HOW TO SAVE MONEY ON YOUR ENERGY BILLS WINTER 2013/14 HOW TO SAVE MONEY ON YOUR ENERGY BILLS WANT TO KNOW HOW YOU CAN SAVE MONEY? Worried about how to pay for your energy use? Concerned about rising energy bills? If so, then this guide can help. There is lots of help already out there but it can sometimes be hard to find and difficult to know who to turn to. This guide is designed to help you to make your home more energy efficient and make you aware of what support is now available. There is advice on how to get the best deal from your energy supplier and details about schemes such as the Government’s Green Deal which can enable you to install energy saving measures at no upfront cost. 2 Included is also advice on a range of financial assistance to which you may be entitled. At the end is a list of various organisations that can offer advice and support to you and answer any of your questions. Now is the time to start thinking about how you can stay warm and save money this winter. I hope that this guide is helpful to you in keeping warm this winter. Robin Walker MP CHEAP ENERGY EFFICIENCY HOME IMPROVEMENTS Energy Efficient Light Bulbs Energy saving bulbs last up to 10 times as long as regular bulbs and if you replace all your light bulbs with energy efficient ones, When buying new electrical products, look you could save up to £45 each year and for the Energy Saving Trust logo which is a £670 over the lifetime of all the bulbs. quick and simple way of finding the most energy efficient products. Fit Radiator Film Look for the Energy Saving Trust Logo This is the logo to look out for when replacing small appliances. Electrical appliances such as televisions, computers and kettles, as well as heating and lighting products, will have this logo prominently displayed. Cosy up your Hot Water Tank An insulating jacket for a hot water tank does not cost very much and very soon pays for itself. Fitting a jacket that is 75mm or three inches thick will save about £35 each year. Draught exclusion Radiator film is fitted behind your radiators onto the wall and then reflects heat back into the room. Products vary but some can prevent up to 45% of external wall heat loss and this means that less energy is needed to reach the operating temperature. Monitor your use Energy monitors are proven to make people re-think their energy use and reduce consumption. Surveys following people trialling such devices have found that when people monitor their use they become more aware of their consumption and find ways to reduce their bills. This can lead to people turning appliances off stand-by, which helps to cut costs, or ensuring that all lights are off in rooms that are not being used. Check around windows and doors and see if there are any gaps where you can feel a draught. For letterboxes, doors and Thermal linings windows there are specific draught exclusion products which can help keep During the winter, it might be worth fitting extra lining to your curtains, especially if the heat inside your home. your property is not double glazed. This It is very important that you do not block can help prevent heat from being lost. where you have trickle vents fitted or air Some companies now sell roller, vertical bricks. These must be kept clear to and venetian blinds which reflect heat enable your home to breathe and avoid back into the room and also so help to damp problems. retain the warmth inside. 3 HOW TO SAVE MONEY ON YOUR ENERGY BILLS HEATING & INSULATION Upgrade an old boiler If your boiler is over 15 years old then it could be time to replace it with a new Whilst paying out for a service seems a cost energy efficient one. Upgrading to an Athat you can avoid regular maintenance of a rated condensing model with a full set of heating controls, (including TRVs as boiler can save you money in the longer mentioned earlier) could save you a quarter term. If you boiler is under 15 years old then it is worth keeping it in good working of your annual heating bill immediately, which an average of £235 for a gas heated order to prevent more costly problems developing further down the line. The cost home. of an annual service will vary, depending on the size and age of your boiler, and some Always ensure that your boiler is being installed by a Gas Safe Engineer and that people find that an annual contract is an they are on the register. Details of how to easier way of managing the payments. find the register are at the end of the guide under ‘Useful Contacts’ Flush out your heating system Check Over Your Boiler Heating systems build up sludge over time Cavity Wall Insulation which clogs pipe work and can shorten the life of your boiler. A sign that this might Insulating your walls is a cost effective way need doing is that the top, and sides of the of saving money and energy in your home., radiator are hot but the central column is without it you can lose up to a third of the cold. Paying a heating engineer to flush out heat you’re paying for. If your home was your system will increase its overall efficiency and reduce the cost of your bills. built between the 1920s and the 1990s then insulating your walls could save you £110 on your annual heating bills. Not all Always ensure that your boiler is being maintained by a Gas Safe Engineer and that homes can be insulated in this way, so if they are on the register. Details of how to your home is a solid wall construction or find the register are at the end of the guide was built before the 1920s, you may wish to consider installing internal or external under ‘Useful Contacts’ wall insulation which could save you £375 each year. Support from Energy Providers: Before you pay out for an upgrade to your Loft Insulation boiler or for insulation do check with your energy provider if you are entitled to help An un-insulated loft can result in you losing under the Energy Company Obligation—see 15% of the heating that you pay for. under the ‘Energy Providers’ section for Insulating your loft with 270mm of more information. insulation could save up to £145 each year. 4 RENEWABLE ENERGY detailed below: Renewable energy technologies take natural resources and use them to provide free electricity and heating rather than relying on fossil fuels. This can help to drive down the cost of energy as well as reducing carbon emissions. The Renewable Heat Premium Payment The Renewable Heat Premium Payment is a Government scheme that is designed to help you to afford the renewable technology that you may need for your home. These may include: Generate your own Power If you have the funds available, you could install your own microgeneration units such as solar photovoltaics (PV) for electricity and ground source heat pumps for heat. You could alternatively look to finance these changes using the Green Deal scheme (more details on page 6) ■ ■ ■ Who can apply? How you currently heat your home will determine which technologies you can apply to be funded: Whether you finance using the Green Deal ■ or directly out of your income, Government schemes such as the Feed-in-Tariff (FIT) can offer you an income from the ■ electricity that you generate and the Renewable Heat Premium Payment (RHPP) can help you to cover the upfront cost of installing green heating systems. There are a variety of renewable energy technologies which are available for homeowners to install which include: ■ ■ ■ ■ ■ Solar Photovoltaics (PV) Solar Thermal Water Heating Heat Pumps Wood Fuels Wind Energy Solar thermal panels Heat pumps Biomass boilers If you have recently removed a mains gas heating system or currently heat your home with mains gas, you are only eligible to apply for solar thermal. If you currently rely on oil, liquid gas, solid fuel or electricity then you could also apply for air-to-water heat pumps, ground-source or water-source heat pumps and biomass boilers. You must own the property in which you wish to install the renewable technology or, if you rent your home, you must have permission from the landlord and be purchasing the installation for yourself. The property must have loft insulation to 250mm and also cavity wall insulation (if this is possible in your property). There are also a range of incentives that All the necessary planning and have been provided by the Government to environmental permissions must already be in place and the product and installer you help fund these installations which are choose must be certified under the 5 HOW TO SAVE MONEY ON YOUR ENERGY BILLS Microgeneration Certification Scheme (MCS) or Solar Keymark scheme. Microgeneration Certification Scheme (MCS). How do I apply? Registering for FITs You can apply for the Renewable Heat Premium Payment online through the Energy Saving Trust’s website at www.energysavingtrust.org.uk/scheme/ view/rhpp. Alternatively, you can telephone on 0300 123 1234. The easiest way to apply for the FIT scheme is to first contact your installer. They will then register you on the MCS database and send you a certificate which will show your MCS compliance. Then you should inform your chosen FIT supplier that you wish to register for the FIT Feed-in-Tariffs (FITs) scheme. You will also have to send them a completed application form as well as the If you decide to install microgeneration MCS certificate and the Energy technology in your property, you could then Performance Certificate that proves your apply for the Feed-in-Tariff scheme once the home has an energy efficiency rating of installation has been completed. The band D or better. scheme gives you a minimum payment per unit for the electricity that is generated by THE GREEN DEAL the system and additional payments for any WHAT IS IT ALL ABOUT? surplus electricity that is then transferred to The Green Deal the National Grid. These payments are in addition to the savings that you will make The Green Deal came into effect from on your energy bills. October 2012 and it is a new initiative which will allow individuals and The FIT scheme covers electricity that is businesses to install energy saving generated by the following means: measures at no upfront cost and will really help to improve the energy efficiency of ■ Solar electricity (PV) properties. Millions of homes and ■ Wind turbine businesses could benefit from ■ Anaerobic digestion (microorganisms break down biodegradable material to improvements under the Green Deal. Both owner-occupiers and tenants will be release energy) able to see the rewards of a more energy ■ Micro combined heat and power efficient property. More help will also be (otherwise know as Micro-CHP) given to those who are most in need such as those on low incomes, vulnerable The tariffs vary depending upon when the households and those in ‘hard to heat’ technology was installed and you can only homes. apply if the company installing the technology is certified under the 6 How will it work? Improvements to your property such as loft and cavity wall insulation, underfloor heating, heat pumps, draught proofing, double glazing and boilers, could be installed by an accredited provider at no upfront cost. This will make expensive home improvements affordable. The first step is to get an independent and impartial on-site assessment of your home. The advisor will be able to identify where your home is wasting energy and tell you what steps you could take to reduce this waste. They should also be able to tell you how much you can expect to save by installing each of these measures. The next step will be to choose which improvements you would like to be made. You can then select from a list of ‘Green Deal Approved’ companies who have been accredited and you can work with them to agree the price for the work. However, crucially, you do not have to pay them for the work straight away. How will it be paid for? You can choose your payment method out of the following options: ■ You can pay for the work at the time that it is completed ■ You can pay for it through your energy bill. If you choose to pay through your energy bill then the payments will be agreed right at the start. If you choose to pay via your energy bill then do be aware that if you choose to move house then the payments stay with that property and do not come with you. The repayments via your energy bill must, however, obey the “Golden Rule” whereby the charge itself can never be more than the expected savings. This means that you should save from day one of the new measures being installed. For Green Deal improvements, you can expect the savings on your bills to pay for all the work done and in addition, by taking steps to reduce your energy consumption you will be better protected from any rises in energy prices. Who will do the work? Many organisations will bring the Green Deal to your attention such as the local councils, your landlord, local community groups, local builders or by your energy company themselves. If you would like to take advantage of the Green Deal scheme, you should contact one of these groups and they will be able to advise you further and put you in touch with an accredited installer. It is only those installers who have been accredited and will carry a “quality mark” that will be able to carry out work under the Green Deal. Consumer protection will be at the heart of the Green Deal and these will include measures such as: ■ New accreditation and standards 7 HOW TO SAVE MONEY ON YOUR ENERGY BILLS arrangements for those authorised under the Green Deal. ■ Stronger cold calling protections. ■ A robust standard of warranties. ■ The cross-selling of products only when customers have agreed this in advance. ■ Regulations so that assessors must make their role clear and disclose when they move from making an impartial assessment to the stage of making a sale. GREEN DEAL PROVIDERS NEXT STEPS ■ See if your property is likely to benefit from the Green Deal at: https://www.gov.uk/green-dealenergy-saving-measures/whatproperties-will-benefit-from-thegreen-deal; ■ If it will, then get a survey done by a Green Deal Assessor to see what improvements are cost effective; ■ Decide how you want to pay—either upfront or via your energy bills under a Green Deal Financing Plan; ■ If you decide to go ahead, you need to find a Green Deal installer will come and complete the work You can find local firms here: http://gdorb.decc.gov.uk/green-deal -participant-register; ■ You can then see if you’re eligible for cashback of up to £1,000 (only until 8 March 2014) at: https:// gdcashback.decc.gov.uk/ Once your installation is complete you can still apply for a feed in tariff even though if your improvements have bee financed under a Green Deal Financing Plan. For more information about how the Green Deal and Feed in Tariffs work together to save you even more money see: https://www.gov.uk/government/ uploads/system/uploads/ attachment_data/file/172883/ Feed_In_Tariff-web.pdf GREEN DEAL ADVICE COMPLAINTS Hopefully you will never need to use the information in this section but there are times when things do go wrong when having improvement work done on your home. Given that there are so many different types of improvement possible under the Green Deal we have enclosed a link to an online guide to the various complaints processes so that you can follow the right process to get things resolved. For more information see: https://www.gov.uk/government/uploads/ system/uploads/attachment_data/ file/206027/Consumer_Complaintsweb.pdf COLD WEATHER PAYMENTS BENEFITS Winter Fuel Payments Winter Fuel Payments are yearly one-off payments that also help people to pay for their heating bills during winter. They are This is a payment that is made to help you paid to men and women who have reached with the cost of heating during the winter the minimum age at which they can receive months depending on if you are already in their State Pension. The amount that is receipt of other benefits. You may be paid is dependent upon your circumstances entitled to Cold Weather Payments if you when you apply, but it could be between receive: £100 and £300. Cold Weather Payments ■ ■ ■ ■ ■ Pension Credit. Income Support. Income-based Jobseeker’s Allowance. Income-related Employment and Support Allowance (ESA). Universal Credit. How to claim Once you have reached the qualifying age (if you were born on or before the 5th July 1952) or if you are receiving certain benefits, you should automatically be sent a claim form in the post. You do not need to apply for Cold Weather Payments as they will be automatically If you do not receive the claim form, you paid into the same bank account as your can request a copy of the form to be sent to other benefit payments. you in the post by calling 0845 915 1515 or you can download the form by visiting A payment of £25 is made for each seven www.gov.uk and searching for ‘Winter Fuel day period of cold weather between the Payment’. 1st November and the 31st March. Payments will be made when the local The form then needs to be returned to the temperature is either: following address: ■ ■ Recorded as an average of zero degrees Celsius or below over seven consecutive days. Forecast to be an average of zero degrees Celsius or below over seven consecutive days. Winter Fuel Payment Centre Department for Work and Pensions PO Box 22 Gateshead NE92 1BX Do I need to claim? If you do not receive a Cold Weather Payment when you are entitled, you should You need to claim Winter Fuel Payment if contact either your pension centre or you have not had it before and either of Jobcentre Plus. the following apply: 9 HOW TO SAVE MONEY ON YOUR ENERGY BILLS ■ ■ You do not get benefits or the State Pension. You only get Housing Benefit, Council Tax Reduction, or Child Benefit. Warm Home Discount Scheme The Warm Home Discount is a four year scheme which started in April 2011 and will cease in March 2015. It provides guaranteed help for the ’core group’ and limited discretionary funding for the ‘broader group’. Therefore, it is absolutely vital to apply to your energy supplier as soon as possible - they will also be able to tell you whether you are eligible to receive support. The aim of the scheme is that the Government is helping those on low incomes with their energy bills. bills. A confirmation letter of entitlement is sent by the Government to the recipient. Older people will be considered as part of a ‘core group’ and will be guaranteed the rebate, which for this winter amounts to £135, provided that on 20th July 2013 they were either: ■ ■ 75 or over and getting the Guarantee Credit element of Pension Credit (even if you get Savings Credit). Under 75 and only getting the Guarantee Credit element of Pension Credit (you will not qualify if you also get Savings Credit). And all of the following apply: ■ Their electricity supplier is participating in the scheme. Their or their partner’s name is on their electricity bill. The Warm Home Discount is expected to help approximately two million households by 2014 and will be worth up to £1.1 billion compared to the previous ‘social tariff’ scheme which was worth only £375 million. Some energy companies that are participating will be able to offer more help than others. EDF Energy, for instance, estimates that between 40,000-45,000 customers will benefit from the Warm Home Discount scheme. ■ Do I need to claim? It is not just the elderly who can qualify but other vulnerable households too. Those on low-incomes or those with longterm illnesses or disabilities may also be eligible. Electricity suppliers that are participating in the scheme have been requested to set aside a certain amount which will be used to support these households which is known as the If you come under the core group, then no. The Government informs energy suppliers of households which are eligible for the Warm Home Discount and the energy company then gives those households a rebate on their electricity 10 There may be instances, however, when a rebate cannot be made automatically but if this is the case, you will receive a letter asking for you to supply further information. If you need help in replying to this letter then approach the Citizens’ Advice Bureau or other advice service (contact details are at the back of the leaflet). ‘broader group’. If you do not come under the ‘core group’ but wish to apply for discretionary funding then you will need to contact your energy provider to make an application. Which providers are involved? The energy companies that are participating in the Warm Homes Discount scheme are as follows: Atlantic Energy and Gas British Gas EDF Energy E.ON Equipower Equigas First Utility Manweb M&S Energy Npower Sainsbury’s Energy Scottish Gas Scottish Hydro ScottishPower Southern Electric SSE Swalec Utility Warehouse WHAT OTHER HELP IS THERE? If you’re worried about the cost of energy this winter or finding it difficult to pay your energy bills then you should firstly contact your provider to tell them about your concerns. There are other forms of assistance for customers, which include: Priority Service Register If you are disabled, have a long-term illness, or are over the pension age, then you should ask your energy supplier about registering for the Priority Service Register. This enables you to get help with annual gas safety checks, meter readings, priority treatment in an emergency and most importantly means that you cannot have your utilities disconnected during the winter. Further Assistance Payments Further Assistance Payments can be made to help replace household appliances or a boiler, or to help pay for repairs. There must be an urgent need for financial assistance and the application needs to be supported by an appropriate professional —for example, this professional could be a health worker or social worker. The professional who is writing the letter would also need to confirm the requirement for such a payment. In addition, quotes for the work would have to be provided before any award was made. To obtain an application form, please contact 01733 421 021 or email [email protected]. Alternatively, you can complete the form online at www.charisgrants.com. 11 HOW TO SAVE MONEY ON YOUR ENERGY BILLS EDF Energy Trust Fund EDF Energy has created the EDF Energy Trust Fund which is designed to award grants to their customers to: ■ ■ ■ Help to clear domestic gas and electricity debts. Clear other priority debts (also known as Further Assistance Payments). Purchase essential household items. For more information and details on how to apply, visit www.edfenergytrust.org.uk The British Gas Energy Trust The British Gas Energy Trust is a registered charity designed to offer assistance to those customers who have difficulty in paying their utility bills. Individuals and families who require help can apply to have their gas and electricity debts cleared, and other priority debts can be paid off in exceptional circumstances. This help would be provided in the form of grants which would not have to be repaid. You can apply by completing an online form at www.britishgasenergytrust.org.uk but also by requesting a form through the post by telephoning 01733 421 060. Debt Advice If you’re struggling with more than just your energy bills then you can always call the National Debt Helpline for free and in confidence on: 0808 808 4000. 12 ENERGY PROVIDERS HOW TO GET THE MOST OUT OF YOUR ENERGY PROVIDER Energy Company Obligation (“ECO”) The Energy Company Obligation or ECO is part of the Green Deal and was introduced by the Government to make energy companies provide funding for more energy efficiency methods for households. The aim of ECO is to target vulnerable and low income households as well as those homes which are difficult to heat. Providers will be obliged to specifically set aside to provide support with an estimated 2.8 million hard-to-treat cavity wall properties being eligible under ECO. It is important the ECO scheme is not confused with the ‘green taxes’ that are already levied on providers to help investment in more sustainable forms of energy. To read more about ECO please see: https://www.gov.uk/government/ policies/helping-households-to-cut-theirenergy-bills/supporting-pages/energycompanies-obligation-eco Switching Made Easy You could save money by switching to another energy supplier that is best suited to your needs. In order to get advice on which supplier and price plan would be best for you, you can contact the Citizens Advice Consumer Service which offers free and impartial advice as well as information on how to choose and change energy suppliers. 01992 822867 Alternatively, you may wish to do this yourself using a price comparison site. To help you, enclosed below is a list of accredited sites: SimplySwitch www.simplyswitch.com 08000 111 395 PRICE COMPARISON SITES ACCREDITED BY CONSUMER FUTURES switchgasandelectric.com www.switchgasandelectric.com TheEnergyShop.com www.theenergyshop.com 0845 330 7247 Energy Helpline www.energyhelpline.com 0800 074 0745 UK Power www.ukpower.co.uk 0800 093 2447 Uswitch www.uswitch.com/gas-electricity 0800 404 7908 myutiltygenius.co.uk myutiltygenius.co.uk www.energylinx.co.uk www.energylinx.co.uk Moneysupermarket.com www.moneysupermarket.com/gas-andelectricity 0845 345 1296 Which? Switch www.which.co.uk/switch Unravelit www.unravelit.com/utilities.php 0800 862 0021 Important: some providers are offering deals where you can already switch and hold your price for up to 2016. Future Improvements A range of measures are being taken to make it easier to switch suppliers. The time that it takes to change energy supplier is already limited to three weeks so as to speed up the process for consumers and so that they can start to benefit from reduced bills a lot sooner. The Government recognises that more does need to be done. Therefore it is simplifying the entire process and making information on tariffs and price plans more accessible and far easier to understand. From 2014, energy suppliers will be obliged to place customers on the cheapest tariff and thus save money on their bills. Additionally, the government has announced that there will be a competition review, led by Ofgem, which has already begun into the state of competition in the market, levels of profits and judging how well the companies engage with their customers. This review will report in 2014. 13 HOW TO SAVE MONEY ON YOUR ENERGY BILLS Consumer Futures A statutory organisation representing consumers. Consumer Futures can help you by providing advice and information regarding the energy market. USEFUL CONTACTS Age UK They cannot, however, discuss individual complaints with members of the public. www.consumerfutures.org.uk DWP General Benefits Line An independent charity, Age UK provides information and advice for elderly people about a wide range of issues and can refer you to other organisations which can provide more practical help. Age Worcester Malvern Gate Bromwich Road Worcester WR2 4BN 0800 008 6077 http://www.ageuk.org.uk/ herefordshireandworcestershire/contactus/ Citizens Advice Bureau (CAB) For specific, tailored advice on benefits, debt or consumer issues then you should contact your local Citizens Advice centre. Worcester CAB & WHABAC By appointment only on: 0844 411 1303 For online help see:: www.adviceguide.org.uk 14 The DWP Benefits Line is a free helpline which can advise you on any benefits to which you may be entitled. They can also send you the necessary forms and help you complete them so you can make a claim. 0800 055 6688 Energy Ombudsman Contact the Energy Ombudsman if you have a problem or complaint that cannot be resolved by your energy supplier. In the first instance, you should always contact your energy supplier. Only when they have exhausted their complaints procedures should you contact the Ombudsman. 0330 440 1624 or 01925 530 263 www.ombudsman-services.org/ energy.html Energy Saving Trust Jobcentre Plus Benefits A national, non-profit, organisation providing free and impartial information and advice on how to improve energy efficiency in your home. Linked to a network of local advice centres. Jobcentre Plus can provide you with a wide range of information and services on issues such as which benefits, loans or grants that you may be entitled to. 0300 123 1234 [email protected] www.energysavingtrust.org.uk Gas Safe Register Gas Safe Register is the official body for gas safety. They can provide you with advice on gas appliances as well as having a clear register of all reputable companies involved in the field of supplying gas. 0800 408 5500 www.gassaferegister.co.uk Home Heat Helpline 0800 055 6688 www.gov.uk/contact-jobcentre-plus Ofgem Ofgem is the government regulator for the gas and electricity markets. Its purpose is to protect consumers and does offer consumer advice on its website. www.ofgem.gov.uk Pensions Advisory Service An advice helpline that can provide elderly people with advice on benefits to which they may be entitled. 0845 601 2923 A free helpline which can provide www.pensionsadvisoryservice.org.uk practical advice for people worried about their fuel bills. This line can also give Winter Fuel Payment advice to low-income households in A form of financial help from the urgent need of help and advice. Government for elderly people. For information and application forms to claim Open from 9am-8pm Monday to Friday the payment, please contact: and 10am-2pm on Saturdays. 0800 336 699 www.homeheathelpline.org.uk 08459 151 515 www.gov.uk/winter-fuel-payment 15 HOW TO SAVE MONEY ON YOUR ENERGY BILLS Robin Walker and Energy Minister, Greg Barker, investigating the workings of Greenstar Boiler on a visit to Worcester Bosch. Robin Walker MP Disclaimer: The Guildhall Worcester WR1 2EY This help guide has been prepared with great care. The publisher is not, however, liable for correctness, completeness and accuracy of the contents. If you wish to make a correction, update, or addition, please contact Robin by phone or by email at the addresses provided on the left hand side of this page.. Constituency Office: 01905 22401 Westminster Office: 0207 219 7196 E-mail: [email protected] Website: www.walker4worcester.com Twitter: @RobinWalkerMP Robin holds regular advice surgeries across the area, giving you the opportunity to raise issues or problems in person. Please either telephone Robin’s Constituency Office or send him an email to make an appointment. This guide has been funded thanks to the support of Worcester Bosch Group and not at the expense of the taxpayer. 16
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