Increase in household spending

Figures from a recently released report have shown that household spending levels have increased enormously over the past five years in order to cope with rising household bills and living costs. The figures were released some weeks ago by the Office for National Statistics, and showed that the average weekly household spend had gone up by around 13 percent in the past five years. Read more

Tags: household spending, gas, inflation, energy usage costs, office, economics, interest rates, GBP

National Grid fined £41.8m by Ofgem

Power distributor the National Grid has been fined £41.8 million by energy watchdog Ofgem for breaching competition law and harming customers.

The fine is the largest ever imposed by the regulator for behaviour which allegedly prevented suppliers from contracting with other companies for cheaper metering deals.

Sir John Moog, Ofgem chairman, said: “National Grid has abused its dominance in the domestic gas metering market, restricting competition and harming consumers.

According to the watchdog, the National Grid made a number of long-term contracts with five of the six main energy suppliers to supply and maintain gas meters.

The contracts included financial penalties imposed on suppliers if they replaced more than the small number of meters allowed under the contract by National Grid.

Ofgem said that this has severely restricted the rate at which suppliers can replace even National Grid’s older meters with cheaper or more advanced meters from rival operators.

Meanwhile, the National Grid has launched an appeal against the verdict, insisting that it has not harmed any of its competitors.

Tags: Grid, gas, term contracts, energy, power, competition law, Sir John Moog

Homeowners ‘can’t afford to be passive’ about energy deal

As energy prices rise homeowners “can’t afford to be passive” about the tariffs they are charged by their electricity suppliers, according to an industry watchdog.

Energywatch said that despite the rising prices, consumers should certainly shop around for the best tariffs, particularly those who are still with their existing provider as new customers receive more competitive deals.

Georgina Walsh, spokesperson for energywatch, said: “It’s well worth switching because you can probably save at least £100, even if you change to another supplier on the same tariff.”

If increasing numbers of consumers switched it would encourage providers to become more competitive, she added.

With combined household bills for electricity and gas reaching an estimated £1,000 per year, Ms Walsh called for more consumers to be more proactive.

Last week E.ON became the fifth of the ‘big six’ energy suppliers to raise its prices in response to reported price rises on wholesale gas and electricity.

Npower, British Gas, EDF Energy and Scottish Power have all raised their prices by over ten per cent this year.

Tags: Ms Walsh, power, energywatch, energy, consumers, gas, industry watchdog

Switching and saving is easier than ever

There are many different ways to try and save money on your monthly outgoings these days. You can go through your income and expenditure, and try and cut back on luxuries and money spent on social events. You can also go through and cancel any unused subscriptions, such as gym or magazine subscriptions that you don’t really make use of. Read more

Tags: electricity, Utilities, Insurance, credit, cards

Help for flood victims

As much of northern England and parts of Wales suffer at the hands of huge floods caused by torrential rain, Direct Line is offering homeowners information on how to make an insurance claim.

The firm has deployed hundreds of members of staff to the affected regions and help is being offered to those in need.

Flash floods have so far claimed the lives of three people and thousands of properties have been severely damaged by the water.

Rescuers say that water levels are beginning to subside but more rain is predicted for the coming weekend and residents are bracing themselves for another round of flooding.

Once the weather eventually returns to normal and people begin assessing the damage to their homes, many will begin thinking about making a claim on their insurance and that is why Direct Line has gone to the affected areas.

“Our main priority is to help people get back to normal as quickly as possible and with the least amount of inconvenience,” said Andrew Lowe, head of home insurance at the firm.

“Additional staff have been deployed to help manage the higher than average number of calls and we are prioritising those where people’s health and safety is at risk.

“However, we ask our customers to be patient with us as it is taking longer than usual to answer and deal with calls,” he added.

Customers are advised to take photographs of any damage caused and keep all damaged items. Electrical equipment and gas appliances should not be used until they have been thoroughly checked by a professional and redecorating should not take place for a number of weeks so that the property is completely dry.

Tags: home, flood victims, gas, Financial economics, health, flash floods