UK energy news

Government electricity market reform plans "unworkable"

2012-05-16 12:50:11 +0100

The head of policy at one of the big six energy companies has claimed that government plans to reform the electricity market are "unworkable," according to an article published by the Guardian.

Keith MacLean, head of policy at Scottish and Southern Energy, stated: "These proposals are too complex - they are unworkable, and they are looking even more like a train wreck."

Firms specialising in renewable energy - including SSE - have written to energy secretary, Ed Davey, stating that they believe the reforms will deter investment in renewable energy - instead of promoting it - making the country's renewable targets difficult to achieve.

MacLean went on to forecast that the proposals would ultimately affect households the most.

He said: "This will expose consumers even more to price volatility. It's taking the risk of volatility away from the generators, who are best equipped to deal with it, and passing it on to consumers.

"The only logic we can see in this is that they (ministers) are still trying desperately to hide the nuclear support. They seem to be prepared to make life more difficult for renewables in a last-ditch effort to keep the nuclear option open," he added.

Amongst the other firms urging Davey to amend the policy are Ecotricity, Good Energy, Renewable Energy Systems, Natural Power and Fred Olsen Renewables.

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Hendry places support behind smart meters

2012-05-16 11:50:13 +0100

With a mass-roll out of smart meters planned to begin in 2014, energy minister Charles Hendry MP has forecast that they will play "a key role in bringing our energy management into the 21st century," according to an article published by Energy Live News.

The MP made the claim in a post published on his blog; he also stated that he felt the meters "will provide accurate consumption information and bring an end to estimated billing - so no more nasty surprises for consumers."

A number of energy suppliers - including members of the big six energy companies - have begun offering and installing smart meters in the homes of their customers.

Hendry went on to state that the roll-out would benefit the UK by around £7 billion. He said: "We are consulting on a series of measures, such as how consumers should be engaged and how data can be accessed and protected, which underline our determination to put consumers' interests at the heart of the programme."

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E.ON's gas and electricity prices frozen for remainder of 2012

2012-05-15 11:50:13 +0100

E.ON - one of the big six energy companies - has revealed that it will not be raising its gas and electricity prices during the remainder of this year (2012), according to an article published by the Telegraph.

The announcement is set to be welcomed by millions of households and follows British Gas owner, Centrica's warning that it may be forced to increase its prices in light of rising wholesale gas prices.

British Gas' managing director, Phil Bentley has also forecast that energy bills could continue to increase over the next decade.

He said: "People will have to pay more per unit (over the next 10 years) and they are therefore going to have to be more diligent in saving energy."

Commenting on the state of the current market, E.ON UK's chief executive, Tony Cocker, stated: "Unfortunately global energy markets are expected to see an overall trend of rising wholesale prices."

However, Cocker added that the firm would ensure that residential prices remain unchanged.

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E.ON, one of the big six energy companies, reveals shares fall

2012-05-14 16:50:14 +0100

Following a fall in profits, shares in E.ON - one of the big six energy companies - have dropped by 1.4 per cent, according to an article published by BBC News.

Net income during the first quarter fell by 24 per cent - to £1.4 billion. The fall has been attributed to a lower demand for gas and electricity on the continent.

Despite the fall in income, sales rose by 28 per cent - to €36 billion.

E.ON also revealed that it expected its pre-tax profits to be slightly higher this year, than during 2011. It also stated that it was working to reduce the amount it pays gas suppliers for energy.

Chief financial officer for the firm, Marcus Schenck, stated: "We're making good progress. But we still need to be resolute about meeting our current challenges and implementing the changes we've initiated."

Meanwhile, E.ON has also revealed that the demand for gas in Europe is at the same level as it was back in 2001, with demand for power at the same level as it was during 2004.

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Centrica warns of higher gas bills

2012-05-11 11:50:12 +0100

British Gas owner Centrica has warned consumers to expect gas bills to increase, as wholesale prices continue to rise, according to an article published by BBC News.

Although British Gas - one of the big six energy companies - previously implemented a five per cent price cut to its standard electricity tariff, Centrica has revealed in a statement that gas prices could be around 15 per cent higher during the next winter.

It also added that the costs of supplying energy to a home would add an extra £50 to a bill.

Meanwhile, Centrica has also presented its trading update. In the update it revealed that it was on track to grow its profits by ten per cent or more.

Gas consumption in households was up by one per cent during the four months leading up to April, while the consumption of electricity was down by three per cent during the same period, it stated.

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