The energy regulator has responded to reports of billing problems at EDF, instructing the company to investigate and confirm the issue’s scope.

Ofgem has taken prompt action in response to reported billing issues at EDF. Ofgem has engaged with EDF, directing them to thoroughly investigate and verify the extent of the problem.

Emphasising urgency, Ofgem has also sought details on the corrective measures EDF plans to implement to prevent similar errors in the future.

The energy regulator said: “We have spoken to EDF today and instructed them to check and confirm this isn’t a wider systemic issue and report back to us urgently. We have also asked what steps they will take to prevent any future errors of this kind.

“At this time of year especially it’s vital suppliers ensure mistakes like this do not happen and take rapid remedial action if they do. Receiving a bill of this size, even when it’s clearly an error, can be highly distressing for customers.

“We expect suppliers to treat customers fairly and any billing errors should be rectified quickly.”

Around a million homes are set to receive a boost in energy efficiency, with targeted support for 200,000 low income households and an additional £1.5 billion allocated for the Boiler Upgrade Scheme.

The UK Government is set to provide extensive support, backed by £6 billion, to enhance energy efficiency for approximately a million families and hundreds of businesses.

This initiative includes various options to reduce energy use and emissions, such as insulation for 500,000 homes and additional grants for heat pumps.

An extra £1.5 billion in funding will facilitate more installations of heat pumps for homes and businesses, contributing to the transition to cleaner heating systems.

In addition, new plans ensure that all new homes and buildings will be zero carbon ready from 2025, aligning with the Future Homes and Buildings Standards.

Currently under consultation, these standards aim to make new homes and buildings fit for the future, lowering bill costs and reducing carbon emissions by at least 75% for all new homes compared to 2013 standards.

To further improve existing homes, the government commits to spending £12.6 billion by 2028, including allocations for schemes such as the Boiler Upgrade Scheme, a new energy efficiency grant, a local authority retrofit scheme, the Social Housing Decarbonisation Fund, the Green Heat Network Fund, the Heat Network Efficiency Scheme and the Industrial Energy Transformation Fund. .

Energy Secretary Claire Coutinho said:  “Cutting energy bills is my top priority. Today’s funding will help those who are most in need and keep around a million more families warm during winter.

“Everyone deserves to live in a warm, energy efficient home. We have already made excellent progress with nearly 50% of properties in England now having an Energy Performance Certificate of C – up from just 14% in 2010.”

The UK’s electricity generated from fossil fuels in 2023 dropped by 22% year on year, reaching the lowest level since 1957 at 104 terawatt hours, according to new analysis.

The UK experienced a notable reduction in electricity generated from fossil fuels in 2023, marking the lowest level since 1957.

That’s according to Carbon Brief analysis, which suggests the 22% year-on-year decline brought the total to 104TWh, reflecting a broader trend of a two-thirds drop since the peak in 2008.

This shift is attributed to the increased use of renewable energy and decreased electricity demand.

According to the report, fossil fuels comprised 33% of the UK’s electricity supplies in 2023, with gas at 31%, coal just over 1%, and oil just below 1%.

Low carbon sources accounted for 56%, with renewables contributing 43% and nuclear 13%.

According to the Power Tracker analysis by the Energy and Climate Intelligence Unit (ECIU), renewable generation experienced a significant increase of over 10% in 2023 compared to 2019, while gas generation saw a decline of approximately 25%.

The ECIU analysis found that in 2023, renewable electricity generation in the UK achieved a notable milestone, surpassing 90TWh from wind, hydro, and solar sources.

This amount exceeds the energy required to power all of the UK’s 28 million homes.

Image: Rob Atherton/ Shutterstock

Consultants suggest urgent measures, such as social tariffs, to prevent further harm to both suppliers and vulnerable consumers.

The energy price crisis has left millions of households struggling to meet their bills, even with a recent decline in prices.

In response to Ofgem’s recent announcement on the recovery of bad debt, consultancy Cornwall Insight suggests urgent measures are needed to prevent the vicious cycle of supplier failures and rising energy bills.

Dr Matthew Chadwick, Lead Research Analyst at Cornwall Insight, said: “The mounting weight of unpaid energy debts is a crushing burden for suppliers, many of whom are already operating on razor-thin margins.

“We currently have 241 fewer domestic suppliers in the market than November 2020. The costs for failed suppliers ultimately fall on the shoulders of those paying their energy bills.

“Without intervention, suppliers and consumers could be trapped in a vicious cycle of rising bills, mounting debts, supplier failures, and even higher bills.

“The question of how to recover these debts without saddling struggling consumers with even higher bills is not easy. Ofgem acknowledges that targeting only the vulnerable for debt repayment is both unfair and impractical.

“On the flip side, their blanket proposal to raise bills by £16 per year for all non-prepayment customers could be seen as placing the burden on everyone, regardless of their ability to pay.

“To safeguard suppliers from collapse without increasing fuel poverty and bad debt, urgent consideration of effective measures, such as social tariffs, to support the most vulnerable in paying their energy bills, is essential.”

The energy giants have joined forces with the Kyrgyz Republic in an agreement signed at COP28 in Dubai.

Masdar and EDF have agreed with the Kyrgyz Republic to investigate the potential development of 3.6GW of hydropower and renewable energy projects.

The memorandum of understanding (MoU) was signed at COP28 in Dubai, involving key representatives from the Kyrgyz Ministry of Energy, Masdar and EDF.

Incorporating hydropower into its portfolio for the first time, Masdar aims to contribute to the Kyrgyz Republic’s existing clean energy capacity, which predominantly relies on hydropower plants.

The Kyrgyz Republic is generating approximately 90% of its electricity from clean sources.

Dr Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, COP28 President and Masdar Chairman, said: “Hydropower is one of the oldest clean energy sources and has many positive attributes that can help a number of countries around the world achieve their climate goals and meet their net zero targets.”

H.E. Taalaibek Ibraev, Minister of Energy of the Kyrgyz Republic said: “Hydropower is a very important energy source for the Kyrgyz Republic and this agreement will help our nation to strengthen its existing clean energy supply and to develop projects utilising other renewable energy sources.”

Image: Masdar / EDF

Nearly 425,000 customers are encouraged to reduce usage during the DFS event and earn £5 per kWh saved.

Customers of British Gas can receive cash discounts on their bills by reducing energy usage today.

British Gas has announced its participation in the upcoming ESO Demand Flexibility Service event scheduled for 1st December, running between 4:30 pm and 6:00 pm.

Nearly 425,000 customers enrolled in British Gas’s PeakSave scheme can reduce energy usage during this period and earn £5 per kWh saved.

Additionally, customers enrolled in PeakSave enjoy the added benefit of receiving half-price electricity on Sundays.

Participating customers receive a 50% discount on all electricity consumed between 11 am and 4 pm every Sunday.

The energy regulator has fined Hudson Energy Supply UK for ten breaches of licence conditions, citing serious overcharging of business customers and failure to supervise outsourced operations.

Ofgem has imposed a penalty of £1,668,426 on Hudson Energy Supply UK Ltd (HES) for “serious” breaches of licence conditions.

The penalty comes after a thorough investigation, initiated in July 2020, uncovered ten violations by HES, a non-domestic market energy supplier serving up to 1,600 business customers across the UK.

The regulator’s findings revealed a pattern of non-compliance by HES, particularly in its outsourcing arrangements with a third party for customer operations.

Ofgem identified failures in ensuring proper supervision, resulting in poor customer service and inappropriate actions towards HES customers.

One alarming instance included the unjustified overcharging of a customer by £22,500, contributing to serious customer harm.

Apart from overcharging, the investigation identified nine other breaches lasting nearly five years, ranging from the mishandling of microbusiness customers (MBCs) to issues with credit balances on former customers’ accounts.

MBCs were particularly affected, with failures to properly identify them, leaving many without additional protections entitled to them.

In response to the enforcement action, HES, now owned by Shell since 2019, admitted to all breaches and implemented remedial actions to prevent future failures.

The company agreed to settle with Ofgem through a £1,668,426 penalty, to be paid into Ofgem’s Voluntary Redress Fund, supporting energy consumers in vulnerable situations and investing in innovation and carbon emission reduction projects.

The majority of the money owed to customers has been returned.

Cathryn Scott, Director of Enforcement and Emerging Issues at Ofgem, said: “As part of our role as the energy regulator, we expect suppliers to comply with their obligations, including where they choose to outsource elements of their business.

“In this case a series of failings by HES has resulted in unacceptable outcomes for energy customers, with a number being unjustifiably overcharged by significant amounts, resulting in serious customer harm.

“Through taking this action Ofgem is sending a firm signal to the market that it is not possible to outsource compliance with the licence conditions: the licence holder is responsible for any breaches and any harm caused to its customers.

“This significant penalty should send a strong signal to all suppliers in the market to act with the utmost care and integrity when it comes to engaging and monitoring third parties carrying out important areas of their supply business on their behalf.

“This is a difficult time for all customers, and poor service and deliberate overcharging will simply not be tolerated.”

Image: patpitchaya / Shutterstock

The energy regulator has announced an investigation into Maxen Power Supply, focusing on the fair treatment of businesses and the rates they are charged.

Ofgem has launched an investigation into Maxen Power Supply Ltd, a non-domestic utilities supplier based in east London.

The regulatory scrutiny focuses on ensuring fair treatment of businesses and evaluating the rates imposed by the company.

The assessment aims to determine whether Maxen Power Supply complies with regulatory requirements.

Ofgem’s evaluation will cover various aspects, including the fair and transparent treatment of microbusinesses, the supplier’s organisational capability, the fairness of deemed rates and compliance with rules preventing customer transfer blocking.

Ofgem’s regulatory oversight aims to ensure that utility providers operate within the specified standards, fostering fair business practices and protecting consumer interests.

The investigation does not presuppose any findings of non-compliance but seeks to ensure adherence to defined standards.

The government has launched a consultation on expanding support from the Energy Ombudsman to cover small businesses with less than 50 employees.

More than 200,000 small businesses could get access to free specialist support for disputes with their energy suppliers under new proposals announced by the UK Government.

Under the latest plans, small businesses with less than 50 employees would qualify for support from the Energy Ombudsman, with issues including disputes over bills and energy supply, how an energy product or service has been sold and wider customer service problems.

This support is currently only available to businesses of up to 10 employees – and households.

The proposal follows a survey by Ofgem, which found 94% of respondents, which included business organisations, consumer groups and suppliers, said they would welcome the move.

The government is seeking views on the proposal to ensure all relevant businesses have access to redress against their energy supplier, without having to rely on the courts.

It has launched a consultation and is inviting views until 31st January 2024.

Energy Consumers and Affordability Minister Amanda Solloway said: “This government has always stood by businesses and we want to ensure they are getting proper support and service in dealing with energy suppliers.

“That’s why we’re proposing expanding the reach of the Energy Ombudsman to cover an extra 200,000 businesses, allowing them to access free, impartial advice and resolve issues with their supplier without the need for an expensive trip to court.”

Energy suppliers, including British Gas, OVO, Bulb, E.ON, ScottishPower and SSE, will pay a combined penalty of £10.8 million for failing to meet smart meter installation targets in 2022.

Energy suppliers, including British Gas, OVO, Bulb, E.ON, ScottishPower and SSE, will collectively pay £10.8 million in penalties for failing to meet smart meter installation targets in 2022.

These companies missed the target of installing 1,026,628 smart meters by the required deadline.

As a result of Ofgem‘s actions, they have agreed to contribute to the Energy Industry Voluntary Redress Fund, which aids vulnerable consumers at risk from cold homes and high energy bills.

Cathryn Scott, Director of Enforcement and Emerging Issues for Ofgem, said: “The installation of smart meters is a vital step in the modernisation of our energy system and the path to net zero by 2050.

“Smart meters give customers better information about their energy usage helping them budget and control their costs.”

Image: Vitalij Terescsuk / Shutterstock