Posts Tagged ‘Business Electricity’

British Gas reveal that 1,800 people each day leave…

27 January 2012

BUSINESS energy users who want to consider turning to smaller independent energy suppliers instead of the ‘big six’ utility companies have been urged to contact the Energy Advice Line.

The call follows admissions by British Gas, the UK’s largest energy supplier, that 200,000 customers have turned their back on the company in the past four months.

British Gas revealed that 1,800 people each day had been leaving in protest at price hikes of 17.3% announced in the summer.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business, said many business electricity and business gas users were disillusioned with the behaviour of the ‘big six’ and wanted to consider other options.

“That’s why we have a broad range of business energy suppliers on our panel. Business energy users who want to search the market for the best available prices can come to us knowing that we will compare the prices of the big six as well as smaller independent suppliers,” Mr Morgan said.

“We have companies like Haven Power, CNG and Opus on the panel, smaller independent organisations that often offer specialist products for business energy users.

“That’s the benefit of using an impartial service like our to compare business electricity prices and commercial gas tariffs. We make switching business electricity or business gas suppliers easy and our  service is completely free.”

Energy industry analysts say thousands of domestic customers are leaving the ‘big six’ and moving to smaller and cheaper companies.

Since energy prices peaked last summer, wholesale gas prices have fallen by 31% and electricity by 28%. British Gas has announced cuts in electricity prices of 5% but has decided not to reduce its gas prices at all.

The exodus of customers from British Gas comes amid newspaper reports that the company is preparing to announce a £566million profit for 2011, compared with a record £742m in 2010.

The Energy Advice Line is the UK’s only independent price comparison and switching services exclusively for small and medium-sized businesses. The service enables firms to quickly and simply compare business energy and business gas prices, and to switch to the best available deal on the market.

The service also offers advice and help on all aspects of business energy contracts.

For further information visit www.energyadviceline.org.uk

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Smart meters could increase bills say MPs

19 January 2012

Smart meters, which will be rolled out to all domestic and smaller business energy consumers by the end of the decade, will be open to abuse by energy companies and could even lead to higher bills, according to a powerful committee of MPs.

The new and sophisticated meters, which give real-time readings of energy consumption, should be regulated more tightly, a report by the public administration committee has found.

Savings made by suppliers as a result of the installation of smart meters might not be passed on to business electricity and business gas customers, and the market could not be relied on to drive down prices, the report found.

All domestic consumers and small business energy customers will have smart meters installed by 2019, while large business will have ‘advanced’ smart meters installed by April 2014.

The report follows claims by consumer campaign group Which? that the government was not overseeing the installation of smart meters with enough vigour. It called for the rollout of the technology to be halted until the government could guarantee that bills for domestic and business energy customers would not skyrocket.

Margaret Hodge, chair of the public administration committee, said the government would have to do more to ensure that business energy customers benefited from the changeover to smart meters.

“Consumers will have to pay suppliers for the costs of installing and operating smart meters through their energy bills and no transparent mechanism presently exists for ensuring that savings to the supplier are passed on,” Mrs Hodge said.

“The track record of energy companies to date does not inspire confidence that this will happen.

“The government is relying on competition in the market to drive down prices. But, as has been previously reported by Ofgem, the energy market does not currently operate as an effective competitive market,” she said.

“The department [of energy and climate change] should clearly set out what energy suppliers’ responsibilities will be for engaging with consumers to deliver the benefits of smart meters; and how they will be held accountable to both the department and consumers,” she added.

Energy Minister Charles Hendry said there would be no further “dither and delay” to the rollout of smart meters despite the committee’s finding, saying the government would ensure that there would be sufficient “ministerial oversight and safeguards” built into the scheme.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for businesses, renewed calls for a watchdog to ensure reforms to the energy market, such as the introduction of smart meters, actually benefited business energy customers.

“Unfortunately, business electricity and business gas customers have lost faith in energy suppliers due to their behaviour in the past,” Mr Morgan said.

“Suppliers do not have a great record for always acting in the best interests of their business energy customers, so the government needs to ensure that all reforms to the energy market, including the rollout of smart meters, have teeth.

”We believe a regulatory body is needed to oversee the introduction of this technology and ensure that business gas and business electricity customers benefit from any savings that suppliers make in the cost of delivering energy.”

The Energy Advice Line is the only independent price comparison and switching service in the UK designed exclusively for businesses.  Firms can view the five most competitive energy offers from the UK’s leading suppliers online, compare prices against their renewal quotation and switch at the click of a button.

The Energy Advice Line’s expert team can also offer advice on how to switch suppliers, as well as a renewal reminder service to ensure you do not get caught in an expensive business energy rollover contract.

For more information visit www.energyadviceline.org.uk

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Angry customers abuse business energy suppliers

16 January 2012

Furious domestic and business energy customers are resorting to making increasingly aggressive complaints over rising energy bills, according to British Gas.

The UK’s biggest energy supplier has revealed that customers struggling to pay their bills, including business electricity and commercial gas customers, were taking their anger out on call centre staff.

The admission was made by British Gas managing director Phil Bentley in an email to staff and reported in weekend newspapers.

“We’ve seen a groundswell of anti-British Gas comments, with increasingly aggressive tones,” Mr Bentley said.

“All our call centres are under extreme pressure from more angry customers struggling to pay bills.”

Mr Bentley blames the media for exaggerating the energy price rises and enraging customers who then vent their anger at staff in British Gas call centres.

‘There is no doubt in my mind that the energy industry is facing a crisis: a crisis of affordability, a crisis of investor confidence, a crisis of relentless media criticism. In short, a “crisis of trust”.’

British Gas has further angered customers by refusing to pass a 9.4% fall in the wholesale price of gas to its 9.2 million customers.

Last week the supplier announced that it would reduce its electricity tariffs by 5%. Business electricity customers whose energy contracts are coming up for renewal, or those on variable rates, could benefit from these falls.

Mr Bentley’s comments come just days after consumer organisation, Which? released a report showing the ‘big six’ energy suppliers, which includes British Gas, received 4 million consumer complaints last year.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading business energy price comparison and switching service, said customers were frustrated at the behaviour of energy suppliers.

He urged business energy customers who had grievances they could not resolve to call the Energy Advice Line for help.

“Business electricity or commercial gas users who feel they have a legitimate problem with their bill, their business energy contract or business energy tariffs should contact us and we may be able to help,” Mr Morgan said.

“Not only can we make sure that firms are on the best available business energy deal, but our team of experts may be able to help with other problems like billing errors.”

The Energy Advice Line is the UK’s leading energy 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 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 urged to tell Ofgem what they think

12 January 2012

Business electricity and gas customers are being urged to submit their views to Ofgem about the behaviour of commercial energy suppliers and suggest ways to improve the non-domestic energy supply market.

The energy regulator is considering what further action it needs to take to make the UK’s energy supply market more effective for both householders and businesses. The deadline for submissions by businesses is February 15.

Late last year Ofgem announced a range of proposals aimed at making it easier for firms to compare business electricity prices and commercial gas tariffs, and simpler to change suppliers to get the cheapest business energy deals.

Ofgem has suggested a range of measures to address concerns that many small businesses have been tied into costly rollover contracts and terms they did not fully understand. It has recommended a code of practice for suppliers and business energy agents, as well as financial penalties for those organizations that do not comply.

The regulator has stated that it would prefer to implement reforms with the appropriate co-operation from business energy supply companies. But it has warned that if this is not forthcoming, it may force the hand of suppliers.

“If, following our consultative process, we consider that reforms do not have a realistic chance of addressing the concerns identified due to industry opposition or otherwise, we will consider a referral to the Competition Commission,” Ofgem says.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business, has welcomed Ofgem’s proposals. However, he has urged the regulator to give reforms “teeth” by appointing an official watchdog to ensure commercial energy suppliers comply.

“The reforms Ofgem has put forward are terrific in principal but will be fairly meaningless unless they are enforced,” he said.

“Businesses have had to put up with a great deal for too long by suppliers who have done everything in their power to make it difficult for them to switch providers in order to get cheaper business electricity prices and gas tariffs.

“They are rightly skeptical about whether these proposals will benefit them unless there is a body to enforce them.”

The Energy Advice Line is the UK’s only independent price comparison and switching services exclusively for small and medium-sized businesses. The service enables firm to quickly and simply compare business energy and business gas prices, and to switch to the best available deal on the market.

Mr Morgan said there was clear evidence that businesses which shopped around and switched suppliers for a better deal at renewal time achieved significant savings over those businesses that stayed with the same supplier year-on-year.

Businesses can also prevent being caught unwittingly in expensive rollover contracts with their existing suppliers by signing up with the Energy Advice Line’s free renewal reminder service.  For further information visit www.energyadviceline.org.uk

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Business electricity and business gas tariffs start to fall

12 January 2012

THE UK’s leading business energy price comparison and switching service for business has urged firms to be cautious amid reports of business electricity prices and business gas tariffs  falling in 2012.

Julian Morgan, managing director of the Energy Advice Line, said despite reports that energy prices could be slashed as part of a supplier price war,  business energy users should remain vigilant in a volatile energy market.

Recent reports have suggested that due to the mild winter, energy companies have abundant supplies of gas and therefore could afford to cut retail energy prices by as much as 10%.

Some smaller suppliers have already announced price cuts and energy regulator Ofgem has warned larger firms like British Gas that it expects them to pass on any such savings.

Business energy users, as well as domestic customers, would be expected to benefit from lower business gas and business electricity rates if commercial gas suppliers passed the savings on.

But Mr Morgan said firms should not assume that business energy suppliers would automatically lower commercial electricity prices or gas tariffs. He said it was still essential to compare business electricity and gas prices to get the best available deals on the market.

“Energy prices are still extremely volatile and firms should not assume their business energy suppliers will pass these savings on to them,” Mr Morgan said.

“In any event, rises and falls in energy prices take some time to flow through to business energy customers as most firms are on fixed-term contracts – prices fluctuations only kick in once these contracts come up for renewal.

“In a competitive market like this, where business electricity and business gas suppliers are fighting for market share, it’s actually more important than ever to compare commercial electricity and gas prices. It’s the only way to find the cheapest deals.”

Last week, Ovo energy became the second small energy company to drop tariffs for its 70,000 customers. British Gas chiefs are reported to be considering a price cut before its parent company Centrica announces its profit results this week.

The Energy Advice Line is a business electricity price comparison service that enables firms to compare the market for the best possible commercial 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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Regulator threatens crackdown on commercial energy suppliers

9 January 2012

Energy regulator Ofgem has warned of a crackdown on the major energy suppliers amid accusations of ‘predatory pricing’ tactics.

In a move which could impact on business electricity prices and gas tariffs, Ofgem has confirmed it is investigating complaints from small energy companies that significant energy discount deals being offered by their larger rivals could be in breach of competition laws.

The investigation comes amid reports of a price war between energy suppliers and the possibility of energy prices falling by as much as 10% due to a fall in wholesale energy prices. Firms have been warned by industry experts to remain vigilant about business electricity prices and gas tariffs as energy prices remain volatile.

British Gas is reported to be considering cutting gas prices by up to 10% over the next few months, following on the heels of at least two smaller energy suppliers.

Any lowering of wholesale prices by energy suppliers could be reflected in lower commercial electricity prices and gas tariffs. However, industry bodies including the Energy Advice Line have warned firms to be cautious as any price fluctuations would not be felt immediately by businesses on fixed-term contracts.

First Utility is among the smaller energy companies that have complained to Ofgem about the pricing strategies of the major suppliers who advertise significant online discounts.

‘The only way they can make these astonishing offers is by making a loss. This is predatory pricing and we are too small to compete. It’s a way of driving us out of business,’ according to Darren Braham, First Utility’s chief financial officer.

A spokesman for Ofgem said: ‘We have not yet found breaches of competition rules, but we are considering very carefully whether some of the energy companies are abiding by the strict rules governing the timing of short-term online deals.’

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business energy, said the pricing tactics of the major commercial energy suppliers were a further reason why firms should use a fully independent price comparison and switching service.

“Deals that may appear on the service to offer great value for money may not actually deliver lower business electricity prices or reduced gas tariffs in the long run, “Mr Morgan said.

“Using a reputable, independent business electricity price comparison service like ours enables any organization to get expert advice, free of charge, about the cheapest business energy deals out there.

“Deals that sound good are not always what they seem.”

The Energy Advice Line is a consumer champion and business electricity price comparison service tailored exclusively to businesses.

The service is impartial and not linked to a single supplier. Businesses are offered a selection of quotes from a panel of business electricity and gas suppliers, as well as comprehensive advice on bills, contracts and switching.

For further information about the Energy Advice Line, and to receive a free quote, visit www.energyadviceline.org.uk

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SMART meters mean faster switching says Ofgem

23 December 2011

THE introduction of smart meters could pave the way for businesses energy users to switch suppliers within 24 hours, according to Ofgem.

In a report examining the potential impact of the roll-out of smart meters across the UK, the energy regulator said that smart meters could make it possible for domestic and small business energy users to switch suppliers on a ‘next day basis’.

This would benefit business electricity and business gas users who were not on fixed-term energy contracts, or those who been rolled over onto expensive “deemed” rates when their fixed contract expired.

The report proposed a range of other benefits that would stem from the scheduled roll-out of smart meters, which provide real-time gas and electricity meter readings remotely. A key feature of the meters is their ability to measure energy use in blocks of as little as half an hour.

All domestic consumers and small business energy customers will have smart meters installed by 2019, while large business will have ‘advanced’ smart meters installed by April 2014.

Ofgem’s report, released this month, examines the long-term implications – both positive and negative – that will flow from the new technology. One of the key benefits could be an easier switching process.

“Consumers’ right to switch their supplier lies at the heart of the competitive retail markets for gas and electricity,” the report says.

“However, the complexity of the processes can lead to delays, errors and costs, which are often borne by consumers.  Even when it works well, this process is relatively slow. It has typically taken four to six weeks to switch supplier. These factors can lead to consumer complaints and disengagement with the competitive market.”

It suggests that smart-meters will make it quicker and easier to switch suppliers because it will streamline the current complex system which leads to delays, errors and costs. Because smart meters allow the transmission of immediate real-time meter readings, there will be no need for switching to take up to 6 weeks as it currently does.

The report examines a range of other challenges and benefits that may flow from smart metering, including more business energy users being rewarded for using energy at off-peak times.

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for businesses, said he welcomed any development that made it easier for business energy users to switch suppliers quickly and easily.

“Business owners have long suffered from the delays, errors and general rigmarole involved in switching suppliers, and if smart metering can alleviate these problems, businesses would be significantly better off,” he said.

“The easiest and most cost-effective way for business energy users to reduce their overheads is to change supplier – but under the current system there are many obstacles placed in the way of them doing this. Hopefully smart metering will form part of the solution.”

The Energy Advice Line is the only independent price comparison and switching service in the UK designed exclusively for businesses.  Firms can view the five most competitive energy offers from the UK’s leading suppliers online, compare business electricity prices and gas prices against their renewal quotation and switch at the click of a button.

The Energy Advice Line’s expert team can also offer advice on how to switch suppliers, as well as a renewal reminder service to ensure you do not get caught in an expensive business energy rollover contract.

For more information visit www.energyadviceline.org.uk

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Complaints about energy firms soar

20 December 2011

COMPLAINTS about the ‘big six’ energy companies soared by 26% in the three months to September, according to figures published by energy watchdog Consumer Focus.

Every power company except Scottish Power recorded a rise in the number of complaints made against them, with EDF Energy posting a massive 91% year-on-year increase in the number of dissatisfied customers.

The results are the latest in a series of attacks on energy suppliers. Earlier this month they came under fire for their treatment of business energy users.

As a result of receiving more than 150 complaints per hundred thousand customers, EDF was the first company to receive a zero star rating in the league table of energy firms. The number of complaints it received rose by 74% from the previous quarter.

The data was compiled by consumer watchdogs Consumer Focus, Consumer Direct and the Energy Ombudsman, and covers July to September 2011.

Npower also lost stars, slipping to a 2-star rating, and E.ON fell to 3 stars.

The rise in complaints received by energy firms coincided with the double-digit energy price rises announced in the summer.

Adam Scorer, Director of External Affairs at Consumer Focus, said: “It is disappointing, but perhaps not surprising, that complaints on energy issues have risen at a time when energy bills are increasing. Energy companies have repeatedly said they want to rebuild consumer trust. Good customer service and complaints handling are key ingredients to building consumer trust but suppliers still have a long way to go.

“Complaints about EDF Energy over the summer have had a catastrophic impact on its rating. While system changes inevitably cause disruption to customers, this must be minimised. Its current complaints performance is unacceptable and the company must take further steps to tackle this.”

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for businesses, said dissatisfaction about energy companies was not confined to domestic energy users.

“Business energy users also have major concerns about the way they are treated by the energy companies,” Mr Morgan said.

“Ofgem has just begun to realise this in its proposed reforms to give business electricity and business gas users a better deal. But we are still waiting to see if those reforms have real teeth.

“These figures show that energy suppliers may need more than a little encouragement when it comes to improving the way they treat both domestic and business energy users.”

The figures are the latest in a series of attacks on the major energy suppliers. Earlier this month Ofgem accused suppliers of making it too difficult for business energy customers to switch suppliers and of treating them unfairly when it came to back billing.

The Energy Advice Line is the UK’s only independent price comparison and switching services exclusively for small and medium-sized businesses. The service enables firms to quickly and simply compare business energy and business gas prices, and to switch to the best available deal on the market.

Businesses can also prevent being caught unwittingly in expensive rollover contracts with their existing suppliers by signing up with the Energy Advice Line’s free renewal reminder service.  For further information visit www.energyadviceline.org.uk

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Money-saving strategy for business energy users in 2012

19 December 2011

2011 has been a difficult year for many small and medium-sized firms and 2012 is set to be the same. So how can businesses be more money-savvy in the year to come?

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business, says businesses should focus their efforts on reducing their spending as well as chasing new sales.

“When consumer confidence is low, increasing sales can be a costly and time-consuming exercise,” Mr Morgan said.

“Many businesses don’t realise that reducing their direct costs can significantly increase profitability – and it costs them nothing to do. Firms would be wise to have a line-by-line review of their spending to see where it is possible to reduce costs.”

With energy costs one of the most significant overheads for many firms, particularly those in the hospitality, retail and manufacturing sectors, businesses that reduce spending in this area can make substantial savings by monitoring their business electricity prices and consumption rates together with their business gas rates.

And it is more important than ever for business energy users to ensure they are in control of their energy spend, Mr Morgan said.

In 2011, all the ‘big six’ energy companies announced price increases, some in excess of 20%. While these increases may not have impacted immediately on organisations on fixed energy contracts, the price hikes will hit home when these deals expire.

“Some of these business electricity and business gas users will face significant price increases when their contracts come up for renewal,” Mr Morgan said.

“If firms do not shop around for the best tariffs, they will miss out on an opportunity to reduce their energy costs.”

As an example, Mr Morgan said the Energy Advice Line recently helped a frozen food producer – with an annual energy bill in excess of £1 million – find a cheaper business energy deal when its fixed-term energy contract expired.

The Energy Advice Line was able to find a deal £270,000 cheaper than the renewal offer quoted by the firm’s existing supplier.

“Not all organisations have energy bill that large, but it illustrates the size of the savings that can be made by choosing your supplier carefully,” Mr Morgan said.

“Firms need to treat energy companies in the same way they would any other supplier – shop around and don’t stay with the same supplier year-on-year. You will be throwing money away if you do.”

The Energy Advice Line also advises all its customers to make sure their business electricity and business gas meters are working properly, and to provide regular monthly meter readings to suppliers.

Businesses that are unsure of whether their meter is working properly should request that a check meter be installed to verify the accuracy of the meter readings.

The Energy Advice Line has also produced a guide to helping organisations stay in control of their energy costs, which explains the methods used by energy companies to deter businesses from switching suppliers.

For further information about the Energy Advice Line, and to obtain a copy of the guide, visit www.energyadviceline.org.uk

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Small businesses urge Scottish Government to “get moving” on safeguards to prevent energy companies “sharp practices”.

23 November 2011

A LEADING business group has urged the Scottish Government to “get moving” on safeguards to prevent small businesses losing out to “sharp practices” by energy companies.

The Federation of Small Businesses (FSB) has called on the Scottish Government to set up an impartial service to help business energy users that are being hit hard by rising energy prices.

In a recent survey of members, the FSB found that 80% of small to medium-sized firms in Scotland had seen their overheads rise in the past year, with the majority citing business energy costs as the most significant cause of this increase.

The FSB has called for greater scrutiny of the ‘big six’ energy companies and their behaviour towards business electricity and business gas users. It has also recommended clearer pricing structures and the opening up of the market to new suppliers.

Rory Mackail, the FSB’s vice-convenor of Scottish policy, said: “We know the pressure that the rising cost of energy is putting on households across the country. We’re also warning today that Scottish small businesses are also feeling the strain.

“Sharp practice by energy firms means that busy small business owners’ energy contracts are often rolled, locking them in for a further term at inflated prices. Small businesses can also be back-billed up to six years under current regulation. This means that there could be a number of small businesses in for a big shock when their next energy bill arrives.”

Julian Morgan, managing director of the Energy Advice Line, the UK’s leading price comparison and switching service for business energy users, agreed that many firms were caught out by the tactics of power companies.

“Energy suppliers do whatever they can to deter business energy users from switching suppliers,” Mr Morgan said. “Rolling businesses over onto expensive and lengthy deals when their contracts expire is often where they make their profits.”

Mr Morgan urged firms whose business energy contracts were coming to an end to use an impartial price comparison and switching service like the Energy Advice Line.

“We have an expert team that can help businesses determine when their energy contracts end, when they need to give notice to their current supplier, and how to switch to the best available energy deals on the market, “ Mr Morgan said.

“We also provide an on-going service well after the switch has happened – at no cost at all to businesses.”

For further information and a free quote, visit www.energyadviceline.org.uk

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