British Gas Energy Smart

Mynewt

Well if you and the school chilldren can't work out how a supplier providing an extra discount would reduce their profits. Heaven help us all, but for the sake of clarity i'll demonstrate with an example.

Assume usage totalling £1000.00 before discount, and further assume the actual cost to the supplier is £700.00. with a zero discount the profit is £300.00.

Now introduce a 20% discount to the customer. The usage of £1000.00 falls to £800.00. The cost to the supplier remains the same at £700.00 so the profit is now cut to £100.00.

£100.00 is less than £300.00 so the discount is less profitable for the supplier.

The difference is that online tarrifs provide a discount to the customeronly. It does not magically reduce the cost to the supplier for that energy. (In some cases associated costs are reduced however printing and distriubtion being two examples of the assocated cost). What you have described is a reduction or increase in the cost of energy to the provider, in this case of the point raised two different things entirely.

It is relatively safe to assume in the above example to assume the cost to the suppler for the energy (not associated costs) would remain constant due to the hedging of prices suppliers undertake to smooth out the volatility of the energy market.

If you're discussion changes in energy costs, that's an entirely different conversation.

Cardew

Mynewt wrote: »

Well if you and the school chilldren can't work out how a supplier providing an extra discount would reduce their profits. Heaven help us all, but for the sake of clarity i'll demonstrate with an example.

.

As you serious?

I mean really serious?

Do you honestly think it is that simple?

Mynewt

In the case of the point I was asked to explain which was online tarriffs being less profitable for energy suppliers - yes it is that simple.

For a larger picture perhaps not, but then I really have no clue what you are attmepting to get at.

Cardew

Mynewt wrote: »

In the case of the point I was asked to explain which was online tarriffs being less profitable for energy suppliers - yes it is that simple.

For a larger picture perhaps not, but then I really have no clue what you are attmepting to get at.

You are demonstrating again that you don't read what is written!!

You were not asked any such question!

You made the statement "Online tarriffs are the least profitable for suppliers" to support an point you were making.

When asked why the bosses of all the Energy Companies disagree with you, all you can come up with is your version of 'common sense' that holds that if a price is reduced, then a profit margin is lower.

Have you not heard of marketing? What you now belatedly accept is the 'bigger picture' applies and makes On-line tariffs profitable for suppliers.

The most expensive tariff with suppliers is pre-pay; yet according to the Utility company bosses it is the least profitable. If you can work out why that might be, then you might be able to work out why online accounts are not the most expensive.

Mynewt

Please check ppst 35 where you quote one line: Online tarrifs are less profitable for suppliers

In the same post you then aske where I got this infoamtion.

humfer

penrhyn wrote: »

Always a sucker for something free I've converted my Click 6 account to Click 6 with Energy Smart.
Since I already gave BG meter readings monthly with the new software I now have a nice monthly bar chart and a bill predictor feature.
I've also moved to VDD, as typically my electricity consumption is the same most months. It gives you the option to change the payment date as well.
What I'll only find out over time is how the system will handle the £90 odd balance I have ATM.
Waiting to see if their energy monitor is any more sensitive that my trusty old Electrisave, Electrisave, Electrisave ( or was that Beetlejuice?:rolleyes:)

I'm on click energy and although have looked elsewhere not thinking of changing (could save abou £60 but with new cancellation charges and other suppliers charging IGT charges not worth it). Therefore even if I change to this new option simply to get the energy meter, am I right to assume there is no way I will loose out???

Also is this the monitor you get? Just measures elec?
https://www.britishgas.co.uk/products-and-services/energy-savers/green-gadgets/OWL.htm

Cardew

Mynewt wrote: »

Please check ppst 35 where you quote one line: Online tarrifs are less profitable for suppliers

In the same post you then aske where I got this infoamtion.

Read your post #33!

You made that statement!!

penrhyn

humfer wrote: »

I'm on click energy and although have looked elsewhere not thinking of changing (could save abou £60 but with new cancellation charges and other suppliers charging IGT charges not worth it). Therefore even if I change to this new option simply to get the energy meter, am I right to assume there is no way I will loose out???

Also is this the monitor you get? Just measures elec?
https://www.britishgas.co.uk/products-and-services/energy-savers/green-gadgets/OWL.htm

No its not the Owl (Electrisave) its this one:
http://www.amazon.co.uk/gp/product/B002KDL4MI/ref=nosim/?!!!!!hotukdeals-21

littletommytucker

Is Mynewt not going to aknowledge the fact that people have now added to this thread the fact that they have switched to monthly variable direct debits, and therefore he and his good friend "jenny" were wrong, and the employees posting on this thread are correct?

Powertothepeople_3

i have read the post with great interest and think i just want to add a few notes, one of the biggest call volumes to any supplier is to get money refunded as there is lots of credit on there, now Brit gas has come up with something that stops that, before you had 3 monthly bills and set direct debit, this form of payment was always going to create debit and credit situations which was not good for either customer or company but you did get direct debit discounts, now you could have paid you 3 monthly bill on whats called a variable direct debit but but since it was not a payment scheme you would not have any direct debit discounts just whats called a "prompt pay" discount which is much less, on energy smart you can set up a variable Direct Debit but this gives you the full Direct Debit discount not the prompt pay discount plus if you go onto energy smart there is a tariff thats you can also go on which is called online saver, this will give you a minimum discount of 3% off the standard tariff, the new energy smart gives us all what we have been crying out for, more control over our accounts and no overpaying, plus if you dont like it you can come off it with no penalty, it wont suit everyone but it suits me.

from a new energy smart sign up customer