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Energy UK's statement in response to Ofgem's letter to suppliers on wholesale prices

In response to Ofgem's announcement asking suppliers to explain energy prices to customers, Energy UK said:

“Wholesale energy is just one of a number of costs outside of an energy company’s control, which make up a household bill.  All energy suppliers aim to hold costs as low as possible for as long as possible. There are now 24 domestic energy retailers in the UK. They buy gas and electricity months and even years in advance to smooth out the swings in the market.  When wholesale prices fall it can take time for bills to catch up as the gas and power may have been bought at a higher price some time ago.

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Energy UK response to Ofgem's Supply Market Indicator

Ofgem’s figures are estimates on earnings before tax and interest paid. The figures do not take into account the companies’ financing costs, the interest or the tax they are paying. More generally, the UK needs a healthy energy sector with companies that turn a profit. Profitability and investor confidence is vital at a time when the industry needs to attract a lot of investment, including up to £110bn in new electricity infrastructure between 2013 and 2020.

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Energy on the European agenda

As five hundred leaders from the electricity industry across the European Union gather in London for their annual convention Angela Knight, CEO of Energy UK - the host organisation - called for decisions about meeting energy needs to be made with sensible timescales and price tags attached. She said that recent EU elections had highlighted how views about the Union were shifting and this needed to be reflected in how energy decisions were taken.

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Check out your green deal provider before writing the cheque

Rogue traders may be conning thousands of homeowners out of money they want to spend on making their homes more energy efficient, Energy UK said today. People considering energy efficiency improvements to their homes should only use registered Green Deal providers. As part of Scams Awareness Month and Doorstep Selling Week, Energy UK is calling for increased awareness of sales scams which see people falling victim to schemes fraudulently using the Green Deal name to get people to part with their cash.

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Enjoy your bank holiday, safe from CO

It’s the second May bank holiday this weekend. The sun is out and summer is on its way. Many people like to enjoy the bank holiday with a BBQ or by going camping. If you do, make sure that you stay safe from the potential effects of carbon monoxide (CO).

BBQs and gas heaters both produce CO, a deadly gas that cannot be smelt, tasted or seen. When people use a BBQ in a tent, a caravan or under a canopy it can lead to a build-up of CO. Last summer saw a number of people falling ill after taking a BBQ or gas heater into a tent for warmth.

CO causes dizziness, nausea, breathlessness and a loss of consciousness. It can cause permanent brain damage and in some cases can be fatal. If you are going away this bank holiday weekend, take a portable CO alarm with you and make sure you use your fuel burning appliances safely in the open air. 

It is important to know the dangers of CO.  This bank holiday be aware and be safe.

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Energy UK’s response to MPs comments on Carbon Capture and Storage

Carbon Capture and Storage (CCS) could play an important part of the future energy mix by providing a long term future for the role of coal and gas in the UK’s electricity generation mix while achieving our decarbonisation ambitions. 

Development of CCS also brings benefits to the UK economy in terms of jobs and investment. Progress of the White Rose and Peterhead CCS Projects demonstrate that the UK is a leader in developing the exciting potential of this technology.

Energy UK responds to Eurelectric assessment of taxes and levies on energy bills

The UK has some of the lowest overall electricity and gas prices in the EU, but British customers face substantial policy costs as part of their bill. According to the Eurelectric report, the UK is one of the small minority of countries in the EU where the Government policy costs that customers pay through their bills are higher than taxes they collect.

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ECO must deliver value for money – and customers: Knight

Energy efficiency schemes need to be simplified to make sure customers get the help they need as well as value for money, said Energy UK Chief Executive Angela Knight. A report on the progress of the Energy Companies Obligation (ECO) in its first year of activity, prior to the latest changes, found that ECO’s very precise eligibility criteria and onerous reporting requirements have increased delivery costs, slowed down activity and hindered customer take-up. According to the report, the first year of ECO was delivered at an estimated annual cost of £1.54 billion - £200 million more than original forecast. As part of their recommendations, CSE call for DECC /Ofgem to introduce 'deemed savings’ for each measure. 

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Price differentials in payment methods

“People want choice when it comes to paying for their gas and electricity and companies provide a range of options to suit their customers. Companies only charge customers more when their chosen payment method costs more to run. The introduction of smart pre-payment meters over the course of the next few years should help close the gap in costs between payment methods. If customers are worried they should talk to their supplier. Payment plans can be arranged and extra time to pay can be given to those who are struggling. 

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