Category Archives: Energy

Scottish hydro schemes hit by new business rates boorach

New valuations are ‘madness without a method’, say furious hydro operators

Renewable energy operators have been left stunned and angry by yet another massive and unfair hike in rates on their businesses, of up to 579% next year.

The latest bombshell, trickled out by the Scottish Assessors this week in 2023 Rateable Valuations, is out of all proportion to other renewable energy sources, or any other business sector in Scotland.

As a result, dozens of Small Hydro schemes will be hit by steep new hikes in business rates while still in legal dispute over the historic increases imposed in 2017, which saw hydro singled out for special punishment in Scotland’s renewable energy sector.

One Scottish hydro scheme now faces increases that have accumulated from 2010 to more than 500% in 2023.

 

John Lithgow, director of Inver Hydro, Jura, said: What does the Scottish Assessor have against us – and why this continual assault on our green businesses?

“Inver Hydro on the Isle of Jura has seen its rateable value rise from £104,000 in 2010 to £264,000 in 2017, to a ridiculous £565,000 for 2023. That’s an increase of 543%, with no explanation or justification.

“Inver’s two-megawatt hydro scheme now has a larger Rateable Value than the two neighbouring local windfarms combined, which have a total capacity of 16 megawatts. Business rates of this level cancel out all the benefits of the Scottish government’s temporary reliefs. No business based on debt financing can survive such punishment.

”Inver is a producer of clean, green, efficient, long-lasting electricity – and it is essential to the energy security of Islay and Jura. This latest shock is one which we might not be able to survive.”

 

Attempts to explain the system by which hydro rates are calculated by Scottish Assessors have been further confounded this week by a small number of hydros receiving extraordinary reductions, without any change in the valuation methodology used by assessors.

One scheme will see its bill drop by more than £60,000, to just £14,000.

 

Alex Linklaterexecutive director of Alba Energy, which represents Scottish hydro operators, said: “In 2017, the Assessor inflicted rateable valuations on the Small Hydro sector that were on average 240% of those applied to onshore wind of similar capacity. These represented rates on a scale beyond any normal business.

“Yet now Scottish assessors have decided to increase these even further, not just by a few percentage points but sometimes doubling or trebling them. And to make a mockery of their own system, they have also chosen to reduce a few selected schemes by equally extraordinary amounts. The schemes have not changed, the data has not changed, the method of valuation has not changed. The Assessor has produced a madness without a method.

“There does not appear to be any reasonable logic or rationale for the extreme and inconsistent range of valuations the Assessor has produced across the small hydro sector.”

 

Industry representatives say that the 2023 draft valuation busts the myth of a level playing field for green energy businesses and makes a mockery of Scotland’s pretensions to being a pioneer of European renewables.

 

Martin Fosterchairman of Alba Energy, said: “Hydro is the cleanest, most efficient, least obtrusive and longest-lasting renewable source. It is a sector that the Scottish Government claims to support. We have been in dispute with the Scottish Assessor since 2010 and are due to take them to court over their 2017 valuations. The 2023 valuation adds insult to injury. We are not seeking special treatment. We demand to know why a green industry has been singled out for special punishment.”

 

There are still more than 200 appeals outstanding at the Lands Court in Scotland over the 2017 valuation.

 

Kate Gilmartin is the newly appointed CEO of the British Hydropower Association. She says she will be working shoulder to shoulder with Alba to champion a proportionate and fair rateable vale for Hydropower operators, which falls into line with other renewable energy generators.

She said: “This excessive tax on Hydropower will discourage new developments at a time when we need to be accelerating this low impact, low visibility, clean energy generation technology.”

 

There are around 500 small hydro schemes in Scotland. A 60% Scottish Government relief scheme which was extended in 2021 means some, but not all operators, receive a reduced business rates bill.

 

Tech specialists launch free energy-saving guide to help households avoid being out of pocket this winter

A comprehensive new guide produced by a Yorkshire-based technology specialist could help UK households save potentially hundreds of pounds on their energy bills this winter.

The Ultimate Home Energy Saving Guide produced by ivie aims to help cash-strapped households by reducing energy inefficiency to save on bills this winter.

Last month ivie launched a free new app enabling users to save energy in the home more easily than ever before. Over 10,000 thousand users have downloaded the app in the past four weeks and are using it to tackle their rising energy bills.

The Ultimate Home Energy Saving Guide includes everything from preparing for the difficult winter months and understanding how the home actually uses energy. It also contains helpful hints and tips on keeping bills down, the ideal temperature to heat the average home and which appliances could be sending bills through the roof.

Following the introduction of the Energy Price Guarantee in October, a typical household in Great Britain can now expect to pay a minimum of £2,500 a year on their energy bill. However, the Guarantee only extends until April 2023 after which bills could soar again spelling further misery for UK households already fighting to combat the cost of living crisis. With energy prices and the cost of living at an all-time high, the free Guide and the ivie app are both very helpful tools for people looking to save energy, cut costs and reduce their bills further throughout the winter months.

The Ultimate Home Energy Saving Guide aims to prepare households for rising energy costs this winter. It identifies smarter, faster, more efficient ways to save energy and how to improve energy efficiency in the home with in home displays (IHDs), smart meters and effective insulation.

Mike Woodhall, founder and CEO of Chameleon Technology, creators of the Ultimate Home Energy Saving Guide and developers of the ivie app, commented: “This winter is going to be difficult for everyone as our energy bills increase again. To help prepare people for what is likely to be a very difficult time, the ivie team has compiled the best energy-saving tips and advice into one handy guide. The free guide is for everyone and we’ve shared everything we know about energy to help all households become more energy efficient at home so they can save on bills this winter.”

In addition to the Ultimate Guide, the free to download ivie app gives users total control over their home energy by using smart meter energy data to give a personal and smart saving experience. Users see their energy usage broken down by their everyday activities, allowing them to pinpoint which areas of the home use the most energy. The app also shows personalised, live energy data when connected to an ivie Bud in-home display, helping households to make instant, smart energy-saving decisions that will reduce costs, energy and help to cut carbon.

Mike Woodhall added: “Rising energy costs and how we’re going to be able to afford our energy bills this winter is currently one of the greatest worries facing millions of people. Finding ways to reduce energy consumption at home can be confusing and overwhelming. Our 50-page guide addresses those concerns head-on and helps people to answer the question of what will help to reduce their bills the most.

“We created ivie to help people reduce their energy use, bills and carbon footprint. As we know this isn’t a simple task, the team also put together the Ultimate Home Energy Saving Guide to present all the information needed about saving energy in the home in one place. It highlights the importance of understanding how and where energy is used in the home and how this is the first crucial step for saving energy. It also shows how gadgets such as the smart meter, in-home display, and other smart technology like our ivie app can help achieve this. We’ve included some of the best energy-saving advice and even the team’s own personal tips for how best to make big savings over the winter.”

The Guide can be downloaded for free here – https://insights.ivie.co.uk/energy-saving-guide/

For more information about ivie, please visit https://ivie.co.uk/ 

Businesses should not treat the energy support package as a get out of jail free card

Written by Chris Bowden, Managing Director of Squeaky

In September 2022, Liz Truss announced that gas and electricity costs for UK businesses, charities and public sector bodies will be capped for six months. The Department for Business, Energy & Industrial Strategy (BEIS) then announced that the scheme (known as the Energy Bill Relief Scheme) would be calculated based on a benchmark wholesale price for electricity of £211 per MWh and £75 per MWh for gas for the six months starting on the 1st October 2022, with the scheme applying to contracts signed since December 1st 2021.

The discount a business receives will depend on whether it is on a fixed or a flexible contract.

 

Get out of jail free card?

Certainly, this support is well and truly needed. After all, it will help to cushion the biggest and most volatile cost pressure facing businesses and without it, many firms would simply collapse, and jobs would be lost. That being said, we can’t escape the reality that this support package is an extremely expensive intervention and will cost billions. In fact, consultancy Cornwall Insight, estimated that the six-month relief alone will cost up to £25bn.

At the time of writing this piece, businesses are still in the dark as to what happens when the six-month cap runs out and without a doubt many businesses will still need financial support beyond this initial period. With that in mind, it’s likely the overall bailout for the energy crisis will be by far the biggest financial support package seen in history. So much so in fact, that the government’s support could stretch well beyond the billions pledged for the Covid furlough scheme. As a result, Capital Economics has forecast that the UK’s borrowing will hit £165bn, or 6.5% of GDP, in 2022-2023, rather than the £99bn the Office of Budget Responsibility (OBR) forecast.

And let’s be real here – there has to be a ceiling to the support. It’s unlikely this size of bailout will keep coming. With this in mind, it’s important that businesses of all sizes adapt their energy buying behaviour in the long-term to not only manage their energy costs and mitigate their risk, but also maintain their commitment to the climate. Here’s how they can do this.

 

Change behaviours to waste less energy.

 Billions will be spent on bailing out bills. But there is much less focus on targeting the root of the problem; businesses waste huge amounts of energy. Behavioural changes, such as turning lighting and electrical equipment off in unoccupied areas of the workplace and ensuring machinery is properly maintained, can make a huge difference. Finding and eliminating energy wastage can yield dramatic results for businesses who are looking to reduce the impact on their finances and the environment.

 

Reduce energy consumption.

 Businesses could save a considerable amount of money by looking at their current consumption practices and making a more diligent effort to be more scrupulous. Although this could be said for all industries, it is perhaps most relevant in industrial and manufacturing firms where energy usage can often make up a significant proportion of input costs. It’s also not just about reducing consumption it’s also important to look at shifting it as some suppliers offer incentives or reductions in pricing if you shift your consumption away from peak hours like 5pm.

 

Hedge wisely.

Some firms have done a good job of hedging their energy. As a result, they have shielded themselves from the volatility of the energy crisis. Others have, unfortunately, decided to bury their heads in the sand hoping the price would come back down. This is no time to put risk mitigation on the back burner. Hedging is essential to ensure firms are covered when the bailout dries up.

 

Double-down on securing longer term energy security.

Without a doubt, this is the time to double down on energy security. One way to achieve that is with a Corporate Power Purchase Agreement (CPPA). A CPPA is a long-term contract between an energy buyer and an energy generator. In short, the two parties agree to buy and sell an amount of energy which is, or will be, generated by a renewable asset. A CPPA is usually agreed over a period of 10-15 years, although we are starting to see shorter terms. Businesses can use a CPPA to mitigate risk by protecting against price volatility and securing price certainty, they can also buy energy at below wholesale market prices and lock in a long term supply of clean energy. A CPPA will also enable them to trace their energy so they know it’s 100% clean, reduce their scope 3 emissions and accelerate their net zero journey.

 

Start to innovate.

When it comes to sustainability, one of the biggest tech developments is the capacity to create, capture and transmit data. Learning and acting on this data is a critical feature of the sustainability agenda. Advanced analytics supply businesses with insight into how efficient they are, ultimately helping to pinpoint opportunities to reduce environmental impact. Artificial intelligence (AI) and Robotic Process Automation (RPA) developments are also making a significant contribution here, helping optimise operation efficiency and process accuracy. But innovation is not just about data. Businesses must innovate their thinking too. They need to be open to and commit to collaborating in green finance, invest in clean technology and use their powerful voices to back social movements that call for positive change.

 

To conclude.

Let’s be frank here; there is a real risk that businesses will treat the government bailout scheme as a get out of jail free card for their lack of prudence ahead of the crisis. But if business leaders operate under the proviso that they will always be bailed out, it’s unlikely they will exercise caution on such important matters in the future. And when it comes to the climate agenda, this simply just won’t do.

Certainly, the energy crisis is entirely out of businesses’ control. But corporate leaders should use this as a wakeup call and start to put in place processes and behavioural changes to ensure long term stability, whilst all the while being more climate conscious, too.

 

 

 

 

 

Household hacks to cut energy costs and save money as 45% adults admit they are struggling

The number of adults in the UK finding it difficult to afford their energy bills has increased throughout this year, according to new figures from the Office for National Statistics (ONS). The data, released today, shows that almost half of adults (45%) who paid energy bills, are finding it difficult to keep up with payments.

Ofgem data has also revealed that the number of UK households in arrears on their energy bills soared to record levels in the second quarter of this year.* This news follows the government’s announcement that the cap on energy unit costs would last only six months instead of the planned two years.

 

Helen Rolph, price comparison expert at Quotezone.co.uk comments: “Energy is an incredibly confusing topic right now. As the clocks go back this weekend and evenings become darker and colder, many people are wary of turning the heating on, out of fear that household bills will continue to skyrocket.  Our recent survey shows the biggest financial worry people have right now is the cost of energy, with 73% of people noting it as their top concern.

“We’ve researched a few hacks that could be handy to try but the best way to save money is to look at long-term change. For example, even after the government’s new Energy Price Guarantee, a standard 40w bulb running for a day would likely cost homeowners £1.86 a month, replace just one bulb with an energy saving bulb and that cost could drop to as little as 37p a month. If you have 20 light bulbs in your home that’s a saving of £30 a month.”

 

Quotezone.co.uk has shared recommendations for reducing the cost of energy bills as we head into winter.

 

  1. The cheapest unit of energy is the one you don’t use – so think before you turn things on;

Watch out for vampire devices which are using energy to do very little (some smart TVs can use a lot of energy on standby just because certain features are enabled – for example “wake up via WIFI” is thought to use almost as much as having the TV turned on)

– Insulate your home – the biggest offenders are usually the walls (35%) and the roof (25%), if you don’t already have these well insulated then look out for support schemes to help reduce the costs of these upgrades.

 

  1. Smart meters let people see when they are using energy, but you can still track your usage with a standard meter – set regular reminders to read your meter more often to see what you’re using. Make sure your bills are correct by sending meter readings to your supplier to ensure you are being billed for the correct usage.

 

  1. Heating is the biggest energy use in homes – there is a lot of debate around how best to save money, but there are some key considerations:

 

  • Maintenance – annual servicing keeps the boiler running efficiently (and helps ensure it is safe).
  • Bleed radiators – air can get trapped in radiators and that causes corrosion and reduces efficiency
  • TRVs – most homes have thermostatic radiator valves, adjust these to the right levels for each room – when the room gets too warm and the boiler is still on, they shut off the radiator and save you money (set them to lower levels for less frequently used rooms, but don’t turn them off completely or you risk causing other problems like damp in the room)
  • Boiler temperature – all gas and oil boilers fitted after April 2007 must be condensing. These boilers stop the heat going up the chimney, but only if they are correctly configured – keep the temperature dial on the boiler under 75 degrees or this cannot happen.
  • Plan ahead – if you are not going to be home, remember to change your heating settings – smart controls allow you to do this from anywhere, so if your budget can stretch you could save a lot**

 

  1. Stay fresh and ventilate your home each day: open the windows a little for a short period to let moisture out in the mornings (and after showering or cooking). Dry air is heated faster than humid air, so this can help save money. If you dry clothes indoors, try to do it in an unoccupied space (like a bathroom or garage) and increase the ventilation in this area.

 

Quotezone.co.uk helps around 3 million users every year find savings on household bills and essentials, with over 400 providers across 60 different products including niche items such as home insurance, personal loans, mortgage comparison UK and business use car insurance.

App developed by smart energy tech specialists helps households to reduce energy bills further

Cash-strapped UK households can lessen the impact of increasing energy bills with a new app that allows users to save energy in the home more easily and quickly than ever before.

Developed by specialists in smart energy technology, Chameleon Technology, the free ivie app gives users total control over their home energy by using smart meter energy data to give a personal and smart saving experience. Users see their energy usage broken down by their everyday activities allowing them to pinpoint which areas of the home use the most energy. The app also shows live energy data when connected to an ivie Bud in-home display, helping households to make instant, smart energy-saving decisions that will reduce costs, energy and carbon.

With energy prices and the cost of living at an all-time high, the ivie app will be a helpful tool for households looking to save energy and reduce their bill further.

ivie is designed to help households understand their energy usage, which is crucial to saving energy in the home and reducing bills. This is made possible with energy usage breakdowns revealing which habits and activities, such as heating, laundry or lighting are using the most energy, with a clear direction of what savings can be made in each area.

Personalised energy-saving tips and challenges based on a user’s energy usage are generated by the app, helping to save even more on escalating bills. Households can also participate in a rewards point system for their energy savings which can be exchanged for prizes, weekly raffles and deals, providing a greater incentive to be more energy conscious around the home.

 

Mike Woodhall, founder and CEO of Yorkshire-based Chameleon Technology, creators of the personal energy-saving platform, commented: “Understanding energy usage and how to reduce it is a difficult task for most people. With energy bills now reaching extreme levels, it is essential to improve our understanding of how we use energy in the home. The ivie app and ivie Bud were created for this exact reason: to make managing energy simpler, smarter and more personal. Accurate, real-time energy data is crucial for achieving this. With live data, people can make smart energy-saving decisions on the spot that bring genuine change to how they use energy.

“Home energy management technology, like the ivie app, makes saving energy and reducing bills simpler and more personal. There are currently hundreds of energy-saving tips out there but not all of them are accessible or applicable to a household’s needs or resources. ivie generates insights based on actual energy usage rather than making generic tips based on a typical UK household’s consumption. It is the personal and simple approach that will transform the way users engage with energy.”

 

Connecting the ivie Bud in-home display to the ivie app allows users to see their live energy data on the go. By being informed in real time, users can instantly compare and adjust how and when energy is used, which could bring even greater energy and cash savings. With both energy usage breakdowns and the added option of live data, households get a clearer understanding of how they use energy in the home. The ivie Bud IHD is available to buy from ivie.co.uk for £49.99.

 

Mike Woodhall added: “Whilst the introduction of the Energy Price Guarantee offers some relief compared to what was facing UK households, average energy bills are still set to be around £2,500 which, against the backdrop of the rising cost of living is bound to create great financial hardship for many, especially vulnerable customers. There remains a clear need to find ways to help save money at home. Reducing energy consumption by understanding how much energy is used and potentially wasted at home is crucial in this process.”

 

As well as helping people to see where savings can be made on bills, the ivie app encourages people to consider their carbon impact too. The app estimates the total carbon savings a user has made while using the app. As behaviour changes and more energy-saving challenges are taken on, users can see their carbon savings multiply. The app also estimates the combined impact of all users’ carbon savings.

 

Mike Woodhall continued: “We all have a role to play in reducing our carbon emissions and the impact our actions have on climate change. While consumers are rightly focused on reducing their energy bills this winter, our feedback is that they are also keen to reduce their carbon impact. The ivie app measures the carbon emission savings you make when you start changing your behaviour and using less energy. We’re really excited to help people to play their part in making carbon emission reductions and go on their own personal journey to Net Zero.”

 

Simple and personal home energy management is missing for many households struggling to save energy and pay bills. Available to download for free for Apple and Android phones, the ivie app aims to be a helpful solution that makes controlling energy simpler, smarter and more personal.

 

For more information about ivie, please visit https://ivie.co.uk/

 

Chambers Wales comments on Energy Support Plan for Businesses

Responding to the release of further details from Government on the energy support plan for businesses, Paul Slevin, Executive Chair of Chambers Wales South East, South West and Mid, said:

“We welcome the support for businesses announced by the Government, and hope it will go some way to easing the worries of business owners across Wales and the rest of the UK as we move in to the winter period.

“While we are reassured by the proposed three month review, we sincerely hope that this will lead to an extension of support for businesses that so desperately need it, and who are already facing crippling cost increases across the board.

“While last week’s announcement may safeguard businesses throughout the winter, a longer-term plan is desperately needed. Businesses need certainty to allow them to plan ahead in what is currently an incredibly uncertain landscape. Without the ability to plan ahead, we fear that Welsh businesses will not have the confidence to invest or grow, but we will continue to work closely with our members to ensure that they are able to access all the help available to them to safeguard their place in the Welsh economy.”

Europe set to ration energy supplies this winter – The Smart Cube comments

Prior to the Russian invasion of Ukraine, Russia supplied gas to Europe at 100 per cent capacity, supporting around 40 per cent of the European natural imports. Following the start of the war, Russia reduced its gas supply – via its Nord Stream 1 pipeline – to Europe, accounting for only nine per cent of European natural gas imports. This has resulted in severe gas shortages across Europe, leading to high prices in the region.

With gas and electricity prices hitting all-time highs after Russia’s invasion of Ukraine, governments in Europe are likely to ration energy supplies for this winter and future ones. In fact, earlier this month, Ursula von der Leyen, president of the EU commission, called for cuts to electricity use across the bloc and windfall taxes on energy firms in order to tackle high prices.

What’s more, European governments have already begun to call for an increase in domestic production and decrease in consumption of natural gas. In September 2022, the German government extended the life of two of its remaining nuclear power plants – which were planned to be shut down by the end of 2022 – until April 2023. Elsewhere, the Netherlands has removed production caps from all coal-fired power plants, while in Norway, the government approved plans to increase gas production in six offshore natural gas fields to raise the country’s output.

Himanshu Bajaj, energy procurement specialist at The Smart Cube, comments on how companies can proactively take steps to mitigate soaring energy prices, as well as how they can prevent supply chain disruptions during such macroeconomic events:

“A multipronged strategy to address supply chain disruptions is the need of the hour. Firstly, it is vital for firms to map their suppliers on a tiered basis, so they can get a clear picture of critical raw materials that are at risk. Businesses must also evaluate the health of suppliers, both from a financial and supply stability perspective.

“As well as this, firms should engage in renewable energy agreements. As energy prices continue to rise, these agreements will become more attractive. For example, corporate solar power purchase agreements have already proven effective in providing savings, budget certainty and energy independence.

“Companies must also consider reducing their energy consumption during such periods of time. This can be achieved through locating energy efficiency levers to reduce consumption through LEDs, VFDs, HVAC, or other facility-related upgrades. As a result of this, energy consumption will decrease, reducing overall costs.

“Finally, businesses should also continuously monitor the situation as it develops, keeping across the restrictions being implemented and the impact that Europe’s rationing plans and other geopolitical events are having on supply chains.”

35.7 million Brits don’t think utilities companies have their best interests at heart

Less than one in five (19%) British adults believe utilities companies have their best interest at heart; suggesting 35.7 million1 people are of the opinion gas and energy firms aren’t doing everything they can to support them through the cost-of-living crisis.  

 

The research from the Call Centre Management Association (CCMA) and Odigo, the leading Contact Centre-as-a-Service (CCaaS) provider, also reveals only 14% of adults believe utilities provide a personal service which helps customers feel recognised. Further, only 20% of Brits saying they offer the right contact channel to suit their preferences. 

 

Between January and March 2022, Citizens Advice reported its consumer service helpline saw more than 70,000 cases related to energy issues – a 63% increase from the same period in 2021. They further reported that phone wait times to suppliers increased on average by two minutes, and email response times were also getting slower. In an attempt to keep up with the rise of customer interactions, energy companies have embarked on mass-hiring sprees.   

 

Neil Titcomb, Managing Director UKI at Odigo comments, “Although this is a positive step, there is so much more that can be done. The pandemic saw a steep fall in customer service across every industry and while utility companies are trying to do everything they can during this crisis period, they could go even further by utilising technologies like CCaaS solutions. There is still more work that can be done to improve customer experience.” 

 

However, issues with customer service quality did not start in this energy crisis. In 2021, the same CCMA and Odigo study reported 37% of people felt they had to wait too long to connect to an agent. A further 33% said they had to repeat themselves and give the same information twice or more.  

 

Titcomb continues, “With anxieties over personal finances running high, consumers need quick, accurate answers and support to navigate the coming recession. Many are increasingly desperate for the cheapest offers and best customer service, so businesses need to continue to give their customers a reason to stay by providing the best service they can.” 

 

“During these difficult times, utility companies must give their employees the tools and technology to properly succeed and provide customers with the service that is needed. Now more than ever, customers are seeking the support, attention and comfort that only a contact centre can provide through genuine human interactions.” 

Founder of Challenger Energy Supplier So Energy Calls on UK Government to Support Consumers on Rising Energy Bills

With the price cap rate for October due to be announced tomorrow, the co-founder of challenger energy supplier So Energy has issued a statement calling on the Government to immediately increase the support available for customers to help the nation pay for this “once in a generation energy bill”. 

Ahead of October So Energy are calling for:

  • The £400 Energy Bill Support Scheme for all households to be doubled to £800
  • The £150 Warm Homes Discount for vulnerable customers to be quadrupled to £600

Simon Oscroft, Co-Founder of So Energy said:

“The upcoming increase in energy bills this October, due to rises in global wholesale gas prices, is unprecedented and it is simply not feasible for households to bear the brunt of these costs.

“In October 2021 the price cap rate was increased to £1,277 per year. It rose by nearly £700 in April to £1,971, and this October it is projected to hit around £3,600. Forward projections into 2023 show bills rising further in January to over £4,500. All energy suppliers are already absorbing these higher costs at a loss in order to keep energy flowing to people’s homes, losses which have already caused 30 suppliers to go bust in the last year.

“Recent research has shown that April’s price cap rise dragged 27 million people in 10 million UK households into fuel poverty. In October, the projected rise will drag a further 30% into fuel poverty, increasing levels to 35 million people in 13 million UK homes, representing nearly half of the whole population. (Fuel Poverty: Updated Estimates For the UK, The University of York, August 2022)

“We know this is a tough time for many of our customers, which is why we are doing all we can to help them. In the last 12 months we have expanded our customer support team by 40%, we regularly revise payment plans, we point customers to information on debt advice, and we partner with community charities to help customers manage energy costs through energy efficiency measures.

“In February, the Government announced a £200 Energy Bill Support Scheme package which was due to kick-in when the price cap was expected increased further in October. Despite it being doubled to £400 in May to reflect rising October price cap projections, the further eyewatering increases in price projections since then mean that package is now woefully inadequate. In May, when the Government increased the Energy Bill Support Scheme to £400, the projected price cap rate for this October was £2,800, a rise of over £800 from April’s level. Latest projections show October’s rise will actually be double that, increasing by over £1,600 to around £3,600.

“The goalposts have significantly shifted. We are therefore calling on the Government to urgently step in to provide further meaningful support for bill payers. The simplest, quickest and most targeted way to do this ahead of October would be to use existing mechanisms, doubling the Energy Bill Support Scheme for all households to £800, and also quadrupling the Warm Home Discount to £600 to help the most vulnerable. Crucially, this approach will ensure discounts are applied directly to energy bills and will ensure the most vulnerable receive considerably more support. 

“Beyond this urgent action required before October, ahead of 2023 the Government should seriously consider EnergyUK’s proposed Tariff Deficit Scheme. This would involve Government-backed loans being used to keep bills down throughout next year by covering the increased cost of wholesale energy for suppliers and allowing these to be spread over a much longer period of 10-15 years instead.

“The truth is this is the cost of keeping homes across the country warm this winter. Over half the gas we use is imported and so – as with all commodities – if we don’t pay the going globally-driven price, it will be diverted elsewhere. The question we now face as a nation is what is the fairest and most sustainable way of paying for this energy. That is why the Government needs to step up its support as we have outlined above, ensuring that we can pay this once in a generation energy bill, but in a way that spreads the cost over a long period of time.”

 

More families to get energy bill support after campaign by company

A company which called for action after finding that thousands of families would miss out on the £400 energy bill discount have welcomed the news that all customers will now be eligible for the support package.

Ginger Energy director Lisa Gregory said: “We are delighted that our calls for all customers to be treated equally have been listened to. It’s great news that everyone will now get some support.”

Lisa had discovered many families were classed as commercial rather than domestic customers because they live in apartments or other accommodation supplied by a private supply meter.

These customers were not initially eligible for the £400 payment. This was on top of them facing bigger than average bill rises because they are also not protected by the price cap.

Birmingham-based Ginger Energy had called on Ofgem and the Government to review the position on these customers and to make sure they were treated fairly.

The Government has now announced details of how people will get the discount, part of the Energy Bill Support Scheme, and said those who did not fall into the ‘domestic’ category would also now get support.

The announcement stated: “Approximately one per cent of UK households are currently ineligible to receive Energy Bills discount as they do not have a domestic electricity meter and a direct relationship with an electricity supplier.

“The government has confirmed that further funding will be available to provide equivalent support of £400 for energy bills for the one per cent of households who will not be reached through the Energy Bills discount. An announcement with details on how and when these households across Great Britain can access this support will be made this Autumn.”

Lisa said: “It’s still a little vague but it’s definitely a move in the right direction. It was so unjust that these people were missing out on this payment. Not only were they not protected by the price cap, but they were also not eligible for support.

“We urged the government to review its position regarding private supply electricity consumers, and we are so pleased to hear that this is now being addressed.”

Stephen Knight, director of Heat Trust, the national consumer champion for heat networks, said: “I am delighted that the Government has listened to calls from Heat Trust, Ginger Energy and others and accepted that those who do not receive their energy in traditional ways are also in desperate need of support at this time of spiralling prices.

“There was a real danger that a large number of families in the most need were going to be overlooked and locked out of this scheme. We are delighted they will be able to access the £400 support, and we look forward to hearing details on how this will be delivered to these households.

“Heat Trust will continue to provide a voice for those living on heat networks. Currently people on heat networks fall outside of Ofgem’s price cap, leaving many facing 300-400 per cent increases in their heating bills as gas prices continue to rise. It is vital we ensure that families get the help they need, and we will be working closely with Government and the industry to ensure this happens.”

Ginger Energy had already launched a campaign calling for the price cap to be extended to include those families not classed as ‘domestic’ customers.

To sign its  petition, go to https://www.change.org/Gingerenergy