More grants for SMEs, says Energy Advice Line

The Energy Advice Line has called for the government to provide more grants to cover the installation costs of energy efficiency measures.

Mr Morgan's calls are in line with a survey by the British Chamber of Commerce (BCC), which found that 36% of small and medium sized firms believe the "most important thing" the government can do is incentivize energy efficiency installations through grants.

"Most SMEs know what energy saving measures they could and should put in place, but the upfront costs are a massive disincentive," Mr Morgan said. "In face, 15% of those businesses surveyed felt the energy savings would not prove beneficial to the installation costs.

"The government provides financial incentives to big energy suppliers to implement low-carbon policies; SMEs deserve similar financial support so they can put in place the equipment they need to reduce their energy consumption.

"This equipment would obviously benefit from their bottom line, as well as the planet, but the up-front costs are prohibitive for many small firms, who already struggle with their  cash flow and profitability.

"It would make sound financial and environmental sense for the government to help firms with the initial costs of doing something that would benefit all stakeholders."

The BCC survey, carried out in partnership woth Big Six supplier British Gas, involved more than 2,100 British businesses - 91% of them SMEs. The survey revealed that businesses are already aware of what energy measures could be put in place, with only 8% requesting more information. In total, 15% of those surveyed felt that the energy savings would not be worth the investment.

More than a quarter of businesses that currently rent their facilities and premises revealed they have no influence on energy efficiency improvements. In light of the finding, the BCC called on landlords to do more for leaseholders that were 'looking to save money and make their energy work for them'.

Mr Morgan added that SMEs keen on cutting their energy costs should regularly chase the best deals and switch suppliers. "There's no expensive upfront investment required, and it's quick and simple - there aren't many ways to save significant amounts of money that are this easy," Mr Morgan said.

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit energyadviceline.org.uk

EAL dismisses CMA call for switch list

The latest report by the Competition and Markets Authority (CMA) showing more than 70% of energy consumers had never switched tariffs, was of grave concern, according to the Energy Advice Line.

A survey of 7,000 domestic energy customers carried out by the CMA as part of its probe into the energy market, also found that more than one-third of respondents had never considered switching supplier.

This was despite the fact that customers of the Big Six energy companies could have saved hundreds of pounds by switching to a rival firm.

"These findings are extremely alarming," said Julian Morgan, managing director of the Energy Advice Line.

"Yet another investigation has proved that switching suppliers has significant financial benefits, yet millions of customers are still failing to do it.

"Urgent action is now needed to persuade customers - in the strongest possible terms - to shop around for their energy, just as they do for all their other significant household purchases.

"Failing to do this is costing them considerable sums of money that most people simply can't afford to lose."

The CMA report, the culmination of a two-year, £80 million investigation of the energy industry, found that:

• 36% of those surveyed did not know it was possible to change tariff, payment method, and supplier
• 34% said they had never considered switching supplier
• 56% said they had never switching supplier
• 72% said they had never switching tariff

The report found that dual fuel customers of the Big Six suppliers could have saved an average £164 per year by switching over the previous three-and-a-half years, and in some cases as much as £245. The report pointed out that the potential savings from switching had risen substantially over the past two years, in some cases (depending on tariff) of £330 annually.

Mr Morgan welcomed the report's finding that third party internediaries, such as the Energy Advice Line, "significantly reduce search and switching costs for domestic customers by providing an easy means to gain personalised quotes, on a comparable basis, from a range of different suppliers."

But he rejected one of the report's recommendations for a national database of customers who had not switched over the past three years. This would see rival firms send their deals to the listed customers in the post.

"This would be a nightmare for consumers, who would be inundated with confusing offers from rival suppliers desperately competing for business," Mr Morgan said. "This would not help consumer engagement with the energy market, and could well have the opposite effect - all their communications could end up being ignored.

"As the CMA says itself, independent and reliable services like the Energy Advice Line are the quicklest, easiest and cheapest way to shop around for the best deals and change suppliers."

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy market reform and has campaigned for a better deal for energy users, including callling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. The service also offers a free advice line for business energy customers.

For further information visit energyadviceline.org.uk

Fracking to be given green light

Three key tests have been set by the Committee on Climate Change (CCC) - should the results meet their standards then fracking will be given the green light to go ahead.

Despite arguments from environmentalists the CCC insists that the UK will still be able to meet the UK's climate change targets if fracking goes ahead.

The three tests are as follows:

• Emissions should be strictly limited during shale gas development, production and well decommissioning. The CCC says this needs tight regulation, close monitoring of emissions, and rapid action to address any leaks.
• Overall gas consumption in the UK must remain in line with UK carbon budgets – so UK shale gas must displace imported gas, rather than increasing gas consumption overall.
• Emissions from shale gas production must be counted as part of the UK’s carbon budgets, and emissions in another part of the economy may need to be cut further in order to accommodate fracking.

Many believe that the potential results from fracking in the UK have been over estimated for some time, and there are a number of uncertainties about the projections from the CCC and the government. There is currently no production of shale gas within the UK.

Fracking hasn't taken place in the UK Since 2011 - anti-fracking campaigners have applied for judicial reviews on the decision with concerns for climate change.

Dr Doug Parr, chief scientist at Greenpeace, said: "The idea that fracking can be squared with the UK's climate targets is based on a tower of assumptions, caveats, and conditions on which there is zero certainty of delivery.

"The problem with ramping up a whole new high-carbon infrastructure and the fossil fuel vested interests to go with it is that you can't just dial it down later on if emissions start going through the roof."

Which supplier is under review now?

Customer complaints have forced energy market regulator Ofgem to conduct an experiment into one of the suppliers outside of the Big Six.

Usually it's one of the Big Six being investigated off the back of a high number of complaints - this time it's the turn of Extra Energy to be examined whether or not the supplier broke the rules on billing, customer service and complaints handling.

Looking back over the past five years, it has been found that Extra Energy received more complaints than any other supplier. Earlier this year Citizens Advice highlighted that the company averaged 1,682 for every 100,000 customers making it the highest recorded rate since 2011.

The company have assured Ofgem that they have since improved their customer services, making multiple changes including hiring 150 extra staff, relocating their offices to Birmingham, creating tamer sales pitches, and reducing call waiting times to an average of 45 seconds. Extra Energy attribute part of the problem to the growth of the company happening too quickly for them to cope with.

Ofgem's investigation is currently underway, however if they do find that Extra Energy has broken rules regarding customer handling then they will face a fine to the sum of 10% of it's annual turnover.

If you're not happy with the service your energy supplier is providing, you're not stuck. We can help you to facilitate the switch, and save money in the process. For free, impartial advice contact energyadviceline.org.uk