British Gas - Are They Overcharging Me? Should I Switch?

Magentasue

Well, when you have your annual usage in kwh for gas and elec (BG will tell you this), you go to a comparison site and put those figures in.

As said, if you switch, you'll need to settle the balance on your account. So, if that would be a problem, see what comes up as the best tariff with BG. Contact BG and ask if you can be moved on to this - confirm that there is no penalty if you cancel it.

Look for the best deal with an alternative supplier. If only a few quid, you might as well wait for a bit. However, if big savings are to be made, you might consider ways of paying up what you owe as fast as you can so you can switch.

justinking_2

The figures i was given from BG were quarterly ! so do i simply multiply the figures i put on here x 4 just now to work this out?

thanks

Magentasue

You need annual figures - your winter quarter will be very different to your summer one and spring and autumn should be somewhere between. BG should be able to give you this.

justinking_2

Ok, I now have my annual figures!

I dont think i have registered with British Gas online, so i guess i should do that!

Even though i am stuck with these bills, thank you for your advice so far.

justin x

Magentasue

Online usually cheaper as you get a discount. Check out their cheapest tariff and ask to be put on it.

SwanJon

Be aware that BG's current online tariff has an exit fee - take this into account

RayR22

Justin

You’ve got it all in the above posts really but putting it all together gives you the following points:

1. Fuel prices rose enormously during 2008 – BG about 55%.

2. It looks like you’re currently on quarterly billing for BG Standard Tariff for Gas & Electricity and your usage had been underestimated until you’re last bill – after meter reading. This resulted in a large catch-up bill.

3. You now know your annual Gas and Electricity usage in kWh (metric units) for the last 12 months (presumably from BG or by looking at your old bills).

4. You seem prepared to register via the BG website. If you do so you will be able to look at your account and view all your old bills.

5. You seem nervous about using Comparison sites. Don’t be – they’re simple to use. Try www.energyhelpline.com :

a) On the 1st page just enter your Postcode <continue>
You need to enter your Postcode as Utility companies have different prices for different regions.

b) On the 2nd page enter your usage details for both Gas & Electricity (Supplier = British Gas; Current Tariff = Standard; Current Payment Method = Quarterly (if.it is); Current Usage = enter your annual kWh figures in the box beside the OR) then <continue>

c) On 3rd page you enter the Payment Method you would use if you changed supplier (or change Tariff if you stick with BG). Note: you are not initiating any change by going through this comparison process. I would assume you would be looking for the best price – so go with Monthly Direct Debit. Then click on >Price

d) The 4th page is the results page with the cheapest 1st.

e) Take care in assessing the best as, for instance, Npower include their Direct Debit Discount (£100) which is only paid at the end of 12 months (so if you leave from them before then you lose the bonus). You will also see, at the top of the page, how much you would pay over the next 12 months on your current tariff. The savings (green) or loss (red) is shown on the list, against each supplier/tariff, if you change tariff. British Gas Websaver tariff will show a little way down the list as the best BG tariff but there is an exit penalty of £30 each fuel if you leave these tariffs before the end of this year.

6. A word about changing tariffs. If you move to a different supplier, the move itself will take at least a month, probably two and maybe more AND you will need to clear your debt in full before the transfer is satisfactorily actioned. If you change to a different tariff within the same supplier it should be able to be done on-line and would be effective in 2 or 3 days (e.g. BG Standard to BG Websaver2 via the BG website).

7. A word about online tariffs:
To get the best price you would be looking at an online tariff - being paperless and with monthly direct debit as payment method.
Paperless means the will no longer send you a paper bill but will email you when it has been generated so that you can log on to your account with BG and view it. With BG this is a quarterly process and it would be sensible to submit your meter readings online before the bill is due - so as to ensure accuracy.
Monthly Direct Debit means that the supplier will estimate, for each fuel, how much they think you would use over the next 12 months and divide it by 12. This will be the monthly amount of the direct debit. This means that you will be paying for more than you use in the Summer and less than you use in the winter but if you use the same amount of fuel it should approximately balance out over the year. Remember, if you significantly use more fuel or less fuel over the year you will have underpaid or overpaid, respectively. You can monitor what your consumption is online but is only meaningful if the meter readings are accurate – i.e. submit them yourself.

Good Luck