Press

17 September 2004, for immediate release

Beat the latest energy price rises with Utilita GET80

Consumers can beat the latest domestic energy price rises if they switch to Utilita - a new utility offering a combined gas, electricity, telecoms (including broadband) and energy efficiency service.

Utilita is a refreshingly new company committed from the outset to encouraging customers to save energy and cut their bills. Under GET 80 - the cheapest offer - customers pay fair prices set 10% below the standard British gas tarrif and Standard or Economy 7 tarrif from their regional electricity company. They also earn free credits they can use to install energy saving gear in their homes.

Utilita aims to take the hassle out of doing something about global warming. Every customer gets a free household energy survey to check existing control systems and provide clear advice how to cut their domestic energy use.

Utilita's Chief Executive David Casale says, "The potential to cut energy use and save money has been there for a long time, yet more than 12 million homes in the UK remain under-insulated. By doyougetit we mean do you understand it's possible at no cost to cut your greenhouse gas emissions and your energy bills permanently?"

Utilita is also working closely with a large English local authority to develop a fair-priced tarrif aimed specifically at low income households - including those using a prepayment meter - many of whom face a return to fuel poverty this winter following the recent round of energy price rises.

Save money and get smart about energy use with Utilita.

Do you get it ?

Contacts

Press enquiries to press@utilita.co.uk or call Hannah Pearce on 0207 263 0678
Customer enquiries are invited at <doyougetit.co.uk>, via Jim Garrett, on 0845 450 4117 or <jimgarrett@utilita.co.uk> and via the price comparison websites (see below)

EDITORS NOTES

1. Utilita is the first company to offer an energy services contract, not requiring an additional customer investment or contribution, under Ofgem's trial suspension of the 28 day rule (see point 3).

2. Utilita is also the only UK company to exclusively supply energy (and telecoms) in conjunction with low carbon and energy saving measures.

3. All Utilita products are designed to enable customers to maximise their fuel savings and reduce their energy bills.

BACKGROUND

4. The conceptual base for Utilita's business model originates from 'Our Energy Future - Creating a Low Carbon Economy', the government Energy White Paper published in February 2003. This set out a broad agenda for tackling the issues of climate change, security of supply and fuel poverty. Using less energy has a key role to play in solving all of these problems.

5. When the domestic electricity and gas sectors were deregulated in 1998 Ofgem insisted that the maximum time any customer could be locked into a supply contact was 28 days. This rule was designed to prevent the incumbent suppliers from switching terms and conditions in order to trap consumers into long-term contracts that could stifle competition.
Ofgem has now recognised that this rule breeds only short term relationships between suppliers and customers and does nothing to encourage suppliers to invest in energy efficiency measures with their customer, even where such measures are highly cost effective and could substantially cut domestic carbon emissions.
Under the terms of the trial suspension of the 28 day rule, any company can supply up to 4% or 50,000 customers (whichever is greater) using a fixed-term contract providing such agreements are used to deliver reductions in energy consumption. The minimum reduction required is 9% over a 3 year period. The maximum contract period is 5 years.
All Utilita tarrifs are based upon a minimum three year contract designed to operate under the suspension of the 28 day rule.

PRICING POLICY

6. The PriceTracker Promise is a guarantee that Utilita will price each of its standard services to track a Reference Price

7. Reference prices are as follows: Standard British Gas tariff; Standard or Economy 7 tariff from your regional electricity company; and BT Together Option 1.
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TARRIF OPTIONS

8. Utilita offers three different tarrifs under the doyougetit brand

Tariff                    get80                 get180               get280
.
Price                     10% less than         same as              10% more than
.                         reference prices      reference prices     reference prices
Cash savings              £100            £0             £100 or more
(per year)
.
Credits towards           80 per year           180 per year         280 per year
energy saving gear
.
Energy efficiency         10%                   20%                  30%
improvement
(after 3 years minimum)
.
Cash savings from         £60 p.a.        £120 p.a.      £180 p.a.
energy efficiency

* Savings from energy efficiency are locked in for good. Once customers have installed all the energy saving gear that is relevant to their property, they will be able to switch to GET ZERO - a lower priced, zero credit tarrif that will cut their bills even further.

Customers need a BT line for the telecoms product, customers without a BT line can still take the energy products on their own.

All figures are for a typical combined gas, electricity and telecoms customer using 19,050 kWh of gas, 3,300 kWh of electricity and 6,200 minutes of telecom calls per year.

For a dual fuel only or other non-'get' choices and non-typical usage please ask for a specific quote.

Utilita is also currently developing a separate tarrif aimed at low income households and is committed to bringing to the market a product suitable for prepayment meter customers that does not impose a price premium.

MARKETING

9. Breaking with another tradition in utility sales Utilita representatives won't be found door-stepping or cold calling potential customers. 'Doyougetit' will appear on price comparison websites including:

uSwitch , Unravelit UK , Power Energylynx , Saveonyourbills , Moneyexpert (powered by Energylynx), The Energy Shop, Simply Switch (aka Simply Energy, also a phone based service)

10. Latest estimates* suggest that for every 1% rise in energy prices due to take effect over the coming weeks some 50,000 household could fall back into fuel poverty. With price rises averaging between 10 and 12% overall, over half a million families may return to fuel poverty this winter.
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Any household able to pay by direct debit can avoid these price rises with GET 80 from Utilita and earn valuable 'credits' to use over time to install a range of energy-saving gear that will cut their bills permanently.

[*National Energy Action, September 2004].

ENERGY CONSERVATION

12.Every Utilita customer is entitled to a free home energy survey to identify energy saving opportunities, from loft and cavity wall insulation to new control systems and energy-efficient light bulbs. These surveys will be carried out by Dearle & Henderson - a company with a considerable track record providing energy conservation advice and managing the installation of home energy efficiency measures.

D&H has a turnover in the region of £50 million in these areas of work, undertaken mostly in association with local authorities.

14. All Utilita customers earn energy efficiency credits over the course of their contract. Customers talking all three utilities earn the most credits because credits partly represent the return of some profits by Utilita to its customers.

15. Credits can be used in various ways including:

* DIY energy efficiency measures (incl. a hot water tank jacket, draft exclusion kits and loft insulation materials)
* Cavity wall and/or loft insulation, pipe lagging and better control systems delivered as a managed installation service (i.e. by D&H, see above point 6)
* Energy efficient light bulbs in various sizes and varieties to suit a range of lighting fittings
* Wind-up/solar powered radios and torches
* Solar-powered battery chargers
* Purchase "green" electricity from renewable sources
* Part-fund the installation of a condensing (high efficiency) boiler or solar water heating system (or indeed any micro-energy production system).

Unwanted credits can also be donated to a friend, to a family member or to a good cause e.g. to a CO2 abatement project (e.g. reforestation)

ENDS