Ofgem has asked us to point out that it does not employ interns from the big six energy suppliers, contrary to an assertion in a blog post published on the Torse website on 3rd July 2013 entitled “Energy Sector Retail Market Review- Avoiding the Issue”. The regulator said: ” The truth is that Ofgem does not use interns from the big six energy companies and certainly did not use any interned staff employed by the big six energy companies in formulating the RMR.”

Torse apologises for any confusion caused by the publication of the article.

Many would agree that the monopoly of the Big Six on the industry is in serious need of re-assessment and Ofgem believe that greater market liquidity is the solution – this will allow more suppliers and generators to enter the market resulting in fiercer competition. As a result of pressure to increase market-liquidity from smaller market players, Ofgem released its report on ‘Wholesale power market liquidity: final proposals for a ‘Secure and Promote’ licence condition – Draft Impact Assessment’ 12th June 2013. The proposal made the following key recommendations:

• Facilitating entry and competition by smaller suppliers using the Supplier Market Access (SMA) rules
• A change to license conditions forcing major power generators to release intended trading prices 2 years prior to delivery allowing small competitors to hedge in the forward wholesale market
• Significant fines to major firms who do not sell and negotiate fairly at all times – enforced deadline to ensure they acknowledge and respond to requests by smaller suppliers to buy energy and they will no longer be able to refuse those deemed reasonable
• An investment of £4m total set up cost and annual ongoing cost of £14m. continue

The Climate Change Act 2008 legislated for a reduction in our carbon emissions and set legally binding carbon budgets across all sectors of the UK economy – including our homes, communities and workplaces and as part of this the government has made a pledge to reduce carbon emissions by 34% (of 1990 levels) by 2020 and 80% by 2050. UK domestic buildings are among the least efficient in the world and account for 38 per cent of the UK’s total greenhouse gas emissions. The Green Deal scheme has been set up by the government to make improvements in the efficiency of these buildings more accessible to the general population and aims to do the following:

• Reduce the demand for energy
• Reduce dependence on imported fuel
• Meet carbon reduction targets
• Achieving affordable warmth
• Avoiding upfront cost

Applied to the process of improvement is the “Golden Rule” – which ensures that repayments for the work completed to improve energy efficiency do not exceed the savings made by these improvements. So in effect, this is a medium to long term solution in terms of financial savings but has an immediate effect in terms of carbon reduction. continue

Climate Change Agreements (CCA’s) were introduced by the UK government in April 2001 as an incentive for businesses to reduce their energy bills and as a result, their carbon emissions. They are voluntary agreements containing targets for eligible industry sectors. This was introduced after the government implemented an energy tax (levy) which appeared directly on all business’s energy bills known as Climate Change Levy (CCL). CCL was originally intended to be tax neutral with a corollary reduction in National Insurance contributions. continue

In this ever-changing economic climate, it is not unusual for businesses to vacate sites or move into new premises.   However, an often neglected aspect of the moving process is the closing down of your current utility accounts or ensuring the contract associated with your new site is in your business’s name. When contracts are agreed and signed, they are legally binding for the business, the supplier, and the property exactly as listed on the contract.  As such, for the duration of the contract the occupant listed on the contract is responsible for all charges associated with that property and contract.  If said occupant was to vacate the site, the contract becomes null and void.  Imagine moving into a site and automatically assuming the previous occupants costs as they neglected to close their account!
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Always bear in mind that if it’s too good to be true, there’s a catch!

Unfortunately, as of late unscrupulous call-centre agencies have been targeting businesses with misleading information regarding CCL exemption and a reduction to 5% VAT. However in the majority of cases this is just a ruse in order for businesses to give up confidential contract information, which in turn is sold on to any number of other sales type agencies as a lead..so beware.

These are clearly cynical sales agencies abusing businesses trust for their own financial ends.
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There have been many questions regarding this governments commitment to ‘green energy’ since the last cabinet reshuffle with the new energy minister having a reputation for being less than keen on renewables and investing in sustainable technologies. Are we still pursuing the goals we’ve set out or will things change direction somewhat? The UK population remains convinced that the sustainable, green, renewable…call it what you like, is here to stay and a reasonable proportion are happy to invest in it either on a domestic or commercial basis. Perhaps the uptake may be slower than hoped and having taken the odd beating here and there [especially with Feed In Tariff cuts] – but it is not going to be stopped. continue