. Here, we examine the move.
Continue reading...Drop in retail sales also because of consumer worries over high energy bills and mortgages, surveys suggest
Fears that the UK is heading for a recession this winter have intensified amid signs Britain’s hard-pressed households are cutting spending as they save for Christmas and higher fuel bills.
Two monthly snapshots of retail activity found shops and online outlets struggling because of consumer budgets being squeezed by dearer mortgages and the UK’s lingering cost of living crisis.
Continue reading...National Infrastructure Commission says public transport, home heating and water networks all in need of renewal
The UK’s infrastructure needs a big cash injection, with public transport, home heating and water networks all in dire need of renewal, independent government advisers have said.
The investments, of about £30bn a year from the taxpayer and £40bn to £50bn a year from the private sector, would result in savings to the average household of at least £1,000 a year, higher economic productivity, and a better quality of life in the future, the National Infrastructure Commission said.
Substantial investment in public transport for England’s biggest cities must be accompanied by restrictions on car access to alleviate congestion.
Hydrogen must not be used for home heating, despite government enthusiasm for the technology. Hydrogen should be exploited for use in heavy industry.
People on lower incomes should have heat pumps installed free, while the other two-thirds of households should receive subsidies of £7,000 each for their installation. Upgrading homes with high levels of insulation is not needed before installing heat pumps.
Water meters should be compulsory for households and businesses.
No new waste incinerators should be built, and recycling rates need to improve.
The decision to cancel the northern leg of HS2 was “deeply disappointing” and “leaves a major gap in the UK’s rail strategy”. Armitt said it would result in an “overload” of the west coast mainline, or encourage more people and freight on to the roads.
Continue reading...Households could save £400 a year on energy bills via means-tested insulation scheme
Households could save up to £400 a year on energy bills under a new means-tested scheme to insulate more than 300,000 of Great Britain’s draughtiest homes.
The government is spending £1bn on grants for homes that have low energy efficiency ratings and are in lower council tax bands.
Continue reading...A lower price cap will still mean unaffordable bills for many. Yet a fairer alternative has been quietly dropped
Nearly a decade ago, former Labour leader Ed Miliband sowed the seeds of the energy price cap, vowing to protect households from unfair tariffs by freezing their energy bills. But even though a cap has been in place since 2018, bills today can be far from affordable, even when they are fair.
On Friday, industry regulator Ofgem will set its new limit on how much suppliers can charge per unit of gas and electricity. Analysts at Cornwall Insight expect it to lower the energy price cap from £2,074 a year for the typical household to £1,823, which would be its lowest level since Russia’s invasion of Ukraine.
Continue reading...Analysis finds Treasury rules on new windfarms likely to stifle energy generation and keep bills high
New offshore windfarms will be strangled by government red tape, costing UK billpayers £1.5bn a year, an analysis has found.
The latest government auction for new offshore windfarms, due to be completed in September, could result in few projects making it through Treasury rules, according to the Energy and Climate Intelligence Unit (ECIU), a non-profit organisation.
Continue reading...Energy secretary says government wants to focus on cutting taxes once inflation falls
Grant Shapps has suggested it is unlikely the government will step in to protect households from rising energy bills this winter.
The energy secretary said in an interview with the Times that once inflation had fallen the government would “absolutely” need to cut taxes.
Continue reading...Analysts call on government to make pumps mandatory for all new homes and scale up grants for installation in existing properties
The UK is lagging far behind France and other EU countries in installing heat pumps, research has shown, with less than a tenth of the number of installations despite having similar markets.
Only 55,000 heat pumps were sold in the UK last year, compared with more than 620,000 in France. Twenty other European countries also had higher installation rates than the UK.
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