Today will see the announcement from the government on how they intend to alleviate households from the dramatic increases over the past 12 months. After they ruled out a windfall for seven million families last week, in favour of energy efficient measures, the government will try to ensure that those that are worst off benefit from these measures, which in some cases could see them receiving more in savings than just the £150 handout they would have received otherwise.
We will post the latest developments from the announcement as it happens later today.
Electricity and gas prices are to increase in Northern Ireland by 33% and 19% respectively. Following on from an increase of 14% in July announced by NIE for electricity in July and a 28% increase in gas prices announced by Phoneix for gas in May. Both are blaming the increases on the wholesale prices of fuel.
"We don't make a penny more from this increase, this price increase is driven purely by the increase in our wholesale prices." Stephen McCully, NIE Energy
"These price rises are truly shocking for consumers and people will struggle to cope. Having considered all the information provided to us, we accept that Phoenix's level of increase bears scrutiny and is broadly in line with the rest of the UK. However, NIE Energy's scale of increase is not and it needs urgent and further explanation - in just 10 months their rate of increase has almost doubled compared to the rest of the UK, even though we are told that global energy prices are behind these rises. The Consumer Council cannot accept an increase of this scale until this fundamental question is fully answered. In the absence of competition, consumers need to be fully satisfied that the regulatory system works." Eleanor Gill, Consumer Council
"We don't approve proposals for price rises without extensive scrutiny. We regret having to approve major price rises and are conscious of the impact that this will have on household budgets in Northern Ireland. We have worked hard to try to minimise the burden of the increase on low income consumers in particular. Specifically, we have directed NIE Energy to take specific steps to prevent price increases disproportionately impacting on Economy 7 users, who tend to be on low incomes. Iain Osborne, The Northern Ireland Authority for Utility Regulation
Whilst it is not surprising that the energy prices have risen again, it was mentioned that there was likely back in July, it is quite a shock that they have risen so sharply. For those in the position that are already struggling it is a devastating blow, and those that aren't so badly off it is still an extra burden.
Those that are struggling should contact their suppliers to see what help exists for those that are fuel poor, there should be a subsidised tariff.
Those that are also stuggling should take advantage of energy grants specifically available to them.
If you search this blog, we have lots of information on how to reduce your energy bills information on grants. Further information is also available at the Energy Saving Trust website, and on their freephone number 0800 512 012.
If you really want to find out a bit more face to face, you can always visit the Lifestyle Green 2008 show this Saturday at Castle Espie. On hand will be numberous organisations that can assist you in reducing your energy consumption, including installing energy saving measures for free.
The government today announced that it would not be providing the much anticipated "Fuel Payment Plan" of £150 to seven million households, which was originally announced in the media last month after it was leaked by a senior civil servant travelling on a train. Is this the right decision?
Our homes consume energy, copious amounts of it. 83% of domestic energy is used for space and water heating, and in the huge majority of homes this is done in an inefficient way. One-off payments purely provide assistance in the short-term, delaying the issue and exacerbating the situation further. In addition by providing a "subsidised" fuel, encourages the user to continue to use energy in an inordinate way, becoming reliant on benefits to subsidise their existence. Reduction of consumption has not be ingrained into the mindset of the individual, increased consumption, increased demand, and whilst on a global scale, relatively minor, increased prices, inevitably leading to further hardship.
By focusing on reducing energy consumption, via energy efficient technologies such as cavity wall insulation and loft insulation, this assists with the core aims of a reducing dependency of fossil fuels and lowering CO2 emissions. It is an investment for the future and progresses the nation towards a low carbon economy. It alleviates the burden on the tax payer, freeing up future revenue to be invested in further projects. By empowering individual awareness of the environmental and economic benefits of reducing their consumption, this kick-starts a revolution of energy savers.
According to Uswitch, this year the average annual household bill will be £1,467, up 61% on last year. As a whole, this equates to an annual spend for domestic households of £31bil annually, of a total UK consumption expected to exceed £200bil (three times the level of 1998). If all households that could install the two measures mentioned above did so, with the help of government grants or assistance, we could reduce UK energy use in monetary terms by 0.88% per annum, and reduce UK CO2 emissions by approximately 8.4m tonnes.
Political benefits from energy efficiency in the long-term oppose to "short-term gimmicks", reduced reliance on imported 'old sun' energy, sustained decreased in energy consumption, reduced CO2 emmissions from point of implementation year-on-year, improved air quality and decrease in associated illnesses.
Whilst I believe the that the government has made the right decision, those that will suffer from this announcement, are those most in need of support, however there is genuine help available to those who are fuel poor, individuals on certain benefits, and even for those that are not.
Specific advice is available, you can contact the Energy Saving Trust or, if you contact us via email, with information about your current energy use, type of housing, installed heating methods, your location, energy supplier details. We will try to find the best solution to reduce your energy bills right now for free, through grants, support and practical advice.
Further information on how you can reduce your energy consumption this winter is available on our Winter Energy Saving Ideas page.
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Today will see the announcement from the government on how they intend to alleviate households from the dramatic increases over the past 12 months. After they ruled out a windfall for seven million families last week, in favour of energy efficient measures, the government will try to ensure that those that are worst off benefit from these measures, which in some cases could see them receiving more in savings than just the £150 handout they would have received otherwise.
