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British Gas: Can't Manage Contractual Changes

backfoot
backfoot Posts: 2,700 Forumite
Part of the Furniture 1,000 Posts Combo Breaker
As many of you are aware, Contracts for gas and electricity have a clause which enable Customers to reject price increases and seek a new Supplier.When raising prices, the supplier also has to give you written notice of that change within 65 working days.You then need to give them notice within 10 days of your intention to switch Suppliers.

I invoked this Contractual Right but because BG have been hopeless in the extreme,I wrote twice and received two acknowledgments that the pre price charges would apply.

When the final bills were wrong, I asked not only for a correction but an explanation.

Here is the response.

'Thank you for your email.


I am unable to give a definitive answer as to why the process has not worked in this case as the only process we have in place is the one that has been followed already. However, we do have a lot of customers who have requested the same as you have, and we are currently trying to issue correct bills to as all customers as quickly as possible.'

I have asked BG for clarification of the above statement because if it true, then they are unable to issue Customer bills correctly for Supplier switches which is a matter of serious concern.

I will post any response.
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Comments

  • backfoot wrote: »
    As many of you are aware, Contracts for gas and electricity have a clause which enable Customers to reject price increases and seek a new Supplier.When raising prices, the supplier also has to give you written notice of that change within 65 working days.you then need to give them notice within 10days of your intention to switch Suppliers.

    I invoked this Contractual Right but because BG have been hopeless in the extreme,I wrote twice and received two acknowledgments that the pre price charges would apply.

    When the final bills were wrong, I asked not only for a correction but an explanation.

    Here is the response.

    'Thank you for your email.


    I am unable to give a definitive answer as to why the process has not worked in this case as the only process we have in place is the one that has been followed already. However, we do have a lot of customers who have requested the same as you have, and we are currently trying to issue correct bills to as all customers as quickly as possible.'

    I have asked BG for clarification of the above statement because if it true, then they are unable to issue Customer bills correctly for Supplier switches which is a matter of serious concern.

    I will post any response.


    If they comply with your request then I would imagine they are in breach of their licence agreement with OFGEM (not that those toothless pen-pushers will do anything about it, of course).
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • Cardew
    Cardew Posts: 29,064 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    Interesting!

    I suspect that this is yet another instance where the 'wonderful' new computer system has not been programmed to deal with that requirement. If they can't engineer a fix they will have to do it manually.

    As a matter of interest did you get the formal letter telling you of the rises?

    I am on BG's fixed to April 2010 tariff and have been for over 3 years.

    However I always get letters telling me that their prices have increased or indeed reduced(twice) by xx% but followed by letters telling me that it doesn't apply to my accounts.

    On my bills they alway estimate my usage at the date of the price rise e.g period, say, 01 June to 31 July meter reading estimated at 12345 = xxx kWh at 2.05p. 31 July to 31 Aug xxx kWh at 2.05p.!!!
  • filmnoir
    filmnoir Posts: 150 Forumite
    backfoot wrote: »
    When the final bills were wrong, I asked not only for a correction but an explanation.

    Im presuming that after the date BGAS supplier were increasing their prices you had not switched to a new supplier? Therefore part or all of the invoice was at the new rate they had advised you of?

    Is so it would be a mannual invoice, however Im not 100% sure where you stand as if you informed them you were moving supplier and failed to before the change Im a little unsure if they can or cant invoice at the new price range. 65 Days notice, 10 days intention = 55 days, average change of supply 28 days if no obejctions if they inform you before the price rise.
    "Self trained industry expert who has worked in Electricty Distribution, Electricity & Gas Supply and currently works as an independent consultant in industry processes to particapants in the industry" :eek:
  • filmnoir
    filmnoir Posts: 150 Forumite
    Cardew wrote: »
    Interesting!

    I suspect that this is yet another instance where the 'wonderful' new computer system has not been programmed to deal with that requirement. If they can't engineer a fix they will have to do it manually.
    Totally, the price change would be applied to the whole billing group. In essense you'd have to create an entirely new billing group and monitor to ensure these customers did leave supplier. This wouldn't happen due to cost, it would be cheaper to bill at the higher and then deal with the customers who complained.
    "Self trained industry expert who has worked in Electricty Distribution, Electricity & Gas Supply and currently works as an independent consultant in industry processes to particapants in the industry" :eek:
  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Cardew wrote: »
    Interesting!

    I suspect that this is yet another instance where the 'wonderful' new computer system has not been programmed to deal with that requirement. If they can't engineer a fix they will have to do it manually.

    As a matter of interest did you get the formal letter telling you of the rises?

    I got notification via e mail on the 18/11/08 re the price rise effective from 30/9/08.Why it takes over six weeks to do that is beyond me ? :confused: Probably because they had introduced a new cheaper tariff and really don't want you to change.

    Re the computer system, it is a fundamental business requirement to be able to action Supplier switches.It has been around for a long time now and is not a new situation.It really doesn't wear, that a business as 'supposedly sophisticated ' and certainly huge with IT and Consultant resource to burn, can still get this wrong.

    This sort of situation would unfortunately bypass most customers without them checking or realising. It is yet another appalling abuse of Customer trust.

    You know,I had avoided BG for a long time since they were nearly always way behind on price.In just three short months, I have had incorrect Direct Debits,incompetent and arrogant Customer Service and now an admission that they get bills wrong and just manually amend them if it is noticed.

    I didn't have an axe to grind but I certainly do now.:mad:
  • filmnoir
    filmnoir Posts: 150 Forumite
    backfoot wrote: »

    Re the computer system, it is a fundamental business requirement to be able to action Supplier switches.It has been around for a long time now and is not a new situation.It really doesn't wear, that a business as 'supposedly sophisticated ' and certainly huge with IT and Consultant resource to burn, can still get this wrong.

    You be surprised most are legacy based systems from that were used in the pre-de-regulation days.
    backfoot wrote: »
    You know,I had avoided BG for a long time since they were nearly always way behind on price.In just three short months, I have had incorrect Direct Debits,incompetent and arrogant Customer Service and now an admission that they get bills wrong and just manually amend them if it is noticed.

    Its not different then being short changed in a shop, unless you point it out...IMHO
    "Self trained industry expert who has worked in Electricty Distribution, Electricity & Gas Supply and currently works as an independent consultant in industry processes to particapants in the industry" :eek:
  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    filmnoir wrote: »
    Im presuming that after the date BGAS supplier were increasing their prices you had not switched to a new supplier? Therefore part or all of the invoice was at the new rate they had advised you of?

    No,I hadn't switched.I was waiting for the formal notification.Once received I gave written notice the same day in writing.This was acknowledged by them.I further wrote as part of a DD complaint and repeated the issue.They again acknowledged and assurred me it would be correctly billed.The next bill received was the final bill which was wrong.
  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    filmnoir wrote: »
    Totally, the price change would be applied to the whole billing group. In essense you'd have to create an entirely new billing group and monitor to ensure these customers did leave supplier. This wouldn't happen due to cost, it would be cheaper to bill at the higher and then deal with the customers who complained.

    You can't run businesses like this.Deliberately get it wrong and hope to get away with it. :eek:
  • backfoot
    backfoot Posts: 2,700 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    filmnoir wrote: »
    You be surprised most are legacy based systems from that were used in the pre-de-regulation days.



    Its not different then being short changed in a shop, unless you point it out...IMHO

    BG's system is recent, not legacy.Even legacy systems can be altered to cater for essential business requirements.

    Oh my god, I can't believe your second statement.So you think shops/businesses deliberately swindle you and unless you spot them that's ok?? Which Business School taught you that one? :rotfl:
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    10,000 Posts Combo Breaker
    This isn't unique to BG. I've not found a supplier yet that correctly bills first time at pre-increased prices in such situations.

    Another reason to check bills carefully and only pay those correctly presented; dispute any that arn't. :)
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
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