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.

Confidence High at Telecom Plus - Mail on Sunday 13/07/08

Telecom Plus received a fantastic write up in the Mail on Sunday this weekend. For those who missed the article please see the copy below...

"Life has become much more costly in recent months and nowhere is the change more pronounced than in basic household expenses. Bills have shot through the roof and most people are feeling the pinch. Against this backdrop, any firm promising to make life cheaper is on to a winner, so it is perhaps not surprising that Telecom Plus is doing well.


The company operates under the Utility Warehouse brand and supplies consumers and businesses with a range of services, such as electricity, gas, phone and broadband. It is the only group in the UK supplying both energy and communication services and it guarantees to be one of the cheapest providers. Telecom Plus does not own any of these products itself, but it buys in bulk from firms such as npower or phone companies and passes on savings it makes to customers. As it owns none of the paraphernalia associated with utility businesses, its costs are low. The group also prides itself on customer service and has a UK-based call centre, which is in the same building as the management team.

The business is run by Charles Wigoder, who made a name for himself in the Nineties when he founded the Peoples Phone Company and sold it to Vodafone for £77m just a few years later. So far, he also seems to be doing well at Telecom Plus. The company released a trading statement last week saying it was extremely confident about the next 12 months and promising a 25% increase in the dividend to at least 17.5p for the year to March 2009.

The most recent results showed a 45% rise in pre-tax profits to £16.8m and brokers believe this figure will climb to more than £20m next year. The group has about 200,000 customers, which equates to just one% of the markets it serves.


Wigoder believes there is scope to expand to about am customers, delivering turnover of at least £1bn. He may well be right. The company promises to cut utility and phone bills by up to 40%, particularly for customers who take all their utility and phone services from Utility Warehouse. This is a tempting prospect in today's environment and recent numbers indicate that the group is acquiring more customers and that each one is buying more from it.

Telecom plus PLC Interim Management Statement

Telecom plus PLC yesterday released their Interim Management Statement for its first quarter to 30 June 2008, which is detailed below.

Telecom plus PLC (trading as the Utility Warehouse), which supplies a wide range of utility services (gas, electricity, fixed line telephony, mobile telephony and broadband internet) to both residential and business customers, today issues its Interim Management Statement for its first quarter to 30 June 2008 to coincide with its Annual General Meeting (“AGM”) being held later today.

Highlights
• Continuing strong organic growth
• Number of services up by over 26,000 to 618,320 (30 June 2007: 545,831)
• Cash balance at end of quarter £32.9m (31 March 2008: £30.3m)
• Extremely comfortable with market expectations for the current financial year
• Projected total dividend not less than 17.5p for the full year (2008: 14p)

Trading during the first quarter was exceptionally good reflecting a continuation of the positive trends which have developed since our sales conference in October 2007. Turnover, profits, customer numbers, new services and new distributor recruitment have all been running substantially ahead of the comparable figures at this time last year. Customer numbers increased by 7,160 to 225,017 during the quarter, and the number of services provided rose by over 26,000 to 618,320 (30 June 2007: 545,831). These figures clearly demonstrate the increasing rate of organic growth being achieved since the beginning of last year.

Quarterly net growth in number of services provided
Q1; 2008 3,792
Q2: 2008 6,658
Q3: 2008 16,253
Q4: 2008 23,239
Q1: 2009 26,339

We remain committed to providing our customers with excellent customer service and consistently good value on all the services we are supplying to them, and were delighted recently to be nominated by Which? magazine as “Best Broadband Supplier” at their 2008 Consumer Awards.

Cash flow remains strong with our cash balance increasing to £32.9 million over the period (31 March 2008: £30.3m).

We anticipate further improvement in our growth rate during the coming months. This is expected to be driven by three principal factors:
• the record numbers of new distributors (who have been signing up recently in search of a reliable part-time income);
• greater activity by existing distributors (reflecting their increasing confidence in the value we provide and the quality of the customer service experience we deliver): and
• the tendency of consumers during more difficult economic conditions to be more receptive to a suggestion of switching to a better value supplier.

Our future results will reflect the increase in the number of services we are now supplying, our growing customer base, and higher retail energy prices which are anticipated later this year. We are extremely comfortable with market expectations for the out-turn of our financial performance in the current year to 31 March 2009, and with the dividend guidance we provided in our recently published annual report and accounts. The final dividend of 10p per share in respect of last year (making a total dividend of 14p for the full year) will be paid to shareholders on 8 August 2008, subject to approval at the AGM being held later today.

Interim results for the six months ending 30 September 2008 are expected to be announced on Wednesday 26 November 2008.

Charles Wigoder, Chief Executive said “I am delighted to report an excellent trading performance during the first quarter, reflecting a continuation of the positive trends which have been developing since our sales conference in October 2007. “We have seen turnover, profits, customer numbers, new services and new distributor recruitment all running substantially ahead of the comparable figures at this time last year, leaving us extremely comfortable with market expectations for the current financial year.”

Would You Like a Free BMW Mini?

Friday 4th July saw me collect my Free BMW Mini from Telecom plus Plc Head Office. The sun was shining and it was all smiles at HQ as I collected my keys from Finance Director Richard Hateley.

Following a champagne lunch at the new St Pancras International 90 meter long Champagne Bar, I headed straight to north London where my BMW Mini convertible with full personalized insignia awaited me.

What did I have to do to receive this fantastic marketing tool? I introduced just 75 customers to the fantastic savings offered by the Utility Warehouse Discount Club and I helped three other team members achieve the first level of leadership within the business. How easy is that!

If you would like to know more about how you too could own your own BMW Mini without spending a penny! then please contact me on Freephone 0800 496 8111.