Carbon is the most sought after element in the world economy. This is due to our use of energy in the form of fossil fuels. This burning of fossil fuels is the main producer of greenhouse gases namely CO2 believed to be responsible for what is now commonly known as “Global warming”.

Britain is facing stringent E.U. CO2 reduction targets. This will affect us all in the way we use energy and pay for it. Already we have seen the Climate Change Levy imposed upon businesses on top of VAT.

You pay for your energy as pence per kWh = unit cost to your business = CO2 production from fossil fuel burning

1 kWh = average 7p

Production of that same amount of energy from fossil fuel burning power stations per kWh can be as much as 0.95 of a kilogram

In simple terms a one bar electric fire rated at 1000 watts for one hour produces almost as much as a kilogram of CO2.

The chart below shows the proportion of CO2 emissions that power stations are responsible for in the UK total emissions of CO2 at the time the study was taken, to give you some idea of how your actions at a local level have an effect on a global scale.

co2 carbon emissions uk
Its clear to see that energy supply to the domestic and industrial premises is responsible for a large proportion of the total CO2 output of the UK.

So we have to save energy but this also means saving money. We are all mostly becoming aware of the things we have to do, however now is time to think about future proofing your business in the face of the uncertain carbon economy. Let’s look at a simple example of how energy efficiency really does mean saving money.

The energy efficient light bulb comparison

The difference is the amount of electricity used to give the same light output and in the extended light length of life. A high efficiency bulb typically uses only 20% of the electricity of a 100 watt incandescent bulb of equivalent light output. Also, a high efficiency bulb will last 8000 hours against only 1000 hours for an incandescent.

In order to appreciate the savings we need to do a simple calculation to compare old incandescent bulbs to a high efficiency bulb. Taking for example UK electricity in 2001 cost on average about 7p per kilowatt-hour.

20 Watt Compact Fluorescent Lamp

In its 8000 hour life a 20 watt CFL will consume:

8000 x 20 = 160,000 watt-hours = 160 Kilowatt-hours of electricity

At 7p per kilowatt-hour this will cost: 160 x 0.07 = £11.20

So, including the £10 cost of the lamp the total cost over 8000 hours = £21.20

100 Watt Incandescent Lamp

In 8000 hours the 100 watt incandescent lamp will consume:

8000 x 20 = 160,000 watt-hours = 800 kilowatt-hours of electricity

At 7p per kilowatt hour this will cost: 800 x 0.07 = £56.00

Each incandescent lamp lasts 1000 hours, so over 8000 hours we will need to buy 8 lamps at 50p each. This adds another £4 bringing the total to £60

So the overall saving in using a compact fluorescent lamp is:

£60.00 – £21.20 = a total saving of £38.80 per bulb

So now its pay back time, energy cost is rising , use less where possible.
So that is an efficient bulb consumes 20 watts, this means for every 1000 hours of use at an average of 7p per kilowatt hour will have a cost of £1.40.

Compare that to a traditional incandescent bulb consumes 100 watts so for every 1000 hours of use at an average of 7p per kilowatt hour will have a cost of £7. All within a thousand hours.

Saving £5.60 per 1000 hours lighting per bulb.

Multiply this by the number of bulbs you have in your business or house.

This is only one example but the easiest to quantify in cash terms.

British Gas cuts standard electricity prices by average 5%

Today British Gas has announced it is to cut its standard electricity prices by an of just over average 5% (based on average consumption). This is good news for customers and the price cut takes effect immediately.

This will make British Gas one of the cheapest standard electricity providers in the United Kingdom across all energy supply regions and at average energy consumption levels. This could help save the UK consumer an estimated £23 of the average electricity bill.

Today’s price reduction is the fifth time British Gas has reduced prices over the last three years. The reduction in electricity prices is also in addition to the commitment made by British Gas not to raise prices for all its variable rate gas and electricity customers throughout the winter

The extremely mild start to the winter has resulted in lower than usual levels of demand for gas. As a result, wholesale gas prices for this winter have reduced since the autumn – but this happened after British Gas had already purchased the bulk of gas its customers would need this winter; our gas prices were already locked for this winter.

However, with wholesale electricity prices the picture is more complex – and more flexible. Higher wholesale gas prices usually translate into higher wholesale electricity prices. But, while the price of wholesale gas used to generate electricity has increased, a surplus of electricity generation capacity and greater liquidity in the electricity market has limited the increase in the wholesale cost of electricity.

There have also been significant differences in the rates at which wholesale gas and electricity prices have risen and fallen. For example: prices for winter 2012 have risen by 14% in the wholesale gas market, compared with just 5% in the wholesale electricity market.

First Utility iSave Fixed Price v1 March 2013

The gas and electricity supplier First Utility have launched their latest tariff “iSave Fixed Price v1 March 2013″. This is a new capped tariff to lock in to the same price until 2013.

Full details of this are shown below.firstutility

Name of tariff:  iSave Fixed Price v1 March 2013

 Tariff type: Dual fuel

Payments: Monthly Direct Debit only

Notes: Customers have the option to choose online, or paper billing (paper billing option charged at £1 per month)

Discounts: 13% dual fuel discount capped at £80 (inc VAT) for electricity and £100 for gas (inc VAT) per annum, paid annually by cheque payment, after consecutive direct debit payments. First Utility reserves the right to withhold or reclaim any discounts paid if the customers total spend in any year is less than £600 inclusive of VAT.

iSave Fixed Price v1 March 2013 is a dual fuel energy tariff.  These customers will be billed using the estimated annual consumption (EAC) for electricity and the Annual Quantity (AQ) for gas given to us by their old supplier when they transfer, unless they supply meter reads. Each customer will have the ability to submit monthly meter reads via the customer portal. They will be prompted to do so by email. These reads will then be used to bill the customer as accurately as possible.

Cancellations: No cancellation fee

Price Commitment:  Prices will be fixed until 31st March 2013

first utility iSave Fixed Price v1 December 2012

Today first:utility has luanched their latest fixed tariff offering to the Uk energy market, iSave Fixed Price v1 December 2012. Details of the tariff are shown below.

Name of tariff: iSave Fixed Price v1 December 2012

Tariff type: Dual fuel

Regional availability: Nationally available (subject to specific terms and conditions documented)

Payments: Monthly Direct Debit

Billing: Customers have the option to choose online, or paper billing (paper billing option charged at £1 per month)

Discounts: 13% dual fuel discount capped at £80 (inc VAT) for electricity and £100 for gas (inc VAT) per annum, paid annually by cheque payment, after consecutive direct debit payments. First Utility reserves the right to withhold or reclaim any discounts paid if the customers total spend in any year is less than £600 inclusive of VAT.

iSave Fixed Price v1 December 2012 is a dual fuel energy tariff. These customers will be billed using the estimated annual consumption (EAC) for electricity and the Annual Quantity (AQ) for gas given to us by their old supplier when they transfer, unless they supply meter reads. Each customer will have the ability to submit monthly meter reads via the customer portal. They will be prompted to do so by email. These reads will then be used to bill the customer as accurately as possible.

Cancellations: No cancellation fee

Price Commitment: Prices will be fixed until 31st December 2012

Specific Terms and Conditions: The dual fuel discount of 13% capped at £80 for electricity (inc VAT) and £100 for gas (inc VAT) will be illustrated on the customer’s bill. Payment will be made by cheque prior to the annual anniversary of the date that electricity supply has been with First Utility. Should the customer leave First Utility within this period they will lose their dual fuel discount and the prices they pay will be higher than the prices they were quoted when they switched to First Utility. First Utility reserves the right to withhold or reclaim any discounts paid if your total spend in any year is less than £600 inclusive of VAT.

Energy Efficiency Tips for Your Home

Energy efficiency is complicated, but  simple changes can lead to big savings and reduced emissions:-

Heating/Heat Loss – Space heating i.e. the heating of your building consumes the bulk of delivered energy to domestic and business premises,  try to prevent heat from escaping with simple measures like draught excluder’s,  company policies of energy efficiency drives and insulate roofs/walls where possible.   Have your air conditioning maintained regularly and your central heating checked, you may even be eligible for a grant to replace your old inefficient boiler(domestic only).

There are 4 main ways that heat is lost from a building, windows / doors / walls / roof.

Windows – Double glaze your windows, make use of blinds/curtains to keep heat in and make use of sunlight in the summer to heat and light your building, ie turn down lighting and heating with the seasons.

Doors – Draught excluder’s are a cheap and efficient method of reducing ventilation  heat loss.

Walls – Cavity wall insulation is an excellent method of insulating your property and helps a premises maintain heat meaning your boiler uses less energy to maintain a comfortable environment.

Roof – Ensure your property’s roof has been insulated, heat rises, the most heat is lost through poor roof insulation.

Refrigeration – In the year 2000 the total of business and domestic refrigeration accounted for around 16 Tera Watt hours (TWh = 1000 x 1000 Mega Watts MW this is a huge amount).  Much of this is because a lot of refrigerators are old and inefficient.  If your business is not heavily reliant on refrigeration(therefore should have the latest most efficient machines), even one small/medium fridge freezer, if more than 10 years old needs to be replaced and would would pay for itself  in a very short space of time and reduce your carbon emissions.

Lighting – Take a look at the figures in the above example for proof that changing to energy efficient bulbs really does save energy & money.

Change the way – your employees think about using energy , encourage policies of switching appliances off at end of shifts etc and maintenance management using heating efficiently.

Paperless office –  do you really need to print? E- faxes cut down on direct expenditure as well as indirect resources and energy in producing the paper.

Energy Secretary Chris Huhne Calls for Consumers to Switch Energy Suppliers

The UK energy Secretary Chris Huhne has said that households across the country should look to shop around and switch energy suppliers to find a better deal for their gas and electricity.

The energy prices rises in 2011 from all of the big 6 energy suppliers have been criticised by many as over the top in a time of rising inflation and when the monopoly energy suppliers keep announcing higher profits.

This week a summit was held to with the “big 6” and the prime minister David Cameron to try and set a road map to work harder to try and help bring down consumers bills.

The prime minister has said that the UK government needs to work “faster and harder” to bring down energy bills.

“We should be checking to see whether or not we’re on the cheapest tariff,” Mr Huhne said after the summit.

“We should be switching if we’re not on the cheapest tariff and taking the opportunity ahead of this winter to really make sure that we’re insulating so that we can save money.”

Four of the big six suppliers, British gas, Scottish Power, Npower and EDF Energy have all said that they will not put their energy prices up again this year. But that is a marketing smoke screen as all energy suppliers will look ahead to the winter and forward buy up to 75% of the energy demand in the summer time, so they have already worked out what they need, bought a good percentage of it and put up their prices.

With the average energy bill well over the £1000 mark it is a great endorsement for gas and electricity price comparison web sites which help the consumer to shop around to save money to be at the forefront of trying to drive the prime ministers message of you have the right to switch and save on your energy bills.