economic situation is dire

[snowychap]

Npower fined £1.8m for misselling energy contracts

The energy firm npower has been fined £1.8m after its doorstep salespeople were caught making misleading statements to potential customers in a bid to get them to switch supplier.

The energy watchdog, Ofgem, said the company had failed to take sufficient action to prevent the misselling of contracts to customers.

The fine follows a three-week investigation by the Sunday Times in which a reporter working undercover as a salesperson claimed that she was encouraged to tell consumers they would save money switching to npower, even when some of them would have been worse off.

Several members of npower's sales staff were sacked as a result of an internal investigation.

Ofgem's subsequent inquiry found that the firm had breached a condition of its supply licence by not adequately following up customer complaints. It said that while npower had complaints procedures in place it had not been proactive enough in applying or improving them. As a result it had failed in its duty to make sure customers' complaints were put right.

Sarah Harrison, Ofgem's managing director of corporate affairs, said: "This decision sends a clear message to energy suppliers that failing customers and falling short of the licence standards will lead to Ofgem action, as well as associated reputational damage.

"Misselling undermines consumer confidence, but getting it right on the doorstep can help customers make effective choices in the energy market."

Complaints in decline

A spokesman for npower said the firm had improved its processes since the Sunday Times investigation in April, and that customers were now put in touch with a call centre after being visited by a salesperson. Unless sales was validated over the phone, no commission was paid to the sales staff.

"We were very disappointed and concerned when we found out that back in April, some sales staff were deliberately flouting our procedures," the spokesman said.

"We set high standards - there is no place for this behaviour in our company and we immediately dismissed those who were acting fraudulently."

...more on link

Firstly: Ha ha. Serves you right, you feckersss.

Secondly: 'We set high standards ...' - yeah, right!

[snowychap]

Zavvi goes into administration

The financial crisis claimed another high street victim today when entertainment chain Zavvi fell into administration, putting 2,500 jobs at risk.

Ernst & Young formally took charge of Zavvi's UK operation this morning, just two weeks after being parachuted into the former Virgin Megastore chain to attempt a rescue. It said it would keep the firm's 125 stores running while it tries to find a buyer.

The administrators blamed Zavvi's collapse on the failure of Woolworths whose distribution arm, EUK, supplied it with DVDs and CDs. Woolworths's demise left Zavvi short of stock as it entered the crucial Christmas trading period. In addition, it owed EUK £106m.

"Since EUK went into administration, and perhaps before, the impact of problems at EUK on the Zavvi Group has been significant," explained joint administrator Tom Jack.

"Minimal deliveries, no returns and worse trading terms are just some of the areas impacted. In the absence of a buyer for EUK, and with dire trading conditions on the high street, Zavvi has seen a material fall in sales," Jack added.

Zavvi Ireland, which operates 11 stores, is not affected by the move.

Yesterday, two other high street names went into administration. Whittard of Chelsea was promptly bought by private equity firm Epic through a 'pre-pack' administration procedure designed to keep stores running and workers employed. Officers Club, the menswear chain, also went into administration, with 118 of its 150 stores being quickly sold to the company's chief executive.

Ernst & Young said that Zavvi's post-Christmas sale would begin, as planned, on December 26. Like many other high street names, it has already begun offering large discounts at the start of this week in an attempt to get shoppers spending.

Faced with what will probably be the worst Christmas trading period in decades, some retailers are not even waiting for Boxing Day before discounting. B&Q began offering up to 50% off its kitchens and bathrooms this morning.

On the web, the bargain-hunting will also begin early. Several companies including Debenhams will begin their online sales on Christmas Day itself, while John Lewis's clearance will kick off at 6pm tonight.

But more casualties are expected in the next few weeks. The Financial Times reported this morning that Allied Carpets is up for sale as its French owner attempts to quit the UK retail sector. Some analysts also expect Marks & Spencer to warn that it has suffered a poor Christmas.

City analyst Freddie George at Seymour Pierce predicted that January would begin with a profit warning from M&S. He also advised selling shares in Carpetright, Debenhams, Topps Tiles, Findel, and Home Retail Group - owner of Homebase and Argos.

[The_Rev]

I just saw that. Reminded me of last month when I went into Zavvi in the Pavillions to get a videogame and a couple of DVD's. Id just walked over from HMV and was doing a bit of price comparison. Everything in Zavvi was £3-£5 more expensive. I even went to the tills with a copy of the game that didnt have a price sticker on it and when I heard the price I told them that they were being significantly under cut by a shop not 20 seconds walk away they didnt care. Granted, it was only the guy on the till who probably didnt plan to spend the rest of his career there, but if this was going on on a national scale, and Zavvi did tend to have stores within spitting distance of HMV in most big city centres, then it might be pretty obvious what was going wrong.

[bickster]

Zavvi seemed to take over Virgin and think that changing the sign outside would bring them success. They really must have believed in the Branson Just brand it and it'll sell policy, Doh!

I went in there the other day to look for a box set of the complete Ealing comedies which HMV had had on offer but run out of. They wanted £60 for it, normal bog standard DVD's of old films, really old films.........shocking. (I'm sure it was only £25-30 in HMV)

EDIT: hopefully they'll have a realy good everything must go sale in Jan

[snowychap]

And, as if there is not enough worry about the next couple of years, here's a bit more for ya:

UK's reliance on gas continues to grow, as domestic fuel reserves diminish

Britain's dependence on natural gas as a source of energy is growing, even as supplies from the North Sea are running out, figures suggest.

They indicate that the UK is relying increasingly on gas as its primary source of fuel for electricity generation, even though the country is being forced to import more and more as domestic reserves grow scarce.

The use of gas to generate power in the UK soared by 21 per cent in the third quarter of this year, compared with the same period last year, to 44 terrawatt hours, according to Energy Trends, a quarterly report on UK energy use published by the Department of Energy and Climate Change.

Meanwhile, output from Britain's ageing fleet of nuclear power stations, which have been beset by maintenance problems this year, fell by 30 per cent during the same period, to 11 terrawatt hours.

The figures emerged as leaders of some of the world's leading gas-exporting countries met in Moscow yesterday for talks about the formation of the Gas Exporting Countries Forum, an Opec-style cartel.

The meeting has alarmed gas-consuming countries, raising fears that the group, which includes Russia, Iran, Venezuela and Libya, would try to massage prices higher by setting production quotas.

Vladimir Putin, the Russian Prime Minister, who is embroiled in a dispute with Ukraine over gas supplies, told delegates at the meeting: “The time of cheap energy resources, cheap gas, is surely coming to an end. Costs of exploration, gas production and transportation are going up. It means the industry's development costs will skyrocket.”

The figures contained in the British Government's latest study reflect the huge challenges facing the country in weaning itself off gas and other fossil fuels.

The report showed that household use of gas in the UK fell by about 6 per cent during the third quarter of the year, mainly as a result of record price rises that prompted consumers to adopt a more frugal approach to energy use. However, the commercial use of gas for power generation is surging, as it displaces other fuels, such as coal and nuclear power.

Overall, UK gas demand in the third quarter was 5.3 per cent higher than during the third quarter of last year.

Although the Government wants energy harnessed from renewable sources, such as wind and waves, to play a much bigger role in electricity production in the long term, it still accounts for only 5 per cent of electricity supplies.

Meanwhile, many coal-fired plants are operating under restricted hours because of tough new European emissions standards, and Britain's nuclear industry, which produces little carbon dioxide, has also struggled with a string of technical problems at key plants this year. Commercial reactors at Hartlepool, Dungeness, in Kent, and Heysham, in Lancashire, were all out of service for repairs this year.

With the depletion of gas from the UK continental shelf, Britain is becoming dependent on imports, either by pipelines from Norway or elsewhere on the Continent or as liquefied natural gas from places farther afield, such as Algeria and Qatar.

Andrew Horstead, of Utilyx, the energy consultancy, said: “Having an energy system that is so reliant on gas at a time when our own supplies are running out is a concern.”

Gas bill

By 2015, the UK is expected to import up to 80 per cent of its gas supplies compared with about 40 per cent now.

The UK was a net exporter of gas as recently as 2004.

UK petrol consumption has fallen by 6 per cent over the past year.

[Gringo]

Following on from jeremy clarksons 'end of days' rant, it is interesting to note the turmoil running through greece at the moment and whether other areas are also close to 'boiling over'

Those Greek Riots

Greece has been torn apart by the worst riots in decades, now entering their third week. Bands of self-declared anarchist youths have rampaged through the streets of Athens and other major cities causing hundreds of millions of dollars in property damage, setting off a spiral of unrest in which the nation’s unions, among other groups, have taken part. Both shops and hotel lobbies have been ransacked, and hospitals, airports, and transport have been brought to a standstill. What sparked the riots was the accidental police shooting of a 15-year-old boy, Alexandros Grigoropoulos. But as usual in such cases, there was much more in the way of causes lying beneath the surface.

Youth unemployment is high throughout the European Union, but it is particularly high in Greece, hovering between 25 and 30 percent. With few job prospects, rampant poverty in the face of nouveau riche prosperity, a public university system in shambles, a bloated government sector in desperate need of an overhaul, and a weak, defensive conservative government with only a one-seat majority in parliament, it is a ripe period for protests, which have had as their aim the fall of Prime Minister Costas Karamanlis.

Greece could now be at a crossroads, which requires a bit of history to explain. Following World War II, Greece had a civil war, which pitted an old guard pro-Soviet left against a pre-modern unenlightened right. The civil war left scars for decades on the country’s politics, pushing left- and right-wing parties into ideological barricades, inflamed further by personal hatreds arising out of the war years. Then there was the dynastic, coffee-house politics of intrigue and corruption that a poor country struggling to erect a modern middle class was prone to. Greece’s very fragility and strategic eastern Mediterranean position during the Cold War led to heavy-handed American tutelage. The Truman Doctrine might have saved Greece from the communism of its Balkan neighbors to the north, but Greeks were not grateful, because of the Latin American-style interference with which Greece was subjected to by America. The colonels who took power in a 1967 coup ruled Greece in a brutal manner that brought forth the worst kind of unregulated Third World-type development. They were backed by the United States, even as they were despised at home. The first real crack in the military regime came in November 1973, when protests at the Athens Polytechnic led to the downfall of one junta leader and the ascension of another, whose regime was toppled the next year with the reinstitution of democracy. From then on, student protests in Greece have had a particularly poignant legitimacy to them, as well as a distinctly leftist edge, laced with the left’s uniquely effective ability to question authority.

The protests of today are not about America; they are about the legitimacy of a government that has been in power for four years without achieving much. With the global recession bearing down on Greece, the country is in desperate need of difficult reforms and privatization measures to help it in the Darwinian struggle to attract foreign investment, upon which much economic growth is dependent. The problem is that despite the probability of new elections, Greece seems destined to suffer through a period of weak governments, which will lack the political capital to do what’s necessary in the way of change. The conservative New Democracy party has been neutered by the riots, even as the left-of-center Panhellenic Socialist Union (PASOK) is compromised by close ties to the very labor unions who would have to be challenged if meaningful reform is to take place. Of course, PASOK could carry out the reforms, in the manner of a right-wing President Richard Nixon going to China, but it could only conceivably do so with a strong majority in parliament, which it will probably not get. What’s more likely is increased influence by smaller and more radical parties, like the communists. Thus, Greece could dither and end up politically paralyzed.

It’s tempting to dismiss this as a purely Greek affair that carries little significance to the outside world. But the global economic crisis will take different forms in different places in the way that it ignites political unrest. Yes, youth alienation in Greece is influenced by a particular local history that I’ve very briefly outlined here. But it is also influenced by sweeping international trends of uneven development, in which the uncontrolled surges and declines of capitalism have left haves and bitter have-nots, who, in Europe, often tend to be young people. And these young people now have the ability to instantaneously organize themselves through text messages and other new media, without waiting passively to be informed by traditional newspapers and television. Technology has empowered the crowd—or the mob if you will.

Pay close attention to Greece; at a time of world-wide economic upheaval, it might eerily presage disturbances elsewhere in 2009.

Time to stock up on bottled water, tin food, bullets etc.

[Genie]

Now Zavvi have joined Woolies etc in administration.

[bickster]

Now Zavvi have joined Woolies etc in administration.

PSSSSsssttt It was on the previous page :nod:

[thetrees]

I walked through Woolworths Solihull yesterday and I have to say that it was a horrible experience, with scavengers picking their way through near empty shelves and fighting over the last baking tin. I likened it to the wretched starving people who pick their way through rubbish tips on the outskirts of Manila, Djakarta and countless other cities in the so-called third world, the only difference being that they are just trying to survive.

I have no attachment to Woolies, for I rarely shopped there, but what has happened since their troubles have escalated epitomises the 'must have' greed that has enveloped the population of this country over the last 20 years.

Perhaps the pain that is yet to be truly felt will make people think a bit harder in the future and realise that there is more to life than material things, flash cars, and just getting one over on your neighbour.

[snowychap]

Clothing chain Adams cut down by retail wipeout

THE retail crisis claimed another victim this weekend with childrenswear chain Adams, which has 260 stores in the UK and 116 overseas, poised to go into administration.

Adams, which makes clothes for Boots as well as trading through its own outlets, employs about 2,000 staff. It is expected to appoint accountants Price Waterhouse Coopers as administrator this week.

The demise of Adams, which follows hard on the heels of the collapse of Whittard, the tea and coffee retailer, and music chain Zavvi, comes despite record numbers of shoppers thronging UK high streets since Christmas to take advantage of the big discounts on offer.

According to retail analyst Springboard, shops were 2.3% busier on Boxing Day than on the same day last year. London’s West End, which includes Oxford Street, Regent Street and Bond Street, experienced a 3.5% increase in custom as half a million shoppers descended on the area for the day.

The frenetic activity masks a grim outlook for retailers. Among the firms thought to be vulnerable are: Focus DIY, which is renegotiating its rental arrangements and has closed stores; specialist camera shop Jessops, which has given warrants on shares to HSBC in return for a loan extension; and greetings-card chain Clinton Cards, which is reliant on short-term financing. Others are Sir Tom Hunter’s garden-centre business Wyevale, which has completed a debt-for-equity swap with its banks; and quoted furniture shop Land Of Leather, which has rejected offers for the business.

Even the largest players are not immune to the downturn. Analysts now think Marks & Spencer will be forced to issue a profit warning when it unveils its interim management statement next week. City sources think, however, that it is unlikely M&S will have to reduce its dividend payment to shareholders immediately, although that could follow later in the year.

...more on link

[Ballybunion_Ice]

I blame Asda for all this

[Gringo]

UK banks face £70bn property bombshell

New research shows the commercial slump could trigger nationalisation for some lenders.

Britain's banks face up to £70bn of losses on commercial property loans, enough to force some of them into a further round of taxpayer bail-outs.

Investment bank Close Brothers forecasts massive writedowns in light of its forecast 50pc-60pc slump in commercial property values by the end of 2009 compared to the market’s 2007 peak. Most property experts believe such values have already dropped 30pc this year.

Such writedowns could again imperil banks’ capital ratios, potentially forcing them once more to go cap in hand to the Government.

UK banks are particularly exposed, having fuelled the commercial property sector boom by lending as much as 95pc of a property’s value to private investors.

Close Brothers refers to a study by De Montfort University, which found that the country’s leading banks have a total £250bn exposure to commercial property loans - twice the amount they had before entering the recession in the early 1990s. Some £83bn of the total was orginated at the peak of the market.

Arguing that commerical property values could more than halve, Close Brothers said: “The fall is higher than most observers estimate. No available debt finance and a limited number of investors with equity capital for acquisitions means that anything sold will only realise distressed valuations.”

The slump in valuations could force banks, such as Royal Bank of Scotland and HBOS which have lent billions of pounds to commercial property investors into a fresh round of capital raisings.

That's not a light at the end of the tunnel, that's an express choo-choo.

[ianrobo1]

I have no attachment to Woolies, for I rarely shopped there, but what has happened since their troubles have escalated epitomises the 'must have' greed that has enveloped the population of this country over the last 20 years.

I would say Woolies actually were hit very hard by the cheapo stores like Primark, Pundstrecther, Wilkinsons which all offered the same but cheaper

Perhaps the pain that is yet to be truly felt will make people think a bit harder in the future and realise that there is more to life than material things, flash cars, and just getting one over on your neighbour.

totally agree and at the end of very recession the same hopes were laid

but never happens because people always want the best they can get and inherent jealously gets in the way

this can not be easily changed as it is human nature

otherwise why would people want continual promotions at work ?

[LancsVillan]

That's not a light at the end of the tunnel, that's an express choo-choo.

Indeed, one I'm hoping to avoid as long as possible, though judging by the letter sent out here on 23rd (MERRY XMAS!!) it might very well not be possible post Feb along with hundreds of others. None of which has hit any press yet and it's a BIG BIG bank.

[ianrobo1]

aren't all Banks on the same position all of them have massive liabilities.

now the question is Al, is if the bank you work for has already received government money or not and if this letter was that bad, eventually it will get out, someone will leak it.

[LancsVillan]

Ian, no Govt money as the change that was requried for it - changes at the top - would never be accepted. Also Govt used the input of money to protect UK jobs which is why the announcement would not have been seen.

Bank are off shoring a hell of a lot of work and dressing it up under the credit crunch and that it is needed whereas it isn't really as the infrastructure is already in place in the UK and is being built abroad.

They've done an excellent job at ensuring they stayed clear of the issues to hit the other banks. I've not got a problem with the off shoring as such as that is the way it is, my issue is the timing and fact that they are trying to hide it. Despite posting similar notes all over about how well they are doing and that they see at least a similar profit to last year.

[thetrees]

I have no attachment to Woolies, for I rarely shopped there, but what has happened since their troubles have escalated epitomises the 'must have' greed that has enveloped the population of this country over the last 20 years.

I would say Woolies actually were hit very hard by the cheapo stores like Primark, Pundstrecther, Wilkinsons which all offered the same but cheaper

Perhaps the pain that is yet to be truly felt will make people think a bit harder in the future and realise that there is more to life than material things, flash cars, and just getting one over on your neighbour.

totally agree and at the end of very recession the same hopes were laid

but never happens because people always want the best they can get and inherent jealously gets in the way

this can not be easily changed as it is human nature

otherwise why would people want continual promotions at work ?

Of course it can be changed if credit and irresponsible lending were less freely available, which can be achieved by government intervention.

But as I have stated before it didn't suit this government, which is why we are the deepest in the crap.

And, so not to be political, my feeling is that regulation wouldn't have suited any party of any colour in government, so this would have occurred anyway.

Perhaps we should adopt the Iranian political model and have our country run by clerics. They certainly appear to have a better understanding of the problem and how to fix it than our present government.

[ianrobo1]

they have no idea even less than politicans ...

it is so easy to write a letter and actually not offer a solution

the problem is TT people are employed and need to be employed by service industries

we can not compete (no one can) against China and the likes on manufacturing (except in very specialised areas) and manufacturing needs us to buy their goods.

fine restrirct credit, I would certainly do that but I suspect more than I would and people don;t buy so what happens to people working. I can not believe you are advocating the state sector should grow larger.

Surely a captilaism economy by it's very nature needs people to buy goods, always been the same

[snowychap]

UK banks face £70bn property bombshell

New research shows the commercial slump could trigger nationalisation for some lenders.

....

Such writedowns could again imperil banks’ capital ratios, potentially forcing them once more to go cap in hand to the Government.

Not only that but it also means, surely, that they will have to decrease their lending?

[snowychap]

Holidaymakers hit as £1 falls to €1

The plunging pound made one-to-one parity with the euro an expensive reality for British tourists yesterday, as the currency's slump deepened.

Thousands of skiers and holidaymakers heading for European resorts to celebrate the new year were feeling the pain in their pockets as the pound hit record lows against the single currency. On the markets the pound was still clinging to levels only a fraction above one-to-one with the euro.

On Bank of England figures, it closed in London at a low of €1.0199 - a value not seen since the euro's creation in 1999. Against the dollar the pound slid to a six-and-a-half year low of $1.4385 - compared with $1.99 six months ago. However, the pound's true euro value for travellers exchanging money was already well below parity, with typical tourist rates as low as €0.98. The Post Office was offering tourist rates yesterday of only €98.04 for every £100.

Experts said that, with the pound under pressure amid fears over Britain's darkening economic prospects, a one-to-one level with the euro in the markets was inevitable within days. “There is no good news for the pound coming up that I can see,” Mike Berg, an analyst with 4Cast, a consultancy, said. “Its fall may accelerate a bit. In January, you will see parity.”

Gerard Lyons, chief economist at Standard Chartered, the banking group, predicted that the pound would fall to €0.90 within a month.

,,,more on link

In another thread at the beginning of November:

PaulMcgrathsknees"]

...watch the value of Sterling over the next couple of months