Your views on energy price rises!

andy_1981_2

Greetings fellow money savers!

Firstly, hello to everyone. I have been visiting MSE for a while now, and watch the GMTV slots with intrepid interest! I had no idea, until I was badgered by my girlfriend (also a member) into visiting this sight how informative and helpful it is. It has now I guess become almost a way of life, Mr Lewis, you are a straight-to-the-point, enthusiatic, 'say it as it is' god. I share yours, and everybody elses enthusiasm in stamping down on money grabbing greedy companies etc!

Being a 'newby' to this forum lark, here I find myself posting my first thread, so why not start with something so currently important - the latest rise in, yes you guessed it, gas and electricity prices!

I currently live in a two bedroomed ground floor apartment and have been since Sept 2006. I started off on British Gas' standard duel fuel tariff and was obviously paying over the odds for these utilities, albeit I was none-the-wiser about how easy it was to change.

Come February this year, I swapped via www.energyhelpline.co.uk to the EDF Energy Online 5 tariff for duel fuel after this had been the cheapest on the search, this resulting in a saving of between £200.00 and £300.00 (cant remember the exact amount). I also received the £15.00 switching fee for switching with them! My payments were fixed on monthly direct debit at £29.00 per month for gas and £21.00 for electricity.

I have now further switched to a capped tariff with EON, again with the same comparison site. Admittidely, I left it a little too late (until 30th July) but even though this results in a 35%-40% (ish) payment increase, I still hold belief that the energy companies will further increase prices early next year as many have predicted, therefore, being in pocket eventually.

I find it so hard to believe morally, although it does not surprise me on eyeota, that British Gas in particular put their duel fuel up 25%, electricity 7% and gas 35% (if i remember right), then the following day rub salt totally in the wounds by announcing £900million pound profits!!!

Thanks British Gas, and others. You certainly know how to kick us in the teeth and gloat when we are down!

Yes British Gas, you were certainly not the first energy company to raise the prices this time, but it took you a matter of days before jumping on EDF energys price increasing bandwagon with the excuse of "wholesale oil prices increasing". How about giving us just a little of your £900 million pound stash and give us a break for once!

[Deleted User]

welcome andy. There is a lot of panic at the moment much of it generated by scaremongers and many people are feeling out of control. Have a look at the community spirit on the `if things get tougher thread`where no-one is sitting back crying. We are all doing something about our self-survival

mech_2

There is a lot of panic, but I'm not sure about scaremongering. The current price rises were predicted well in advance and the predictions of further rises in the new year are based on sound reasoning.

The issue of energy company profits requires a little analysis of the figures to get them into context. British Gas has not made a £900 million profit. The parent company Centrica has. British Gas have announced profits of £166 million for the first half of this year, which works out to be around £11 per customer (with an average 6-monthly bill of roughly £500). That's a 2.2% profit.

tomstickland

From what I heard on the radio today, the wholesale market prices in gas have risen by 90% over the last year and the UK buys in a proportion of gas since the domestic supply is diminishing. The profitable part of Centrica is the upstream part, and that is taxed at some massive rate.
So I don't think we can really blame them for increasing prices.

Centrica said that wholesale gas prices in the coming winter would be up 89% on the previous winter. It added that the UK was suffering from diminishing gas reserves, and estimated that the UK would import 40% of its gas this year compared with 27% last year.

http://news.bbc.co.uk/1/hi/business/7533389.stm

lgb2100

I am a British Gas customer on their Click 4 Tariff.

Prior to 30th July 2008, I had checked with a comparison site which stated that my usage (10391kWh Gas 2888 kwh Electricity) was at the cheapest @ around £595 year, with BG'sClick 5 Tariff being next at £605.

After reading in the newspaper about the price increases, I decided to check again.

Now it reveals that my Click 4 will be over £730 year - however still states that Click 5 energy is the cheapest remaing at £605 !

Checking with British Gas website - I can find that my Tariff has been increased as from 30th July, but it seems that Click 5 has not had any changes (last change May 2008).

I have e-mailed BG, aksing about when will it be informing its customers's directly (i.e. by e-mail/Letter) of its increases, and whether Click 5 Energy prices have aslo been affected - no reply as yet.

Surley, if a company hasn't not formally informed you of any price increases to its services - then you are not expected to pay for the increase.

Perhaps all customers should state in an e-mail/letter to British Gas, that since the lack of notication from themselves by e-mail/letter/phone call that you are expecting to be charged at the old rate.

The only way I know that prices have increased, is when I receive my bill, read a newspaper, or listen to the news.

lilac_lady

Apart from those who capped their bills previously, I thought all energy customers paid the same tariff. I knew that pay as you go metered energy was more expensive ( shouldn't be allowed) but I didn't realise that there was different charges for different people. Or have I misunderstood?

amcluesent

>I thought all energy customers paid the same tariff<

Certainly not between suppliers and IIRC British Gas is introducing regional tariffs, announced at the same time as the recent price rises.

oddlyuk

Just a heads-up..........

Thanks to this site I eagerly signed up for capped electricity with British Gas until Dec 09, moving from Click Energy 5. A few days later they are advertising a cap until 2011 with the teensiest difference in unit rate. I rang today to ask if I can amend my account and was told that I would have to pay a cancellation fee of £20. The customer services guy was excellent and spoke to the manager etc. but to no avail. I have been advised to write in so I will and I hope they will consider waiving this fee considering they will have me for a couple more years. I know £20 might not seem much compared to the hike in fuel prices but I feel cheated. Did they know they were going to have this product last week when they signed me up? If so, shame on them.

Froglet

oddlyuk wrote: »

Just a heads-up..........

Thanks to this site I eagerly signed up for capped electricity with British Gas until Dec 09, moving from Click Energy 5. A few days later they are advertising a cap until 2011 with the teensiest difference in unit rate. I rang today to ask if I can amend my account and was told that I would have to pay a cancellation fee of £20. The customer services guy was excellent and spoke to the manager etc. but to no avail. I have been advised to write in so I will and I hope they will consider waiving this fee considering they will have me for a couple more years. I know £20 might not seem much compared to the hike in fuel prices but I feel cheated. Did they know they were going to have this product last week when they signed me up? If so, shame on them.

I am sure i remember this same question coming up this morning on GMTV to Martin.He said that if you applied for the fixed rate till Dec 09 BEFORE British Gas announced the price rises,then it would have been at the OLD rates,and NOT the much increased new and current prices.Therefore you might prefer to leave things as they stand and review them at the end of the cap.

You state there is not much difference in the price,but that was not the impression Martin gave.I would certainly double check before you find yourself having to pay the extra £20,as well as another 18 months of higher rates.

Just a thought,i hope it helps.

[Deleted User]

all customers pay the same gas tariffwith EBICO and electricity customers pay approx the same depending on the area they live in

gas tariff is 2.86 pence/kwh
my (s wales) elect tariff is 12.72 pence/kwh

all ebico customers have clarity

Ken68

So agree Kittie....all this capped stuff just a muddle.
GO FOR EBICO, get a clear view. No tiers, no tears.