Press release
17/08/2006 Powergen remains over 10% cheaper than British Gas
As a result of increasing wholesale costs, which have risen by 87% for both electricity and gas since the beginning of last year, Powergen has today (Thursday) announced it is to become the last major energy supplier to raise prices for its residential customers for a second time this year. This follows previous moves by British Gas, EDF, npower, ScottishPower and Scottish and Southern Energy (1).
Powergen’s electricity and gas prices will rise by 9.7% and 18.4% respectively for affected residential customers from 21 August 2006 (2). Despite this, a Powergen dual fuel customer could still save £114 a year compared to taking electricity and gas from British Gas (3).
Over 10% of Powergen customers are unaffected by this announcement as they are currently on capped or fixed price products. Powergen encourages customers to take its Price Protection 2010 product which caps prices and gives reassurance against any future price increases, without tie-ins or cancellation fees (4). Customers switching to Price Protection 2010 for electricity and gas can save £34 a year compared to British Gas (5).
Nick Horler, Managing Director of Powergen Retail, said: “We take today’s announcement very seriously and have fully considered its impact on our customers.
“Despite this increase, for the average customer, we are still over 10% cheaper than British Gas (6) and we remain fully committed to working with our customers to help them reduce their consumption and lessen their impact on the environment. For example, we offer an online energy efficiency audit which assesses your use of energy and makes recommendations for further improvements, supported by a free helpline giving tailored advice.
“We also continue to invest billions of pounds in the UK to help ensure the lights stay on and homes are warm.”
For vulnerable customers, Powergen provides practical solutions to improve the energy efficiency and income of homes in, or at risk of, fuel poverty through its CaringEnergy scheme (7). Powergen has committed £100m to CaringEnergy over the next three years.
Powergen’s parent company E.ON plans to invest £3bn over the next three years in power generation – including renewables, the distribution network, and gas storage. In addition, E.ON is planning to spend more than £2bn to help get gas to northern Europe and so to the UK. E.ON UK has this week announced the submission of a scoping application to build an underground gas storage facility in East Yorkshire which would be able to store an amount of gas equivalent to that used by the whole of the UK on a cold winter’s day (8).
Ends
Notes to editors:
• For affected customers, the increase is equivalent to 35p a day for a dual fuel customer. This is inclusive of VAT and based on a regional average across quarterly cash cheque and monthly Direct Debit payment methods at an annual consumption of 20,500 kWh for gas and 3,300 kWh for electricity on an unrestricted meter. Valid at 21 August 2006. Age Concern, EnergyOnline and prepayment customers will see the increase from 6 September 2006;
(1) = Other major energy suppliers to have announced/implemented two price increases in 2006 are British Gas, EDF, npower, ScottishPower and Scottish and Southern Energy;
(2) = Increases are nationally averaged and based on Ofgem average consumption of 3,300 kWh for electricity and 20,500 kWh for gas;
(3) = Saving based on a customer taking both unrestricted electricity and gas from British Gas, paying by quarterly cash cheque (excluding prompt payment discounts), changing to Powergen taking electricity and gas and continuing to pay by quarterly cash cheque. The saving is averaged nationally is based on consuming annually 20,500 kWh for gas and 3,300 kWh for electricity. Savings include VAT and may vary according to payment method, region and consumption. Valid at 17 August 2006;
(4) = Price Protection 2010 is available for standard and Economy 7 customers only, excluding prepayment customers. Limited availability. Premium and Terms and conditions apply.
(5) = Saving based on a customer taking both standard unrestricted electricity and gas from British Gas, paying by quarterly cash cheque (excluding prompt payment discounts), changing to Powergen’s Price Protection 2010 product and continuing to pay by quarterly cash cheque. Premium applies. The saving is averaged nationally and is based on consuming annually 20,500 kWh for gas and 3,300 kWh for electricity. Savings include VAT and may vary according to payment method, region and consumption. Valid at 17 August 2006;
(6) = Based on an average dual fuel customer, paying by quarterly cash/cheque, consuming annually 3,300 kWh of unrestricted electricity and 20,500 kWh of gas. Saving is averaged nationally and may vary according to payment method, region and consumption. Includes VAT. Valid at 17 August 2006;
(7) = CaringEnergy helps customers reduce the impact of rising costs in a number of ways including: free cavity wall and loft insulation; Benefits Entitlement Checks; energy efficiency advice; home visits and energy audits. A hardship fund has also been set up to give further support to the most vulnerable customers. To find out more about CaringEnergy customers should call 0800 051 1480.
(8) = The scoping application was made to East Riding of Yorkshire Council on 14 August 2006. The proposed facility would be built on a site north of Aldbrough and is expected to have total working gas capacity of 420 million standard cubic metres of gas. It is hoped a full planning application will be made in the autumn.
For more information, please contact:
Nick Sandham on 02476 181307, Jag Kahlon on 02476 181308, Cara Ponton on 02476 181303 or Victoria Blake on 02476 181304
