David Cameron says the UK has to Get Serious about Renewable Energy

February 5th, 2013

David CameronDespite what some people may think, David Cameron is behind green energy 100%. In fact, he recently said that the world’s greenest economies will be the ones who are able to compete in the global economic race. In the coming years, if the UK does not go green, it will not be a part of this race and will have to watch from the sidelines.

This speech made by Prime Minister David Cameron was music to green businesses’ ears. They have been waiting for the government to completely get behind the idea of green energy, and with the Prime Minister on board, it seems as if their wish has finally come true.

During the speech, Cameron went on to say that people should make no mistake. The UK is in the middle of a global race, and in order to win the race, the country is going to have to go green. Only the countries that are the greenest in Europe are going to win this race to power. Energy consumption is set to continue to rise. If countries are spending all of their extra capital buying up what’s left of fossil fuels, they are opening the door for other countries to focus on growing their economy.

Right now, companies in the UK are being manhandled by rising energy prices. This is causing them to cut back on their spending, which does include cutting people from their pay role. This, in turn, does not help the UK economy. In order to end this deadly cycle, the UK is going to have to lower energy prices. Unfortunately, the only way to do that is to find another energy source, and it needs to be green energy.

Of course, leading the industry in low-carbon technology has other benefits as well. Experts say that the low-carbon sector is going to be worth some $4 trillion by 2015. Whatever company leads this industry could be able to make a hearty profit off it as other countries turn to them to help meet their energy needs.

The UK does not just want to make enough renewable energy to supply their needs. It wants to supply the needs of other countries as well. If this could happen, the UK could actually become a hug exporter of green energy. This would turn out to be a huge boost to the UK’s economy as a whole.

Phil Bentley Expected to Step Down from Position at British Gas

February 4th, 2013

British Gas logoBritish Gas is expected to lose its boss. The managing director of British Gas, Phil Bentley, is expected to leave the company within the next few months. This announcement comes just as the parent company of British Gas, Centrica, revealed its plans for a “strategic review”.

For those who don’t know, Mr. Phil Bentley became a member of the Centrica family back in 2000. By 2007, he was handed his role at British Gas and has been there ever since. So far, Centrica has declined to come forward and comment on Mr. Bentley’s departure.

Of course, losing its managing director is not the only reason why British Gas has been in the news as of late. In fact, the company has been a focal point of criticism ever since it announced that it would be raising household energy bills. This was bad news to the 15.8 million consumers that British Gas is serving. To make matters even worse, most of these consumers are already having trouble paying their energy bills.

The increase to household bills all started back in November when the company announced that it would increase household bills by 6%. This was a rise that the company blamed on the cost for “upgrading the UK’s gas and electricity grid”. On top of that, British Gas also said that the rising cost of wholesale gas prevents them from being able to keep bills from rising anymore. That being said, the company is expected to announce profits of close to £575 million.

It is not that people don’t want companies to turn a profit. In fact, most people want businesses to be successful. However, consumers have a hard time “pulling” for companies to do well when they are struggling to get by. Why should consumers be the ones suffering to stay warm this winter while energy companies continue to line their pockets with people’s hard-earned money?

Right now, people in the UK have very little control over their energy bills. Switching companies does not offer much savings since all of the Big Six energy companies have increased their rates. With people struggling to pay their bills, they cannot even afford to make their homes more energy efficient to save what little bit of money they can.

SSE Announces that it Expects a 5% Jump in Pre-tax Profits

February 1st, 2013

SSE LogoAre energy bills getting any cheaper? Not hardly! So when more energy companies continue to post profits, it has consumers wondering if there is a need for energy prices to be as high as they are. Well, this is what SSE consumers are wondering, at least after the energy giant announced that it expects to make a 5% jump in pre-tax profits.

The chief executive officer of SSE, Ian Marchant, says that the total performance of SSE has been very good though 2012 and into this year. He is very pleased to see SSE on course to see further growth.

Despite the increase in profits, SSE went on to say that they are not sure if they are going to invest in any new power plants as of right now. So if they are increasing prices, but not using the money to invest in new energy plants, what are they doing? Are they just hording money for a rainy day? That is what it seems like. Meanwhile, consumers all over the UK are struggling just to make ends meet.

During a trading update, SSE went on to say that there is still growing uncertainty in the market. Thus, this is affecting SSE’s move going forward. SSE needs to step back and take a look at where the market is heading from here. Only then will the company be able to invest in the right path to take.

In short, the company does not know what it wants to invest in, and instead of simply picking a side, they are going to wait and see what everyone else does. During this time, they will continue increasing rates on consumers so that they have enough money stockpiled to do whatever it is they choose to do in the end. This may seem like a strong choice for them, but it’s not a very consumer friendly one.

Of course, a lot of the “waiting game” is due to the UK government’s method for dealing with the energy market in the first place. The government has already made some pitches to parliament about reforming the whole energy market. This restructuring would, of course, inspire low-carbon forms of power over fossil fuels. If that is the case, big energy suppliers like SSE would be forced to make a huge shift. With these proposals in the works, one would think that these energy companies could be making an aggressive move to change the way they receive their wholesale energy.

Experts Still Expect Wind Energy to Boost the Welsh Economy

January 31st, 2013

Wind FarmThere are a lot of things working against the UK right now. However, the two biggest ones would be energy and the economy. Right now, energy prices are on the rise, and people are having a hard time paying their bills. They are having a hard time because the economy is at a standstill. Tons of people remain unemployed. So when a job does become available, it is flooded with requests.

However, there could be an easy answer to both problems: wind power. That’s right, according to reports, wind energy may be able to not only help the UK reach its carbon emission goals, but it could actually boost the economy by close to £2.3 billion.

This new research was carried out by the Cardiff Business School. They found that an average of 2,000 extra jobs a year could be created until 2050 if the UK would invest more in wind power. Not only that, but it would inject close to £2.3 billion into the Welsh economy. These are numbers that are simply too big to be ignored.

The research that was carried out by thee Cardiff Business School was based on how much money has remained in Wales and has been spent on wind farms. As it turns out, there is a pretty good rate here that the government needs to be paying attention to. That being said, the school also warned that any further delays on approving wind farms will hamper these results.

Of course, the Welsh government does have a few projects in the pipeline. They have set a goal to generate at least 2,000 megawatts of power from onshore wind turbines by the year 2025. Most of the power would be available by the year 2020. The government knows that these projects will not only improve their chances of reaching their carbon emission goals, but it should also improve the economy.

Despite all of this, the fact remains that this is not enough. More has to be invested in green energy. This is the only way that, not only Wales, but the rest of the world can break its dependency on fossil fuels. In order to move forward, more money has to be invested. In the end, it would prove to be a smart move by businesses to invest in renewables. After all, one day renewable energy will have to surpass fossil fuels, because it is not renewable.

UK Could be looking at Huge Energy Fines from the European Commission

January 30th, 2013

Carbon emissionsThe latest thing that the UK needs right now is to be fined millions of pounds over its energy practices. However, that may just be what the UK is facing now. According to reports, the UK may face up to a quarter million pounds in fines every single day. Apparently, this would be due to the UK’s failure to apply European Union internal energy sector regulations in Northern Ireland.

The rule in question is the one that separates energy production, as well as supply, and simplifies third party access to private networks. Of course, this news may not come as a shock to many people in the UK since most people know that they UK’s energy industry is already iffy at best.

Currently, the European Commission is referring the UK to the European Union Court for Justice. The government is being sent there for failing to comply with a March 2011 closing date to order the directives into countrywide law. Although this law has been brought into force around the rest of the UK, Northern Ireland has yet to see this new rule be implemented.

Gunther Oettinger, who is the Energy Commissioner for all of the European Union, said that the delays implementing this ruling in Northern Ireland have not gone unnoticed. Failing to put these rules into effect is a negative outcome for all “players” in the energy market. Thus, this is a problem that cannot simply be overlooked.

Now, with this new fine being placed on the UK, it should not take long for the government to get its act in gear. In fact, the Department of Energy and Climate Change says they would have these new rules implemented by April of this year in Northern Ireland.

Although it is good to see the government acting quickly, it is likely to lose a lot of taxpayers’ money before the problem is fixed. In fact, the UK will be subjected to a daily consequence of at least £127,000 every day after the court’s decision, until the rules are finally transposed. Do keep in mind, however, that this penalty has not been issued by the courts yet. The gravity and the duration of this penalty will not be made official until the courts have ordered it.

Government Continues to Try and Make Homeowners Go Green with New Energy Scheme

January 29th, 2013

Loft insulationThe government has tried many different things to help encourage people to go green. That being said, many households are still in fuel poverty. Now the government is launching a new scheme to help people make green improvements to their homes.

This new scheme, which sounds very similar to past schemes, will provide people with loans that they can use to make their homes more energy efficient. These long-term loans will help people stay warmer without having to spend a lot of money out of pocket.

The deal is supposed to run in Wales, Scotland and England. The goal is to have this Green Deal help thousands of homes stay warm for less. Of course, the government is hoping that more people sign up for this deal than the amount that signed up for some of their past deals.

Apparently this scheme will see loans given to people so they can make some energy-saving improvements to their homes. This does include things like buying a more energy efficient boiler, installing more insulation, etc. They will be able to do this without any upfront costs.

So why is the government willing to loan people money to make their homes more energy efficient? Well, the less energy that people use, the less carbon emissions the UK puts out. This means that, by making people’s homes more energy efficient, the UK can actually lower its carbon emissions.

To take part in this deal, people will first have to go visit an assessor. They will ask the homeowners some very basic questions about their energy usage. From there, they will be referred to approved Green Deal installers. These companies will be able to advise people on some potential improvements that they can make to their homes that would save them energy. This includes new heating systems, double-glazing, more insulation, etc.

All of the improvements will be paid by the consumer borrowing money from the Green Deal Finance Company. The non-profit organization is being supported by the government. These loans will then be paid back through how much people save on electric bills over the course of 25 years. The whole point of this loan is not to put extra stress on a homeowner’s already tight budget.

Greater Manchester has seen Tons of People Sign Up for New Cheap Energy Deal

January 28th, 2013

Energy Bill and Pound NotesAccording to reports, there are tons of people in Greater Manchester that signed up for the Fair Energy Scheme. Experts say that this scheme may be able to cut people’s energy bills by close to £250. However, for the people who have not signed up for the deal yet, time is running out. The last day to sign up for the GM Fair Energy Scheme is today (Monday).

It is safe to say that the Fair Energy Scheme in Greater Manchester is a success. So far, more than 25,000 people have signed up from all over Greater Manchester. This number of people is likely to go up again on Monday as more people try to meet the deadline. The truth is, people are simply interested in this deal because it saves them money on a bill they feel like they can’t control: their energy bill.

The scheme is apparently based on the “co-operative principle”.  It has a number of people coming together into a large group. Here is an example. Let’s say that consumer A says that he is going to leave an energy company because they increased their prices. Well that energy company is not going to care, because they are only losing consumer A. Now, let’s say that consumer A was part of a big group, like the Fair Energy Scheme. Now when that company raises prices, they lose over 25,000 consumers, not just one.

Not only that; the Fair Energy Scheme will have people getting cheaper deals to start with. Whatever company offers the lowest rate will get these 25,000 people. If a better rate comes along, these 25,000 people will jump ship. It is the best way to keep energy companies competitive.

This is not the first time that such a scheme was created. For example, a similar scheme was launched in Oldham just a year ago. This scheme only had about 8,500 people signed up, but in the end these people ended up saving about £171.

If the government can’t come up with a way to keep the Big Six energy companies from being competitive, people have to come up with their own ways. The best way to prove this point is in numbers, and that is just what the Fair Energy Scheme is about.

Ireland Will Soon Be Selling its Excess Green Power to Britain

January 25th, 2013

Onshore Wind TurbinesIt now appears that Britain will soon be buying all of Ireland’s excess green power. This news comes just years after the government gave the go ahead to sign a contract to assess the prospect of cross-border green energy trading. This supports claims that Ireland could be a huge exporter of green energy in the near future.

The energy ministers for the countries are all set to sign an “understanding” in Dublin. Here they will agree to assess the costs and, of course, the benefits of trading renewable energy. Edward Davey, who is the British Secretary of State for Energy and Climate Change, said that making the most out of the world’s natural renewable resources is what this is all about. It could benefit the economies of both countries.

This new agreement should help Britain reach its very ambitious goal of generating at least 15% of all of its energy from renewable sources by the year 2020. Of course, it is still not known just how much this new agreement will help. After all, Ireland will only be exporting its excess green energy to Britain.

Of course, this agreement has been in the making for a long time. Ministers held a preliminary discussion about this agreement in June of last year. Since then, companies have been announcing their plans to build more wind farms and energy networks in Ireland. After all, they now know that all of the excess energy would be sold to the UK.

One of the new projects that will be built because of this deal is a £7 billion scheme. Here they will build between 500 and 700 wind turbines in the Midlands of Ireland. Most of the energy that is produced there will be exported over to Britain.

Current European rules suggest that every member state has a lawfully binding target to produce so much energy from green resources. However, thanks to the signing of the inter-governmental agreement, nations can now import green energy to each other to help meet these goals. This is just what Britain hopes to do with Ireland.

In the end, this is great news for both areas. Britain can use this excess green energy to reach its own goals, and Ireland can turn a nice profit off selling its green energy to Britain. However, this will not be enough to help Britain fully reach its goals. Now the question is: What will Britain do next?

Government Scheme to Help Homes Become Energy Efficient has Failed to be Used by Homeowners

January 24th, 2013

House with solar panel roofingNot too long ago, the government announced a scheme that would actually help make homes more energy efficient all over the UK. The government believes that this would be a great opportunity for homeowners, and that many people would take advantage of it. However, with less than a week to go before the launch of this scheme, only five households have signed up with this new scheme. This could become one of the least popular schemes ever.

The scheme, which is known as the Green Deal Project, is offering households the chance to take out a loan of £10,000 to make their homes more energy efficient. Not only that, but people get to pay off this loan over the course of 25 years and only pay as much on the loan as what they are saving on their electricity bills.

Although the scheme sounds good on paper, homeowners don’t seem to want any part of it. In fact, only five households have agreed to take part in this scheme, and it is supposed to launch next Monday. There must be something about the scheme that people don’t like, and the government is seeing this firsthand. After all, the government expected a much bigger turnout than just five signups.

Right now the government needs to find out why no homeowners are expressing a serious interest in the scheme. What is making them avoid it? So far the government has gone out of its way to recruit some of the biggest named DYI stores in all of Britain. They felt that the popular names would make consumers more likely to sign up. However, that does not seem to be the case.

According to some homeowners, this new loan could make it tougher for them to sell their home if they want to during that 25-year loan. After all, the £10,000 debt is secured to the home rather than the individual.  So, when someone moves, they actually leave their debt for the next person that moves in.

The government had first said that they hope about 14 million households would sign up for this scheme. Thus, they were shocked to find out that only five have done so. This is going to make it harder for the government to reach its vow to reduce carbon emissions in the country by a certain amount.

Brits Vote Npower the worst energy supplier in all of Britain

January 23rd, 2013

Npower logosUsually, gaining a lot of “votes” from consumers is a good thing. However, if the survey is about which energy supplier is the worst, having a lot of votes would be the last thing a company wants. Unfortunately for Npower, that is just what happened.

According to a survey handled by Which?, the German-owned energy supplier has been given the worst score among the Big Six energy suppliers, with a 39 out of 100. This energy supplier, which actually has about three million consumers, has been criticized for a long time over poor customer support. Some had hoped that the energy giant would be able to fix this problem this year, but no such thing happened.

This survey from Which? was no small thing. In fact, some ten thousand consumers were asked to rate their supplier in several categories, including: complaint handling, bill accuracy, money, service, and energy saving advice. Not shockingly, Npower scored low in every category.

Of course, Npower was not the only Big Six firm to get a low rating. All of the other members scored pretty low overall. In the end, only two of the Big Six energy companies were able to break into the top 10 in terms of energy suppliers, and that was SSE and E.ON. Both of these companies tied for ninth place with an overall score of just 51 out of 100.

So this just begs the question: Which energy companies came out on top? The number one rated energy company in Britain was Good Energy, with a score of 85. That was followed by Ecotricity with a score of 80. From there it was Ebico, Utility Warehouse, Ovo Energy and Co-operative Energy. These were not the energy companies people expected to be on top.

Richard Lloyd, who is the executive director of Which?, said that consumers have yet again told the world that they are fed up with the way that the Big Six are treating them. The government’s energy reform needs to address this problem. It needs to go much further than what it did.

In the end, Lloyd added, the government has to come up with a way to increase competition so that the Big Six energy suppliers cannot continue to be number one in earnings but lowest in consumer satisfaction. People are getting sick of it, but there does not seem to be much they can do. The Big Six have a monopoly on the market.

Scientists Hope to Produce Clean Energy by Replicating Nature

January 22nd, 2013

Barn with Solar Panel RoofAccording to reports, scientists hope to produce clean energy by replicating processes that take place naturally in nature. This study is being carried out at the University of East Anglia. In short, they are trying to artificially replicate photosynthesis. For those who do not know, this is the process by which plants are able to use power from the sun to make energy for themselves. During this process, plants produce hydrogen, which is a zero emissions fuel. This can be used to make electricity or even power cars.

This project is said to be worth more than £800,000. It will involve placing very small solar-panels on microbes to help convert the sun’s rays into energy. The goal is to help create a plentiful and cheap energy from this process, more so than the energy that is just captured by the solar-panels themselves.

Most scientists still believe that there is a huge untapped resource in the sun’s rays. Experts say that this is a huge energy source that is beating down on the world every day. However, most people don’t even think twice about it. This energy is being wasted. If it can be captured in an effective way, it can solve the world’s energy problems overnight.

Julea Butt, who is the lead researcher for the University of East Anglia’s chemistry department, said that reserves of fossil fuels are getting smaller by the day. As a result, fuel prices have been on the rise for years. It is very vital that the world starts looking into other renewable energy supplies. There are many renewable forms of energy, like sunlight, waves and wind, that are untapped. This is mostly because of the challenges that exist when trying to convert these kinds of energy into a usable form.

The truth is, people can harness this energy, but having it “on demand” is what is tricky. For example, solar-panels can gather tons of energy during the day, but at night they are almost completely useless. However, during the day, they may be producing more energy than what a person can use. There needs to be a way to save the extra energy so it can be used during times when renewable energies aren’t producing. Turning this energy into hydrogen would solve this problem, because the hydrogen could be used when needed.