How HeatingSave Helps Businesses | Page 19

This week the International Energy Agency (IEA) revealed carbon dioxide emissions hit a record high last year. “Energy-related carbon-dioxide (CO2) emissions in 2010 were the highest in history, according to the latest estimates,” the IEA said in a statement. Emissions are estimated to have climbed to a record five percent jump from the previous record year in 2008, when levels reached 29.3 gigatonnes, the IEA added.

Scottish Power will raise the cost of gas by 19 per cent and the cost of electricity by 10% from August 1. Affected customers will see an average daily rise to a dual fuel energy bill of 48p per day. The company said the move reflected sustained increases in the wholesale energy market, and more energy companies are expected to follow suit. Scottish Power last put its prices up in November, when gas prices increased 2% and electricity bills 8.9%.

A second big energy supplier has hinted that gas and electricity prices may rise steeply this year. Scottish & Southern Energy (SSE) said its household gas business had been losing money, with a 25 per cent rise in wholesale prices last year outgaining December’s 9% rise. SSE warned that wholesale gas and electricity prices for the coming year had gone up since then by as much as 33%.

Higher fuel bills have been identified as the major cause of inflation, which is predicted to rise to 5 per cent later this year. Speaking on the publication of the Bank of England’s latest Inflation Report, its governor Mervyn King said there remained strong downward pressures on economic growth and upward pressures on inflation. The Bank’s report has included an assumption that gas prices may increase 15 per cent and electricity prices by 10% this winter.

Almost half of office workers said their offices have become more energy efficient since the recession began. The YouGov survey also found 57 per cent of those polled said their green workplace has led to reduced costs, so it seems ‘going green’ has resulted in managers saving money. The survey also discovered that popular green measures in offices included turning off computer equipment when not in use (67 per cent did so).

The company that owns British Gas has warned that customers may face higher energy bills. Centrica said “end-user prices” did not reflect the price it was paying for gas on the wholesale market. The firm said in a statement: “In the UK, the forward wholesale prices of gas and power for delivery in winter 2011/12 are currently around 25% higher than prices last winter, with end-user prices yet to reflect this higher wholesale market price environment.”

The European Commission is planning a minimum tax on fuel for member states which would mean a rise in diesel prices. Under the plans, a new tax based on the carbon content of fuels would apply across member states, at a minimum of €20 per tonne of carbon dioxide. This is likely to affect diesel more than petrol, because most countries currently tax diesel more lightly. Connie Hedegaard, European commissioner for climate change, said: “It will encourage energy efficiency.”

New energy bill rules have come into effect from industry watchdog Ofgem. In a bid to protect consumers from unexpected bills, utility providers will now have to give 30 days’ notice of any price increases or changes in their contract that will make customers worse off. Under the previous system, energy firms had up to three months after making changes before they were required to notify customers. The firms have also been criticised for the timing of winter price rises.

Solar companies are taking legal action over cuts to the UK feed-in tariff. On Tuesday (April 19) they filed for a judicial review against Chris Huhne, the energy secretary, for his decision to review the tariffs that boost revenues for renewable power. Earlier in the year ministers said they would end subsidies to large-scale solar power installations from this summer to ensure all money available would go to small commercial or household installations.

Small and medium-sized businesses are finding it more difficult to become more energy efficient, according to one expert. Smaller businesses have less funding to siphon off resources for green measures, says Professor Ross King, joint programme director at the Centre for Sustainable Environmental Management-Brunel Management Programme.

The International Energy Agency (IEA) is saying the high price of oil is starting to affect demand for energy. The body said it was concerned about supply shortages. The IEA added that global oil output fell by around 700,000 barrels per day in March due to unrest in Libya. It surmised that the price of oil could begin to moderate itself over time, but thought a policy response from oil producers’ group Opec was unlikely.

Attacks on Libyan oil fields means the commodity has breached the $124-a-barrel mark for the first time since August 2008 after concerns were raised about supply. Brent crude surged by $1.05 to $124.65 a barrel on Friday (April 8). The price rises bring increased inflationary pressures around the world. There are fears that unrest in the Middle East could spread at a time when demand is increasing on the back of strengthening economies in countries such as China and the US.