OFGEM Press Release

SUPPLY COMPANIES FAILING CONSUMERS: OFGEM PROPOSES RADICAL OVERHAUL

 Ofgem proposes sweeping away complex and unfair pricing practices
 Big Six required to auction up to 20 per cent of their electricity generation output
 Firms risk facing a Competition Commission referral this year if they frustrate reforms
 Investigation launched into Scottish Power’s standard credit prices
 Ofgem to appoint independent accountants to improve accounting disclosures
 Ofgem to review whether energy companies are frustrating switching in the non-domestic market

Ofgem’s Chairman Lord Mogg said: “Ofgem’s proposals should force open the electricity and gas markets to ensure the market works effectively for consumers. The energy supply companies have eight weeks in which to engage constructively with Ofgem’s proposals.

If firms frustrate reforms they risk ending up at the Competition Commission (CC). This is a holistic package of changes. We will also discuss with Government, if we believe our consumer protection powers need reinforcement.”

Ofgem’s review found that competition is being stifled by a combination of tariff complexity, poor supplier behaviour, and lack of transparency. Further, the degree of influence the big six assert on the retail market has not diminished since Ofgem’s 2008 probe. The clearest example, being the finding that for the first time there is evidence that the Big Six have adjusted prices in response to rising costs more quickly than they reduced them when costs fell.

Chief Executive Alistair Buchanan said: “Energy companies have failed to play it straight with consumers and so Ofgem is proposing to break the stranglehold the Big Six have over the electricity market by making them auction up to 20 per cent of their generation output. This would increase price transparency and make it easier for new players to enter the retail market.

“Consumers have told us that energy suppliers’ prices are too complicated. It is no surprise that they are bamboozled when tariff complexity has increased from 180 to more than 300 since 2008. That is why we are planning to sweep away this complexity so suppliers’ prices are fully exposed to allow easy price comparisons.

“We are also backing these reforms with a tough approach to enforcement. Consumers must have confidence that energy companies are playing fair at a time when they are being asked to foot the £200 billion bill to pay for the investment Britain needs to ensure secure and sustainable energy supplies.”

Today Ofgem also announced a new investigation into Scottish Power and is exploring whether it needs to bring similar actions in the non domestic market (where the concerns rest on switching being frustrated). This is in addition to an ongoing investigation into British Gas, EDF Energy and npower and into how they handle consumers’ complaints. Finally our investigations into misselling by EDF Energy, npower, Scottish Power, and Scottish and Southern Energy are also continuing.
Another finding of the review is that in general the companies’ response to the 2008 Probe reforms has been disappointingly poor. Ofgem proposes to strengthen the existing reforms and pursue companies with appropriate enforcement action if they fail to implement them.
Further, the company accounting disclosures, required by the Probe, have led Ofgem to call in an independent accountancy firm to examine forensically companies’ returns. Ofgem is also considering whether more needs to be done to help vulnerable consumers in addition to its five proposals. This may involve us liaising with government about additional consumer protection powers.

Full details can be found here
http://www.ofgem.gov.uk/media/pressrel/Documents1/RMRFinal%20Final.pdf

We Go The Extra Mile (or 5000)

At Phoenix Energy we believe in going the extra mile in order to help our customers and clients. We offer a personal service - all phone calls are answered or returned personally and all e-mails are returned. Being a small company we are able to respond to the individual needs of our customers - even extending to arranging electricity meter appointments and energy contracts from a beach in Floida. We believe this level of service, if not unique, is certainly refreshing in these times.

As a bit of fun I have attached some 'holiday snaps' showing examples of water and electricity infrastructure in USA / Mexico. I personally feel a bit uncomfortable with electricity meters nailed to a lamp post, especially during tropical storms, and as for transformers transformers on the beach !

Power Transformers - Jamaican Style! A bit messy in the streets! More wires than Bob Marley has dreadlocks!

Electric meters - Mexico. I like the fact that they are outside of businesses, would make my life much easier if NEDL did this

. Power transforners on the beach! This has GOT to be dangerous! The equipment is rusty

! American electricity infrastructure - they can put men on the moon but not electricity underground!

This isn't the Hollywood Walk of Fame - its water meters in Key West!

American electrical supply and metering - outdoors on street (very neat job)

We are specialists in utility infrastructure work - we help builders and property developers to get new electricity, gas, water and telephone connections into new build and converted properties - we can also help with sewerage work! Our work has included everything from a meter move to the utility infrastructure for an industrial estate (and most things in between)

Call us to arrange free site visit and quotation. 0800 458 6460

Domestic Energy Prices Rising Again

"The energy price rises we've been expecting for months have finally arrived."

Scottish Power is the first energy company to announce huge increases to the cost of their standard gas and electricity, with rises of 19 and 10 per cent respectively. Taking effect on August 1st 2011 these price rises will add £175 to the average cost of a yearly bill and affect 2.4 million households. On a national scale this adds an extra £420 million to Scottish Power customers' annual bills.

"Now really is the time to get on to the best priced energy tariff for your usage level and area you live. The cheapest online energy tariff is currently Online Saver 10 offered by EDF Energy with average annual bills of £940*. Bearing in mind historical energy market price rises, it's highly likely the other energy providers will follow suit. In the face of rising prices, opting for the market leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009 is the best way to safeguard against further price increases from the energy giants.

"A recent moneysupermarket.com survey showed 30 per cent of Brits would only need to see their outgoings increase by less than £100 a month before it became impossible to meet every day living costs**.


The same research found 19 per cent of people felt the rising cost of paying utility bills such as heating was causing the biggest strain on their finances. With a increase of this size in one fell swoop, UK consumers could soon find themselves in hot water when faced with energy bills they may not be able to afford.

"Scottish Power customers changing to the best priced tariff today would see average annual savings of £446. Shopping around using a price comparison site for the best value energy product is vital and I urge everyone worried about the cost of their bills to act quickly as the best priced products are unlikely to be available for long

Customers can review their energy bills at http://www.getmecheapbills.com and switch online in a few minutes and fix rates before the next set of price increases.

There will be further announcements soon from the other providers - who will be next to increase prices.