Latest news with #energyproviders
Yahoo
26-05-2025
- Business
- Yahoo
Typical energy bill in Great Britain to fall 7% to £1,720 a year from July
Energy costs will fall for millions of British households this summer after the industry watchdog cut the price cap for a typical annual dual-fuel bill by 7% to £1,720. The energy regulator for Great Britain, Ofgem, said the cap on gas and electricity charges would fall from July by the equivalent of £129 a year for the average home after a sharp slump in Europe's gas market prices. Despite the drop, which follows three consecutive quarterly increases, the typical household will still pay about £600 a year more on their annual bill than before Russia's invasion of Ukraine three years ago. About 9m households that buy their energy through variable tariffs will see an immediate impact on their bills when the cap takes effect in July. But households could still face higher bills if they use more than the typical amount of energy. This is because the cap, which is recalculated every three months, limits the rate energy suppliers can charge customers for each unit of gas and electricity – not the total bill. Ofgem said it was able to lower the cap after a slump in gas market prices across Europe, which has helped to cut costs for energy suppliers. Ofgem has also cut the amount that suppliers can charge customers to cover their operating costs after a 'full review' of the expenses faced by suppliers since the price cap was introduced in 2019. The decision, which will be unwelcome news for suppliers, accounts for 10% of the price drop. The lower price cap is a rare dose of good news for households wrestling with a plethora of bill increases, from broadband to water, that came into force in April and conspired to drive inflation to a higher-than-expected rate of 3.5%. The benchmark price for European gas tumbled from highs of almost €58 (£49) a megawatt hour (MWh) in February to just over €31/MWh last month, while the UK gas market price fell from 138p per therm to about 78p/th. Cheaper gas means lower costs for household heating but it also lowers the cost of electricity in the UK because a large proportion of power is generated in gas power plants. Tim Jarvis, the director general of markets at Ofgem, said: 'The first thing I want to remind people is that you don't have to pay the price cap – there are better deals out there so it's important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136. 'In the longer term, we need an energy system where prices are insulated from the volatile international gas market, and which ensures more stable prices and energy security. And we're working closely with government to get the investment we need to reach our clean power and net zero targets as quickly as possible.' The new price cap is likely to reignite the debate over the affordability of the UK's energy. A record proportion of British households were unable to pay their energy bills by direct debit last month because there was not enough money in their bank accounts, according to official government data. More than 2.7% of direct debit payments for gas and electricity defaulted in April because of insufficient funds, the latest figures published by the Office for National Statistics have revealed. The rising energy default figures are expected to lead to higher overall energy debt and arrears, which reached a record £3.8bn at the end of September last year. This is more than double the debt shouldered by households at the start of 2022. On Wednesday, Keir Starmer said he wanted more pensioners to be eligible for winter fuel payments after a backlash against Labour's decision last summer to limit support to the poorest households. The prime minister said he would look again at the £11,500 income threshold over which pensioners are no longer eligible for the allowance, but would not say how many of the approximately 10 million people who lost it would have it restored or if the U-turn would come into effect this winter. Ed Miliband, the energy secretary, said: 'This fall in energy bills is welcome news for families across the country and will mean that working people keep more of their money in the coming months. 'However, we know that it is only through our mission for clean, homegrown power that we can get off the rollercoaster of fossil fuel markets controlled by dictators and petrostates – and give families and businesses energy security and bring down bills for good.' The chief executive of the charity Citizens Advice, Clare Moriarty, said: 'Today's announcement will be cold comfort to the millions paying off a mountain of debt on top of their monthly costs. 'The government has said it hopes to provide more support to pensioners this winter but we know that people with children are often struggling most of all with energy. It must provide more targeted energy bill support to those hardest hit, and upgrade 5m homes with money-saving energy efficiency measures.'
Yahoo
26-05-2025
- Business
- Yahoo
Money blow as more than 1.3 million Aussies face up to $228 bill hike in weeks: 'Too much'
Electricity bills are set to go up again in a few weeks by up to $228 for residents in four Australian states, and the final price has now been revealed. The Default Market Order (DMO) affects people in New South Wales, South East Queensland and South Australia, while the Victorian Default Offer (VDO) is for residents in that state. These orders act as a benchmark for other energy retailers for the maximum price they can charge customers on default contracts. They're designed as a safety net for those who don't or can't shop around for a better deal, and can help those shopping around to compare prices to a base level. 'These electricity price hikes will knock the wind out of the sails for many families, just when they thought they'd turned a corner in the cost-of-living crisis," Canstar's data insights director Sally Tindall said. ATO warning ahead of $1288 cost-of-living cash boost $3 million superannuation tax change sparks property warning as 'panic' selling beginsMajor backflip from world's most cashless country as Australia mulls money law For the DMO, the price hike on July 1 will depend on where you live and which energy provider you are with. There are roughly 800,000 people on the DMO, and close to 600,000 people on the VDO, meaning these price hikes could affect more than 1.3 million customers. NSW Ausgrid: $155 jump, with the average yearly bill for 2025-26 being $1,965 Endeavour Energy: $188 jump, with average cost $2,411 Essential Energy: $228 jump, with average cost $2,741 QLD Energex: $77 jump, with average annual cost $2,143 South Australia SA Power Networks: $71 jump, with average annual cost $2,301 Victoria AusNet Services: $6 jump, with average annual cost $1,908 CitiPower: $90 jump, with average cost $1,546 Jemena: $26 reduction, with average cost $1,638 Powercor: $4 jump, with average cost $1,703 United Energy: $25 jump, with average cost $1,579 The Australian Electricity Regulator (AER) published a draft back in March on how much prices would rise on July 1. In some cases, plans are up to $28 higher than the forecast figures released just two months AER said wholesale market and network costs, which are the two largest components of DMO prices, had seen increases of 2 to 12 per cent for the majority of customers. The Essential Services Commission, which sets the VDO, said network costs were the biggest contributor to the changes. Yahoo Finance contributor David Koch said there had been a higher-than-normal demand for electricity triggered due to extreme weather conditions on the east coast. 'We haven't seen demand like this for nearly a decade and that volume has been compounded by reduced coal availability and transmission issues,' he explained. Tindall warned that a price hike of $228 for an average household might be "too much for some families to bear", especially considering we're entering one of the most energy-intensive times of the year. 'Figures from the AER show almost 3 per cent of customers are behind on their electricity bills, with the average debt totalling $1,395 — a figure that could increase once these rate hikes set in," she said. 'While the federal rebate will offset some of this rate pain over the next six months, with no current plan to extend this relief, many households will see their bills spike in the new year." The original energy rebate from the government is set to expire on July 1, however around round of funding will be delivered for the final two quarters of 2025 in $75 instalments. 'If you get a note from your provider telling you your electricity prices are on the rise, use it as an opportunity to check whether there's a cheaper plan out there," Tindall added. She said you don't have to wait until these prices change on July 1 and you could switch beforehand. Switching now should not preclude you from checking again in a few months time after the dust has settled on the price hikes, provided you're not on a plan with a lock-in contract," Tindall added. 'Our research shows switching from an average priced plan to one of the lowest in the market could save you over $400 a year in some cases. This for some households could be enough to mitigate the upcoming price hikes."Sign in to access your portfolio
Associated Press
09-05-2025
- Business
- Associated Press
Stop Buying Energy Infrastructure. Start Buying Results.
For decades, owning your own energy infrastructure was a point of pride. It meant independence, control and long-term value. But in today's world of tight capital, rising utility risk and increasing operational complexity, that logic is unraveling fast. The truth? Energy infrastructure is no longer a smart asset. It's a distraction. A cost center. A growing liability. If you're still spending capital to install boilers, chillers, generators or rooftop solar panels, you're missing a transformational shift in how energy is delivered and financed. The new model isn't about owning equipment—it's about outsourcing outcomes. Enter Energy-as-a-Service (EaaS): a smarter, faster, capital-light way to modernize your energy systems without tying up budget or resources. Instead of building, owning and maintaining energy infrastructure yourself, you partner with a private provider who does it all for you—and pays for it, too. Let's break down how it works, why it's gaining traction and what's at stake if you stick with business as usual. The Problem: Legacy Energy Infrastructure Is Sinking Budgets Across the board—from hospitals to manufacturers to data centers—organizations are burdened by outdated, inefficient and expensive energy systems. Maybe it's an aging steam plant guzzling fuel. Or backup generators that haven't been tested in years. Or utility bills that fluctuate wildly from month to month. The equipment might still run—but it's draining your capital, your staff and your ability to move forward. Here's what's driving the urgency to rethink ownership: Put simply: the traditional model of owning and operating your own energy infrastructure is no longer aligned with business reality. The EaaS Alternative: Pay for Performance, Not Equipment Energy-as-a-Service turns the old model on its head. Instead of buying, installing and managing your own infrastructure, you partner with a private provider who delivers energy as a managed service. They design, finance, build, own, operate and maintain the system—while you pay a predictable monthly fee tied to performance. You get the energy outcomes you need—power, heating, cooling, resilience, cost savings and even decarbonization —without taking on the upfront cost or long-term risk of ownership. How It Works Step 1: Assessment: The EaaS provider evaluates your current energy systems, load profiles, risks, and long-term operational goals. Step 2: Custom Design + Financing: They design a solution (often including microgrids, combined heat and power, renewables, or high-efficiency equipment) and fund the project with private capital—no CapEx required from you. Step 3: Implementation, Operations & Maintenance: The provider installs the system and takes full responsibility for day-to-day operations, monitoring, and maintenance. You offload the burden of operation and maitenancy entirely—freeing up your staff while ensuring performance. Step 4: Monthly Service Fee: You pay a service fee, typically structured around energy usage, avoided utility costs, or service-level benchmarks like uptime, emissions reduction, or reliability. The fee includes ongoing operations and maintenance, so you're never stuck footing the bill for unexpected repairs or performance shortfalls. The result? You gain access to modern, resilient, efficient energy systems—without the hassle, risk, or capital burden. Why EaaS Is Gaining Ground Across Industries Forward-looking organizations are embracing EaaS to get out of the energy infrastructure business—and focus their time, talent and capital where it matters most. Here's why: microgrids Who's Using EaaS Today? EaaS is gaining adoption in capital-intensive, mission-critical sectors where energy reliability and cost certainty matter most: Hospitals and Healthcare Systems: Offload the complexity of backup power, heating and cooling—while staying compliant with life safety codes and reducing operational costs. Universities and Campuses: Replace aging steam plants and inefficient infrastructure with right-sized systems that reduce operating expenses and support long-term sustainability goals. Industrial Manufacturers: Improve energy efficiency, reduce costs and increase uptime—without adding risk to the balance sheet. Data Centers: Enhance reliability and resilience while managing energy costs with predictable pricing and SLAs. Municipalities: Upgrade essential infrastructure without new taxes, bonds, or debt—while delivering community-facing sustainability and economic benefits. What to Look for in an EaaS Partner Like any long-term service relationship, success depends on the right partner. Look for: Proven Track Record: Experience across multiple technologies, asset classes and industries—not just a solar installer rebranding as EaaS. Financial Strength: The ability to fund multimillion-dollar projects and remain stable through economic cycles. Operational Expertise: Deep bench strength in engineering, controls and facility operations and maintenance—not just development and design. Transparent Performance Guarantees: Contracts that tie payments to measurable, auditable outcomes—not vague service levels. Flexible Structures: EaaS models can take many forms—make sure the provider tailors the contract to your goals, whether that's cost savings, decarbonization or resilience. The Bottom Line: Own Results, Not Equipment In today's economy, the most strategic organizations aren't doubling down on energy infrastructure. They're stepping back—and letting private partners deliver the outcomes they need. They're getting out of the ownership game. Freeing up capital. Reducing risk. Improving efficiency. And doing it all without sacrificing performance or control. That's the power of Energy-as-a-Service. If your facilities team is bogged down with repairs, your CapEx is frozen and your energy costs are outpacing your budget, it's time to stop buying equipment and start buying results. The future of energy isn't about what you own. It's about what you achieve. Visit 3BL Media to see more multimedia and stories from Veolia North America
