right to be suspicious!

polesitter · 18 September 2017 at 1:11AM

Following my post (suspicious of British Gas) today i recieved a further call from BG customer relation department. This is the third part of my complaint procedure, i had asked that they contact me by mail, they are keen to resolve this complaint by offering, First £20 refund. Then £40 refund. They have always insisted they have done nothing wrong. My main issue has always been about being charged for gas before i have used it. Energy use = Direct Debit payment. To my complete surprise today i was informed that the computer works out that consumption of fuel used now is used to work out future consumption of fuel for the following year. Sounds straight forward. it should be the same, however the computer then works out a predition of the future cost of that fuel should you remain with BG beyond the fixed tarrif time, then applies that figure to your current direct debit. I explained that customers may not renew with their supplier beyond their fixed rate tarrif. It was explained to me the computer would not know that??? I can only presume that BG want us to start paying part of the price increase they are going to implement early, 1 so that it softens the blow or 2 we stay with them as we are in credit. My complaint now continues and it will include this latest conversation which thankfuly is recorded for security purposes and training. I wonder what Ofgem will think. If anyone else used these kind of tactics they would be prosecuted for fraud. BG hide behind the fact you can always phone to complain, they give you that option, how many people have the stomach or time to do that.

nic_c · 18 September 2017 at 8:20AM

They are offering a refund, because taking it to a regulator is more expensive, irrespective of whether you are right or wrong.
There is nothing wrong with BG making DD payments on expected use over the next 12 months - this is how most DD are set up, to smooth out the high winter costs. You can ask to be billed for what you do use and so pay higher in the winter and less in the summer.
My September bill shows predicted annual costs of rising by a third if I stay with BG. BG have to assume I will stay and base the DD accordingly, since if they kept it low and I didn't move away I would end up with a large deficit and a big bill in future.

I can't see your problem is a problem. If you leave and are in credit because the DD assumed you would be staying, then you will get it back, since you won't have used any fuel at the higher tariff.

dogshome · 18 September 2017 at 8:41AM

Oh dear - It was Ofgem who created the rules that encourage this CRAZY prediction of future costs.

In an attempt to create a level playing field, suppliers have to use a formula whereby customers on Fixed Tariffs paid by D/Debit, must be assumed to roll over onto the suppliers Variable Standard Tariff when the Fix tariff ends.

Now whilst this 'guess' of future costs will appear on bills and is used to entice customers off their present fixed tariff onto a new one with higher prices, it's unusual for a supplier to regard it as 'fact' and raise the current D/D payment level to meet it
How comforting it is to know that all is well with the world and BG are still acting to form

nic_c · 18 September 2017 at 9:59AM

It's the same with all the comparison sites. The BG collective Fix Oct 17 was far lower than any alternative offer, both now and for the last 12 months, yet each time I go onto comparison sites in the last 6 months I will "save" by moving across since they all base it on the SVR.

System · 18 September 2017 at 10:22AM

nic_c wrote: »

It's the same with all the comparison sites. The BG collective Fix Oct 17 was far lower than any alternative offer, both now and for the last 12 months, yet each time I go onto comparison sites in the last 6 months I will "save" by moving across since they all base it on the SVR.

For the 70% of consumers still on the SVT and for those on fixed term contracts with more than 12 months to run, the Ofgem methodology is 100% accurate when it comes to showing the savings. Ofgem mandated use of this methodology for Licence Holders and PCWs as the former were playing 'fast and loose' with predicted savings. Some form of assumption has to be made as to what people will do at the end of a fixed term contract: the only given is that the present contract will not be extended. Use of your current supplier's SVT is at least a known assumption - albeit, it might be wrong. That said, I haven't seen any figures re the fixed to SVT customer default rate at the end of a fixed term contract.

Concerns about the above were the reason behind MSE's decision to add the annual cost now compared to cost for these fixed tariffs going forward table. Note that MSE CEC is still required to show the Ofgem methodology.

right to be suspicious!

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