The Energy Advice Line has welcomed EDF Energy’s support for a simplified energy pricing system that would make it easier for consumers to compare prices.

Julian Morgan, managing director of the UK’s leading price comparison, switching and advice service for energy consumers, urged more of the Big Six suppliers to back the plan to replace complex tariffs with a single unit price.

“Trying to simplify tariffs is a very positive move forward and it’s encouraging to see a supplier taking a step in the right direction,” Mr Morgan said.

“However, for this new pricing structure to work the entire market would need to take part.”

In announcing its support for the radical shakeup of the energy pricing system, EDF said it would only do so if other suppliers fell into line.

The proposal for a petrol forecourt-style pricing system for energy has been made by consumer watchdog Which?

Which? says the system would mean consumers only needed one price to compare all the suppliers. However, Ofgem, which has proposed its own simplified pricing system, has said the scheme will be difficult to implement.

“We are eagerly awaiting the publication soon of Ofgem’s energy reforms, which are designed to make the energy pricing system simpler, clearer, and fairer,” Mr Morgan said.

“Consumers need choice but they also need simplicity so that they are in a position to make that choice.

“The current arrangements are untenable if Ofgem and the government really do want consumers to shop around for the best energy deals. They need to have a pricing system which enables them to do that.”

The Energy Advice Line is the UK’s leading impartial comparison, switching and advice service for businesses and householders.  It actively campaigns for reform of the UK’s energy market to boost competition, get consumers a better deal from suppliers and lower business energy prices.

The Energy Advice Line’s price comparison and switching service is free and completely impartial. Consumers can obtain energy quotes with a few computer strokes based on a diverse panel of energy suppliers including the major players and smaller independent utility companies.

For further information visit www.energyadviceline.org.uk

Small and medium-sized firms could help slash the UK’s energy demand by simply turning off non-essential equipment during times of peak demand, according to a new report.

The study by the University of Reading found that electricity demand could be cut by a massive 75%* if equipment such as air conditioning, heating and lighting were switched off or down during peak periods.

In the most extreme cases, pressure on the national grid was eased when energy-intensive firms switched from metered electricity to standby generator power.

But the study found demand could be reduced by 25%* when, in the hotel sector for example, air-conditioning, heating and lighting were just turned down. Researchers claim this did not impact or discomfort customers.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading business electricity price comparison, switching and advice service for energy consumers, said the survey proved the benefits of every organization developing an energy policy.

“A workplace energy strategy will not only help ease the burden on the national grid at peak times, but also reduce energy bills for individual firms, “ Mr Morgan said.

“Business owners can be clever about their energy use and save themselves money in the process.

“Identify which items of equipment can be switched off when. This study shows that there can be a significant benefit if equipment is turned off for short periods of time.

“Also ensure that every member of staff is aware of their responsibilities when it comes to conserving energy. Staff need to know who is responsible for turning off lights and computers, for example. It’s very simple but can have a significant impact on an organization’s energy spend.”

The study found that if businesses were given more warning (four hours or more) to cut their electricity use, demand reductions could sometimes be doubled.

The Energy Advice Line is the UK’s leading impartial comparison, switching and advice service for businesses and householders.  It actively campaigns for reform of the UK’s energy market to boost competition, get consumers a better deal from suppliers and lower energy prices.

The Energy Advice Line’s price comparison and switching service is free and completely impartial. Consumers can obtain energy quotes with a few computer strokes based on a diverse panel of energy suppliers including the major players and smaller independent utility companies.

For further information visit www.energyadviceline.org.uk

*Data supplied by KiWi Power (http://www.kiwipowered.com)

Business electricity prices have spiralled by more than 11% on average in the past 12 months, according to figures released by the Energy Advice Line.

Firms that signed up to 1, 2 and 3-year energy contracts in the first quarter of 2012 paid an average 9.98p/kWh for electricity, compared to 11.12p/kWh during the same period in 2013.

According to Julian Morgan, managing director of the price comparison, switching and advice service for energy consumers, said that firms should now consider longer-term contracts because energy prices were set to rise further.

The Energy Advice Line’s Quarterly Review of energy prices shows that firms that signed up to 1-year energy contracts at the beginning of 2012 were hardest hit by the price rises.

A year ago, electricity tariffs under a 1-year contract cost an average 9.56p/kWh. By the time the contracts expired in the first quarter of 2013, prices had risen to 10.99p/kWh – an increase of almost 15%.

In contrast, firms that signed up to 3-year deals at the start of 2012 would have paid slightly more for their energy at the start of the contract – 10.58p/kWh. However, these firms will now be paying less than average today and the low tariffs are locked in for a further 2 years.

“Firms that signed up to the shortest-term deals a year ago would have been financially better off signing up to a more expensive 3-year year deal, “ Mr Morgan said.

“Firms would have paid a premium for a 3-year contract but because prices have risen so substantially, they are now better off.

“This is not about the benefit of hindsight. These figures illustrate very clearly that it’s well worth considering all available options when looking to sign up to a new energy deal.

“Energy prices are likely to continue to rise so locking in today’s prices is probably a good idea.”

However, the Energy Advice Line’s review found that most UK firms – 87% – continue to opt for the cheapest short-term deals.

“With tough economic conditions continuing to bite and drive profit margins down, businesses seem to be grabbing the cheapest deals possible and that means short-term contracts,” Mr Morgan said.

“However, our advice continues to be that they should not disregard the longer-term options. Taking a short-term view in a market where prices are rising could be the wrong decision.”

The Energy Advice Line is the UK’s leading energy price comparison and switching service exclusively for business, and enables firms to compare the market for the best possible business energy deals within minutes.

The free service is backed by a team of business energy experts who provide a complete contract management service including advice about business energy contracts, how to avoid expensive rollover contracts and a renewal reminder service.

The Energy Advice Line also campaigns for a better deal for business energy users from suppliers and has lobbied the government and energy regulator Ofgem for greater protection from practices such as cold calling.

The Energy Advice Line has urged UK business electricity users to say no to cold callers following the case of a rogue energy broker who switched a firm’s supplier without permission.

Julian Morgan, managing director of the UK’s leading price comparison and switching service exclusively for businesses, said it was an extreme case but underscored the need for firms to be vigilant when called out of the blue.

Mr Morgan said the business owner received an unsolicited telephone call from a person claiming to represent their existing energy supplier. The caller requested meter reading and other meter details, which the business owner provided.

“The customer only realized a couple of months later that the caller wasn’t in fact from their supply company and that they had been switched to a new supplier without their knowledge,” Mr Morgan said.

“For obvious reasons they were furious. We helped the customer switch back to their old supplier and all was well in the end.

“But this case highlights the dangers for businesses of dealing with unsolicited sales calls.

“We have also come across numerous cases where businesses have believed they have done nothing more than listen to what a cold caller has to say, but have in fact unwittingly “agreed” to an expensive energy contract.”

The Energy Advice Line has lobbied Ofgem to ban cold calling and provided the energy regulator with a dossier of evidence highlighting the tactics used by unscrupulous rogue brokers. This includes brokers who:

• Fraudulently claim to be “energy officials” or representatives of a businesses existing energy supplier in order to extract meter details
• Bombard businesses with heavy-pressure sales calls, in one case calling more than 100 times in 10 days
• Claim to offer the best energy deals on the market when in fact they were touting expensive and onerous deals
• Obtain, through questionable means, lists of firms who have recently moved premises and then hound them with unsolicited sales calls.

“The problem is getting worse and not better,” Mr Morgan said. “The big energy suppliers claim to have no active involvement in these practices but at best they are turning a blind eye to very dodgy dealing.

“Business should never accept a deal from a cold caller because these are likely to be 40% higher, or even more, above the current retail price.

“Ofgem needs to act now to prevent more businesses unwittingly switching to expensive deals.”

Mr Morgan said it was important for businesses to refuse to speak to cold callers. Instead, they should use an independent and reputable price comparison and switching service that had a large range of suppliers and displayed their tariffs online.

If they did engage with a caller, Mr Morgan said it was crucial to verify the person’s identity by calling the company back and asking to speak to an account manager.

“The most important thing to remember is that no-one from a reputable price comparison and switching service will put you under any pressure to take out an energy contract,” Mr Morgan said.

“If they do, put the phone down.”

If you believe you have been tricked into an expensive energy contract by a cold caller, one of our team of business energy contract experts may be able to help – call 0800 915 1800.

The Energy Advice Line is the UK’s only impartial business electricity price comparison and switching service exclusively for business. It has campaigned for utility companies to change their business energy contracts and billing arrangements to make it easier for firms to switch suppliers to get the best business electricity rates and gas deals.

The Energy Advice Line has stepped up its campaign for Ofgem to ban cold calling after a rogue energy broker posing as an energy official telephoned a small firm more than 100 times in less than two weeks.

Someone claiming to be from “the meter registrations company” bombarded the business, which had just moved into new premises, with calls pressuring the owner to sign up to an energy deal.

When the business owner told the caller they had already signed up with an energy supplier, the caller insisted they were legally obliged to deal with them.

In another case, a caller claiming to be from “National Utilities” called a business five times in one week insisting the owner buy an energy contract through them. The same caller had previously called the business pretending to be from British Gas.

Julian Morgan, managing direct of the Energy Advice Line, the UK’s leading price comparison and switching service for business, said the problem of cold-calling was now out of control.

“It’s long overdue for the energy regulator to step in and ban this unscrupulous practice,” Mr Morgan said.

“Ofgem will shortly be announcing major reforms to the retail energy market to ensure that business electricity users get a better deal, and the issue of cold calling needs to be one of their priorities.

“These are very unscrupulous rogue brokers lying to and harassing potential customers in order to sell energy contracts in exchange for a commission.

“Somehow they are obtaining lists of companies who have just moved business premises and they know these organisations will be looking to get their energy supplies in order.

“At best, it’s harassment for firms that simply don’t have time to deal with this level heavy-pressure telephone selling. At worst, it’s fraud when callers present themselves as energy officials when they’re not,” Mr Morgan said.

“These rogue brokers are not selling good deals, they are touting expensive deals on behalf of one particular supplier. They are anything but independent, despite what they might claim, and are not working in the best interest of the customer.”

The Energy Advice Line has been lobbying Ofgem to ban the practice of cold calling and has compiled a list of examples of firms that have been hounded by rogue brokers using high-pressure sales techniques.

The service has produced guidance for firms to follow to avoid being locked into the expensive business electricity and gas deals being touted by cold callers.

• Speak to a price comparison service that has a large panel of suppliers: check that they are not just working for one specific supplier
• Say No to Cold Calling: do not accept an energy deal from someone who calls you out of the blue. The price is usually 30%–40% above of the current retail price.
• Verify who you are talking to: ring the company back and ask to speak to your account manager to ensure they are being truthful about the company they represent
• Price transparency: go with a price comparison service prepared to put the energy tariffs they offer on their website so you can be sure you are making the right choice
• Commission transparency: if you want to know how much commission the agency is earning from the switch just ask. A reputable service will tell you. If they will not tell you, be suspicious
• Pressure selling: a professional impartial and transparent service will not exert any pressure on you to enter into a contract, and will give you the information and time you need to ensure you are making the right choice

You can join the Say No to Cold Calling campaign and get further information at www.energyadviceline.org.uk/say-no-to-cold-calling

You can also follow the campaign on twitter @SayNoToColdCall

If you believe you have been tricked into an expensive energy contract by a cold-caller, one of our team of business energy contract experts may be able to help – call 0800 915 1800.

The Energy Advice Line is the UK’s only impartial business electricity price comparison and switching service exclusively for business. It has campaigned for utility companies to change their business energy contracts and billing arrangements to make it easier for firms to switch suppliers to get the best business electricity rates and gas deals.