VPhase taps into British Gas

Oct 13 2008 By Alistair Houghton

CHESHIRE green technology group VPhase has secured an agreement with British Gas Services that could see its products installed in millions of UK and US homes.

British Gas is to trial several VPhase devices, which are designed to help people save energy by keeping the voltage of the electricity in their homes at steady levels.

If successful, the Memorandum of Understanding announced yesterday could lead to a supply and distribution agreement to offer VPhase products to all British Gas customers.

British Gas is expecting to spend up to £1bn on domestic energy efficiency measures over the next three years. In 2004 it installed 17.3m energy-efficient products in more than 6m UK households.

Capenhurst-based VPhase will also work with British Gas owner Centrica on how its products could be introduced to the North American market through Centrica subsidiary Direct Energy.

VPhase says its first product, the VX1, can reduce electricity usage by 10% and save householders up to £50 a year on their electricity bills.

VPhase chief executive Lee Juby said: "This arrangement with British Gas Services is further endorsement for VPhase’s voltage reduction and regulation technology.

"Consumers are facing ever higher utility bills, so energy efficiency is becoming increasingly important. Products like the VX1 can cut bills and carbon emissions, so customers can save money whilst doing their bit for the environment."

Gearoid Lane, managing director of British Gas New Energy, said: "This MoU is another step in British Gas putting in place a range of low carbon energy technologies and products for our residential, business and public sector customers.

"These technologies will become increasingly important as UK consumers seek to become more energy-efficient."

VPhase technology was originally developed by Alternative Investment Market-listed Capenhurst company Energetix. The company was spun off as a separate AIM-listed business last year.

Announcing its interim results last month, VPhase expects to start mass production of the VX-1 next year. It says it hopes to sell around 7m units a year in Europe.