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Sunday, September 14, 2008

Is Your Energy Broker Doing You Your Best Deal?


Secret commissions totalling tens of millions of pounds a year are being paid to 'independent' brokers by energy suppliers to pull in lucrative business from small and medium-sized companies.

The undisclosed payments mean that a large part of the energy market is effectively rigged.

The commissions can often amount to as much as 20 to 30 per cent of clients' annual gas and electricity bills. And in some cases brokers force suppliers to sign nondisclosure agreements so they never talk to customers about the commissions they are paying.

The close ties between suppliers and brokers mean that it is rare for intermediaries to secure the best possible deal for their client.

The disclosure comes as major suppliers have just fended off the imposition of a windfall tax and are battling to minimise the impact of having to pay more to help hard-up families cope with spiralling heating and lighting bills.

One industry insider said: 'Some brokers are ripping customers off for vast sums. And their actions are reducing competition because they will go only to suppliers who pay commissions, which means in some cases they seek quotes from only a third of them.'


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Thursday, September 4, 2008

No Help for those that need it most with Energy Bills


BY THE NUMBERS

£262.00 - Annual Fuel Bills Rises this Summer

£1,200 - The Average A Typical Household Will Pay For Energy This Year

1 in 4 - Households in Debt To Their Energy Supplier

4.5Million - Homes Cannot Afford To Keep Warm

2,500 - Fuel Poverty Related Deaths Each Year

£6Billion - Profits For The Big Six This Year

£1.6Billion - Dividends Paid Out This Year


Home owners are more likely to receive indirect help than cash to help cover the souring costs of energy bills. Gordon Brown is still holding onto the forlorn hope that the big SIX will give discounts to the poorest in society that need the most help.

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Pre-payment Meters a Good Deal???

BBC Business News - Energy companies 'exploit poor'

Energy companies have been accused by an industry watchdog of exploiting some of the poorest people in society. Customers with pre-payment meters are paying hundreds of pounds more for electricity and gas than those with access to the cheapest tariffs.

According to Energywatch, some people cannot take advantage of lower tariffs because they do not have bank accounts.

Customers on the meters are charged an average of £195 more a year than those paying by direct debit, it says. In some cases, customers using meters have been found to pay as much as £304 more a year.

The cheapest tariffs are typically available to those who apply online and pay by direct debit.
'Morally bankrupt'

Many consumers prefer to use pre-payment meters to pay for gas and electricity.
It allows them to budget and to pay as they go along rather than face an unwelcome bill. But others have no option.

"That they should ramp up the rates and exploit those with no access to alternative payment methods is morally bankrupt," said Energywatch chief executive of Allan Asher.

The industry regulator Ofgem says companies install pre-payment meters when a customer has difficulty managing their energy bills. They are common in rented accommodation and holiday homes. There are 3.5 million electricity and 2.2 million gas pre-payment meters in Britain.

More meters

Energywatch claims that the number of meters being installed each year has been rising due to soaring energy bills.

Some 580,000 pre-payment meters were installed in 2006. Energywatch claims that 63% were installed by companies to recover debts, which would limit the ability of those households to switch to cheaper suppliers or payment methods. The industry also argues that pre-payment tariffs tend to be higher because of the expense of maintaining the meters and the payment system.

Ofgem calculates that the additional cost of providing gas or electricity by pre-payment is £85 per household.

But according to Energywatch, even after these costs are taken into account, the industry is making close to £300m a year in revenues from customers on pre-payment meters.

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Wednesday, September 3, 2008

Dial M for Money

Juswant Rai is celebrating his first year with Telecom plus PLC, one that he feels has been highly successful.


“The secret to making money in this business is teamwork,” he says, “You help your team and your sponsor helps you.

“If you are rowing a boat you need two oars (customers and Distributors) and they must work at the same speed or you will go around in circles. You learn early on that this is a very simple business, and to only focus on those activities that work for you. Stuart, who introduced me into the business, has been a tremendous help and I do the same for people I introduce into my own team.

“At its most basic, the business revolves around something we all the time; recommend something we think is good to other people, like books, movies and restaurants.





“The company provides landline, mobile and broadband services plus gas and electricity at some of the lowest prices available.

“This morning I had six e-mails from people wanting to know about these money saving services because there had been a scare story about prices on the television. The media is doing my advertising for me.

“Because the services are used by just about everyone, finding customers who want to save money, particularly at the moment, is not difficult. The company is wonderfully supportive and offers superb training to help you build your customer base.”

Joining Telecom plus costs just £199.75, which includes a Starter Pack with everything you need to get going. This joining fee is fully refundable if you gather just 12 customers within your first 90 days. In addition you will receive full training at one of many locations around the UK.

When you gather a customer you will receive a one-off bonus, the amount of which is dependant on the service(s) they choose, along with an ongoing monthly commission, which is based on their usage, and which lasts for as long as they remain a customer. Every time they make a call, switch on a light or boil a kettle you get paid.

When I bring in a new team member I do all I can to make sure they are supported from day one and I am always available for them on the phone, via e-mail or in person.

“This is really building a long term, substantial, business,” says Juswant, “The business is very flexible and can be fitted around anyone’s schedule. You decide how you wish to work it. The more effort put in, the faster and greater the rewards come. What is so satisfying is seeing your income grow every month and the certainty that this trend will continue. I am looking for people to join the business.

“They don’t need any particular background but they do need to be prepared to follow the advice given and stick at it and see their income grow every month.

“There’s quite a market out there. The company has over 200,000 customers but there are 26 million households in Britain all of whom could be saving money.”
Juswant Rai is celebrating his first year with Telecom plus PLC, one that he feels has been highly successful.

“The secret to making money in this business is teamwork,” he says, “You help your team and your sponsor helps you.

“If you are rowing a boat you need two oars (customers and Distributors) and they must work at the same speed or you will go around in circles. You learn early on that this is a very simple business, and to only focus on those activities that work for you. Stuart, who introduced me into the business, has been a tremendous help and I do the same for people I introduce into my own team.

“At its most basic, the business revolves around something we all the time; recommend something we think is good to other people, like books, movies and restaurants.





















“The company provides landline, mobile and broadband services plus gas and electricity at some of the lowest prices available.

“This morning I had six e-mails from people wanting to know about these money saving services because there had been a scare story about prices on the television. The media is doing my advertising for me.

“Because the services are used by just about everyone, finding customers who want to save money, particularly at the moment, is not difficult. The company is wonderfully supportive and offers superb training to help you build your customer base.”

Joining Telecom plus costs just £199.75, which includes a Starter Pack with everything you need to get going. This joining fee is fully refundable if you gather just 12 customers within your first 90 days. In addition you will receive full training at one of many locations around the UK.

When you gather a customer you will receive a one-off bonus, the amount of which is dependant on the service(s) they choose, along with an ongoing monthly commission, which is based on their usage, and which lasts for as long as they remain a customer. Every time they make a call, switch on a light or boil a kettle you get paid.

When I bring in a new team member I do all I can to make sure they are supported from day one and I am always available for them on the phone, via e-mail or in person.

“This is really building a long term, substantial, business,” says Juswant, “The business is very flexible and can be fitted around anyone’s schedule. You decide how you wish to work it. The more effort put in, the faster and greater the rewards come. What is so satisfying is seeing your income grow every month and the certainty that this trend will continue. I am looking for people to join the business.

“They don’t need any particular background but they do need to be prepared to follow the advice given and stick at it and see their income grow every month.

“There’s quite a market out there. The company has over 200,000 customers but there are 26 million households in Britain all of whom could be saving money.”


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Friday, August 29, 2008

Scottish Power & NPower follow Suit!

Scottish Power has raised it's gas prices by an average of 34% and electricity price by 9 from Monday September 1st.

NPower is doing the same as of today with gas up an average 26% and electricity 14%

The follows close on the heels of E.On, British Gas, EdF and Scottish and Southern Energy.

Why is Utility Warehouse different?

Utility Warehouse is not just a Energy company it's a multi-service company
Utility Warehouse has a Triple Price Guarantee and very competitive Rates
Utility Warehouse has award winning customer service
Utility Warehouse is an awesome company and a outstanding business opportunity


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Monday, August 11, 2008

Are we being legally mugged by the UK government and the energy companies?

All our energy firms are now foreign owned and completely control the UK energy market and our government is full of rhetoric but there is nothing they can do to stop them and to be honest I don’t think they really want to, if this wasn’t the case they would have foreseen the situation and we would have now far greater storage capacity. I mean it’s not as if it sneaked up on them, a blind man with a stick could of foreseen this and we would have been selling them our gas for the last thirty odd years during the winter months at an extravagant price instead of the other way round and since this is not the situation that can only mean they planned it this way or they are completely incompetent.

So ‘We’, as usual the moaning Minnies of Europe will ‘Whine’ but in the end will just put up and eventually shutup!! And why not! We’re use to it .It’s just another cartel and monopoly which we are so good at creating and maintaining, we’re just teaching our neighbours how lucrative it is, legally mugging the British people. Unfortunately it’s hard trying to restrain their total greed; they’re literally foaming at the mouth.

They’re now at the stage of behaving like they’re oil companies, quick to pass on increases in prices, but fail to act when they fall. The price of oil has fallen by a fifth in the past month if you didn’t know and since we are now conveniently informed that gas and oil prices are linked, gas prices should be falling. Instead the Prices defy gravity — they go up, but they never come down.

Gordon Brown’s new consumer advocate, Ed Mayo says that the European energy companies are often owned by the state from which they come and face no competition at home. But unlike our governments past and present they manipulate the market to protect their home market (Awhhh! ain’t that nice of them).

So we’ll just have to look forward to the prospect of paying £100+ a month to heat and light our homes this winter.


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Saturday, August 2, 2008

Will gas prices mean a rate increase?

BRITISH Gas owner Centrica said yesterday it would raise gas prices by a record 35 per cent and electricity prices by 9 per cent as it passes on rising energy costs to householders.

The country’s largest energy supplier, with 16m customers, said the move would take place immediately – after revealing its half-year operating profits from its residential gas business plunged 69 per cent to £166m from a year ago.

Centrica’s price hike comes just a few days after rival EDF Energy put up gas prices by 22 per cent and electricity prices by 17 per cent, with other power firms expected to follow suit.

British Gas managing director Phil Bentley said: “We very much regret that we have had to make this decision at a time when many household budgets are already under pressure.”

Soaring energy prices have cost British Gas an extra £2bn over the last year, leading it to pass on costs to consumers. Analysts said these hikes may further stoke inflation, increasing the pressure on the Bank of England to hike interest rates at a time when it is also trying to head off recessionary pressures.

Capital Economics economist Paul Dales said if other energy suppliers mirror these increases the consumer price index would rise by 0.6 per cent, pushing it from 3.8 per cent to 4.4 per cent in August. Dales said: “The news that British Gas became the second utility supplier to raise its price means that inflation is likely to rise further and faster then we previously expected.”

This could spell further bad news for homeowners and investors looking to renew their mortgages.


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Hikes raise concerns over fuel poverty

Average household British Gas bill will rise by £400 to more than £1,300 a year.

THE latest round of energy price hikes has piled further pressure on household budgets.
The average British Gas bill will rise by £400 to just over £1,300 a year after it increased gas and electricity prices by an average of 35 and 9 per cent respectively, following a similar move last week by EDF.

ScottishPower, Eon, Npower and Scottish & Southern Energy – set to follow suit in the next few days, households across the UK face steep fuel price increases.

For every 10 per cent increase, it's estimated that 400,000 more households fall into fuel poverty (defined as when more than 10 per cent of household income is spent on fuel bills).

Energywatch Scotland estimates that even before the latest rises, about 650,000 Scots households were below the fuel poverty line. But while alleviating the strain entirely is unrealistic, it's still possible for most households to ease the burden.

Regardless of price rises, customers can save money by switching to the best deal on the market. The average customer who has not previously switched supplier can save around £250 a year, claims Confused.com.

Switching is a simple and quick process. On most switching sites, you need to enter your postcode and various details of your present current gas and electricity bills to get a list of the tariffs available in your area.

The list will typically include price, savings, power ratings and the type of package (such as dual fuel or capped) and you can then apply online for the best deal.

With prices on a long-term upward trend, capped or fixed-rate deals offer protection from future increases. Nearly three million British Gas customers are unaffected by the latest rises, either because they are locked into fixed-rate deals or they are among the 340,000 customers considered vulnerable and, therefore, shielded from price hikes until 2009.

"While online tariffs still offer the market-leading deals, these products are variable and are at risk to further price hikes," said Scott Byrom, utilities manager at comparison website money supermarket.com. "For those less willing to gamble, a fixed tariff is by far the best option."

However, Byrom added that with prices rising and providers, including ScottishPower, taking attractive fixed-deals off the market, those on offer now may not be available for long.

Fixed-rate tariffs can be up to 15 per cent more expensive than variable tariffs, but with other suppliers likely to follow British Gas with hikes of up to 35 per cent, they represent a good deal.

Providers yet to announce price rises that still have fixed or capped rates on offer include Eon and ScottishPower, although these might disappear quickly, warned Andrew Hagger, communications manager at Moneynet.co.uk. "You will find that most energy suppliers will offer their lowest variable prices if you opt for a combination of online billing and dual fuel," Hagger added.

The latest increases from British Gas, described by energy helpline.com as the "biggest energy price rise in history", mean it has the most expensive standard tariff on the market, at £1,300 a year or £110 a month. But it still has the most competitive deal across the whole market, with the Click Energy 5 tariff. At £845 a year this saves households £40 a month compared with the standard rate.

But such savings are increasingly insufficient and the latest round of increases sparked calls for more help for vulnerable households. "It looks as if it's set to be a long, hard winter, and there is always the concern that the elderly will be scared to put their heating on, which could have serious consequences," said Hagger.

"The government needs to do something to reassure pensioners and review the level of winter-fuel payments in light of these astronomical price hikes."

VULNERABLE ARE UNABLE TO ACCESS THE BEST DEALS

One of the chief weapons against energy price hikes is switching to a better deal.

But this isn't always an option for households below the fuel poverty line – of which there are at least 650,000 in Scotland, according to Energywatch – as those with energy debts cannot switch.

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Friday, August 1, 2008

UK Personal Debt Statistics

Total UK personal debt at the end of June 2008 stood at £1,444bn. The growth rate increased to 7.4% for the previous 12 months which equates to an increase of ~ £98bn.

Total secured lending on homes at the end of June 2008 stood at £1,212bn. This has increased 7.5% in the last 12 months.

Total consumer credit lending to individuals in June 2008 was £232bn. This has increased 6.8% in the last 12 months.

Total lending in June 2008 grew by £4.0bn. Secured lending grew by £3.1bn in the month. Consumer credit lending grew by £0.9bn.

Average household debt in the UK is ~ £9,309 (excluding mortgages). This figure increases to £21,650 if the average is based on the number of households who actually have some form of unsecured loan.

Average household debt in the UK is ~ £58,000 (including mortgages).

Average owed by every UK adult is ~ £30,424 (including mortgages).

Average outstanding mortgage for the 11.8m households who currently have mortgages now stands at ~ £102,554.

Britain's interest repayments have soared to £94.4bn in the last 12months. The average interest paid by each household on their total debt is approximately £3,800 each year.

Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,900 per average UK adult at the end of June 2008.

  • Consumers will borrow an additional £268m today
  • Consumers will pay £259m in interest today
  • The average household debt will increase by over £10.75 today
  • 2,370 Consumer County Court Judgements (CCJs) issued
  • 424 mortgage possession claims will be issued and 302 mortgage possession orders will be made today
  • 408 landlord possession claims will be issued and 312 landlord possession orders will be made today.
  • 282 people today will be declared insolvent or bankrupt. KPMG estimate this will increase to 356 people a day by the end of 2008 which is equivalent to 1 person being declared insolvent or bankrupt every 4 minutes.
  • 74 properties will be repossessed today. The Council of Mortgage lenders (CML) estimates this will increase to 123 a day during 2008.
  • Approximately 18,000 credit card applications are being rejected every day.
  • 4,000 fixed rate mortgages will come to an end today.
  • Citizen Advice Bureaus will deal with 6,600 debt problems today
  • The average car will cost £15.42 to run today
  • £464m will be withdrawn from cash machines today.
  • 20m transactions worth £1.0bn will be spent on credit, debit and charge cards today
  • 1/3rd of all groceries we buy today will end up in the dustbin.

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Thursday, July 31, 2008

UK gas prices to soar 35pc

British Gas owner Centrica says it will raise gas and electricity prices for UK households by 35 per cent and 9 per cent respectively, citing rising wholesale gas prices.

The company, the biggest household supplier in the UK with over 16 million customers, said profits at its British Gas Residential unit had fallen 69 per cent in the first half, while wholesale prices for the coming winter are up nearly 90 per cent on the previous year.

Centrica shares rose 1.5 per cent to 314.75 pence, valuing the business at 11.7 billion pounds ($24.36 billion).

"We very much regret that we have had to make this decision at a time when many household budgets are already under pressure," British Gas managing director Phil Bentley said in a statement.

He added that the firm would be contacting all its customers to show how they can save energy to offset the price rises.

The bill hikes will come in with immediate effect.

Centrica is the second of the six major suppliers to the UK market to raise prices in less than a week, after French supplier EDF Energy hiked gas and electricity bills 22 per cent and 17 per cent respectively on Friday.

The other four are expected to follow suit sometime before the winter months.

They are RWE-owned nPower, Iberdrola-owned Scottish Power, E.ON UK, and Scottish and Southern Energy.

The trend of repeated rounds of price hikes by the main suppliers was criticised in a report by British members of Parliament on Monday, which said the market did not operate efficiently and that it was easy for companies to predict what their rivals were going to do.



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British Gas provokes fury with biggest ever price rise

35% hike comes as parent company prepares to announce £880m profit

British Gas yesterday increased the pressure on household budgets after announcing the biggest ever increase in gas prices for its 16 million customers.

The 35% rise in gas bills was blamed on higher wholesale costs but came just hours before British Gas's parent company, Centrica, was due to reveal profits of £880m for the first half of the year.

Consumer groups reacted with anger to news that will dismay every gas-using household in the country. The move is expected to send another 1 million families into fuel poverty if replicated across the industry.

EDF Energy, one of the other five major suppliers, announced a 22% rise in gas prices last week.

Adam Scorer, of the consumer group Energywatch, said he was surprised by the increase. "I'm not sure that many consumers will be able to fully take in the news that their gas bills are going up by over a third," he said.

Help the Aged said it was a "disaster" for the millions of pensioners already struggling to heat their homes.

From today, British Gas's 15.9 million customers will be paying 35% more for their gas, and 9% more for electricity.

The company said the average dual fuel customer who was paying £913 for their joint gas and electricity bills at the beginning of 2008, has seen them jump by more than £400 to £1,317 - this at a time when many households are struggling to pay increased petrol and food bills.

The company said it would protect the most vulnerable 340,000 customers, most of whom live on benefits, from the increase. The 2.1 million customers who signed up for capped products also escape the increase, for now.

British Gas managing director, Phil Bentley, defended the price hike.

"We very much regret that we have had to make this decision at a time when many household budgets are already under pressure. The simple fact though is that we have entered an era of unprecedented high world energy prices. The only answer to cope with higher energy prices, I'm afraid, is for all of us to be more energy efficient."

Bentley said profits for the retail arm of the energy giant Centrica were down by 69% to £166m for the first half of this year. However, industry analysts noted these figures were in comparison to the bumper £577m profit the company announced for the same period last year.

Scorer warned that customers may be looking with considerable interest at the Centrica profit statement today.

"It is now an absolute imperative that government directs the European competition authorities to explore every avenue that might return some sanity to the gas price," he said.

Following EDF's price rise on Friday, the remaining four big energy suppliers are expected to follow in the coming weeks. All have claimed that the price of wholesale gas for delivery this winter has jumped 89%.

In recent months energy prices have become a huge political issue. The government has been forced to rip up its targets on fuel poverty after admitting they are no longer achievable. Earlier this year Gordon Brown travelled to Saudi Arabia in an effort to get production increased, and to ease petrol prices that have also risen by a third.

The Liberal Democrat leader, Nick Clegg, said the British Gas hike would be "devastating" for many families, particularly the elderly and vulnerable.

"The announcement may have been made in a hot spell in July, but when winter comes round thousands will be forced to choose between heating their homes and cooking their meals.

"Energy companies are benefiting from a £9bn windfall yet continue to hike up their prices on the government's watch. This is unacceptable."

The shadow energy minister, Charles Hendry, said: "The government has not done enough to improve energy efficiency in the home, they have not built sufficient gas storage and they haven't succeeded in negotiating an open market across the European energy sector.

"As a result of this, people are in for a desperate time this winter, as millions of families will face real hardship and an extra million more people are likely to join the 4.5 million already in fuel poverty."



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British Gas announces huge price rise for households

Some 16 million customers of British Gas face huge increases in their bills after the country's biggest home energy provider announced price rises of up to 35 per cent yesterday.

From today, British Gas is raising the price of its gas by 35 per cent, while customers buying electricity from it will pay 9.4 per cent more. Households who buy both services from the utility will see their dual fuel bills rise by 25 per cent.

The increases mean the average household's dual fuel bill will rise from £1,055 a year to £1,322.

Energy analysts pointed out that before the 15 per cent increase in costs implemented by British Gas in January, the typical household was paying £912 a year. Yesterday's price rise means British Gas's bills have now risen by 45 per cent so far this year.

However, the energy group said it had no option but to raise its prices following an increase in the cost of gas on the wholesale markets of almost 90 per cent since last winter.

"We very much regret that we have had to make this decision at a time when many household budgets are already under pressure," said Phil Bentley, the company's managing director. "The simple fact is, though, that we have entered an era of unprecedented high world energy prices."

Centrica, British Gas's parent company, owns substantial gas reserves, but only supplies a quarter of its retail arm's needs and is, in any case, prevented by regulators from subsidising the unit's prices. The company is due to unveil its interim results in full today, but revealed last night that profits at British Gas fell to £166m during the first six months of the year, 69 per cent down on last year's figure.

Mr Bentley said that without today's price increases, British Gas would lose several hundred million pounds in the second half of the year.

The company is desperate to refute accusations that it is profiteering, particularly in the face of growing calls for a windfall tax on the energy industry, and yesterday reiterated its promise to spend £43m over the next 12 months on "fuel poor" customers struggling to pay their bills.

British Gas also promised it would make no further increases this year to the bills of customers on its standard tariffs.

But analysts said the company might have to make further price increases early in 2009 and warned that its main rivals were certain to announce similar price increases for their own customers.

Aside from British Gas, of the next five biggest home energy suppliers in the UK, only EDF has so far raised its prices this summer, announcing increases of up to 22 per cent last week. Scottish & Southern has already warned that higher bills are imminent, while ScottishPower, E.On and npower are expected to fall into line within weeks.

"The difference between the main suppliers on price has been and will remain very small," said Joe Malinowski, the chief executive of The Energy Shop. "There is no question that the other providers will follow these moves."

Mr Malinowski expects most providers, including British Gas, to raise their prices again in January or February of next year unless there is a substantial fall in the cost of wholesale gas in the meantime.

The soaring cost of fuel bills has prompted calls for the Government to review regulation of the energy industry, the structure of which was heavily criticised by MPs sitting on the Business and Enterprise Select Committee this week. Ministers are also under pressure to do more to help low-income households caught out by the price rises.

However, energy companies insist that Britons pay lower home energy bills than consumers in most other countries in Europe. The most recent figures from the Department of Business and Enterprise show that, at the end of 2007, UK domestic gas prices were the fourth lowest in the European Union and electricity prices were the eighth lowest. While prices have risen since the end of last year, there have also been increases on the Continent.

Nevertheless, Brendan Barber, the general secretary of the Trades Union Congress, called for a rethink of the Government's energy policy. "The UK's coal reserves must be allowed to play a bigger part in our energy mix," he said. "Coal would give UK consumers and industry more stable and secure energy prices, rather than the volatility we are now witnessing."

Gordon Lishman, the director-general of Age Concern, said: "It is absolutely unacceptable that around 2.25 million pensioner households are now living in fuel poverty, and thousands more will soon be facing the same fate. As an emergency measure to help alleviate the problem this winter, the Government and energy companies should be working together to offer 'fuel vouchers' to the poorest pensioners."

Economists warned that the latest round of price rises would also be a further blow to the Bank of England's attempts to bring inflation back to its 2 per cent target rate. Philip Shaw, an economist at Investec, said energy suppliers were increasing bills by more than expected, making it likely that inflation would rise even more significantly above the current level of 3.8 per cent.

"[This] increases the chances that inflation will hit 5 per cent over the autumn," Mr Shaw warned. Such a rise would prompt calls for a rise in interest rates, putting additional pressure on many households' budgets.

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Wednesday, July 30, 2008

British Gas Raises Energy Bills!


EDF have already raised prices this summer

British Gas owner Centrica has announced it is to raise gas prices by 35% and electricity prices by 9%.

The UK's biggest domestic energy supplier said that the price hikes would take place with immediate effect.

It blamed "soaring wholesale energy prices", but added that standard tariff prices would not rise again in 2008.

The move comes just a few days after rival EDF Energy put up gas prices by 22% and electricity prices by 17%, with other firms expected to follow suit.

Dual fuel

Centrica said the average dual fuel bill would go up by 25%. This is the second increase this year, after a 15% rise in bills in January.

"We very much regret that we have had to make this decision at a time when many household budgets are already under pressure," said British Gas managing director Phil Bentley.

"The simple fact though is that we have entered an era of unprecedented high world energy prices."

A report prepared for Centrica earlier this month warned that annual average gas bills could rise from £600 to more than £1,000 early in the next decade.




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Tuesday, July 29, 2008

U.K. report claims price collusion by energy companies

A parliamentary committee's report claims that the U.K.'s six largest energy companies were able to keep household fuel bills artificially high while the industry regulator stood by. Members of the Commons Business and Enterprise Committee accused the companies of conspiring to keep prices high but stopped short of alleging that they rigged prices. The companies instead took advantage of operating in a world of minimal price competition, the committee said. Times (London), The (07/28)


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Energy bills set to increase despite oil price fall, warns Scottish and Southern

Scottish and Southern Energy yesterday gave the clearest warning yet from leading home energy suppliers that consumers must brace themselves for a new round of gas and electricity price increases.

SSE said that despite a sharp dip in the oil price in recent weeks, it was becoming increasingly difficult to hold the prices paid by its nine million customers at current levels. "The full extent of the energy shock with which the entire global economy is having to contend had been well-documented and its full impact on prices for electricity and gas in the UK has still to be felt," warned Ian Marchant, the utility's chief executive. "We are continuing to resist the pressure to put up prices for domestic customers but it is becoming more difficult by the day."

The extent to which home energy providers' margins have been squeezed in recent months by the soaring cost of wholesale gas was underlined by a warning from SSE about the likely size of its profits in the first half of its financial year, which ends 30 September.

In previous years, SSE made the majority of its annual profits during its first half, but Mr Marchant warned this year's interim results announcement would be more downbeat, with profits in the first half expected to be "substantially lower" than in the same periods of 2006 and 2007.

Nevertheless, the company believes it will meet profits expectations for the full year, suggesting that it is planning on the basis of higher prices from the autumn onwards. Increases at SSE are likely to be broadly in line with similar price rises now expected from rival energy suppliers, with independent analysts predicting last week that gas bills will go up by 60 per cent in the next 12 months. Ann Robinson, director of consumer policy at uSwitch.com, the price comparison site, warned: "Coupled with the credit crunch and the ongoing battle to make their money go further, consumers should steel themselves for a winter of discontent."

Another round of price rises will nonetheless disappoint customers, given that the oil price has fallen back by almost 13 per cent to around $127 a barrel today, from a high of close to $148. However, the utilities argue that most of the rise in oil prices this year has not yet been reflected in home energy bills. Wholesale gas prices have also fallen less sharply than oil, correcting by around 11 per cent over the past six weeks.

Joe Malinowski, managing director of The Energy Shop, the energy market analyst, warned there was little chance of a reprieve for customers. "The gas price falls we've seen are nowhere near enough to prevent one or possibly two more rises in bills," he said. "The falls have come far too late and from too high a level to make a significant difference."

Mr Malinowski believes energy companies, including British Gas, will begin announcing price rises within the next fortnight. "Our best hope is that we get a modest rise now and probably another modest rise later on, rather than one big increase straight away." Energy analysts believe the oil price would have to fall back to around $100 a barrel for energy bills to be sustainable at their current rates. Another round of price increases will also be a major blow to the Bank of England, which has blamed energy bill costs as a major contributor towards its failure to keep inflation within 1 percentage point of its 2 per cent target.


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Rising prices hit poorest hardest!

A gas and electricity company is to buck the trend of rising energy prices
by offering cheaper bills to its poorest customers.
Ebico has announced it will offer the same savings to the less well off that companies like EDF offers to direct debit customers. This comes in response after a statement by Mr Wicks, the Health Minister, saying that many households are paying energy tariffs that are unjust and totally disproportionate.
The not-for-profit company which is committed to tackling fuel poverty will
offer its customers using prepayment meters the same savings.

An estimated 2.3 million homes have a gas prepayment meter and 3.5 million households use an electricity pre-pay meter who are far more likely to be on low incomes than customers using other payment types.* It looks as if something is finally be being done to stop this terrible injustice, said Phil Levermore, Managing Director of Ebico, Mr Wicks comment shows that the big six energy companies will have to lower their prices for households using prepayment meters. As for now, we cant stop energy prices rising, but we can offer prepayment metered customers a deal that gives them the sort of cost savings that, with all the other suppliers, youd have to set up a monthly Direct Debit to get.
*Energywatch. 2007 Energy Consumers Survey


Ends
Notes to Editor
For more information contact Ellie Tooze: 01993 225 061

1. Three and a half million households in the UK pay in advance for their electricity by using pre-payment meters. Over two million pay for gas in the same way. Pre-payment meters are disproportionately used by the less well-off with 35% of single parents pay in advance for their electricity as do 36% of unemployed persons. Energywatch figures show the average dual fuel direct debit customer pays £772 a year for gas and electric, while a prepayment customer pays £967 a difference of £195.
2. One in six British households is experiencing fuel poverty, the highest for almost a decade.
Each winter, fuel poverty is responsible for 20,000 to 50,000 premature deaths in the UK.
www.berr.gov.uk
An estimated 30% of lone pensioners are and 7% of older couples are living in fuel poverty. Energywatch Annual Report, 2007.
Energy efficiency of houses is measured by the Standard Assessment Procedure (SAP) which assesses insulation and heating, rating from 0 (poor) to 100 (good). A rating above 60 indicates good efficiency standard. The average rate is 51.4, and 82% of households living in fuel poverty live in housing with an SAP under 50. Fuel Poverty and Elderly Report
Prepayment customers have lower incomes than others; 40% were in the two lowest deciles in England in 2005/6 compared with 20% of all customers and less than 5%were in the top 2 deciles. In 2006 19% of those paying for both fuels by prepayment were fuel poor compared with 6% for direct debit customers an incidence of fuel poverty more than 3 times as high amongst prepayment compared with direct debit. The incidence of fuel poverty amongst standard credit customers is also fairly high. FPAG, 2007



3. Ebico Ltd is a not for profit company limited by guarantee and committed to those on low incomes. Ebico, the only not-for-profit domestic energy company in the UK, has been making a real difference to low income households for nine years now. They launched their first product, EquiGas, back in 1999. EquiGas was an innovative domestic gas tariff that delivered lower prices to pre-payment meter (ppm) and payment-plan customers predominantly lower income households by enabling customers who paid by Direct Debit to share the savings related to their chosen payment method. Based on the huge success of EquiGas, Ebico then launched EquiPower in 2002 to challenge exactly the same issues in the domestic electricity supply market. EquiGas and EquiPower are the fairest domestic gas and electricity tariffs in the UK and are competitively priced so that, irrespective of how they pay their bills, many customers can cut their energy bills by switching to Ebico. Thirty thousand UK households have now switched to Ebicos fairer tariffs.




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Monday, July 28, 2008

U.K. May Have to Open Antitrust Probe of Utilities, Panel Says

July 28 (Bloomberg) -- The U.K. government should consider pursuing an antitrust investigation in Britain's wholesale gas and electricity markets, as retail prices head ``significantly'' higher, a panel of lawmakers said.

The Business and Enterprise Committee in the House of Commons, which includes members of Parliament from the nation's three main political parties, concluded in a report today that the U.K. has higher natural gas prices than other European countries. The panel said this suggests a lack of competition, though it didn't find proof of price-fixing.

``Just because we have found no evidence of collusion does not mean we have given the Big 6 energy companies a clean bill of health,'' said Peter Luff, a lawmaker from the Conservative opposition who leads the committee. ``Far from it.''

The report reflects mounting pressure on politicians to tackle record energy prices as slowing economic growth and accelerating inflation squeeze household budgets. In the U.S., the Senate is debating a bill to curb energy-market speculation.

The U.K. lawmakers said Ofgem, the industry regulator, should have first crack at reining in the industry. If that doesn't curb prices, then the Competition Commission, an independent agency that can order companies broken up, should step in.

Any probe into wholesale gas prices would send a ``chill'' through the energy industry and lead to reduced investment, Richard Guerrant, a director of European operations for Exxon Mobil Corp., told the committee when he testified last month.

Committee Recommendations

The panel has no authority to enforce its recommendations, which the government and regulators are free to ignore. The government will respond to the report in the next few weeks.

Ogfem, the regulator, said in a statement in ``welcomed'' the committee report, saying it will contribute to its own ongoing investigation into a link between wholesale and retail energy pricing.

U.K. gas prices have risen more than fourfold to about 60 pence a therm from a low in April last year of 13.5 pence a therm. Gas for delivery this winter reached an all-time high of 105 pence a therm last month.

The report said producers' unwillingness to sell gas on forward markets, which let buyers and sellers lock in prices at delivery in the future, was pushing prices higher. It urged Ofgem to investigate the lack of price transparency in forward markets.

Rising Prices

The lawmakers' committee, which monitors the performance of the government on energy matters, said it expects gas and electricity bills to rise ``significantly'' in the near future.

Electricite de France SA's U.K. unit on July 25 raised electricity and natural gas bills for households because of rising wholesale costs. Power bills will be increased by 17 percent and gas charges by 22 percent from today, according to company spokesman Rajan Lakhani.

The lawmakers urged Ofgem to show a ``greater sense of urgency'' in its work and to ``look again'' at the way wholesale markets work in the U.K. The report said a competition inquiry should be avoided if possible.

``Our view is that changes can best be made through improving market design, by taking specific regulator steps and by continue to work for liberalization of European markets,'' Luff said. ``Such an approach is more likely to bring real and lasting investment the U.K. needs so urgently.''



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Household bills will suffer from energy price hikes, MPs say

MPs have called for an urgent address of problems caused by rises in gas and electricity bills, the BBC reports.

The Business and Enterprise Select Committee said that energy price increases will impact seriously upon households and that thousands of manufacturing jobs could be lost if UK prices stay higher than comparative ones in Europe.

Its inquiry found that the UK energy market is not as efficient as it could be, but there was no evidence to suggest that major firms are colluding to keep prices high.

Still, committee chairman Peter Luff commented that this did not mean the report had given the main energy companies "a clean bill of health - far from it".

EDF Energy raised gas and electricity prices by 22 per cent and 17 per cent for domestic and small business customers last week.

Financial website Moneyexpert.com described the rises as "a kick in the teeth for their 7.9 million customers" and advised EDF customers to "start looking around for a better deal".


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EDF energy price hike

Unable to absorb the price of gas, EDF is forced to raise their wholesale gas and electricity prices.

EDF Energy will increase gas prices by 22% and electricity by 17%, resulting in customers on the EDF duel fuel tariff to pay at least £3.97 a week for energy. The raise in energy prices is to be blamed on record oil prices and unexpectedly high prices for coal and electricity, according to EDF. Other energy companies are predicted to mimic EDF and increase their energy prices.

Now EDF has announced its tariff changes, other energy companies will follow suit “in very short order”.

It could be just a few weeks before every big gas and electricity company in Britain has hiked prices in line with EDF’s increases -- and it’s unlikely that energy price inflation will stop there.

Insiders all agree that we should expect to see a further round of rises either late this year or in early 2009, possibly taking the total increase in our energy bills to around 50%.




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Gas Bills Could Rise by up to 70%!!

The Telegraph reports today that gas bills could rise by 70 per cent to hit more than £1,000 over the next few years because of soaring global oil prices, according to a report produced by analysts on behalf of British Gas.

The report, written by Eclipse, a well-respected group of Norwegian energy experts, makes clear that Britain faces an acute shortage of cheap energy. Consumers, who have already seen their energy bills shoot up by 15 per cent this year, will have to get used to permanently high prices, the report warns.

Oil has risen from below $100 a barrel to touch an all time high of $147 a barrel last week, as demand from China and India combined with fears of a new conflict in the Middle East sent the price upwards. It is estimated that Britain will import 40 per cent of all the gas it needs this year. The report calculates, based on oil staying at roughly $140 a barrel, the cost of gas in the UK would increase by 70 per cent, "over the next few years".

The report adds: "This would raise annual gas bills for a typical domestic customer from around £600 to over £1,000 per annum – if oil prices rise to above this level then this would lead to further increases in gas bills." The six major energy firms have already increased both their gas and electricity tarrifs this year, by an average of 15 per cent. Experts forecast that bills will have to rise at least once more this year and could go up on two separate occasions.

For almost five years the Utility Warehouse Discount Club have consistently supplied their customers with the cheapest domestic energy in the UK. If you you're fed up with changing suppliers every few months, and are looking for guaranteed long-term value, then you should join me as a customer of the Utility Warehouse Discount Club and benefit from huge savings which are offered.

To ensure their prices remain competetive, they compare them every month against British Gas, our regional electricity supplier and the average of the cheapest direct debit tariffs available from each of the "Big 6"suppliers, on a like for like basis.

Its easy to switch, you keep the same pipes and meters, there is no interupption to your supply, you received exactly the same gas and electricity and their is no minimum contract.


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Friday, July 11, 2008

Which One Are You - Express Day!

To change some things in your life, first YOU must change some things in your life!

Did you know that there are three types of people in the world!

Which one are you?

1) those that make things happen
2) Those that watch things happen
3) Those that wonder what the hell happend

If you want to make things happen join us at express day!
The difference between ordinary and exta-ordinary is the little word "extra" become extra-ordinary.

Remember there can be only now!

Now book yourself on express day do a little extra and change the rest of YOUR life!

Whatever the mind of man can conceive and belive it can achieve!

When you first saw the bussiness plan what did you believe was possible?what do you want from this business and when do you want it?

There are no limitations to the mind except those we acknowledge.

It has been said that once a task has been started it is half done, however will you finish what you have started?

How to book yourself on expressday!

1) Call executive service on 02089555111
2) Via the extranet!

Once you have booked yourself on expressday bring as many people with you as you can, you will kick yourself later if you don't!!

Do you wish you had seen this business years ago?
I am just glad that someone was man enough to share it with me, he just gave me a dvd and asked me to watch it! months later I rang him and asked how do I get started. How many people are sitting at home right now just waiting for someone to give them a dvd? If you don't give them the oppotunity someone else will.

Still not booked!

Ok the bottom line is this..

1) The bad news!!
Your financial future is in YOUR hands.

2) The good news!!
Your financial future is in YOUR hands.

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Thursday, June 12, 2008

The Deposit Protection Service (The DPS) has revealed that people worry most about changing their billing address when they rent a new home.

A survey found that 36% of new tenants panicked over remembering to change their phone, gas and electricity bills to their new address.

A further 29% said they lost sleep worrying about packing and unpacking, while one in five revealed that the prospect of moving furniture gave them a headache.

Kevin Firth, Client Services Director at The DPS, warns that tenants must make time to talk to their landlord or agent: “Anyone who has ever moved home knows that it’s a stressful time – one tip to give tenants peace of mind is to ensure that their landlord has signed up to a tenancy deposit protection scheme.”

Tenancy deposit legislation, which was introduced last April, requires landlords to sign up to a scheme or risk a fine of up to three times the deposit amount.

The Deposit Protection Service, the only custodial scheme, protects the tenant’s deposit on behalf of the tenant and landlord, and returns the money to whoever is entitled to it at the end of the tenancy, with interest. Landlords and tenants have already been handed back more than £2.5 million in interest.



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Friday, June 6, 2008

A Special 10th Annivesary message from Charles Wigoder - Chief Exec of Utility Warehouse

What a fantastic start to 2008!

Over the last few weeks we’ve seen record numbers of new [distributors] joining the business as well as a huge increase in new customer numbers. Many of you are already seeing this reflected in your group customer numbers.

The newspapers may be full of doom and gloom... high inflation, falling property prices, recession looming – but as a Telecom plus Distributor, the prospects have never been brighter as we look forward to the positive impact from increasing customer numbers on your residual incomes...

So why is our business so good at the moment?

Could it be the huge price increases recently announced by the “Big 6” energy suppliers?

Could it be our award-winning customer service team, based in the UK?

Could it be the latest round of sneaky price rises by BT, where they have increased the cost of a 60 minute evening Local/National call from 4.5p to almost £1, and increased line rental by another 75p per month?

Could it be the exciting new services we launched at Express Day have really begun to catch peoples’ imagination?

Our amazing Internet Phone Lines at just £2 per month; our new BroadCall Laptop tariff; or our new ValueTalk tariffs with inclusive calls and texts from just £10 per month.

Could it be the fantastic promotions we announced at Express Day, giving you the opportunity to qualify for an unforgettable all-expenses-paid luxury holiday in Spring 2009, or to receive hundreds of pounds of free gift vouchers?

Could it be the dedication of the strong leadership in the field along with our committed and skilful trainers?

Or is it simply that our unique combination of great value, great service and the convenience of a single monthly bill really is what customers are looking for?

If you are currently out there working on building your business, that’s great. You’ll know from the feedback you are receiving and the growth in your own customer numbers just how much activity is currently taking place.

On the other hand... Our offers have never been stronger. Our service and support have never been better.

And the rewards you can earn from your activity have never been higher...

Last month was the 10th anniversary of my joining Telecom plus, and I am enormously proud of our achievement together in building this business from nothing to almost £200 million in annual sales, establishing ourselves as the UK’s most successful network marketing company. But that is nothing compared with the huge opportunity still open to us. We still have less than a 1% market share for the services we provide.



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Tuesday, May 6, 2008

Great News for Letting Agents - Save Time, Save Money for Tenants & Make Money



Sorting out utility bills can cause havoc. What if there were a
Quality Solution that benefitted your Letting Agency, your Landlords, and your Tenants?


Does your time get wasted in non -productive activities when sorting out the utility bills and energy suppliers for each tenancy?



Is it frustrating contacting energy suppliers, being put on hold for extended periods of time and bills still not getting sorted out?


Recognise this?

  • Dealing with up to 15 different energy suppliers, some with poor administration and accountability?
  • Confusion caused with losing track of current suppliers during changes in tenancies?

Would it help you if:

  • You could work from one Itemised Bill for all utilities (gas, electricity, phone and internet?)
  • You only had to phone just one Utility Company with one phone call to complete a tenancy change-over?
  • Your calls were answered rapidly, by a UK-based company, within a UK-based call centre that answers over 95% of customer calls within 15 seconds?


Welcome to The Utility Warehouse solution that puts the Smile back on your face!


Letting Agents Benefits
  • Significant Administration Improvements,
  • Unique billing system that provides customers with a single, fully-itemised bill covering all their services,
  • One, UK-based call centre to contact,
  • Over 95% of customer calls answered within 15 seconds,
  • Free help line to The Utility Warehouse Energy and Telephony Teams,
  • Same UK Company for cheaper phone installations,
  • Up-front revenue stream for each property transferred to Utility Warehouse,
  • Additional residual income on every tenants’ direct debit paid,
  • Simple Home Movers’ Pack,
  • Continuous revenue for that property on switch-over to new tenants,
  • On-going revenue from old tenants moved into their new property.

Tenants Benefits
  • High quality service for the supply of all their utilities,
  • No minimum contract period,
  • Guaranteed Savings on gas, electricity, phones, mobile phones and Internet/Broadband,
  • Guaranteed savings always against British Gas for gas, and regional supplier for electricity,
  • The “Complete Peace Of Mind Guarantee”: The Utility Warehouse will always remain competitive compared with the cheapest standard tariffs available from the "Big 6" suppliers. (The Utility Warehouse has consistently supplied its customers with the cheapest domestic energy for almost 5 years in the UK.)


Landlords Benefits
  • One Best-Value Supplier for all their properties’ utilities,
  • The Utility Warehouse will chase bad debts,
  • Key Meters can be taken over.


Call Juswant Rai on 07917 105134 NOW for more information!


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