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Energy Advice Line welcomes Ofgem move to end “stranglehold” of Big Six

17 June 2013

The Energy Advice Line has welcomed plans by Ofgem to fine Britain’s biggest energy companies if they fail to trade power with smaller rival companies.

Julian Morgan, managing director of the UK’s leading business energy price comparison, switching and advice service for energy users, said increased competition in the energy market was urgently needed to help put the brake on spiraling gas and electricity prices.

Ofgem announced last week it would force power companies to publish the prices they were prepared to buy and sell energy two years ahead. They would not be allowed to refuse “reasonable” requests from small suppliers that wanted to buy power from them.

Ofgem would also have the power to penalize those companies that did not trade fairly.

“These initiatives by Ofgem are certainly a step in the right direction and they are long overdue,” Mr Morgan said. “At the moment, consumers are not feeling the benefits of a competitive energy market because the market is not truly competitive.

“The Big Six energy companies both generate and supply power, and smaller independent suppliers feel blocked out of the market. It isn’t a level playing field.

“But for these reforms to be effective, Ofgem needs to ensure that the penalties for non-compliance are significant enough to act as a deterrent. The Big Six are very large and financially powerful organisations.“

Mr Morgan said the regulator also needed to create incentives to encourage smaller energy suppliers to enter the market by easing onerous regulatory and financial requirements that were beyond the scope of small players.

“Many smaller companies that would like to enter the energy supply market simply don’t have the financial resources to make a bid,” Mr Morgan said. “At the moment, the Big Six hold all the cards.”

He agreed with the analysis of some smaller suppliers that the reforms would not address other significant obstacles to smaller players entering the market.

“I think a more radical overhaul of the wholesale market is in order if Ofgem and the government are serious about eliminating the so-called ‘stranglehold’ the Big Six have on the market.”

The Energy Advice Line is a leading impartial electricity price comparison and switching service for businesses and domestic energy users. It actively campaigns for reform of the UK’s energy market to give all consumers a fairer deal and cheaper prices from the major suppliers.

It also offers a free and independent price comparison and switching service that enables consumers to shop the market and identify the cheapest available deal with a few computer clicks.

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Ofgem reforms won’t make price comparisons easier, says Energy Advice Line

24 May 2013

The Energy Advice line has called on the government to revise its plans to overhaul energy tariffs, saying the proposals will cause widespread confusion for consumers.

Ofgem’s planned tariff comparison rate (TCR) could result in consumers opting to pay more than they need to for their energy, according to the switching and price comparison service for energy users.

Julian Morgan, managing director of the Energy Advice Line, supported calls by consumer group Which? for the regulator to go back to the drawing board to find a more effective way for consumers to compare tariffs.

He said they needed to introduce a simple price comparison format that directly compared the actual price they were paying for energy with the best available offer their supplier was prepared to make.

“The supplier should be obliged to offer them their best available deal at quarterly intervals or when their fixed term price deal ends, which clearly compares this with the rate they are currently paying or have been paying,” Mr Morgan said.

“This would encourage both business and domestic customers to engage with the market because it makes it easy to compare tariffs.

“At the moment this is almost impossible because tariffs are so complex and suppliers’ never offer their best deals first.

“We support any moves that make it easier for consumers to identify the best deals but Ofgem’s proposed TRC isn’t the best way forward.”

Mr Morgan said Ofgem intended for the TRC to work in the same way as financial services providers use an APR.

“The problem is that energy prices are much more complicated than that,” Mr Morgan said.

“Medium energy use, which is what the TCR is based on, just isn’t a good indicator. We agree with Which? that this measure could encourage low energy users, whose consumption of energy is less than average, to opt for tariffs that cost more than they need to pay.”

Which? has called for the plans to be revised and for energy prices to be displayed in the same way as petrol prices.

Other changes to be introduced by Ofgem this year include a cap on the number of tariffs a supplier can offer; an end to multi-tier tariffs; and a ban on price increases during fixed-term contracts.

Ofgem argues that the new system will encourage consumers to shop around as only 70% of energy users are not engaging with the market.

“Which? is misrepresenting the purpose of the tariff comparison rate and how it fits into the full scope of Ofgem’s reform package. The tariff comparison rate acts as a prompt to consumers to take a look at comparative deals,” an Ofgem spokesman said.

Mr Morgan agreed that consumers needed more encouragement to shop around for the best prices and switch suppliers, as this was the cheapest and most effective way to keep spending on energy to a minimum.

He said the evidence was clear that customers who changed suppliers at the end of a fixed-term contract paid less for their energy than those who remained “loyal” to the same supplier year-on-year.

“Shopping around and switching will save you money, that much is clear,” Mr Morgan said.

“What’s not clear for consumers is how to compare tariffs because the energy companies make it so difficult to do so.

“That’s why independent and reputable price comparison and switching services like the Energy Advice Line are so important. We take the legwork and hassle out of shopping around and we are able to compare like-for-like so customers get an accurate comparison of prices.”

The Energy Advice Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind consumers when their fixed-term energy contracts are about to end.

For further information, visit www.energyadviceline.org.uk

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UK business electricity users wasting money by losing track of their energy contracts, says Energy Advice Line

13 February 2013

UK businesses risk losing thousands of pounds a year by failing to keep track of when their fixed-price energy contracts expire, according to the Energy Advice Line.

One small family butcher in Birmingham recently missed out on saving more than £11,000 a year on its business electricity bill by overlooking its contract renewal date.

The firm’s energy supplier, with whom it had been a customer for 10 years, automatically switched it to an expensive out-of-contract tariff when it failed to give notice on the required date.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business, said firms contacted them on a daily basis with similar problems.

“This situation is not uncommon and we help firms that, for a variety of reasons, have not given notice to their supplier in a timely way and told them they want to leave and go somewhere cheaper,” Mr Morgan said.

“This can be an extremely costly mistake for a business to make. Unfortunately if a business is rolled over at the end of a fixed term they will be locked into a contract that is usually 30% more, or even higher, than the current retail price.

“When this happens, it’s too late and the business will not be able to exit the contract until it expires in 12 months.

“Energy suppliers do not reward customer loyalty, in fact, the opposite is true. They make a significant proportion of their profits from loyal customers who stay with them year-on-year without shopping around and looking for a better deal.

“Suppliers simply charge them an inflated price for their energy compared to what they would be charged if they switched to a different company.”

Mr Morgan urged business electricity users to be vigilant and ensure they know when their fixed-price energy contracts expire. They also need to be absolutely certain of when to serve notice to their supplier.

“In the case of the Birmingham butcher, they only had 30 days to give notice from the date they received the renewal quote from their existing supplier,” Mr Morgan said.

“This short contract termination window leaves the customer very open to being automatically flipped to an expensive rollover contract.

“Letters can get lost in the post, be opened by colleagues or the wrong person, simply sent to the wrong address or arrive when the person responsible for dealing with energy bills is away on holidays.

”It’s an unfair strategy by energy companies but that’s what many of them do.”

Mr Morgan said it was essential for business energy users to compare the renewal rate they receive from their existing supplier with other deals available in the marketplace.

“Always use a reputable and independent online price comparison and switching service like the Energy Advice Line, that displays prices online and offers customers a completely transparent view of the deals available.

“Not only will we be able to find businesses a much better tariff than that offered by their existing supplier, but our service is completely free, independent and transparent.

“In addition, we offer a free contract management service, which means we help firms throughout the term of their contract with any problems.

“Importantly, this also includes a free renewal reminder service so they can never forget when their fixed-price deal is coming to an end.

“And if you have accidently been caught in a rollover contract, you can still get in touch with us and we’ll remind you when your contract’s up and help you find a better deal next time.”

The Energy Advice Line helps small firms through to large non-domestic energy consumers search the market for the best available business electricity and business gas deals.

The service saves firms the time and trouble of trawling through thousands of business electricity and gas tariffs by analysing prices from its panel of energy suppliers and matching them with the requirements of the organisation.

Significantly, tariffs are compared on a like-for-like basis without the use of product names or payment plans, which means that quotes are easy to understand and accurate.

For more information visit www.energyadviceline.org.uk

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Energy Advice Line supports Bill to outlaw rollover contracts

7 February 2013

The Energy Advice Line has thrown its support behind legislation aimed at stopping energy companies automatically rolling businesses over onto expensive new energy contracts.

The UK’s leading business electricity price comparison and switching service has endorsed a private members Bill put forward last week by MP Caroline Lucas aimed at making the practice illegal.

The Energy Advice Line has long campaigned for energy regulator Ofgem to ban rollover contracts, whereby suppliers lock firms into un-negiotiated and expensive energy contracts for a full 12 months without consultation.

“It’s a pernicious practice and we deal with business electricity users every day who have ended up paying thousands of pounds more for their energy than they need to as a result,” Mr Morgan said.

“When a fixed-price energy contract comes to an end, many businesses have a very small window of opportunity to give notice to their supplier that are leaving to take up a cheaper deal with another company.

“If this happens, they can automatically be rolled over onto an expensive contract that is often 30% more expensive, and sometimes even more than that, than the going retail price.

“By the time a business electricity user realizes what’s happened it’s too late and they are stuck in this contract paying much more than they need to for a full 12 months.

“Despite repeated calls from us and business groups, suppliers have refused to stop the practice. It’s long overdue for Ofgem or the government to step in and make it illegal.”

The Green Party’s Caroline Lucas has tabled the Micro Business and Energy Contract Rollover Bill, which would allow very small business electricity users to escape from these expensive rollover contracts after 30 days.

According to research by the Federation of Small Business (FSB), 25% of small firms have been rolled over on to a new energy contract without their knowledge. More than 80% of those questioned said they would support the abolition of rollover contracts.

Mr Morgan said many firms, in particular the smallest organisations, often were unaware that the terms of their business electricity contracts required them to give notice to their supplier within a fixed time frame.

“Suppliers simply take advantage of this fact and firms need protection from such an unfair practice,” Mr Morgan said.

“Ofgem signaled that it would crack down on this some years ago but to date has done nothing.”

Ms Lucas said: “With the rising cost of energy now a make or break issue for many small firms, it’s time to hold the energy giants to account for the damaging practice of contract rollovers that delivers a bad deal for micro businesses.

“It’s deeply unfair that, while micro businesses often consume products and services in a similar way to domestic consumers, they do not enjoy the same level of regulatory protection.

“This leaves them vulnerable to being ‘rolled over’ from their current energy contract into a new one without their knowledge – making it impossible for them to negotiate a better deal for another 12 months.

“My private member’s bill is about asking the Government to act to ensure the energy regulator finally delivers on its promise – and stands up for the UK’s micro businesses.”

The bill is scheduled to be debated by MPs on March 1.

The Energy Advice Line offers help and advice to firms of all sizes about how to save money on their business energy bills. The online service allows firms to input their details and with just a few computer strokes generate the five best energy quotes from a wide-ranging panel of business energy suppliers.

It also offers a free contract management service to help with ongoing questions or problems with the contract or energy supplier.

For further information about the Energy Advice Line’s services, or to obtain quotes or advice, visit www.energyadviceline.org.uk

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Energy Advice Line urges firms to reduce out-of-hours energy costs

16 January 2013

The Energy Advice Line has urged firms to urgently implement workplace energy policies following a new survey that shows employee overtime is needlessly pushing up business electricity bills.

According to the research, many businesses remain fully lit, heated and air-conditioned after hours, even if there is only one employee left in the workplace.

The survey by energy supplier E.ON found the average SME employee works extra hours three days each week, and 22% say that most or the all of the lights are kept on even when they are the last person in the workplace.

The survey employees were confused about whose responsibility it was to switch off the lights. Most (62%) believe switching off the lighting and heating is the responsibility of the last person to leave the workplace. However, 23% believe it is the job of office managers, cleaners and security staff.

Only a small number of SMEs have timers on lights (5%), air conditioning (9%) or heating (25%).

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading business electricity price comparison and switching service, said the survey proved how important it was for firms to have an energy policy.

“The results of this study show there’s confusion in most workplaces about whose job it is to ensure business electricity is not wasted, and that confusion is costing firms money,” Mr Morgan said.

“Business electricity is far too expensive to throw away. Firms need to ensure that there is a clear strategy to conserve this expensive resource, particularly after hours, and that every member of staff is clear about their responsibilities.

“Computers, lighting, heating, electrical equipment all eat up business electricity and most of it can be switched off after hours. Work out what can be turned off when, and make it clear to staff whose job it is to do this.

“This is the kind of thing that can easily be overlooked when business owners are busy running their organizations, but the savings that can be made are significant.”

Mr Morgan said as well as implementing a workplace energy strategy it was important for firms to regularly check that they were paying the cheapest possible price for their business energy.

Firms that failed to give timely notice to their suppliers that they were switching suppliers when their fixed price contracts ended could end up paying electricity tariffs 50% higher, or even more, than they would if they switched.

“Shopping the market and ensuring your workplace have an energy policy are both important ways to keep in control of your firm’s energy spend,” Mr Morgan said.

“This doesn’t have to be a difficult or time-consuming process if you use an independent and reputable switching service like the Energy Advice Line.

“We save our customers almost £1,000 a year by switching them to the best available deal from our panel of suppliers. And the service is free, so there’s nothing to lose.”

The Energy Advice Line is the UK’s leading business energy price comparison and switching service, and enables firms to compare the market for the best possible business energy deals at the touch of a button.

The service has a team of business experts who can give advice about business energy contracts and how to avoid expensive contract rollovers. For further information visit www.energyadviceline.org.uk

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Businesses save thousands of pounds each year by switching energy supplier

10 January 2013

SOME UK firms are wasting thousands of pounds each year by failing to switch suppliers when their fixed-price energy contracts expire, according to a new survey.

On average, businesses save almost £1000 annually by shopping around for the best business energy prices than those offered by their existing energy supplier, according to the study by the Energy Advice Line.

Energy-intensive businesses benefit even more by switching suppliers, with some firms saving almost £10,000 a year by opting for a competitor rather than accepting a renewal quote from their existing supplier.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading business electricity price comparison and switching service, said the findings underscored the importance of changing suppliers.

“The findings couldn’t be clearer – businesses that simply roll over and stay with the same supplier when their fixed-price energy contracts end are throwing hundreds and sometimes thousands of pounds away,” Mr Morgan said.

“Many business owners believe that all energy companies charge roughly the same rate for business electricity, but nothing could be further from the truth.

“Suppliers make their profits from customers that don’t engage with the market and stay with them year after year in the mistaken belief that there’s not much difference in tariffs.

“The opposite is in fact true. It’s essential for business electricity users to give timely notice to their suppliers that they intend to switch and then shop around and reap the savings.”

According to the survey, Energy Advice Line customers saved an average £978 each year on their business electricity bills by shopping around and switching rather than accepting the renewal quote sent to them by the supplier they were already with. This is based on an average annual energy spend of £2,500.

However, potential savings for larger organizations and those with heavier energy use are even more significant, according to the survey.

Examples of savings achieved when firms used the Energy Advice Line’s free switching service to search the market for cheaper energy in 2012 included:

  • A retailer in Edgware, Middlesex, saved £9779 annually by agreeing to a fixed-price contract with Opus Energy for 12 months. The renewal quote offered by their existing supplier was 50% more expensive.
  • A restaurant owner in Dartmouth, Devon, saved £1,063 annually by agreeing to a fixed-price contract with Scottish Power. The renewal quote from their existing supplier was 22% more expensive.
  • A bar owner in Lymington, Hampshire, saved £3,357 annually by agreeing to a fixed-price contract with EDF Energy. The renewal quote from their existing supplier was 34% more expensive.

“Businesses have nothing to lose and everything to gain by serving advanced termination notice to their energy suppliers the required number of days before their fixed-price contracts end,” Mr Morgan said.

“If they fail to do this, they might find themselves stuck in an expensive and onerous roll-over contract and end up paying significantly more than they need to.

“A completely independent and impartial switching service like the Energy Advice Line makes it easy for firms to shop the market for the best business electricity prices and we also offer a free contract management service to affect a seamless transfer to the customer’s new supplier.

“If anyone has any doubts about how much firms can save, just visit our website or follow us on Twitter where we make public all the savings we achieve for our customers. The results speak for themselves.”

The Energy Advice Line helps firms of all sizes to search the market for the best business electricity prices and also the best business gas deals.

The service saves firms the time and trouble of trawling through thousands of business electricity and gas tariffs by analyzing prices from its panel of electricity suppliers and matching them with the requirements of the organization.

Significantly, tariffs are compared on a like-for-like basis without the use of product names or payment plans, which means that quotes are easy to understand and accurate.

The Energy Advice Line’s expert team also offers a free renewal reminder service and advice on the advanced termination notice requirement for suppliers to ensure firms do not get caught in expensive business energy rollover contracts.

For more information visit www.energyadviceline.org.uk

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Energy Advice Line warns new SMEs of the need to keep shopping around

22 November 2012

The Energy Advice Line has welcomed a new energy tariff dedicated to SMEs but has warned businesses it is still essential to shop around for the best deals.

Julian Morgan, managing director of the UK’s leading business electricity price comparison and switching service, said EDF’s New Start contract, aimed at entrepreneurs, start-ups and businesses that have moved into new premises, was a step in the right direction for SMEs.

But he said firms should avoid signing up to the deal without comparing the market first to ensure it really was the best tariff for their needs.

“It’s positive news that EDF is designing products based on the needs of start-ups, which are particularly financially vulnerable during the early years,” Mr Morgan said.

“But energy is like any other business supply – you should never accept the first price you are offered regardless of how appealing it sounds and particularly if it comes via a cold-caller.

“It is sound business practice, particularly when business electricity prices are rising, to compare the market to make sure you are getting the best deal that’s out there. In the current climate, you should also think about locking good deals in for at least 12 months.”

The New Start deal features a fixed daily charge of just 5p and a short-term contract of 6–9 months. Businesses are free to leave the contract if their circumstances change dramatically. In addition, when firms come to the end of their New Start deal they will not be rolled over automatically onto an expensive out-of-contract tariff.

Mr Morgan said the New Start contract sounded appealing but it was still essential for firms to shop around to ensure it was the best possible deal for their circumstances.

“It’s essential to compare products like-for-like because a deal might not seem so appealing when you drill down further.

“Using a reputable business electricity price comparison and switching service like the energy advice line is by far the quickest and simplest way to compare prices, get the best deal and save money.”

Mr Morgan also questioned why EDF was not making New Start deal available through business energy brokers or switching service.

“If the deal is genuinely as good as it sounds, EDF should have noting to lose from making it available through services like the Energy Advice Line,” he said.

The Energy Advice Line is the UK’s leading 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. It is also lobbying energy regulator Ofgem to ban the practice of cold calling by energy suppliers or their agents.

For further information visit www.energyadviceline.org.uk

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Energy Advice Line calls for overhaul of business electricity billing

10 September 2012
OFGEM should force suppliers to simplify their energy bills amid claims households and business electricity users have been overcharged by millions of pounds, according to the Energy Advice Line.
The energy regulator is investigating how suppliers calculate bills that straddle price increases following reports that they have been applying a higher charge to too much of customers’ gas and electricity use.
Big Six supplier EDF has admitted overcharging 100,000 domestic and business electricity customers between October 2003 and May 2010.
Julian Morgan, managing director of the UK’s leading business energy price comparison and switching service, said Ofgem’s investigation should result in sweeping changes to billing arrangements to end years of confusion.
“We have long been calling for suppliers to simplify their bills because the very least customers should expect to be able to do is understand what they are paying for,” Mr Morgan said.
“Under the current arrangements, this is impossible and suppliers don’t seem keen to make changes themselves. Business energy bills in particular are so complex it is virtually impossible for firms to understand how they are being charged.
“They are therefore unable to check whether they are being billed correctly, and as the Ofgem investigation shows, this is costing them significant amounts of money if there has been a billing error.
“It also makes it incredibly difficult to compare prices to gauge whether they are getting the best deal.
“We want Ofgem to force suppliers to make their bills clear, simple and transparent so that overcharging like this cannot keep happening.”
Ofgem has confirmed that it wants to ensure that customers are being billed properly when there has been a price rise.
“We have written to suppliers asking each of them to provide details of the approach they take to apportioning price increases and an explanation of the checks they employ to ensure accuracy,” an Ofgem spokesman told The Times newspaper.
“We also want to understand the way in which estimated and actual bills are reconciled.
“We want suppliers to explain what mechanisms they use when prices are raised to ensure that consumers pay the higher price only for units consumed following the price increase.”
The Energy Advice Line offers help and advice to firms of all sizes about how to save money on their business energy bills. The online service allows firms to input their details and with just a few computer strokes generate the five best energy quotes from a wide-ranging panel of business energy suppliers.
It also offers a free contract management service to help with ongoing questions or problems with the contract or energy supplier.
For further information about the Energy Advice Line’s services, or to obtain quotes or advice, visit www.energyadviceline.org.uk

OFGEM should force suppliers to simplify their energy bills amid claims households and business electricity users have been overcharged by millions of pounds, according to the Energy Advice Line.

The energy regulator is investigating how suppliers calculate bills that straddle price increases following reports that they have been applying a higher charge to too much of customers’ gas and electricity use.

Big Six supplier EDF has admitted overcharging 100,000 domestic and business electricity customers between October 2003 and May 2010.

Julian Morgan, managing director of the UK’s leading business electricity price comparison and switching service, said Ofgem’s investigation should result in sweeping changes to billing arrangements to end years of confusion.

“We have long been calling for suppliers to simplify their bills because the very least customers should expect to be able to do is understand what they are paying for,” Mr Morgan said.

“Under the current arrangements, this is impossible and suppliers don’t seem keen to make changes themselves. Business energy bills in particular are so complex it is virtually impossible for firms to understand how they are being charged.

“They are therefore unable to check whether they are being billed correctly, and as the Ofgem investigation shows, this is costing them significant amounts of money if there has been a billing error.

“It also makes it incredibly difficult to compare business energy prices to gauge whether they are getting the best deal.

“We want Ofgem to force suppliers to make their bills clear, simple and transparent so that overcharging like this cannot keep happening.”

Ofgem has confirmed that it wants to ensure that customers are being billed properly when there has been a price rise.

“We have written to suppliers asking each of them to provide details of the approach they take to apportioning price increases and an explanation of the checks they employ to ensure accuracy,” an Ofgem spokesman told The Times newspaper.

“We also want to understand the way in which estimated and actual bills are reconciled.

“We want suppliers to explain what mechanisms they use when prices are raised to ensure that consumers pay the higher price only for units consumed following the price increase.”

The Energy Advice Line offers help and advice to firms of all sizes about how to save money on their business energy bills. The online service allows firms to input their details and with just a few computer strokes generate the five best energy quotes from a wide-ranging panel of business energy suppliers.

It also offers a free contract management service to help with ongoing questions or problems with the contract or energy supplier.

For further information about the Energy Advice Line’s services, or to obtain quotes or advice, visit www.energyadviceline.org.uk

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Energy Advice Line supports campaign to help struggling retailers

4 September 2012

The Energy Advice Line has backed a campaign by a Coventry MP and retailers aimed at stopping energy suppliers from hitting struggling small shops and other business electricity users with huge back bills.

Under current laws, suppliers can reissue firms with higher bills to cover billing errors going back up to six years – even when the mistakes were the fault of the supplier.

Labour MP Jim Cunningham has supported the Association of Convenience Stores’ (ACS) fight to limit back billing to one year in line with rules that apply to domestic customers.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading business electricity price comparison and switching service, agreed that Ofgem needed to act urgently to give business energy users a better deal.

“We’ve long been calling for Ofgem to do something about back billing,” Mr Morgan said.

“This has been a nightmare for many businesses that suddenly find themselves in debt and their energy supply hastily disconnected, through no fault of their own.

“Furthermore, these outstanding back bills have made it more difficult for these firms to switch suppliers and reduce their energy costs.

“There has been a distinct lack of sympathy for these businesses, which is unreasonable given that in many cases, the supplier has made the billing error.

“Suppliers have made a move in the right direction but again Ofgem needs to make them do better. A one year limit on back billing is appropriate for all firms and will save them no end of pain.”

Research by the ACS found that 36% of independent retailers across the UK had been overcharged for energy in the past year, while more than one-in-four had received backdated bills that left them struggling to stay afloat.

“Energy companies continue to take advantage of small businesses at a time when energy costs are spiralling and competition in the market is failing to work effectively,” Mr Cunningham said.

“I am pleased to support ACS’s campaign and I have personally written to Ofgem calling on them to take immediate action.”

Late last year, energy suppliers developed a set of draft Standards that proposed reducing back billing to three years instead of six for the smallest businesses.

However, Ofgem warned that the proposals were insufficiently robust and suggested one year was more appropriate, particularly where the supplier was at fault. It also said the limit should apply to all business electricity users, not just the smallest firms.

A report by consumer watchdog Consumer Focus found that in 2010, 40% of all business energy cases handled by the Government’s advice line Consumer Direct related to back billing. In some instances, businesses faced back bills of £60,000, and if they were not in a position to pay quickly they faced disconnection.

The Energy Advice Line is the UK’s leading business electricity price comparison and switching services for business, and enables firms to compare the market for the best possible business energy deals at the touch of a button.

The service is not just about saving customer’s money year on year. We always act with complete transparency, present the best price first time and are on hand to help customers understand their bills at any stage of the contract with our free Contract Management Care Service. For further information visit www.energyadviceline.org.uk

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£16 million low-carbon fund for SMEs launch

29 August 2012

Small and medium-sized firms with innovative energy-saving ideas will have access to a £16 million fund from this week.

The Department of Energy and Climate Change has released the first phase of its £35 million Entrepreneurs Fund, which is designed to encourage SMEs to develop energy-saving ideas and switch to low-carbon technologies.

Part of the fund – some £10m – will be available for businesses to build on energy efficient technologies including control systems, lighting, and temperature systems. The rest of the fund will be used for power generation and energy storage technologies such as fuel cells, biomass boilers and heat pumps.

The second phase of the scheme will be launched early next year.

Releasing the first tranche of the fund this week, Energy and Climate Change Minister Greg Barker said innovative low-carbon technology was essential for a green economy.

“This investment will help entrepreneurs with novel ideas get designs off the drawing board and into our homes and businesses, helping cut carbon and spur on growth in this exciting market place,” he said.

Businesses bidding for a slice of the fund will be assessed on whether they meet the Government’s 2020 and 2050 carbon targets, as well as their project’s commercial potential and the extent to which it improves on current technologies. Successful bidders will receive the funds later in 2012.

Julian Morgan, managing director of the Energy Advice Line, welcomed the launch of the fund and said he hoped it would lead to more affordable green technologies being available to business electricity users.

“Green technology is something that businesses have to embrace, but with energy prices rising and tough economic conditions continuing, small firms often find green technology unaffordable,” Mr Morgan said.

“As this fund is targeted at SMEs, hopefully it will generate ideas and innovations particularly suitable for small and medium-sized firms.

“In the interim, the best advice for SMEs remains to shop around for the best available business electricity prices and lock into good deals before prices start to rise again.”

The Energy Advice Line is the UK’s leading energy business electricity price comparison and switching service, and enables firms to compare the market for the best possible business energy deals at the touch of a button.

The service has a team of business experts who can give advice about business energy contracts and how to avoid expensive contract rollovers. It also offers a free contract management service to help firms throughout the duration of their energy contracts. For further information visit www.energyadviceline.org.uk

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CATEGORIES
Business Electricity, Business Electricity Prices, Business Energy, Green energy, News
AUTHOR
Julian Morgan, MD Energy Advice Line
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