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2 Feb

How can the renewable heat incentive & biomass help my business?

by denergi admin
 
  Hi we have put some useful  information together to help our prospective customers on the Renewable Heat Incentive also known has (RHI). Who is it for? This RHI is ideally suited for any business which is a considerable user of oil or mains gas. What are the benefits? First of all you will save money by eliminating or reducing your need for gas or oil, both of which are becoming increasingly expensive year-on-year Secondly, you will be paid up to 8.5p/kWth for the hot water and heat you generate and use yourself. It depends on exactly what systems you use and how large they are as to what D-ENERGi can offer biomass solutions for the following eligble sizes. Tariff name Eligible technology Eligible sizes Tariff rate (p/kWh) Small biomass Solid biomass; Municipal Solid Waste (incl. CHP) Less then 200 kWth Tier 1: 7.9 Tier 2: 2.0 Medium biomass 200 kWth and above; less than 1000 kWth Tier 1: 4.9 Tier 2: 2.0 Large biomass 1000 kWth and above 1.0 How the tiers work In each year the Tier 1 tariff is paid until the system has operated up to 15% of the annual rated output (i.e. the equivalent of 1,314 hours at the rated capacity of the installation) For the rest of the output in the year, the Tier 2 tariff will apply. This is how the government explained it. It is not clear how this approach will be averaged over the quarterly RHI payments, but the administrator’s guidance notes will presumably cover this. An example A biomass boiler rated at 250kWth operates for 7 hours/day in winter and 3 hours/day in summer, i.e. 1,825 hours in total over the year. This size of boiler is classified as ‘Medium Biomass’. It therefore receives the Tier 1 tariff of 4.7p per kWh for the first 1,314 hours and the Tier 2 tariff of 1.9p per kWh for the other 511 hours • 1314 x 250 x £0.047 = £15,439.50 • + 511 x 250 x £0.019 = £ 2,427.25 Making a total of £17,866.75 per annum (plus inflation adjustment) How long do the tariffs last? They are paid for 20 years from the registration date and index-linked for inflation. Is that long enough to cover the installation costs? In most cases the simple answer is yes. We estimate that many participants will earn enough money from the tariffs to pay off their installation costs in about seven to nine years. According to the Government, which has set the tariff levels, the average for most systems be a return of around 12% per annum. Where the money comes from? It was announced on October 20th 2010, within the Spending Review, that the RHI will be paid for directly by the Treasury. The Government had originally planned in the initial consultation to levy the money on resellers of heating fuels. How much is available? A total of £860m will be available for the period until fiscal year 2014/15. The government is developing cost control mechanisms to ensure that the budget is not overspent. Please call us to find out more on biomass and the RHI and how it can benefit your business. Please call us on 0800 781 7626.
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2 Feb

Register for green deal providers is now open

by denergi admin
 
  A £7m loan from the Department of Energy and Climate Change (DECC) to The Green Deal Finance Company (TGDFC) has been agreed today that will allow TGDFC to continue developing its offer of low cost finance, expected to be available early in 2013. Green Deal Providers will be able to access finance through TGDFC, enabling them to offer low cost finance packages to consumers upgrading their homes under the Green Deal. The Green Deal is also being considered as an early candidate for the use of infrastructure guarantees, Danny Alexander, the Chief Secretary to the Treasury, announced today. This demonstrates the Government’s commitment to working with the private sector to provide finance at a low but sustainable cost to Green Deal customers. Infrastructure guarantees will provide guarantees for major UK infrastructure projects and could potentially support up to £40 billion of investment. From today, the register for Green Deal Providers, Assessors and Installers will also open. The register will give the seal of approval to businesses that successfully go through the Green Deal authorisation process. All authorised Green Deal Providers, Assessors and Installers will have to display the new Green Deal Quality Mark to demonstrate they comply with the required Green Deal standards. This will be vital for protecting customers from any rogue traders. Only registered and authorised businesses will be able to use this mark. To find out more please visit the Department of Energy of Climate Change.
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2 Feb

Gas Price Spikes for Winter?

by denergi admin
 
  The commodities market, like the stock market, can be highly volatile and is prone to great shifts. Electricity rates tend to have a greater level of stability due to the fact that quantities are generated as opposed to recovered such as with gas. Supplies of gas are dependent upon the successful confluence of so many contributing factors that a single fault can result in low supplies for the Britain and therefore higher prices. In the last week alone Britain has seen two spikes in gas prices; on Thursday, due to maintenance on pipelines in Norway, and on Friday, due to an unplanned outage at the St Fergus gas terminal. As a result of each incident the price of gas rose by a total of two pence per therm (a rise of 0.0682 p/kWh). Though this doesn’t sound like much, if you consider that a medium to large care home or hotel can consume between 100,000 and 400,000 kWh of gas in a year this could be an increase in cost of between £6,820 and £27,280.
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2 Feb

Greater Protection for Small Businesses

by denergi admin
 
  This week Ofgem, the governing body for the UK energy markets, announced proposals for greater proection for small businesses against high energy costs. These proposals will “[…]widen the number of small businesses that benefit from its existing safeguards to ensure contract terms are clear”. The extension of these rules would help provide cover to a further 150,000 businesses that “typically spend up to £10,000 a year on each fuel”. In addition to the expansion of what is classed as a ‘microbusiness’ Ofgem has also proposed “[…]that all bills and statements that small businesses are sent also show clearly when the contract ends[…]”. It is common practice in the energy industry for accounts to be ‘refreshed’ if they do not hand in termination notice during the correct window before their contract ends. If a customer is ‘refreshed’ then they will be signed in to a new contract for a year on significantly higher rates. For business customers this is an entirely legal practice but by increasing the awareness of smaller businesses to this fact, such as making their contract end date clear on their bills and statements, Ofgem are hoping to reduce the likelihood of this occurring. As a final push Ofgem is “also planning to clean up the practices of some energy brokers by developing an industry-wide code of practice for them[…]Ofgem is progressing its case for acquiring powers from Government to take enforcement action against broker who mislead business customers”. It is a known problem in the industry that some brokers use high pressure sales tactics as well giving misleading information to maximise the profit they can make. These are significants steps by Ofgem to create a fairer market for smaller businesses who can suffer greatly from addtional running costs.
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