Russian Firm Could Build Two Nuclear Power Stations In UK
Russia could help build two nuclear power stations in Britain after RWE and E.ON pulled out of a joint venture.
Russia’s state atomic energy corporation, Rosatom, is considering buying a stake in Horizon Nuclear Power, the company created by RWE and E.ON to build new plants in Britain.
Britain is committed to reducing carbon emissions and also needs to improve energy security so it may be that it goes ahead with Russian built power stations. Utility Exchange reported recently that E.ON and RWE had decided not to continue with their project to build two nuclear power stations blaming increased costs.
As North Sea gas and oil fields come to the end of their lives Britain has had to increase the amount of energy it imports. The Department of Energy & Climate Change says that now Britain imports 40% of its oil and gas. Furthermore there are concerns that there may be a shortfall of energy in just a few years’ time as nuclear power stations are shut down along with coal fired power stations.
Renewable power will not be advanced enough to fill this gap within the next few years but the country is still committed to reducing carbon emissions. Therefore it’s argued that nuclear power is the only low carbon option available.
Domestic and business electricity prices and gas prices continue to rise. A recent study by Liberum Capital, an investment bank, found that British energy bills are expected to increase by as much as 70% by 2020 as the energy gap increases. While nuclear power is controversial it may ensure UK energy security and help to slow rising energy prices.
Rosatom provides fuel for the Sizewell B nuclear power station in Suffolk and has been involved in decommissioning several nuclear sites in the country. The Rosatom press officer, Vladislav Bochkov, said “No other country in the world has Rosatom’s experience in building nuclear power plants. We have opened 20 nuclear power-generating units worldwide over the past 25 years and currently have 25.2 gigawatts of combined capacity in Russia. We are second only to France’s EDF in total capacity for generating electrical energy”.
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E.ON Launches 7 Step Plan For Small Business Customers
E.ON has launched a 7 step plan for its small business customers to ensure small businesses get the best service possible from their energy supplier.
The 7 step plan aims to make energy easier for small businesses. It includes new industry standards for business gas and business electricity sales by energy brokers and a customer panel which will reflect the views of small businesses.
Utility Exchange reported at the end of 2011 that E.ON was to press the “Reset” button and review its relationship with customers. The energy supplier’s Reset Review was launched in January and every bit of its relationship with its customers was analysed – from bills and tariffs to how products are sold.
The chief executive of E.ON, Tony Cocker, said “…we’re pleased to announce a series of commitments for our small business customers which will help improve their overall experience; from finding the best product, managing their account and providing help when they need it”.
He added “One of our key aims continues to be the improvement of sales standards for small business customers across the entire industry, which is why we’re launching a full code of practice for business energy brokers and will be approaching other energy suppliers to invite them to sign up to this single code too”.
Changes already made and set to be made over the next few months include:
New Code of Practice:
A press release said “E.ON is launching a full Code of Practice for SME business energy brokers which sets out the standards it expects them to adhere to when selling to customers and hopes that other energy firms will adopt this single independent set of principles. The code will ensure the product offered is appropriate to the needs of the customer and make the entire sales process a more transparent and positive experience”. E.ON will work “with all of its SME business energy brokers/consultants to implement the set of principles as part of their sales processes and intends to operate these principles as standard from 31 July”.
Improved billing standards:
E.ON already tries to ensure bills are correct but in the cases where they are not the energy provider says it will protect small and medium sized businesses from large back bills. “E.ON will not back bill SME customers over three years and aims to reduce this to one year by the end of 2013”.
Fairer debt repayment:
In situations where small business customers get into debt E.ON will contact the customer early on and discuss their circumstances and repayment plans.
Smart metering:
E.ON has already installed a number of smart meters in business properties and aims to install another 2,500 by the end of the year.
Better Direct Debit policy:
E.ON is making changes to its Direct Debit policy for small businesses joining the company. Customers will have their fixed direct debit payments reviewed regularly to ensure their account balance is at zero on the anniversary of when they joined the company.
Contract renewal:
E.ON will ensure they improve communications with customers when they are due for renewal to make sure they can make an informed decision.
Bill improvements:
E.ON is looking at changing its bill format to make it clearer for small business customers.
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Failure To Meet Renewables Target Will Increase Gas & Electricity Bills
A new study reports that the UK will miss renewable energy targets which could mean an increase in gas and electricity bills.
A study by the Renewable Energy Association (REA) found that if the UK misses its renewable energy targets it could mean billions of pounds are added to gas and electricity bills because the UK would have to rely more heavily on imported gas.
It’s not just domestic energy bills which would be affected – business electricity prices and gas bills would also increase as a result of more imported gas.
The European average for renewable energy generation is 12% while only 3% of the UK’s energy comes from sources of renewable energy at the moment. The UK has a target of generating 15% of its energy from green sources by 2020 but many argue that there’s no chance of the government achieving this target.
An international meeting on renewables takes place in London this week. The Clean Energy Ministerial begins on Wednesday and will be hosted by David Cameron. Energy ministers from a number of countries around the world will discuss how they can co-operate to develop low carbon emission technology and policy.
However, if the UK doesn’t achieve its target of 15% renewables by 2020 then it will have to increase the amount of gas it imports. Increasingly imported gas will be a larger part of UK energy bills if the renewable energy target is not met. The government has also said that increasing the amount of renewable energy in the country will increase the number of jobs available so not meeting green target will also hit green jobs targets.
The minister of state for energy and climate change, Greg Barker, said “Renewable energy not only provides us with clean and secure energy that cuts our reliance on imported fossil fuels, it generates billions of pounds of investment and hundreds and thousands of jobs and is a key growth sector for the UK economy. We are determined to seize the momentum and secure maximum benefit for the UK”.
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SME’s Understand Smart Meters Are Good For Business
Opus Energy has revealed that small and medium enterprises (SME’s) understand the benefits of smart meters for their businesses.
Research from Opus Energy found that 15% of the SME’s they questioned already had smart meters installed in their premises. Opus Energy has a target to install 40,000 smart meters in customer premises by the end of 2012. At the moment 25% or 16,000 of Opus Energy’s customers already have a smart meter installed.
Smart meters can help businesses cut their electricity consumption by anything from 5-15% as reported by Utility Exchange recently. With rising business electricity prices this can really help to reduce business electricity bills.
Opus Energy questioned 500 business leaders and found that many of them were aware of the benefits of having a smart meter installed. They found that “38% thought the main benefit of installing a smart meter was that it provided real time visibility of their business’ energy consumption; 36% saw the main benefit as accuracy of meter readings and bills; and 31% believed smart meters encourage business owners to think more about energy saving”.
Managing Director of Opus Energy, Charlie Crossley Cooke, said “Smart meters are the big industry innovation for the next decade. Customers with smart meters are five times less likely to have a complaint as a result of bill transparency. This means that we can reduce our service delivery costs, in turn enabling us to continue to offer competitive prices to our customers”.
Opus Energy plans to install smart meters for all of its customers and is set to escalate its smart meter installation programme. The energy provider offers free smart meters for all its existing customers who have not already converted.
Charlie Crossley Cooke added “Our research also shows that more than half – 59% – of our panel of business owners are looking to their energy providers to seek information about switching to a smart meter. Due to the success of our own ongoing smart meter roll-out, we were surprised that more SMEs haven’t yet made the switch”.
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GDF Suez Acquires Last 30% Of Electricity Producer International Power
The French energy giant GDF Suez is set to acquire the last 30% of the electricity producer International Power for £6.8bn.
A revised bid of £6.8bn from GDF Suez for the remaining 30% of International Power it doesn’t already own has been approved by directors.
Utility Exchange reported last year that the electricity generator, International Power, had merged with GDF Suez making it the second biggest independent power producer in the world.
An initial offer was rejected by International Power but an increase of 7% on that bid was approved by International Power directors.
In a statement GDF Suez said “This transaction represents a major strategic step in GDF SUEZ’s development. It is consistent with the Group’s strategy of accelerating its development in fast growing markets and simplifying its structure”.
GDF Suez plans to increase investments in the future in developing countries. International Power already has a leading place in such countries including South America, the Middle East, South-East Asia and Australia.
Chairman and chief executive of GDF Suez, Gérard Mestrallet, said that the deal “will allow the Group to fully capture growth in fast growing markets”. He added “..we want GDF Suez to be the leading energy player in the emerging countries”.
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Iceland’s Volcanoes Could Cut UK Business Energy Prices
Domestic and business energy prices could fall if a plan to use energy from volcanoes in Iceland goes ahead.
A plan backed by the Government involves transporting geothermal electricity generated in Iceland to the UK. Iceland has a plentiful supply of cheap electricity generated by using geothermal energy. The plan involves transporting this electricity via a supergrid of cables laid across the sea floor.
If this project was to go ahead it would mean the end of the UK’s energy independence but it could help to keep domestic and business electricity prices down by giving the country access to the cheapest energy.
The UK is to begin talks with Iceland in May when the energy minister, Charles Hendry, will visit. Speaking to The Guardian, Mr Hendry said “We are in active discussions with the Icelandic government and they are very keen”.
A supergrid is already being planned to link the UK to Europe to enable access to renewable energy from countries in both northern Europe and north Africa. Others are also being planned or under construction with one linking Ireland to Wales due to open in the autumn. This will deliver renewable energy from Ireland to mainland Britain.
North Sea oil and gas reserves are dwindling and therefore it’s unlikely the UK will remain energy independent for much longer. Charles Hendry has admitted “We will be dependent on imported energy” and added that the cables “are an absolutely critical part of energy security and for low carbon energy”.
While interconnector cables can be laid very quickly it takes time to draw up international agreements but they are cheaper than building new power stations. Doug Parr from Greenpeace said “Interconnectors are the cheapest way of backing up wind, because you avoid the greater capital cost of building power stations. We will of course be buying power in when the wind is not blowing, but the interconnectors mean we can sell our wind power when it does, and we have the best wind resource in Europe”.
Speaking from the Energy Networks Association, Tony Glover said connecting Britain to the rest of Europe is good for consumers. He said “the ability to link electricity supplies from the rest of Europe is good for competition and will generally help to keep prices competitive”.
It remains to be seen whether the project to transfer Iceland’s geothermal generated electricity to the UK will go ahead. There’s competition to access Norway’s pump storage, with Germany already in negotiations. While Iceland is a long way from the UK it’s at least closer than mainland Europe so the UK may already have an advantage.
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Energy Companies Forced To Reveal Their Best Deals
The Government will force energy companies to tell customers about their best deals, a move which the Government says could save consumers up to £100 a year.
The Big Six energy companies will be forced to tell their customers what their best deal is and the most suitable tariff for them. The Deputy Prime Minister, Nick Clegg, said as many as 7 out of 10 people are on the wrong tariff and end up paying more than they should.
There have been accusations in recent years that energy suppliers are “ripping off” consumers. Various sources have said there should be more competition in the market.
Mr Clegg said this initiative was just one of a series of measures designed to help drive down energy bills. However, consumers are still being encouraged to compare energy prices themselves and switch to a better deal. In fact, Mr Clegg admitted he was a typical consumer saying he hadn’t switched energy supplier for a number of years.
He said “We haven’t switched actually over the last year or two and I kind of think we’re probably very typical. You stick to a tariff, you think it’s all a bit complex, you get lots of stuff through the letterbox… all a bit confusing. You don’t really then make the effort or take the time to look at how you’re using your energy and what tariff would be best for you”.
The same can be said of many business customers. A huge number of businesses still don’t compare business electricity or business gas prices and end up being rolled over into expensive contracts.
Mr Clegg hopes that from the autumn information received by consumers will be easier to understand and therefore people will find it easier to work out the most suitable tariff.
The proposals mean that once a year the Big Six energy suppliers, British Gas, E.ON, npower, SSE, EDF and ScottishPower, will have to let their customers know what their best deal is. It still means however that consumers should look at deals other energy companies have to offer. It may be that another energy supplier has a better deal than the best your current energy provider has to offer.
While Consumer Focus welcomed the move as a good “first step” the director of energy at Consumer Focus, Audrey Gallacher, said “This is probably only going to work if this is part of a much wider strategy to really help people engage more effectively with their energy bills, really cut their costs and get the best out of the energy market”.
Speaking from the organisation which represents energy companies, Energy UK, Christine McGourty said consumers still need to compare energy prices and shop around for the best deal. She said “There are many different ways people can manage their energy bills, whether by changing tariff, method of payment or installing energy saving measures such as insulation”.
So whether you are a domestic consumer or you are a business owner it’s important to remember to compare electricity and gas prices with all suppliers to ensure you get the best deal available.
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Small Businesses Encouraged To Install Smart Meters
Small businesses are being encouraged to install smart meters to help ensure more accurate bills and change attitudes towards using energy.
According to research from British Gas around 50% of businesses are missing out on opportunities to reduce their business energy bills. At the same time 75% of businesses say that rising business electricity prices and gas prices are at the top of their list of concerns.
Utility Exchange reported earlier in the year that British Gas had found that small and medium sized businesses were wasting money on business electricity. Figures from smart meters show that businesses could do more to reduce their electricity bills and British Gas is again trying to get business customers on board and using smart meters.
At the moment around 200,000 SME’s are using smart meters but it’s hoped that this number will increase this year.
Installing smart meters can help businesses cut their business electric consumption by between 5-15% according to independent Government research.
Consumers who have smart meters installed already find that they tend to switch off equipment and waste less electricity. They can work to encourage all members of staff to save energy too. In fact it’s good to get members of staff involved and even give them some responsibility such as making one of them the “eco warrior”.
Smart meters just monitor electric use at the moment but it won’t be long before smart meters for gas are available which will give businesses even more control over their energy consumption.
Smart meters also mean no more estimated bills and ensure that business owners have a more accurate idea of how much their bills will be and therefore they are able to budget more accurately.
There’s still a long way to go before all small and medium sized businesses have smart meters installed. However, businesses can still reduce their energy costs by making a few changes such as switching off computers and monitors when not in use. Even turning off lights in empty rooms can help to reduce energy costs. For those without smart meters it may be worth getting an energy monitor which shows how much energy is used for example, when turning on the kettle – it’s quite shocking!
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SSE Announces Multifuel Generation Facility Joint Venture
SSE has entered into a joint venture with Wheelabrator Technologies Inc to develop a multifuel generation facility at its Ferrybridge power station.
The 50:50 joint venture, called Multifuel Energy Ltd (MFE), should begin constructing the new facility towards the end of 2012. It will be a 68MW facility and should be completed by the 2015.
The project will create hundreds of jobs while around 50 permanent positions will be created once the plant is operational. Electricity generated by the facility will be sold to SSE.
Fuel for the project will come from 3SE with whom MFE has a long term fuel procurement contract. 3SE will provide waste derived fuels using waste taken from councils close by, namely Barnsley, Rotherham and Doncaster.
The coal fired plant at Ferrybridge is set to shut down during 2015 though this project is not seen as a replacement for the coal fired power station. In fact, no plans have been made by SSE regarding the future of Ferrybridge Power Station.
Managing Director of Generation at SSE, Paul Smith said “Multifuel technology is a tried and tested way of generating clean, base-load power. This new multifuel plant will provide additional diversity to SSE’s generation portfolio and make a useful contribution to ensuring we have reliable energy supplies for the future”.
He added “The transactions that make up this project represent a strong partnership between four major players in the multifuel sector, who are committed to making a serious level of investment in this technology. Between them the companies involved have extensive experience in sourcing and processing waste, constructing and commissioning multifuel technologies, and operating generation plant. This partnership creates a great platform to develop multi-fuel technology in future”.
Meanwhile managing Director of Wheelabrator Technologies, UK, Gary Aguinaga, said “Wheelabrator is delighted to reach contractual close with SSE to design, build and operate a modern multifuel facility at the Ferrybridge site in West Yorkshire. We are committed to forming strong partnerships as we continue to expand our operations across the UK and Europe. Through the Multifuel Energy joint venture, we are combining our expertise and experience to deliver a state-of -the-art facility which will provide significant amounts of clean energy”.
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Japan Pushes To Get Nuclear Reactors Restarted
The Japanese government is pushing to get two nuclear reactors, left idle after the Fukushima disaster last year, restarted to avoid a total shutdown of its nuclear power stations.
The Japanese Prime Minister is meeting with cabinet members to discuss restarting two reactors at the Kansai Electric Power Company Ohi plant in western Japan. Many reactors were temporarily left idle after the earthquake and tsunami last year which caused a huge crisis at the Fukushima nuclear power plant.
There’s a concern that if nuclear plants are left offline much longer it will be much more difficult to get them restarted in the future as public opinion turns against this form of power generation.
Japan has turned to gas to generate electricity over the last year which has resulted in an increase in demand for gas globally. This in turn has affected wholesale gas prices and business electricity prices and gas prices.
The Japanese government is concerned that if nuclear reactors are offline for much longer people will question why it’s needed if the country can manage without. They are also concerned that demand for electricity will increase soon as the summer arrives and without the extra power generation restrictions will again have to be imposed.
Last year Utility Exchange reported that restrictions were imposed to cut down on business electricity use, including allowing workers to dress down. Some companies such as Sony changed their working hours so that they worked when electricity demand was lower and the government ordered big businesses to cut business electricity usage by 15%.
However, businesses are not happy and don’t want to have to go through this again this year. They are concerned that it will increase their business electricity costs and warn they could move overseas if a total shutdown of all nuclear power plants results in higher business electricity prices in the future.
It’s unclear whether Japan’s decision to restart nuclear reactors will have any effect on wholesale gas prices. Other countries such as Germany and Italy have moved away from nuclear power as a result of the problems faced in Japan after the tsunami. Consequently, there’s still higher demand for wholesale gas than there was two years ago.