Click Energy 6 is born…

British Gas, it seems, has played a final trump card in the battle of the energy giants. And it’s a move I’m not best pleased about.

No sooner had my household switched to Click Energy 5, when the supplier raises its rates and introduces Click Energy 6.

The new Click Energy 6 tariff, while still being the cheapest online tariff, is more expensive than Click Energy 5’s original price. Click Energy 5 was previously priced at around £845 a year for the average household, but the move from British Gas will now see Click Energy 5 customers’ (like me) bills increase to around £1,150.

And the price of new online energy tariff Click Energy 6 is only marginally cheaper, at £1,057 a year for the average household dual fuel bill.

Click Energy 5 is no longer available to new customers, and any existing customers on the tariff will see their bills rise by an average of £305 a year. What an absolute pain!

British Gas are now, let’s be honest, not my favourite supplier in the world. My housemates and I will now have to wait until the switch from npower to British Gas is complete, and then switch again from Click Energy 5 to Click Energy 6, which could take another six weeks.

During that time we’ll be being charged the higher Click Energy 5 rate, and there’s nothing we can do about it.

I think it’s fair to say, I’m more than a little annoyed…

  The British countryside in all it’s glory

When I think of the British countryside, I picture fields of bright yellow rapeseed blowing in the breeze, a tractor trundling along a narrow lane with a tailback of honking traffic following, and a jar of homemade strawberry jam with a gingham jam pot cover, bought at a village fete, ready to be piled on top of a freshly baked scone.

I do not think of oil.                                                                                                       

And for the majority of you I’m sure, drilling for oil is not something you’d connote with Britain’s acres of green fields and ancient woodlands. But, lying deep underground could be the UK’s answer to the impending energy crisis.

In the news, it was reported that a number of companies were scouring potential oil drilling sites across the East Midlands, Yorkshire and part of southern England.

With prices rising in the last year to over $147 a barrel, now even the smallest pockets of oil and gas are commercially viable. And the British countryside, complete with fields of barley and herds of sheep, has plenty of pockets to offer. A typical UK field is predicted to contain a staggering one million to 10 million barrels of oil.

Companies from as far away as America and Australia have expressed interest in our onshore oil industry, which shows just how desperate the situation has become.

In fact, back in May, the government awarded a record 97 new licenses to 54 applicants for onshore oil and gas exploration. Five years ago, only eight licenses were granted.

While eco-friendly environmentalists’ fear that drilling for oil will ruin some of Britain’s most beautiful landscapes and scenery, the government and oil companies, with their apparent disregard for all things ethical and green, say that it’s necessary to help secure the UK’s energy supplies amid “a global grab for oil”. Despite fears of a Dallas-style oil boom, experts have said there is nothing to worry about.

But really, how important is this oil to the British economy?

With our own offshore reserves running out, the UK, which is already a net importer of gas, is expected to become a net importer of oil by 2010. Production in the North Sea has rapidly declined since its peak of about 2.9 million barrels a day in 1999.

The governments’ argument for drilling among the daisies and the daffodils is a strong one: building and maintaining offshore platforms is costly. Drilling onshore costs a tenth of the £10 million to £20 million needed to drill an offshore exploration well, meaning even small reserves of oil are highly profitable at today’s high prices.

Although oil prices has now dipped slightly from the highs of the summer, the price is still having an effect on both oil consumption and production, with the recent rise in home energy bills affecting just about everyone.

Me included.

I say let’s dig for oil and pass on the savings made from not having to import. Reduce the price of oil, and watch everything else slowly but surely drop in price. The end of the energy crisis will indeed be nigh.

Now where’s my shovel?

  British Gas continue to fight for the title

Following on from my last blog post, the battle of the giants has reached a standstill, with neither newcomer npower or reigning champ British Gas refusing to back down.

After my household switched its energy supplier from British Gas to npower, British Gas began fighting for our custom, offering us a 15% discount if we signed back up with them.

Since then, my housemate emailed npower; giving them details of British Gas’ proposed 15% discount in the hope that npower would retaliate with an even bigger discount.

Our efforts were wasted it seems though, as npower have yet to respond.

We have received a letter from British Gas, confirming the termination of our contract, and requesting a final meter reading, so that they can bill us to the exact date.

Unlike fellow Consumer Choices blogger Olivia’s switch with E.ON, ours has been really quick and easy.

Because of the deal offered by British Gas though, we are now unsure of whether to continue with the switch to npower or not. With their Click Energy 5 tariff, and the 15% discount we’ve been promised, our bills would be a fraction cheaper with British Gas, according to the EnergyChoices comparison service, but we’re worried that if prices rise again, British Gas may end up more expensive than npower.

We could sign up to a capped tariff, to fix our prices at a set rate. This would mean we’d avoid any future price increases, and Olivia certainly recommends it, but what if energy prices drop?

What should we do? Any suggestions?

After a few very turbulent weeks, it seems the dust may be starting to settle around the energy market battlefield. Gordon Brown has promised an energy efficiency plan to help combat fuel poverty, supermarkets are lowering the price of unleaded at their petrol pumps, and children are being encouraged to ‘Green Up’.

Battle is still raging in my household though. And I’m not talking about the battle for the bathroom in the morning…

Oh no, this is much bigger. It’s a battle of the “giants” no less, with reigning champion British Gas clinging on for dear life, while npower, the competitive newcomer, claws its way in to our home, with promises of cheaper gas and electricity, and paperless billing.

It all started a few weeks ago. The news of price increases and bigger bills was a much talked about topic, in the press and in our household.

Naturally we were keen to see how much we could save by switching.

Using EnergyChoices comparison service, we decided that our best bet would be to switch to npower, who promised to save us up to £400 on our annual bill. Hurray!

Switching was really easy; we did it there and then online, and it only took a few minutes.

A welcome pack from npower a week later told us everything we needed to know about the switch. Our household was one of happiness and relief – we had managed to avoid the price hikes! Double hurray!

But our happiness did not last long… A week later I received an email from my housemate:

Yo Becca,
I had phone call from British Gas today and they asked me why we left.
They want to give us a better deal - 15% off!
They also said that npower had a price increase a few weeks ago, and now British Gas is only 3% more expensive than npower. Please can you check this?
If this is true… what do you think we should do?
Should we go back to British Gas?

Evidently battling it out for our custom, British Gas is trying to win us back with its own promises of cheaper gas and electricity. It’s no surprise really – until the npower switch day, we had been a long-standing loyal customer, always paying our bills on time and in full. And like many households, we hadn’t even considered switching, or thought about how much we could save by changing suppliers.

So, what to do? Well, after much deliberation, we decided to email npower with British Gas’ proposition, asking whether they could match it, or offer us a better deal. If they can’t then we may well switch back to British Gas, and opt for their Click Energy 5 tariff, an online tariff which allows you to input your own meter readings.

In the words of the ever authoritative John Anderson: “Contender ready! Gladiator ready!”

Let the battle begin…

So it seems the time has come when we all must decide what is more important to us - saving the environment or saving money?

Only a year ago, the enthusiasm for green policies and practices appeared to be growing exponentially, with everyone wanting a slice of green action. But those days are gone. With the rate of inflation rising and the cost of living sky-rocketing, for most people it is simply unfeasible to be spending money on “greener” exploits.

Recent statistics from MORI have highlighted this change in view. Only a year ago, 15% of those polled placed the environment in their top three concerns, but this month that figure has dropped by a third to just 10%.

Now, people are putting the economy, rising prices and crime issues at the top of the list. People are feeling forced to fight for their own survival rather than that of their grandchildren and the organic and earth-friendly lifestyle is increasingly being seen as a middle class luxury that the majority of us simply cannot afford. Eco-warriors have lost their appeal and in the midst of a recession, we resent paying more to be “green”…

Ironically however, in this period of environmental rejection, Britain seems, almost by accident, to be becoming more environmentally friendly. The credit crunch, by proxy, is aiding the environment! Let me illustrate:

• Due to rising food prices, for the first time in a decade people are actually throwing away less food and planning their weekly shop more effectively, so as not to waste food.
• Fewer people are moving house, so there are fewer people buying new white goods (such as fridges and dishwashers), and thus fewer old appliances being sent to landfill.
• Bottled water sales have fallen as the population cut back on unnecessary indulgences (which are coincidentally highly damaging to the environment).
• People are growing their own vegetables in order to save money (there has been a 10% rise in vegetable seed sales in the last year).
• With energy companies hiking up their prices, consumers are choosing to keep their heating off for longer, saving fuel and cutting emissions.
• Increasing petrol prices are leading more people to avoid driving wherever possible
• In order to save on travel costs, many people are choosing to holiday in Britain this year, which will massively reduce their carbon footprint.

So, while our current economic situation is causing us to neglect our concerns about the environment, it is also causing us to do more to protect it. Indeed, as the examples above show, it seems we don’t necessarily have to choose between saving money and saving the environment, these actions are compatible!

In light of the recent energy price hikes, one of the most effective ways you can save money and the environment is to improve your home energy efficiency.

A recent study by British Gas claimed that energy saving measures could cut our domestic gas bill, as a nation, by £4.6 billion a year. It showed that by installing energy efficient technology such as solar panels, loft and cavity wall insulation, energy efficient light bulbs and modern boilers as well as making simple energy saving behavioural changes, families could knock up to 50% off their gas bill (as well as significantly reducing their emissions).

Rising fuel costs have shortened the pay-back time of energy saving devices, so as well as ensuring you are on a capped tariff and making your payments by direct debit, now is the time to sort out your energy efficiency if you want to save money (with the added bonus of protecting the environment!).

For more information on how to improve your energy efficiency, read our complete guide to reducing your energy bills.

  Up, up and away!

“Let’s go fly a kite, up to the highest height” sings a university professor as he makes a scientific breakthrough that could revolutionise the concept of renewable energy, sending green energy figures sky-high…

Being a professor of sustainable engineering, Dutch and an ex-astronaut, chances are Wubbo Ockels probably isn’t singing the classic Mary Poppins tune, but as he does have cause for celebration, who’d blame him if he did suddenly burst into song?

Yes, the hard-working, but ever so slightly eccentric, Dutch scientist wowed the world last weekend with his successful attempt at creating electricity using something straight from the toy box – a giant kite.

Ockels and his team, from the Delft University of Technology in the Netherlands, managed to harness enough wind power using a 10-sq metre kite tethered to a generator to produce 10 kilowatts of power – enough electricity to power ten family homes.

The experiment was such a success that the team have now planned to test a 50kW version of their invention, called the ‘Laddermill’ project, and have dreams of eventually building a multiple kite version, that they claim could generate 100 megawatts of electricity, effectively enough to power a town of 100,000 homes.

The concept is simple enough. The Laddermill is made up of a number of kites connected to a cable, forming a huge loop. Working on the same principle as the wings of an aeroplane, the wind causes an upward lift. Changing the attitude of the kites will make the lift either higher or lower. The kites on one side of the loop are placed so that they produce the maximum lift, while the kites on the other side will give a much smaller lift.

This results in a difference in force between the two ends at the ground. The cable is attached to a wheel on the ground, and the force difference will drive the wheel. By connecting the wheel to a generator, electricity will be produced, converting renewable wind energy into power for our homes and businesses.

Ockels and his team aren’t the only people in search of energy from a higher place. In 2007, Google bought out Makani, a Californian-based company partaking in similar experiments.

So what makes this simple concept so appealing? Well apart from the aesthetically pleasing view of hundreds of colourful kites flying high in the sky, the proposition of a cost-effective kite farm could spell the end of wind turbines, which are to many, an expensive, noisy, eyesore.

“Environmentally-friendly” wind turbines have been slammed by just about everyone since they were first introduced in Britain back in the early fifties. If people aren’t complaining about the noise of them (which isn’t even that loud – there’s one practically on my doorstep, and I can’t hear it!), or the fact that they ruin the landscape, then there’s always the environmentalists’ argument that they are a threat to bats and birds.

But what makes the kites really special is their ability to reach higher altitudes, where the energy source is more abundant and reliable. The blades of a standard wind turbine sit about 80 metres from the ground, where the wind speed is about five metres per second. At 800 metres though, wind speed rises to seven metres per second, meaning a considerable amount more energy could be generated. It’s virtually impossible to build a turbine to this height, but flying a kite that high is, well child’s play really.

Ockels’ kite farm may prove to be a renewable energy triumph, but only if he can power past the cynics scepticism of his design, and get the money to fund the project. Ockels has said that commercial systems large enough to power whole towns could be operational within the next five years, if the money is made available; otherwise the technology could languish in the lab for a decade or more.

With many a misanthropist ridiculing his idea, I really hope Ockels doesn’t shelve his ‘giant kite farm’ plans. Because if the kite generators do ever make it out of the workshop, they may silence the critics who have complained about the noise and hazard that comes with wind turbines. And, with renewable energy sources sprouting up just about everywhere these days, they are becoming a lot cheaper for customers, which could force the “Big Six” to consider lowering their energy costs.

I guess only time will tell…

Did anyone see yesterday’s edition of Newsnight?

In truth, I only tuned in for two reasons:

(1) To get the inside track on David Milliband’s subtle allusion to a positive Labour outlook without our belligerent but utterly hapless leader at the helm. Best case scenario in my opinion, I’ve been on Team Milliband for some time.

(2) It filled a gap between Big Brother and Long Way Round.

Effectively, I got what I wanted, but with an extra bonus I hadn’t bargained for.

Who should appear midway through for a grilling on inflation-busting gas and electricity price hikes, but your friend and mine Phil Bentley, Managing Director at British Gas.

Fantastic.

Although presenter Gavin Esler immediately went on the front foot with the question ‘why are you raising your gas prices by 35 percent, when EDF are only raising theirs by 22 percent?’, it became abundantly clear within seconds of Mr. Bentley’s response that public speaking isn’t his forte.

I don’t know if he was caught off guard by the ferocity of Esler’s interrogation, too pre-occupied with damage limitation to answer the questions naturally, or just genuinely lacking insight and understanding, but the responses from Mr. Bentley were consistently unsatisfying.

The one saving grace was an admission from Mr. Bentley that EDF price rises are less severe than those of British Gas because EDF operate more coal-fired, cost efficient power stations. This little factoid was delivered with a somewhat regretful tone.

All in all, I learned very little but a bunch of facts that I and most of the country are familiar with already:

• Britain imports 40% of its gas supply
• The cost of this gas is linked to the cost of crude oil
• Crude oil prices have double over the last 12 months
• Therefore, Centrica must hike prices or operate their gas supply arm at a loss

Amazing, thanks Phil.

The energy world is on fire. Prices are rising here there and everywhere and it’s hard to keep up with the ever spouting predictions and advice. Fear is in the air and the headlines are becoming more and more terrifying:

• “Energy customers face 60% price hike” (Energy Choices)

• “People ‘pushed’ into fuel poverty” (The Press Association)

• “Lives at risk fears as gas bills rocket 35%” (The Press and Journal)

• “Child poverty charity deplores British Gas fuel price hike” (Easier Finance)

• “Energy powder designed to look like COCAINE could be sold in Britain” (The Daily Mail)

OK, so the last one won’t affect our gas bills, but energy news at the moment is SCARY. According to the Mirror, Lib Dem leader Nick Clegg has claimed that soon “Thousands will be forced to choose between heating and cooking!”

Reading these headlines it seems the UK is headed straight for an energy apocalypse, and the advice tagged on the end of each article is…

GET A FIXED RATE TARIFF NOW. OR ELSE.

But really, is this sound advice or classic scaremongering? Well actually, it depends at which rate you fix it. There are only two fixed rate tariffs on the market right now which are set at pre-hike prices and they are the Energy Saver 4 and the Price Protection October 2009 from E.ON.

If you can snatch one of these then you are onto a winner, but as the dashing Martin Lewis so eloquently puts it, these existing fixed rate tariffs are “disappearing quicker than a rabbit near Paul Daniels” and it’s predicted they will be pulled by midnight tonight.

Yesterday, as well as hiking gas prices up by a massive 35% and electricity prices by 9%, British Gas announced the launch of their new Fixed Price 2011 tariff, the only other capped tariff available. If we follow the “cap now” mentality, then surely we should dash to grab this now? Well actually, maybe not.

As my good friend Chris Eagle, Commercial Manager at Energy Choices says: ‘Fixing your energy tariff now will protect you from round two of the predicted price hikes, which are expected to hit consumers in December or January. However, it is quite likely that the other big energy suppliers will follow British Gas’ lead and announce their own fixed rate tariffs for newly increased rates. Obviously some will be cheaper than others and while it’s a gamble, it may be better to wait for the launch of these.’

So, if you miss the E.ON boat, don’t jump straight for British Gas. If you can hold out for alternative tariffs, you might be able to cap at a lower rate.

 Energy costs are set to rocket….

EDF has become the first of the big six energy suppliers to make this summer’s anticipated gas and electricity price increases.

Gas prices will increase by 22% and electricity by 17% for existing domestic customers from July 25th (today) onwards. The inflation busting price rises have been predictably blamed on rising wholesale costs.

It’s the second round of price increases EDF customers have had to face this year, following January’s 13% increase in gas costs and 8% rise in electricity costs.

However, with industry analysts forecasting increases of up to 60% on energy prices this summer, hopefully the price hikes aren’t going to be as severe as was once expected.

Average annual fuel bills for EDF customers will rise from £1000 to something around the £1200 mark.

For further updates, visit the news desk at EnergyChoices.

 We’re pulling rabbits out of hats…

In response to the deluge of mail we received regarding the complexity of submitting meter readings to British Gas, here at Consumer Choices we are pleased to announce we’ve cracked the code.

For the inside track on how to successfully submit a meter reading at britishgas.co.uk/meter, take a look at the latest instalment from our very own Consumer Spy, Becca Talbot.

Having liaised with British Gas itself, Becca has constructed a step by step guide to help you through the process, designed with newcomers to the world of online energy tariffs in mind.

So stop tearing your hair out, hitting your head against the wall or, worse still, thinking about reverting back to paper bills, and use Becca’s guide to take the sting out of online account handling.

The Consumer Spy - Meter Reading Made Easy