Money to burn? How consumers are lining the pockets of the Big Six

Surely than can be no better argument for considering renewable energy heating for your home than this week’s headlines on fuel bills?

We had to look twice when we saw the new figures, which show that profit margins at energy firms had soared 733 per cent in the last four months.

Organic Energy calculated earlier in the year that the average dual fuel customer was facing a rise of around £135 by the end of 2011.

But now price hikes over the summer have revealed that the average annual gas and electricity bill actually soared by £175 over the summer and could top £1,345 per annum by Christmas.

Industry regulator Ofgem has revealed the Big Six gas and electricity firms now make an average of £125 per customer a year on dual fuel bills, and that’s up from just £15 in June.

There are numerous reasons for the rise, including VAT, operating costs and a 40 per cent increase in the wholesale cost of gas over the last year.

So it’s perhaps not surprising that we’ve seen a corresponding sales rise of the renewable heating options we offer. Both the number of wood pellet boiler and solar PV installations have soared in the last year as customers realise by simply turning up the thermostat they’re lining the pockets of the Big Six.

Of course, these companies, British Gas, Scottish and Southern Energy, Scottish Power, E.ON, RWE npower and EDF, have reacted angrily to the Ofgem figures.

British Gas says they are ‘misleading’ because for the first six months of the year, the company’s margins per household were actually £24. However, it is undeniable that all six have raised bills since August.

The figures are part of a review by Ofgem into how customers are charged and whether tariffs could be made simpler. And it has been welcomed by Energy Secretary Chris Huhne who said the Government and Ofgem wanted to work together to increase competition in the energy market to keep prices down.

We’re a renewable heating company so, of course, we’re going to point out that there are other ways to keep the bills down. But, importantly, we can prove it. We already know that we’re saving money for customers who have installed our ÖkoFEN automatic wood pellet boilers and SCHOTT Solar PV systems. One of our latest PV installations has resulted in a customer’s energy bill being cut by more than 65 per cent.

And not only can we help cut your bills, we can show you how you can receive incentive payments for installing our wood pellet boilers or solar PV.

For example, under the Renewable Heat Premium Payment, £950 is available to eligible householders and businesses installing a biomass boiler. Customers can already take advantage of the Feed-In-Tariff for solar PV and non-domestic biomass installations will also be eligible for the Renewable Heat Incentive when it is introduced.

So if you’re fed up with the price hikes and looking for an alternative, give us a call.


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