More Customers are Choosing the Smaller Suppliers

In April 2014 289,000 consumers' switched energy suppliers, with almost half choosing smaller suppliers over the 'Big Six'. Despite this, the large suppliers still dominant the market with a 94.6% share - however this has fallen from 99.4% in January 2011.

The report comes amid mounting pressure on the industry to prove that there is a healthy level of competition within the retail and wholesale energy markets, following calls from the regulator for a full investigation by the Competition and Markets Authority.

"Once again, the monthly electricity switching report has shown that switching is on the up," said Energy UK in a statement.

"This is the sixth month in a row that the percentage of all switching being a move to small supplier has increased. This shows that there is plenty of choice out there and the public are making the most of it," the group added.

The number of energy customers moving to small suppliers in April was 135,000, or 46.88% of all those who opted to change providers. But it is hoped that the CMA probe will result in even stronger growth for independent suppliers.

The small suppliers OVO Energy and First Utility are frequently top of the best deal lists for the cheapest home energy deals. - check them out at GET ME CHEAP BILLS.COM

Citizens Advice Proposal

In light of the increase of transfers to the smaller suppliers, Citizen's Advice have proposed that energywatch, Consumer Focus and Consumer Futures publish rankings of ALL energy suppliers to give consumers access to accurate and impartial information. Giving consumer's access to this information empowers them to make informed decisions about their energy supplier, and gives the companies incentive to continually improve their performance as they are ranked on their performance. Up until now this has only been limited to the 'Big Six' but Citizen Advice want to include the smaller suppliers in order to give the consumer a through and whole choice before switching.

Citizen's Advice are welcoming opinions and views on their proposals. Response should be emailed to Graeme.maclachlan@citzensdvice.org.uk.This should be provided before July 9th as they wish to start publishing data towards the end of 2014.

Anyone wanting a free quotation from an independent and impartial price comparison site should visit GET ME CHEAP BILLS.COM to see how the smaller suppliers compare.

OFGEM unveil biggest ever investigation in to the energy market

By referring the heavily criticised power industry to the Competition and Market Authority, yesterday OFGEM put in to motion the biggest investigation yet into the energy market. There will be increased pressure on the Big Six as over the next 18 months the spotlight will be on them, as the CMA will determine whether British Gas, EDF, E.on, nPower, Scottish Power and SSE have been profiteering and should be broken up.

OFGEM believe that an investigation will ensure that competition has a positive effect for consumers, by bringing down prices and driving improvements in customer service

Dermot Nolan, OFGEM Chief Executive, said: "Now is the right time to refer the energy market to the CMA for the benefit of consumers. There is near-unanimous support for a referral and the CMA investigation offers an important opportunity to clear the air. This will help rebuild consumer trust and confidence in the energy market as well as provide the certainty investors have called for. The energy market is also going to change rapidly over the next few years with the roll-out of smart meters, the government's electricity market reforms, and closer integration with European energy markets. A CMA investigation should ensure there are no barriers to stop effective competition bearing down on prices and delivering the benefits of these changes to consumers."

The CMA will immediately begin their investigation and are likely to publish final decisions by the end of 2015. The CMA can decide which features of the market to focus on in its investigation and use its powers to address any structural and behavioural issues that would undermine competition.

OFGEM also pledged to carrying on working to protect consumers; continuing to push forward on next-day switching, working on the tools and support available to the most vulnerable of consumers in finding the best energy deal, and ensuring that consumers make the most of reforms to make the market simpler, clearer and fairer. 

copyright - Engerglinx

Green Deal - flawed?

March 1, 2013

The Green Deal: changes must be made

ENERGYLINX: Five months on, the Department of Energy & Climate Change's Green Deal initiative has continued to evolve in an effort to provide a cost-effective means of reducing the UK's carbon emissions; however, there are still several unaddressed issues with regards to the way in which it is funded.

In essence, the Green Deal aims to fund domestic improvements using the short-term savings that customers stand to make on their energy bills after increasing the energy efficiency of their home. These improvements include cavity wall insulation, loft insulation and new boiler systems; however, the DECC is also offering subsidised loans for improvements such as double glazing, microgeneration technologies and small, domestic renewables.

This pay-as-you-save model ensures that energy customers receive money up front in order to make the required energy efficiency improvements to their homes; however, in truth these payments actually take the form of a capped loan - which is subsequently repaid in instalments, with 7% interest, by adding money onto the energy bills associated with the property in question. The DECC has vowed that these regular instalments must not exceed the potential associated cost savings for the property, based upon an average energy bill. In turn, the Green Deal loan's repayment then becomes the liability of the bill payer of the property for the duration of their responsibility to meet the cost of said bill.

A major issue then becomes as follows: how are these loan repayments affected by those who move properties or let to others? In short, the loan simply changes hands - as it is attached to the property rather than the individual who took out the loan. The DECC feels as if this is an adequate arrangement, as the current tenants will enjoy the savings of the Green Deal's energy improving measures; however, the capped loan with which incoming residents receive consequently serves as a 25-year sentence where higher energy bills are concerned.

It's worth noting that the Green Deal offers the much-needed financial push homeowners vitally need to make their homes more energy-efficient - and, in truth, the legislature has actually evolved in order to help customers reduce the cost of their energy bills after signing on to the programme. Initially, the legislature was unclear regarding whether Green Deal participants had the ability to switch their energy supplier after taking on a loan repayment scheme - fortunately, the government acquiesced, and customers are now free to switch between the UK's Big Six suppliers, and their Green Deal repayment scheme will transfer with them. That said, by being restricted to only the UK's biggest energy suppliers, customers are actually missing out on the market's cheapest deals.

Indeed, the UK is home to 19 domestic energy suppliers with 24 different brands - and the cheapest deals for customers are increasingly not being offered from the UK's Big Six suppliers. Moreover, although the DECC maintains that no loan repayments can exceed the amount of money that should be otherwise saved, said repayment cap is to be set based upon 'an average bill' - presumably industry-regulator OFGEM's generally recognized definition for a medium average user. Because customers aren't aware of these cheaper deals available from smaller suppliers, the average homeowner is already left overpaying their energy bills by at least £213.06* via the choice to remain with overpriced, mainstream tariffs. Worse yet, Green Deal property occupants don't even have that choice, and therefore end up repaying for energy efficiency measures they didn't even approve by hundreds of pounds more than they should have to.

By restricting Green Deal customers to just a quarter of the energy market, homeowners are effectively signing on to a 25-year sentence of substantially higher energy bills, with 7% interest to boot. At a time when energy prices are predicted to go nowhere but up, it's absolutely vital that something be done in order to prevent an otherwise proactive and beneficial government initiative from becoming nothing more than a 25-year contract condemning customers to a quarter-century of ridiculously overpriced energy bills - because by signing on to the Green Deal as it currently stands, that's exactly what customer can expect.

first:utility launches new price promise

: Following the launch of its iSave Everyday tariff last week, supplier first:utility is releasing a new price promise regarding the tariff.

first:utility has pledged that the "iSave Everyday will be cheaper than the lowest price 'Big 6 Standard Tariff' at the National Average". In effect, the first:utility Price Promise means that the supplier will guarantee that all iSave Everyday customer prices will be cheaper than the standard rate tariffs of the UK's Big Six energy suppliers. These tariffs include: British Gas' Clear and Simple, E.ON Energy's Energy Plan, ScottishPower's Standard, npower's Standard no standing charge, EDF Energy's Standard (Variable) and SSE's Standard Energy. 

On a weekly basis, first:utility will now compare its iSave Everyday prices against the six aforementioned tariffs - based upon the average UK consumption rate of 3,300kWh of electricity and 16,500kWh of gas per year. If the cheapest average bill value based upon the average usage of any of these tariffs falls below the iSave Everyday, first:utility now promises to reduce their tariff to be lower than that average bill value within 60 days of their customers' next Billing Cycle.

The iSave Everyday is a variable rate tariff available in duel fuel or electric-only. The iSave Everyday also features a standing charge, but has no early termination fees should a customer wish to switch tariffs prior to the end of their contract date. iSave Everyday bills must be viewed online, and payment should be made via Monthly Direct Debit. That said, customers may also pay by Quarterly Direct Debit or Pay on Receipt of Bill at an additional charge. The iSave Everyday is not a available to customers whose gas is supplied via an Independent Gas Transporter (IGT) network, or those who have an Economy 7 meter or a de-energised MPAN or MPRN.

Launched in 2008, Warwick-based first:utility is a member of the First Telecom family, and is the UK's 7th largest energy supplier. first:utility consistently reiterates its commitment to transparency towards customers, and was amongst the first UK energy suppliers to begin providing customers with smart meter systems.

Check out the new tariff and all the other UK tariffs at http://www.getmecheapbills.com

(Info from Energylinks)

3 New Tariffs from British Gas

ENERGYLINX: British Gas has announced the launch of 3 new energy tariffs: Online Variable May 2014, Price Promise July 2014 and Price Promise April 2015. British Gas is subsequently removing four tariffs from sale, effective from today: Online Variable February 2014, Fix & Fall March 2014, Fix & Fall March 2014 Prepay, Discount Variable February 2014.

The first of the new offerings from British Gas, the Online Variable May 2014, is a variable rate tariff set at a minimum 4% discount against the supplier's standard Clear and Simple tariff until 31 May 2014. The account is only available to Direct Debit and customers paying by cash or cheque, and features mandatory paperless billing and Online Account Management. Customers may be subject to an early termination fee of £30 per fuel should they wish to switch tariffs prior to 31 May 2014.

British Gas' second launch, Price Promise July 2014, is a fixed rate tariff set at a 6.4% premium against the supplier's standard Clear & Simple tariff rates until 31 July 2014. This offer is accompanied by the guarantee that customer prices will not rise before 31 January 2014, and is EnergySmart compatible. An early termination fee of £35 per fuel may apply to customers wishing to switch tariffs prior to 31 July 2014. This tariff is also being made available to customers of British Gas partner Sainsbury's Energy.

Finally, British Gas is also launching its Price Promise April 2015 tariff today. This fixed rate tariff features rates that are fixed at 9.4% premium against the supplier's standard Clear & Simple tariff; however, is accompanied by a guarantee that customer energy prices will not increase before 30 April 2015. The tariff is EnergySmart compatible, and features an early termination fee of £50 per fuel, should customers wish to move off this tariff prior to 30 April 2015.

All three tariffs are subject to regulatory changes or any future changes in VAT, and customers will be transferred onto British Gas' standard rate tariff following the expiration of the Online Variable May 2014, Price Promise July 2014 and Price Promise April 2015 tariffs.

Check all the current tariffs at Get me cheap bills. Com

New Tariff from First Utility

First Utility Launches iSave v12

First Utility removed its iSave v11 from the market this week, and announced the launch of its latest tariff, the iSave v12.

The only major change between the two tariffs is that - unlike its predecessor - the iSave v12 does not feature a dual fuel discount. There have been no changes to the standard terms and conditions.

The iSave v12 is a dual fuel, single rate tariff, and must be paid via monthly Direct Debit. Online billing is preferable, although paper billing is available at an additional charge of £1 per month. Customers choosing to participate in this latest tariff are to be billed using estimates based upon estimated annual consumption (EAC) for electricity and the Annual Quantity (AQ) for gas as given to First Utility by the customers' former suppliers - unless said customers opt to supply opening meter reads. Each customer will have the ability to submit monthly meter reads via our customer portal and will be prompted to do so by email.

Unlike many dual fuel tariffs, there are no early exit fees associated with this product after the initial fixed price period of 3 months. If customers with to switch product or supplier within this initial 3 month period, however, a termination fee of £30 per fuel applies.

New Eon Energy Plans

ENERGYLINX: E.ON Energy has announced a major upheaval in its tariff structure by launching its new Best Deal for You range.

Falling in line with E.ON's recent reset on customer relations, the supplier's Best Deal for You product set was crafted to "rebuild customer trust through simple, clear and transparent offerings." In order to do this, E.ON chose to remove a whopping 8 tariffs from the market:

• Age UK
• Age UK Fixed Price April 2014
• E.ON Energy Discount 2013
• E.ON Energy Online
• E.ON Fixed Price April 2014
• E.ON Go Gre
• E.ON Save Online 12
• E.ON Track & Save 14

As part of its new product set, E.ON has replaced said tariffs with five core 'build your own' tariffs, as well as two prepayment tariffs. As with the supplier's former plans, all products within the Best Deal for You range vary relatively based upon pre-existing terms and conditions; however, all new tariffs illustrate E.ON's desire to move the industry from a market of instant discount rewards to one of higher-value, behaviour-based rewards.

In particular, said behaviour-based rewards include loyalty discounts, prompt pay discounts and Tesco Club Card Points. Such discounts and rewards can be customised based upon the needs of the customer on all non-standard tariffs, and E.ON has also introduced a standing charge to replace secondary rates.

The Best Deal for You range is composed of the following tariffs:

• E.ON EnergyPlan is a single or dual fuel variable rate tariff with no standing charge and no cancellation fees. The EnergyPlan features no rewards, but boasts potential discounts for Direct Debit, Prompt Pay and dual fuel customers. Tesco Points are earned based upon the amount otherwise spent.
• E.ON Energy Discount is a single or dual fuel variable rate tariff that features a standing charge and a single unit rate, as well as potentially applicable early exit fees. The tariff boats discounts for Direct Debit and Prompt Pay customers, a loyalty discount and rewards for dual fuel and online account management.
• E.ON Energy Fixed 1 Year is a fixed-rate tariff available in dual fuel or electric-only. Similar to E.ON's Energy Discount, the Energy Fixed 1 Year features all the same primary discounts and rewards as the former - the only major distinction being that the rates of the Energy Fixed 1 Year will not change for the duration of contract.
• E.ON Energy Fixed 2 Year is also a single electric or dual fuel fixed rate tariff. It provides discounts for Direct Debit and Prompt Pay customers, as well as dual fuel, online account management and loyalty rewards. The Fixed 2 Year maintains both a standing charge and single unit rate, and IGT charges are not applied.
• Age UK Fixed 1 Year is a dual fuel or electric-only fixed rate tariff that is available only to over-60s. The tariff includes Age UK Winter Payments - £10 for those aged over 60, and £20 for those aged over 80 - as well as the same discounts and rewards associated with E.ON's Energy Fixed 1 Year and 2 Year tariffs. The Age UK Fixed 1 Year plan cannot earn Tesco points, but features no cancellation fees.

In addition, E.ON's Best Deal for You range also features two prepayment products:

• E.ON EnergyPlan with Prepayment is a variable rate tariff available to dual fuel or electric-only customers. It features no standing charge on gas, but does have a standing charge for electricity. The tariff does not maintain any of the discounts offered by E.ON's new credit tariffs; however, there is not cancelation fee, and customers can earn Tesco Club Card points based upon what they spend on energy.
• E.ON Prepayment Reward is the final offering from E.ON's Best Deal for You range, and is a variable rate tariff available for dual fuel or existing single electricity customers only. The plan features no annual discounts; however, rewards are offer for dual fuel, and loyalty customers. In addition, Prepayment Reward participants can also choose to collect a product reward in the form of either Tesco Club Card Points or credit top-ups for their electricity meter. The tariff features a standing charge on electricity, as well as a cancellation fee.

If you would like to learn more about the rewards and terms and conditions associated with E.ON's new range of Best Deal for You products - or simply to find out whether any of these energy plans may be the cheapest deal for your home - For the cheapest energy bills check our comparison site