Would appreciate some help - trying to switch - BUT!

nawdrum

Like many people, i always meant to shop around for the cheapest Gas + Elec, but only got around to it a couple of weeks back. All was good, and I inputted all the info onto the £12.50 cash back site - energyhelpline.com.

The cheapest for us was npower sign online, so we ticked the box etc and off we went. All was well until I got a letter from npower saying....

"We can tell from your Metering Point Reference Number (MPR) that your gas is delivered via a pipe network partly owned by an independent Gas Transportation Company (IGT). IGT networks are usually found on new housing developments. Being supplied via an IGT network does not affect the quality or security of your gas supply.

Suppliers like npower who supply gas to customers via IGT networks pay slightly higher costs. This is reflected in our tariff for IGT customers. Your new tariff with npower will be:

Unit rate, up to and including 4572 kWh per year (squared) 3.821p/4.012p
Unit rate, over 4572 kWh per year 1.780p/1.869p"

They have extended our right to cancel to an extra few days to consider this new information. Now call me crazy, but i reckon thats quite expensive....

Am I reading this wrong? Previously we were with British Gas Dual Fuel. On the back of our latest bill we have the following figures (i'm assuming i'm reading from the correct bit here....)

Cost of Gas used:

3510 kWh @ 1.957p per kWh
1101 kWh @ 2.809p per kWh.


What i'm trying to establish is that the switch actually would be more expensive.... wouldn't it? Or am I reading wrong? Has anyone else had experience with this IGT thing? Is it likely to be the same to whoever we shift too? British gas have never mentioned anything about it before....

Thanks in anticipation of help!

nawdrum

Oh dear.... seems everyone's as confused as me...

Can somebody with more intelligence than me just even confirm that the npower deal would see us being WORSE off?

mad

I have never come accross this one before. I am only someone who has chages suppliers a number of times. There must be someone who works for one of the utility companies who can shed some light. However, it seems dificult to compare as your dual fuel cost seemed to be a standard rate were as your new supplier charges more for the first 4572. I suppose it is then about how much do use in a year as the price is lower when you have reached that point, or so it seems from your figures. was that last bill on the dual fuel a quarterly or monthly bill, either way you might be able to do some rough calculations over a year.

nawdrum

The Dual Fuel bill was a quarter. Seeing as we used 4611 in that quarter, i'm gonna do some REALLY crude maths. If anyone sees something i've done wrong please yell!

4611 was for October - Jan, so with the weather as it is we can probably assume we'll use a similar amount from Jan - April, but then probably around half that for the other two quarters (I could be way out here as i have no clue!)

So, annually, we're looking at 13,833 annually.

Npower's amounts are quite clear (i am quoting inclusive of VAT):
4.012p for the first 4572 kWh, then 1.869p for over 4572

British Gas says:
3510 kWh @ 1.957p, 1101 @ 2.809p.

**First question is that is the first figure for British Gas the 'up to' and the second the 'over'? Or vice versa?

NPower also specifies those prices are PER YEAR. British Gas is unclear. If anyone can shed light on that it'd be helpful.**

I'm going to assume that their prices are per year, and that the first price is the 'up to' rate.

Npower

---

First 4572 @ 4.012p = £183.42
Subsequent 9261 @ 1.869p = £173.08
TOTAL = £356.50

British Gas

---

First 3510 @ 1.957p = £68.69
Subsequent 10,323 @ 2.809p = £289.97
TOTAL = £358.66

Wow, there's only a couple of quid in it. If sombody can confirm or put straight the assumptions i made above (in italics), then I can hopefully get a clearer picture!

PLEASE HELP!


my brain hurts now.....

averagepunter

I have this problem with the IGT thing as well. from what I understand, the Independent companies offer cheaper rates to new house builders for the installation of the pipes - so they get the contract and the homebuyer gets lumbered forever more with this additional charge. It really is annoying as there seems to be nothing you can do about it.

AFAIK, British Gas are the only company that does not levy an extra charge. I have also been with Powergen and ScottishPower in the past and they certainly add a fee for IGT customers.

It makes a complete mockery of the comparison sites, as you have found, but at the moment I have no solution - but would be more than happy to hear from anyone who does.

Andy

nawdrum

So basically, we're stuck with this then. Surely the monopolies commision should look into this then? We only have one choice of provider who WON'T add the extra charges....

Having said that, both prices were within £2 of each other, so it's not going to make a HUGE difference. Unless Npower's expected price increase exceeds British Gas's of course.

saj_k

I was also going to move from BG to Npowers gas guardian but like yourself received the letter about IGT.

Called Npower who informed me that on a regular tariff I will save £60 but with IGT I will still save £30 for both Gas and electric.
I also gas called Bg who said that there is only a few Pounds difference, so dont know who is telling the truth

In the end I did not move as I thought once my price freeze is over in dec 2007 then I would pay more with Npower.

If you find a supplier that is cheaper than BG then please us know.

Thanks guys

nawdrum

I'm gonna let the switch continue I think, unless the npower price hike is more outrageous than BG's.

mad

Good luck it does seem like there isn't much choice. I can't help feeling that this is unfair. I wonder if they make all this clear when they seelm the houses?

nawdrum

If you mean 'sell' the houses then no, nothing about this was ever mentioned.

Jonni2bad

We are also stuck with the IGT supply in our 4yr old house. No mention of the pipes being an IGT was ever mentioned by our builder, only that the initial supply would be from Powergen and we were free to switch if we wanted to, which we did.

This only came to light when we wanted to move FROM Scottish Power, our current supplier and, very much like yourself, we received the letter showing differences in price.

I recently did the excercise again, but found that 'fixed' prices from BG were NOT available if you were with an IGT - so now we have to sit tight and face the increases with very little choice of alternative.

I still wonder why it was not necessary for the builder to inform potential buyers - or maybe it was, and they just didn't bother!