A recent report submitted by energy regulator Ofgem, showed that on average, power company profits are the lowest they have been for two years.
‘With companies like Scottish Power pushing up gas prices by 19% and electricity tariffs by 10%, the question has been when British Gas would follow suit, not if,’ says Robert Peston, Business editor of the BBC. ‘British Gas, the largest supplier of gas and electricity in the UK, will announce price rises some time before the results of its parent company, Centrica, are published on 28 July, I have been told.’
When the energy giant inevitably announces their price raise this month, it will be yet another blow for the millions of households that are struggling to pay their bills.
Back in April, Ofgem announced that its plan to make energy suppliers give 30 days’ advance notice of all price rises was formalised, in an attempt to protect consumers from the ever growing energy prices. These new rules aimed to sweep away the complexity in energy pricing and allow a consumer time to switch to a cheaper energy supplier and avoid what has been described as ‘Fuel Poverty.’
As the world’s oil supply is unavoidably disappearing, gas prices will continue to rise and it may be the right time to take your energy finance into your own hands. There is a lot of discussion about energy alternatives and a lot of people are seen to be jumping on the bandwagon. “I was at a friend’s BBQ last weekend and our neighbours fine solar array was a hot topic’ says Lorraine Nugent, West Sussex homeowner. “There was mixed views at the beginning of the conversation however it seemed they were down to awareness. The majority weren’t aware that solar panels can come in all shapes and sizes and that you can earn money even from the energy you use, we certainly walked away with a potential installation on our minds.’
Since the Feed-in Tariff became available, energy companies are obliged to pay householders a regular tariff for their production of renewable energy such as electricity produced from a solar PV array. Simply put, for every kilo-watt you produce you get paid. Below I have demonstrated a typical investment of a 3kWp system (approx.) for a roof that faces south. These figures are dependent on the systems you install and their efficiency. Please bear in mind these figures are in good faith and should not be used as ‘financial advice.’
Based on an investment in a 3.08kwp system costing £13,369.70
Income from Feed-In Generation Tariff @ 43.30p/kWh: £1,132.42
Income from energy you don’t use @ 3.20/kwh: £40.54
Electricity Saving of £181.76
Which means your total benefit would be £1,354.72
Payback time: 8 years and 5 months
Total Profit over 25 years: £45,302.74 (13.55% per year & at 5.92% AER)#
Calculate your potential solar costings here.
When you really begin to uncover the potential benefits of going green you really understand why the government are really backing this industry at the moment. It really is a way out of having to spend an ever increasing amount of money with energy suppliers, as a lot of what you pay for is maintaining their infrastructure.