Tuesday, February 1, 2011

Free energy saving bulbs 'cost £45' - Telegraph

Free energy saving bulbs 'cost £45'

Each household has ended up paying £45 for the free energy saving light bulbs that have been sent to them by their electricity supplier, according to a leading watchdog,

More than 200 million free energy-saving light bulbs have been sent to households over the last two years by energy suppliers. The mass mail-out was caused by gas and electricity suppliers trying to hit Government targets to reduce carbon emissions.

More than 200 million energy-saving lightbulbs have been posted to households
More than 200 million energy-saving lightbulbs have been posted to households

However, Which?, the consumer watchdog has calculated that each household has ended paying £45 each through higher energy bills to fund the scheme, even though many consumers objected to being sent the bulbs. Many complained about having to go to the Post Office to collect what they thought was a parcel, only to find it was a bulb that did not even fit any of their lamps.

"Consumers unwittingly paid for them to help energy companies avoid fines," the Which? report said.

The bulbs were sent by all of the big six suppliers: British Gas, EDF, Eon, Npower, Scottish & Southern and Scottish Power. They were sent out because they all had to sign up to the Carbon Emissions Reduction Taget (CERT), set by the Government in an attempt to force companies to improve their green credentials.

Companies had various options of how they hit their targets to reduce carbon emissions, but if they failed to hit their targets they could be fined 10 per cent of their turnover. The companies were, crucially, allowed to pass on the costs of the scheme to customers.

Ofgem, the industry regulator, calcuated that £84 out of the average dual fuel bill of about £1,200 goes on environmental levies, of which £45 goes directly towards funding CERT.

The Department of Energy and Climate Change admitted last year that the scheme was flawed and resulted in significant wastage, with no proof that the lightbulbs were being used in people's homes.

It ordered that direct mailouts of bulbs would be banned from January 1, 2010.

Campaigners, including Which?, have argued that the money should have gone towards installing solid wall insulation in Britain's 6.6 million old and poorly insulated properties, which would save the same amount of carbon emissions as all the lightbulbs put together and help consumers reduce their bills significantly.

Posted via email from moneytalks's posterous

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