ESPO News 12 29/11/04 13:18 Page 2

energy matters NUMBER 12 • DECEMBER 2004 The newsletter for ESPO’s energy customers PRICES SOAR ON WORLD energy prices continue to hit the headlines, climbing throughout this year and showing no sign of letting up as winter approaches GAS MARKET UNDER INVESTIGATION Significantly higher COMPLAINTS from both domestic and wrote to all energy trading companies saying underlying energy prices business consumers prompted three that, unless they comply with the rules, it are affecting renewal separate investigations into gas price rises, will impose a tighter regulatory framework contract rates, with some by Ofgem, the Financial Services Authority in future. organisations reporting and the Commons Trade and Industry Consumer groups reacted with increases of up to 60%. Committee. disappointment to the findings. Their Why have prices risen so frustration was compounded by the market's much in such a relatively Probe 1 reaction to the Ofgem and FSA reports – a short time? Energy Matters Between September and October 2003, further dramatic leap in prices, with considers what lies behind wholesale gas prices rose by 80%, even wholesale gas for January 2005 increasing by the increases. though demand was comparable with 11% on the day the reports were published, previous years, prompting a formal and similar moves for electricity. The report OVER A BARREL investigation by the industry regulator. was seen by many traders as a 'green light' Ofgem's report says the main reasons and by energy consumers, facing increases of World oil prices behind gas price spikes in October and up to 60% compared with a year ago, as more continued to rise sharply November 2003 were: bad news. throughout the year to n a reduction in the gas available from UK reach a 21-year high in sources, and Probe 3 October. US crude broke n the influence of high oil prices feeding into Taking Ofgem's analysis as a starting through the $53 per barrel UK gas prices, mainly through the point, the Commons Trade and Industry mark and UK Brent crude interconnector import link. Committee is investigating the effect of the passed $50, compared with Ofgem also uncovered some 'strange' most recent price increases on all types of around $27 a year earlier. decisions which may have led to around 5% customer, and whether the rises are a The main factors are of gas not reaching the UK market, temporary response to short-term supply potential disruption to contributing to the price spikes and has problems or the start of a long-term increase world supplies due to referred its findings to the European in UK energy prices. Major consumers, political and industrial Competition Directorate to pursue any including ESPO, are being asked for 'written unrest in Nigeria's oil potential breaches of competition law. evidence on the issues'. producing region; low US stocks approaching the Probe 2 But probably no Probe 4 winter heating season – Earlier, in an interim report into the price Despite calls from Energywatch and the due, in part, to the spikes, Ofgem referred some issues relating Energy Intensive Users Group, the new disruption caused by the to trading to the Financial Services Energy Minister Mike O'Brien considers a Caribbean hurricanes; Authority. Even though its investigation fuller investigation into the sustained high continuing instability in found no evidence of malpractice, the FSA price of gas is not necessary. the Middle East; and the pressure of stronger Energy prices regularly hit the headlines during 2004 – this economic growth on global one is from the Times, August 25 demand. Analysts see little and, as the price of oil has the latest increases in ESPO likelihood of oil prices risen, so gas prices have wholesale prices. opinion falling. followed. UK gas prices, The increases do not whilst not indexed directly appear to be supported by SO, OFGEM found no evidence of market STEPPING ON THE GAS to the price of oil, are market fundamentals such manipulation but even the chief executive indirectly linked because as supply and demand, of Energywatch has openly said he As we went to press, UK producers export gas to leading to complaints from suspects something was amiss. Now the wholesale gas prices hit a Europe. domestic and business Department of Trade & Industry is asking record high, reaching 35.55 High gas prices are also consumer groups. The major energy users, including ESPO, to pence/therm for October contributing to high Commons Trade & provide that evidence – but how? It's like year ahead compared with electricity prices, as Industry Committee asking a man who has been mugged for 21.61p/therm 12 months approximately 40% of the started an enquiry in his attacker's fingerprints. ago, an increase of 65%. UK's electricity is November and is asking Is there really no evidence – or does Suppliers have announced generated from gas. Many producers, traders and Ofgem simply have insufficient power to increases for domestic industrial consumers, faced suppliers to explain why find it? It's a difficult situation when there consumers of up to 20% with increases of up to 60% wholesale prices in the UK is so much vertical integration between Now then, sir. over the last year, although and, believing the wholesale have risen much higher producers and suppliers, and where the Did you manage to get the assailant's fingerprints? this pales in comparison market is 'overpriced', have than in other EU member majority of deals are not negotiated on the open with those suffered by reportedly delayed states. market. industry and commerce. renewing annual supply Wholesale prices for gas and electricity are the very least, undue influence – borne out by the Continental gas prices contracts. These reports what drive retail – or contract – prices. All fact that, on publication of Ofgem's report which are indexed to oil prices have also contributed to • Continued on page 2. suppliers use the same wholesale price curves so appeared to let energy suppliers off the hook, gas there is negligible difference between quotations. prices shot up another 11% in one day. The wholesale markets account for a very small The former Energy Minister, Stephen Timms, proportion of the total energy being traded said Britain has the most competitive electricity because the majority of transactions are generation market in Europe. Whether or not that undertaken directly between the trading partners is the case, it is not reflected in electricity retail No need to panic this winter, says Ofgem – effectively, behind closed doors – and are not prices – UK prices are much higher than on the reported. This is different to the system in the US, continent. In our opinion, there is a flaw in the DESPITE declining UK gas reserves and potential peak demands, even the most where all trades must be reported and the market structure and therefore it is not working severe Siberian-style winter will not leave Britain shivering, according to the energy penalties for failing to do so, or misreporting, are in the interests of British consumers. regulator. severe. We all knew that post-NETA electricity prices Ofgem says that gas supplies can be maintained using a combination of UK As a consequence, the wholesale markets are were too low and that there would need to be an supplies, imports and stored gas. If necessary, large gas customers such as gas- 'illiquid' which means the price can be set by upwards adjustment. But, even allowing for a fired power stations will be asked to reduce their consumption or 'sell back' relatively minor trades for small volumes. These 30% increase in the cost of oil, a hike of more their stored gas to the market. may bear no relation to the true value of the than 60% in the wholesale price of gas is more of Peak electricity demand will be met, forecasts National Grid Transco, thanks energy being traded and yet have a considerable a distortion than an adjustment. to the return of some mothballed plant in time for the winter. There should be influence on what is regarded as the 'market It just doesn't stack up. ESPO and other major a 'safety cushion' of between 20 and 22%, better than last winter's margin of price'. In effect, the 'marginal price' has become consumers will continue asking questions and 16%, to cover unplanned plant failures or sudden spikes in demand caused by the 'market price' – and sellers will set their challenging the 'facts' until we feel we have a severe weather or popular TV programmes. prices accordingly, irrespective of where the proper explanation, adjustments to the market Some energy experts have warned that there may not be enough oil to meet energy they are selling has come from and how structure and reassurance that the market is demand over the key winter months, again fuelling price rises. much it cost them. working as it should – and in the interests of If there is no market manipulation, there is, at consumers. ESPO News 12 29/11/04 13:18 Page 3

Prices soar on • From page 1. many large industrial consumers, facing increases in 'delivered' prices In the meantime, Ofgem and the of over 50%, were delaying the Financial Services Authority have renewal of annual supply contracts concluded their investigations into for the year commencing October. the gas price 'spikes' which occurred in October and November 2003 (see SAVE IT! Gas market under investigation, page 1). With Middle East peace seen by many as the key to lowering oil ELECTRICITY SURGES UP prices, and the UK set to become increasingly dependent on imported Against the background of higher gas, analysts say prices are likely to wholesale prices for gas, coal (due to remain high for another two or three growing demand from China in years at least, until investments in a particular) and oil, which together new Norwegian interconnector and account for almost 80% of the UK's expansion of Liquefied Natural Gas electricity generation, electricity import facilities are completed. prices have soared in the last year. In the meantime, there needs to Year ahead electricity was trading be even greater scrutiny of energy at £34/MWH at the end of consumption – after all, the September (a 62% increase from cheapest unit of energy is the one September 2003). In addition to the you don't use! For some energy increases in 'year ahead' prices, saving advice, see Top Tips on page there is a considerable degree of 4. Further guidance on energy volatility with rises of up to 8% efficiency is available from your being recorded 'within day'. Prices local energy manager – see Need may also be driven by reports that Advice on page 4.

How the six largest retailers have put up prices since late 2003 GlobalDiesel is now Gas Electricity available from British Gas 19.0% 15.9% forecourts Powergen 8.1% 6.9% 17.6% 13.8% EDF 8.2% 10.5% Scottish & Southern Energy 16.1% 4.7% 17.4% 13.4% (source: Utility Week – since these figures were published there have been Boom time for biodiesel even more increases) Biofuels can help reduce emissions of greenhouse year. The virgin oil comes from rapeseed and the gases from the transport sector and good quality used oil from catering companies such as biofuel blends can be used in many of today's Compass. vehicles. They are relatively expensive but the At the other end of the chain, Tesco became the Government is committed to meeting the EU's first major retailer to sell GlobalDiesel from its Transco sheds networks biofuels directive. Transport Minister David forecourts, as well as using the environmentally- Jamieson has launched a consultation on the UK's friendly fuel in home delivery vans and at staff IN AUGUST, National Grid Transco announced plans to sell four of its regional gas plans and we hope to report his findings in the fuel pumps at office sites. distribution networks for a total of £5.8 billion in order to finance the expansion of its next issue of Energy Matters. Customers in ESPO's area can fill up at Tesco US operations. In the meantime, biofuels producer Greenergy stores in Lincoln, Sleaford, Newark, Peterborough, Two will go to Scottish and Southern Energy, one to a consortium including United has announced plans to build the UK's first St Neots, Cambridge (Bar Hill), Great Yarmouth, Utilities and a fourth to a consortium headed by an Australian bank. All the multi-feed biodiesel plant on Humberside. Ipswich, Kettering and Northampton South. A purchasers assumed environmental and other liabilities. Both virgin and used cooking oil will be location map can be downloaded from Ofgem, the DTI and the Health & Safety Executive all have to approve the sales, processed to make 100,000 tonnes of biodiesel a www.greenergy.com which NGT hopes will be complete by April 2005. What will BE will BE 'Not guilty' verdict on blackouts ENERGY regulator Ofgem says the National Grid Company (NGC) was not in breach of legal BRITISH Energy moved one step The next stage is the formal legal obligations over last year's major power cuts in London and Birmingham. nearer survival as the Government's process associated with restructuring. The exhaustive ten-month investigation revealed that the two blackouts, of 37 and 42 minutes plans to prop up the ailing nuclear The aim is for this to be completed in respectively, were caused by a series of unrelated events. generator were approved by the January 2005, enabling BE to meet However, since some of these were the result of mistakes, the company was not completely European Commission. financial obligations which fall due at exonerated. Sir John Mogg, Ofgem's chairman, said: “There are, as NGC itself recognises, important The plans include splitting BE into the end of that month. If these lessons to learn. NGC has assured us that, since the blackouts, it has undertaken a whole series of three separate units, each with its commitments are not met, for any checks and is continuing to improve its procedures.” own accounts. Nuclear generation – reason, insolvency remains a A new scheme is being introduced to complement the existing legal obligations on NGC and the only operation entitled to state aid possibility. strengthen the incentives on the company to improve system performance. Further blackouts could see – will run independently of other In the meantime, the company is NGC being automatically penalised to the tune of millions of pounds. generation and direct business sales. asking the nuclear regulator for Sir John added: “By international standards, Britain has a very reliable national grid. We are The EC is satisfied with measures permission to extend the life of its determined that NGC maintains and improves upon these high standards and keeps that objective at announced by BE to safeguard reactors by five years, in a bid to the top of its agenda.” competition in the UK. These include ease concerns over short-term energy a cap on generation capacity for six supply shortages. A decision to years, restrictions on the acquisition extend Dungeness B's life from 2008 of non-renewable generation, overseas to 2013 needs to be made by summer activities and market pricing. 2005. Bits about billing IN BRIEF Power mix Better feedback means One agrees ELECTRICITY consumers will soon be able to know where their power is coming from. bigger energy savings THE much publicised Energy Bill has been given Royal Assent, paving the way for the decommissioning of the UK's nuclear plants, pressing ahead with offshore wind and A new EU directive requires suppliers to ENERGY consumers want straightforward, other maritime renewable energy supplies and creating a single wholesale energy include on customers' bills details of the mix of graphic feedback on their energy bills, according market for Britain. fuels used to generate the electricity they to a study by the Centre for Sustainable . for Ofgem. Their report also suggests that even a small number of feedback improvements could Less control help consumers save 5-10% of the energy they use. THE energy industry regulator is likely to ease price controls from April 2005, to allow Standard billing on the way? electricity distributors to pass on rising costs incurred through higher taxation, The CSE also mentions a wide range of making good pension deficits and other charges. If Ofgem's proposals are implemented, ONE in five customers are dissatisfied with the techniques and technologies which could changes will vary from –13% to +11% but consumers will see little effect on their bills explanation of how their energy bills are improve consumer feedback on energy since distribution accounts for only a proportion of charges. See Your Write, page 4. calculated, according to the industry regulator consumption – from shorter billing cycles and Ofgem. As a result, energy suppliers are being more informative on-bill presentation of urged voluntarily to back efforts to standardise consumption data to 'smart' meters displaying billing procedures in order to avoid tougher energy use and identifying energy-saving LPG probe regulation. opportunities. THE Office of Fair Trading has asked the Competition Commission to investigate the Ofgem's Steve Smith says: “Our research Simon Roberts, CSE's chief Executive, said: liquefied petroleum gas (LPG) market. The OFT says competition appears to be shows that many customers are fed up with “This project provided a fascinating insight into prevented, restricted or distorted and that domestic customers are paying too high a energy bills that are difficult to understand. consumer perspectives on energy bills, energy price for their household supplies. Customers wishing to switch supplier are also faced The best way to address their concerns is to suppliers and energy saving. It identified clear with too many obstacles and potentially punishing charges. get companies to co-operate with Energywatch's and strong preferences for better feedback initiative.” which gives consumers a real chance of Energywatch, the consumer watchdog, has understanding the influence their lifestyle has put forward proposals for a British Standards on their energy use.” Return to power Institute (BSI) standard which would combat The CSE is now working with Ofgem and AS high wholesale energy prices threaten to cripple British industry, E.ON UK complaints about how bills are calculated, the energy suppliers to establish a consumer trial, (formerly Powergen) has announced plans to re-open the Killingholme power station difficulty of comparing pricing information and in the belief that better feedback will stimulate in 2005, following a £20 million refit. The company says Britain will have to invest the lack of regular meter readings. Easier-to- consumers to take action to save energy. up to £70 billion over the next ten years to replace or refurbish maturing power understand bills could also help customers use stations. energy more efficiently by making them more Go to www.cse.org.uk/csepublications for more aware of their consumption. information. ESPO News 12 29/11/04 13:18 Page 4

Loading the first turbines to be erected at Scroby Sands offshore windfarm

hope it will encourage other large organisations to consider developing similar schemes on their premises.” Renewables NEWS This is 's second Merchant Wind Power scheme – the first was for Sainsbury in East Kilbride, Scotland, which generates nearly half the power requirements of the Record year for wind retailer's distribution depot. Merchant Wind Power is an innovative concept which THIS year will see a record amount of energy generated provides a commercially viable and price-secure source of from the UK's wind turbines, according to the British Wind wind-generated electricity for organisations with an Energy Association. environmental agenda. Ecotricity builds, operates and Two years ago the average annual output was 50MW; that maintains the wind turbine(s) and supplies the power rose to 100MW in 2003 but the figure has more than tripled generated at less than the price of conventional electricity. to an anticipated 350MW for 2004. The company can also provide off-site MWP for organisations without suitable land of their own – its latest project is at Bambers Farm in Lincolnshire, where turbines are being installed to supply power to Co-op Bank and New planning rules CIS Ltd. For more information, visit www.ecotricity.co.uk THE Government has introduced new planning rules requiring local and regional authorities to promote rather than restrict the development of renewable energy. The rules apply to all renewable power sources and give the Boost for wave and tidal power Government the right to intervene if a local authority places unreasonable constraints through its planning processes. FOUR organisations have joined forces to exploit wave and Meanwhile, the Department of Trade and Industry has tidal energy resources, in response to the Government's run a pilot training event for planners in Dorset. Part of a announcement, in August, of a £50 million marine wider campaign called 'It's Only Natural', the scheme aims development fund. to provide information on national and regional policy and The UK Centre for Marine Renewable Energy (formed by give an overview of renewable technologies in order to help the University of Edinburgh, Robert Gordon University in planners assess large-scale wind applications and make a Aberdeen, the European Marine Energy Centre in Orkney well-informed and balanced planning decision. and the New and Renewable Energy Centre in Northumberland) aims to help the emerging marine energy industry to provide a significant amount of power from naturally occurring wave and tidal movements. Renewables for sale Andrew Mill of EMEC, which has an open sea test facility and launched the UK's first deep water full scale wave BY the end of the year, hopes to have found energy converter, says: “This partnership demonstrates that a buyer for its renewables operation, thought to be worth Two parking spaces in exchange for power: wind turbine at we are taking the development of marine renewable energy £80 million, in order to refinance its assets. Ford's Dagenham factory seriously. We can offer important support directly through Its Green Energy division, one of the UK's largest our test facilities and our work on standards. We also hope renewable generators, operates hydroelectric, landfill and n Consider introducing a single recycling mechanism for to offer an overview of the expertise available in the UK and mine gas fuelled electricity generation schemes. It also has a separate buy-out funds to commission work where there are gaps.” portfolio of projects in development, including some wind n Introduce more flexibility for small generators power schemes. A wider review of the Renewables Obligation is taking place in 2005/6. Training for savings

Government moves to build THE Centre for Sustainable Energy has launched training Engines built with wind power courses for local authorities to help staff implement their confidence in renewables energy strategies. TWO 85m high wind turbines have been installed at the The CSE also works closely with local authorities on a IN September, plans to encourage further investment in Ford factory in Dagenham, Essex, providing enough wide range of projects designed to save energy. Fenland renewable energy were outlined. The main measures are to: electricity to power the car manufacturer's new diesel engine District Council recently benefited from a review of its n Extend the level of the Renewables Obligation to 2015/6 production unit and cutting harmful emissions. energy and water consumption, which generated an action n Allow tradeability between Northern Ireland Renewables The Mayor of London, Ken Livingstone, said: “This plan to produce efficiency improvements and cost savings, Obligation Certificates (NIROCs) and GB ROCs scheme will make an important contribution towards followed by a staff-awareness programme to ensure n Further secure the buy-out fund in the event of a making London a more sustainable world city and will help the plan's success. shortfall us achieve some of the key targets in my energy strategy. I More information at www.cse.org.uk Good housekeeping can prevent shock bills

GAS and electricity suppliers are DO..... responsible for providing timely and accurate bills. If they get it wrong, n monitor whether bills are based it's their fault. Or is it? on estimates or actual meter “Only up to a point,” says ESPO’s readings, and check the readings David Kwiatek. “The industry is used Cheaper fuel taking steps to overcome its billing n contact ESPO or your supplier if on the cards headaches, but there will always be the reading is incorrect (other some problem accounts. But it's than by a small amount) vital that consumers accept some n take your own meter readings responsibility, too. Good and provide them to ESPO or housekeeping, in particular through your supplier if you have not sensible budgeting and by been billed on an actual reading Out of the bunker with checking bills, can help avoid for a while (some meters are read shocks later on. only once every two years) “With an estimated bill, it's really n record how much energy you important to ensure the charge is consume (in kWh) reasonable, otherwise you may pay use the kWh, NOT the amount fuel management n too much or, even worse, too little – you have paid, to calculate future in which case you'll get a huge bill energy budgets at some point which you haven't n adjust your estimated ESPO customers with diesel What are the benefits? budgeted for. consumption to allow for any fleets can now get rebated fuel at “Checking readings, or changes, such as closing a over 1,000 forecourts at the Using a swipe card saves time occasionally taking your own and David Kwiatek building or opening a new swipe of a card. and means drivers don't have to providing them to your supplier, one, installing new Keyfuels operates a 'bunkered' carry large amounts of cash. will ensure your bills are accurate equipment or different hours of refuelling service at Morrisons, Award-winning SMART and also that your estimated annual operation Safeway and many other technology and ControlMax consumption is gradually corrected, n calculate your estimated costs locations across the UK, allowing business rules provide the ensuring future estimated bills are “And, above all, don't simply based on forecast consumption, customers to pay a pre-agreed highest level of security for more accurate. increase previous expenditure by adjusting the price to reflect price for diesel from any Keyfuels Keyfuels cards. “Using past expenditure to general inflation. Energy is a traded market prices NOT general outlet. Fleet planning becomes easier, calculate future costs is dangerous. commodity and prices are very inflation thanks to secure online access to Bills may be wrongly estimated, volatile. Seek guidance on realistic n ask your local treasury or finance How does it work? regular detailed reports provided incomplete (not covering the entire market prices from your Council department, energy manager or by Keyfuels. These show where period) or include charges or credits treasurers' department, energy ESPO for guidance on forecast ESPO invites tenders from up and when each vehicle has for previous accounting periods. manager or ESPO.” energy prices to ten commercial fuel suppliers, refuelled, the quantity of fuel Moreover, they won't reflect the chooses the best price and drawn, the registration number latest or anticipated variations in Some simple 'good housekeeping' DON'T …. organises a credit transfer on and odometer reading of the prices. points: behalf of Keyfuels. The successful vehicle at the time of refuelling. n assume your supplier is reading supplier allocates the specified ESPO's purchasing power your meter, or that it is always amount of diesel to the Keyfuels means that customers obtain ESPO gas customers wishing to query a bill should contact the energy read correctly system, which is then available diesel at the most competitive team member for their area: n ignore readings that appear to be drawn off at any Keyfuels rates – typically 4.5 pence per incorrect outlet. litre less than the average Norfolk and Wales Amanda Bradshaw 0116 265 7911 n only keep a record of how much Each time a driver re-fuels forecourt price. Leicestershire and Warwickshire Diane Webber 0116 265 7884 you have spent using his Keyfuels card, his n use the amount you have spent, employer's account is debited How do I join? Lincolnshire and Cambridgeshire Julie Joyce 0116 265 7884 plus general inflation, to with the amount of fuel calculate next year's budget dispensed from the bunker. The Organisations with several customer is notified when the vehicles running on diesel should Your budget calculation: account is running low so that a contact James Trotter, ESPO's last year's consumption* (kWh) x forecast price including taxes and levies = forecast cost timely top-up payment can be fuels buyer, for more details: made. 0116 265 7924. *adjusted for changes in energy use or extraordinary charges/credits on the previous bill. ESPO News 12 29/11/04 13:18 Page 1

Top tips for energy efficiency Live wires join MOST businesses and public sector increase – and at a lower organisations could easily cut their temperature in areas where heating, lighting and power bills by there's heavy physical work up to 20% without any capital n reduce heating during holidays investment. Some companies have and weekends saved as much as 50%, making n don't heat unused space such them more profitable and as storerooms and corridors competitive. n don't block radiators with energy team ESPO does its utmost to get the furniture – it reduces efficiency best deal for the supply of energy on and output your behalf but we can only do so n site thermostats out of draughts TWO new recruits with energetic much, particularly when prices are and away from either cold or hot pastimes have boosted ESPO's rocketing. The cheapest unit of spots energy team. energy is the one you don't use, so n keep windows closed in cold Chris Carroll, who has a what are you waiting for? Start weather; if staff are too warm, passion for Ceroc dancing (for the saving now! turn the heating down instead uninitiated, that's a sort of synchronised jiving), has had an Lighting tips Energy management tips incredibly varied career. n switch off lights in empty rooms n if you can't measure it, you can't After school he joined a bank and corridors, especially at the manage it; check your and then went into the airforce, end of the day; this can knock up consumption of electricity, gas working as an interpreter for ten to 15% off your energy bill and oil regularly, and that your years. Whilst stationed in Berlin n use just the light you need. In bills relate to actual, not he met his future wife and bright corridors, remove or estimated, usage returned to the UK to help run switch off alternate fittings n ask your colleagues where they her father's car dealership for n use daylight – it's free! Keep think energy is being wasted, three years. A series of other jobs windows and skylights clean and and get their ideas about saving eventually led him to his first post clear energy in the energy industry, in East n clean light fittings regularly; Midlands Electricity's non- dirt reduces efficiency, domestic sales division. encouraging people to switch n more lights on ‘DUAL FUEL’ For further guidance on energy Heating tips efficiency contact your local energy Chris, 54, moved from his post n set the thermostat at 19°C – manager (see Need advice? on this as a senior account manager with costs rise by 8% for every 1°C page). Powergen 'to the other side of the fence' to take on the newly-created role of contract support officer Ben Higginson and Chris Carroll with the ESPO energy team. He says: “Although I had no previous buying experience, I know all the energy technology and the short rugby or cricket team at “My parents are both teachers Your write… cuts so it hasn't been difficult to Loughborough was virtually and I'm tempted to follow in slip into my new job. I was selling impossible so I looked for their footsteps but working here gas in my last few years with something different. That's when I has made me start thinking Write, fax or e-mail us at the address below and, Powergen so you could say I was discovered ultimate frisbee. It's a about a management job 'dual fuel'.” team game – five-a-side indoors instead.” if we publish your letter, we will send you a When he's not working or and seven-a-side outdoors – Ben, who comes from Watford, quality fountain pen. jiving, Chris enjoys the more something like a cross between may go on to do a Masters degree sedate pastime of collecting netball and American football. I'm before starting work but one thing A commercial customer asks: “I've read that domestic antiques, and lives near pretty tall so I'm the 'receiver', is certain: he'll still be catching energy prices have increased by almost 20% in the last Peterborough with his insurance which means I score the goals and that frisbee. broker wife and two sons. get the glory!” Energy team leader David year. Why have our costs gone up by 60%?” Kwiatek says: “Despite a very If 'ultimate frisbee' ever FRIENDLY AND FULFILLING steep learning curve, Ben is DAVID Kwiatek, ESPO’s energy team leader, explains: becomes an Olympic sport, look picking things up quickly and is “The difference lies in the make-up of the billed cost of electricity and out for Ben Higginson. Ben, on a year's work already providing valuable gas, as shown by the graphs below. The 20-year-old, in his third placement at ESPO, is supporting support to our customers and year at Loughborough University, the energy team, dealing with gas other members of the team. ELECTRICITY took up the sport when he began queries and resolving disputes. He “Creating the new post of 3% 3% his degree in mathematics and says: “I was looking for work contract support officer Generation 14% managerial sciences. He was in experience which would give me underlines our commitment to (inc CCL) Supply 6% the British junior team at the first the opportunity to be part of a continuous improvement. Chris 39% European championships and now team and interact with customers. has a wealth of energy industry plays for his University and an I felt at my interview that this experience which is already 35% Distribution 12% East Midlands team, training six would be a friendly and fulfilling proving invaluable to ESPO Transmission 65% or seven times a week. place to work and it's certainly and can only benefit our 3% He explains: “Getting into a lived up to my expectations. customers.” Environmental and 30% social obligation Domestic Commercial SOME more useful web sites – all preceded by www. Web Watch Councils GAS British Hydropower Association – promotes the 1% use of small-scale hydro power. . . Cost of gas 9% british-hydro.org 16% Trade association for biogen industry. . . britishbiogen.co.uk must do Trade association for photovoltaics . . . pv-uk.org.uk Transport and 17% British Wind Energy Association . . . bwea.com 45% metering For organisations with business interests in solar power . . . better Tax (CCL on solartradeassociation.org.uk commercial bills) Renewable Power Association . . . r-p-a.org.uk 39% 73% Association of Electricity Producers . . . aepuk.com ONLY a quarter of local councils are Supply Combined Heat and Power Association . . . chpa.co.uk meeting targets set by the Home UK Business Council for Sustainable Energy . . . bcse.org Energy Conservation Act (HECA). Domestic Commercial Keyfuels . . . chjones.co.uk The seventh progress report from Merchant wind power . . . ecotricity.co.uk the Department for Environment, “As you can see, the wholesale price accounts for a much larger Biodiesel . . . greenergy.com Food and Rural Affairs (DEFRA) proportion of industrial and commercial bills than of domestic bills. shows an average rate of Therefore the impact of a price rise will be greater for these users than for improvement of 12.2% from the domestic customers. Just for once, there's very little to report! 1996 baseline, against a target “In addition, commercial costs tend to be reviewed more frequently so Movers But we're sure it won't be long before the of 14%. price rises are passed on more often. Conversely, because there is more & movers and shakers of the energy world get Based on information provided by competition in the domestic supply market, there is a greater incentive to shakers busy again. local authorities in England, an keep these prices down. improvement of just under 30% in “Industrial and commercial users have borne the brunt of recent all residential accommodation is increases in both gas and electricity prices and, sadly, the end is not yet in Shelling out achievable by 2008 and would sight, as explained in Prices soar on on page 1. And, if current wholesale significantly reduce emissions of price levels are maintained, further increases for domestic consumers can Shell Direct has a new owner and a new CO2. be expected.” name. The fuel supply company was The HECA, which came into officially acquired by DCC plc, a value added force in April 1996 (later in sales and marketing support services group, Scotland and Wales), focuses Energy Matters is a customer newsletter published by on November 1. The business is now trading attention on an integrated as EMO Oil but in every other respect it's approach to housing and energy business as usual and customers wishing to strategies – which, in turn, should place orders should continue to call the help the UK meet its climate freephone number, 0800 085 2314. change commitments. The Act requires local authorities to report regularly to the Secretary of State NEED ADVICE ON ENERGY EFFICIENCY? on the progress they are making towards improving the energy Eastern Shires Purchasing Organisation ESPO’s member authorities have an energy manager or department to efficiency in all residential help with energy efficiency: accommodation in their area. Leicester Road, Glenfield, Leicester LE3 8RT Cambridgeshire Facilities Management Help Desk 01223 718044 Most authorities have become Leicester City ask for 'energy advice' 0116 254 9922 facilitators of change, rather than Telephone 0116 265 7845 Leicestershire Melvin Harrison 0116 265 6896 undertaking change themselves, Lincolnshire Nathaniel Dyas 01522 836224 and are encouraging residents to Fax: 0116 265 7900 • E-mail: [email protected] Norfolk John Cobb 01603 222674 invest in energy efficiency and Peterborough City Property Services helpdesk 01733 742424 change their lifestyle and behaviour. For the latest energy news, go to our web site Warwickshire Jacky Lawrence 01926 736324 Many partnerships with voluntary For other areas please contact your local council direct or ask ESPO for agencies, schools, businesses and www.espoenergy.org guidance. neighbouring local authorities are being developed. Printed on chlorine-free paper from farmed forests