Scottish and Southern Energy, the Perth-based utility group, said it had netted a record 1.05 million new energy customers over its latest trading year. The group which supplies energy as Southern Electric, Swalec, Scottish Hydro Electric and Atlantic Electric and Gas – claimed its 15 per cent growth also represented the best performance by any UK energy supplier. It took the firm’s total to 4.95 million electricity customers and 2.80 million gas customers, making it the UK’s third-biggest energy supplier. SSE also said it had pulled off another milestone for its telecoms business, securing 100,000 customers, following the full launch of its domestic fixed-line service. The group’s chief executive Ian Marchant said the growth in its energy customers had been down to its “responsible pricing” strategy which SSE claims will cut average bills for electricity and gas by five and 12 per cent respectively after two price cuts since March. Yesterday, Scottish Gas chopped its prices for a second time in the last two months, but SEE said that even after its rival’s latest cut, its dual fuel bill was still around £40 a year cheaper.

Powergen has today immediately responded to the reduction in standard prices announced by British Gas by reducing their tariffs within their suite of tariffs known as Price Guarantee. Under the Price Guarantee suite of tariffs – which includes EnergyGaurantee and ElectricityGaurantee, Powergen provide the comfort that customers are guaranteed a price which will be lower than British Gas standard quarterly billed account until 1st September 2008. The news of this immediate reaction can only serve as good news for customers who had elected to go onto one of these tariffs. The change in prices takes effect from today, 26th April 2007, for existing customers and from tomorrow for any new customers.

The UK arm of French utility EDF has ducked the issue of whether it will cut customer energy bills following pressure from regulator Ofgem and today’s second price cut by Centrica’s British Gas. A spokesperson for EDF said the company had noted today’s move by British Gas to cut electricity and gas prices by 6 and 3 pct respectively and stressed that prices were constantly under review. However, he declined to follow the lead set by the other under-pressure company, Scottish Power PLC, which today strongly hinted that it could cut its customers’ bills as early as next week. ‘We note today’s announcement from British Gas,’ EDF said in a statement. ‘EDF Energy’s prices are continually under review. We are continuing to provide competitive prices, deliver excellent service and reward loyalty to all our customers. ‘We listen very carefully to what our customers are telling us and we will always do the right thing for our customers,’ he added. ‘Price is important but so are excellent service, social and environmental responsibility.’ In contrast, a spokesperson for Scottish Power told Thomson Financial News that incoming chief executive Jose Luis del Valle, who replaces Philip Bowman on Monday, would review all current business and hinted strongly that rates would be cut soon. ‘Scottish Power’s merger with Iberdrola SA means it is one of the biggest energy groups in Europe,’ the spokesperson said. ‘The new chief executive Jose Luis del Valle arrives on Monday and will immediately review all past business. ‘Customers can expect good news soon,’ the spokesperson said, but declined to elaborate on what this could mean for bills.

A spokesman for npower (owned by German firm RWE AG) said that British Gas’s move was ‘opportunist’, as it has been done just before price cuts already announced by npower and Powergen come into effect on Monday. Utility watchdog energywatch scolded UK energy companies for their lethargic response to falling wholesale prices, with director of campaigns Adam Scorer singling out Scottish Power and EDF for not cutting bills at all.’Customers of other companies have seen British Gas customers benefiting from 20 pct cuts in prices this year,’ he said. ‘Those customers have every right to ask when their supplier is going to match those cuts. And ScottishPower and EDF customers must be aghast and wonder why those suppliers haven’t passed on any savings to them.’ ‘Company responses to British Gas price-cutting have been delayed, pedestrian or non-existent,’ he added. A spokesperson for npower said British Gas price cuts were not as impressive as they seemed because they were merely correcting after reaching historic highs last year. ‘Of course it all depends on how you think your customers should be treated,’ npower said. ‘Last year, British Gas did not buy as much gas in advance as other suppliers so they were unable to protect their customers from soaring wholesale prices. This meant their retail prices soared to record levels. It seems now that they are giving their customers their own money back.’ Powergen’s current price cuts comes into affect on Monday and will see prices fall by 16 pct for gas and 5 pct for electricity. The cost for an average Powergen dual fuel customer will fall from 1,005 stg to 913 stg. Powergen said that it continually reviewed prices but did not announce a price cut today. It claims that its Guarantee products, available as single electricity, single gas and dual fuel, will be cheaper than British Gas until 1 September 2008. It also claims that over the last year complaints to energywatch about its service fell by 78 pct while complaints about British Gas rose by 139 pct.

British Gas today, 26th April 2007, announced a further cut to its standard electricity and gas rates for domestic customers with immediate effect. This follows Telecom Plus, another gas and electricity supplier who announced price cuts across their tariffs yesterday. British gas has announced a headline grabbing reduction of 6 per cent on electricity prices and gas prices by 3 per cent, this applies to their standard tariffs for customers paying by monthly direct debit. Together with the decrease announced earlier in the year this second round of price cuts for British Gas customers reduces the average annual dual fuel bill by £207. This takes average prices down to £913. As a dual fuel supplier British Gas Click Energy 2 is one of the most competitive prices across the UK. Catalyst would encourage all customers to compare their energy prices regularly and in particular those customers paying by quarterly bill or on a standard tariff who will be effectively throwing away money by not switching supplier.

British Gas is cutting its prices for the second time in six weeks, the Centrica-owned company has said. Its electricity prices will fall by 6% and gas by 3%, with immediate effect. The move means its dual fuel customers, those that buy both types of energy from the firm, will save an average £40 a year from their bills. British Gas is lowering its prices in response to the falling wholesale cost of energy. It announced its first tariff cut this year in February. Since then four other companies have followed suit. More than four million people switched their electricity or gas supplier last year in a bid to cut their bills, according to recent figures from energy regulator Ofgem. Since then, switching between companies has reached a new peak, with more than 600,000 households doing so in January and February this year. British Gas has lost about one million customers during the past 12 months. News of the price cuts come days after energy regulator Ofgem warned customers of two utility firms, EDF Energy and Scottish Power to switch suppliers. The watchdog said customers of the firms could save £140 a year, as the two companies had failed to cut their gas and electricity prices recently in line with their rivals. Between 2002 and this year, British Gas raised its electricity bills six times, and gas prices seven times, as it passed on the then rising wholesale prices to customers.

British Home Secretary John Reid believes that the country’s key energy installations and infrastructure are among the likely targets of terrorists, but has said the government could not guarantee ’100 percent success’ in the fight against terrorism. Speaking at the Royal United Services Institute Wednesday, Reid said that terrorists could cause devastation through an ‘electronic attack’ on the UK’s infrastructure. He said that Al Qaeda’s aim was to ‘bleed us to bankruptcy’, adding that Western energy supplies could be among targets threatened. ‘It is easy to appreciate the devastation of a physical attack and what it can bring but we must not underestimate the potentially devastating consequences of an electronic attack,’ he told the audience. Reid’s speech comes in the wake of the arrest of six people Tuesday on charges of abetting terrorism in Britain, and reports of leaks of intelligence documents. He also announced the restructuring of the Home Office that will see the creation of the Office for Security and Counter Terrorism.Speaking on the new office, Reid said: ‘It will provide that faster, brighter and more agile response to the terrorist threat through a new drive, cohesion, and by providing a greater strategic capacity to our fight against terrorism.’ However, he added: ‘I can promise you 100 percent commitment from everyone involved, 100 percent dedication, but I have to be straight: we cannot promise 100 percent success. That would be an insult to your intelligence, to my integrity, to indicate that we can ever guarantee that in fighting terrorism. ‘We are making these changes because we cannot afford one ounce of complacency in this struggle against terrorism. ‘The changes that we are introducing by refocusing the Home Office on immigration, crime and counter-terrorism are intended to supplement those efforts.’

Two energy firms are under pressure to cut bills after regulator Ofgem said their prices were lagging behind rival operators. Ofgem said the average customer could save up to £140 a year by switching from Scottish Power and £122 a year by deserting EDF Energy for cheaper power companies. The regulator added that more than 600,000 customers had changed gas and electricity suppliers in the first two months of the year – 22 per cent more than in 2006. British Gas sparked a price war in February after announcing cheaper gas and electricity prices for customers following falling wholesale gas prices. The move prompted similar price cuts from rivals npower, Powergen, and Scottish & Southern Energy. But Ofgem said customers of EDF Energy and Scottish Power were being left with higher bills by their suppliers. Chief Executive Alistair Buchanan said: ‘Our research shows a big price gap has opened up, leaving EDF Energy and Scottish Power customers paying over £100 for remaining loyal.’ He added: ‘Competition is all about customer power – any supplier that tries to buck the market by not lowering their prices or failing on service risks an exodus of customers.’ A spokesman for Scottish Power, which has 5.2 million domestic customers, said: ‘We are still monitoring our pricing structure against the market.’ British Gas and Scottish & Southern Energy are the only two companies which have introduced their cheaper tariffs so far. Npower and Powergen’s price cuts are due to come into force on 30th April. The regulator said that when the cheaper prices take effect, the average gas bill will be £595 and the average electricity bill will be £383, compared to £648 and £392.85 in January. Ofgem has advised customers to shop around, switch to direct debit payments and manage their accounts online as ways of cutting fuel bills. An EDF Energy spokesman said: ‘Our prices are continually under review. We are continuing to provide competitive prices, deliver excellent service and reward loyalty to all our customers. ‘We listen very carefully to what our customers are telling us and we will always do the right thing for our customers. Price is important but so are excellent service, social and environmental responsibility.’

Last year electricity4business, One of Britain’s leading supplier of electricity to small and mid-sized businesses, was offering only one year contracts and advising businesses to hold fire before considering a longer term deal as wholesale prices were expected to drop.Unfortunately, not all electricity suppliers were as scrupulous as E4B and some openly encouraged customers to sign up for three and five year deals supposedly to avoid any further increase in prices which had already doubled in a single year. But even E4B could not have foreseen the scale of the actual fall in wholesale prices which are now standing some 60% lower than they were a year ago and for those who were lured into the trap it will be a long haul before they will be able to buy again at truly competitive rates. However, for businesses nearing their contract end date and those who have not signed up to fixed-term rates there couldn’t be a better time to fix rates for a longer period as the U.K. is now sitting on substantial short-term gas reserves which are keeping prices at the lowest levels seen in the last two years. Nevertheless, there is no room for complacency since, as many businesses who have been pushed close to breaking point by the previous price push will testify, the only way is up when margins have been squeezed to the limit. And it’s very much looking as though that point has now been reached. Graham Paul, electricity4business’s sales and marketing director who has always looked at the wider picture to predict what will happen with prices was spot on with his predictions of the drop in wholesale rates. “It was only a matter of time before rates had to tumble in response to the U.K.’s improved supply position” claims Graham. “Prices had been pushed up in response to a series of events which happened simultaneously putting enormous pressure on the supply of gas. North sea reserves began to run out far sooner than expected. There was limited capacity for gas storage as much of the necessary infrastructure remained un-built and the pipelines from the European mainland were running well below capacity.” As soon as the storage facilities were put in place and the pipelines began to reach their true capacity prices began to topple. Added to this, the milder than average winter has held back demand resulting in a short-term oversupply and placing further downward pressure on prices. “But it won’t be like this for long” claims Graham. “There are already some important long-term signals on the horizon, not least the talks going on currently to form an OPEC equivalent from major gas supplying nations. GCEF, or Gas Exporting Countries’ Forum is already in place and there are plans to establish a committee on the coordination of global gas prices.” Most individuals wouldn’t have to think twice about fixing their mortgage rate longer-term when interest rates are very low but signals are pointing to an imminent rise. Perhaps this is due to the emotional elements tied up in bricks and mortar. Utilities, on the other hand, are devoid of emotion and it therefore requires more convincing to encourage businesses to save the very same pounds that can be achieved from a mortgage fixing deal. It is electricity4business’s mission to spread the news of these huge potential savings for small and mid-sized businesses and to encourage them to think ahead in order to avoid being caught in the trap, as many were last year, of crippling rises in their electricity bills. E4B has now launched its special 3-year fixed rate product which, unlike others who charge a high premium for fixing rates, is surprisingly similar to its current highly competitive annual rate product and Graham is convinced that the uptake will be high as businesses become far more aware of the huge savings that can be made.

New research by UK energy regulator Ofgem has revealed that a vast price gap has opened up between those UK suppliers that have announced or implemented price cuts and the two smallest suppliers, which are yet to make any such announcement. The regulator’s research showed that UK consumers switched their energy supplier at the highest rate in four years in 2006, with over four million making a move. Ofgem added that this trend is increasing, with over 100,000 more consumers switching suppliers in January and February 2007 than in 2006. The regulator revealed, however, that the increased competition within the UK energy sector has opened up a vast price gap that leaves customers of EDF Energy and ScottishPower paying over £100 for remaining loyal. Ofgem said that EDF Energy dual fuel customers could save up to £140 by changing to the cheapest supplier, while ScottishPower customers could save up to £122 (excluding customers on a fixed price tariff). Ofgem chief executive Alistair Buchanan said: “Competition is all about customer power; in a market where over 600,000 customers switched in the first two months of this year, any supplier that tries to buck the market by not lowering their prices or failing on service risks an exodus of customers.” Ofgem also revealed that UK consumers could save money by sourcing their gas and electricity from the same supplier, and that paying utility bills by Direct Debit rather than check could also save customers £35 to £40 a year.

Beware of incompetent utility companies, warns the UK’s Forum of Private Business, which said that SMEs could be left with a bill for thousands of pounds. The Forum of Private Business (FPB) has sent a stark warning to its members that they could be left with a bill for thousands of pounds by incompetent utility companies. The FPB, which represents around 25,000 small and medium-sized firms across the UK, has taken the action after one of its members was left owing more than GBP 16,000 because Scottish Power was incorrectly estimating the business’s meter readings and then not updating their records when given accurate readings. The FPB’s senior Member Services representative, Philip Moody, said that, unless smaller businesses keep a careful eye on their meter readings, they may be left out of pocket. ‘Some energy suppliers are happy to give you a low estimate, but the danger is that, if it is inaccurate, there could be a big bill to pay in the long run.’ Moody went on to criticise the approach of the energy companies. ‘It is irresponsible to allow such practices to continue. They may not miss a black hole in their accounts of several thousand pounds, but to a smaller business that is a lot of money.’ Businesses should check at least once a quarter, if not monthly, and inform the supplier. If there is a problem, try to intervene as early as possible.