MSE News: British Gas ignores hundreds of thousands in new PR stunt

Former_MSE_Guy

This is the discussion thread for the following MSE News Story:

"British Gas (BG) says it is ending estimated billing for customers but won't allow many on its cheap tariffs to benefit from a new initiative ..."

Read the full story:
British Gas ignores hundreds of thousands in new PR stunt

Premier_2

The energy giant is launching a free add-on to some tariffs tomorrow, called EnergySmart. It allows households to submit meter readings by text or online every month.

Can't customers elect to give their own readings online for any BG tariff?
https://www.britishgas.co.uk/MeterRead/Anonymous_Account_Details/Entry/

If not, they could always do it the traditional way and phone them in or even send them by snail mail if so inclined

lostmydetails

Premier wrote: »

Can't customers elect to give their own readings online for any BG tariff?

If not, they could always do it the traditional way and phone them in or even send them by snail mail if so inclined

Then the suppliers should pay the customers for doing it or give an extra discount! they are supposed to read the meters, if they ask customers to then they should pay for it.

Johnathan652

I listened to the BG announcment on the R4 this morning. Yes - to my mind this is little more than a PR stunt, I have relegiously recording and notifying BG my meter reading for several years now. Yet I still have visits from meter readers and still invoiced for estimated meter readings. (I have found that if I post my meter readings a day or two before my bill is due, then I pay for what I use). Having checked out the cost of gas and electric for this 'new' tariff, as mentioned above, my current on-line tariff is still cheaper.

Going slightly off subject, on the radio this morning the excuse BG gave for not lowering their current charges to match the lower wholesale market prices. Was that the gas we are using now, they brought last year when the wholesale price was higher. Whilst at the moment they are buying wholesale gas now for next year. Following that logic, this time next year I expect to be paying a lost less for my gas than I am paying now - do you think...

Premier_2

Johnathan652 wrote: »

... I have relegiously recording and notifying BG my meter reading for several years now. Yet I still have visits from meter readers ...

Any gas supplier is obligated by their supply licence to read/inspect the meter at least once every 2 years for safety reasons. They are even expected to apply for an entry warrant if necessay to gain access to ensure such check is carried out.

Electricity suppliers are expected to use "reasonable endeavours" to read their meters once every 2 years. For electricity, this time may recommence from a change in supplier.

A customer supplying their own readings does not change this.

Bargain_Rzl

Perhaps I'm missing the point (I live in a flat with electricity supply only, no gas) but how does this new initiative save anybody any money? Surely the only difference between paying a bill based on an estimated reading and based on an actual reading is that with an estimated reading one party remains in the other's debt until an actual reading is taken and an accurate bill issued, whereas with an actual reading there is no debt involved on either side.

Either way, as soon as an actual reading is supplied (which presumably the householder can do at any time) the account balances out. It doesn't result in net gain or loss to either party

WestonDave

Thing is though, Click 6 is cheaper than websaver 4 - you can stay on Click 6 and get this new EnergySaver thingy, so it clearly can't just be a question of ruling out the cheaper tariffs. Perhaps they are using it as a carrot to encourage people on tariffs where customer meter reading is not happening to start doing that. In other words maybe the benefits are going where BG can make cost savings?

KimYeovil

Bargain_Rzl wrote: »

Perhaps I'm missing the point (I live in a flat with electricity supply only, no gas) but how does this new initiative save anybody any money?

You are correct. The only savings are by prompting consumers to actually start to notice how much they are using and how much it costs and thereby making them aware of the day to day running costs. (Instead of burying their heads in the sand for quarters on end until a catch-up bill arrives.)

Of course the energy isn't any cheaper.

Cardew

Bargain_Rzl wrote: »

Perhaps I'm missing the point (I live in a flat with electricity supply only, no gas) but how does this new initiative save anybody any money? Surely the only difference between paying a bill based on an estimated reading and based on an actual reading is that with an estimated reading one party remains in the other's debt until an actual reading is taken and an accurate bill issued, whereas with an actual reading there is no debt involved on either side.

Either way, as soon as an actual reading is supplied (which presumably the householder can do at any time) the account balances out. It doesn't result in net gain or loss to either party

The only point you are missing is the fixation people have about Direct Debits and the irrational fear that a company 'is making money from them' by setting the DD too high.

It is perfectly obvious that many people simply do not understand the Direct Debit system.

One thing is certain. When some people get an(actual) gas bill for £100+ for a single month in winter(just after Xmas) there will be uproar on this forum "BG are robbing B******s - I only paid £40 a month with npower/edf/eon etc";)

greenbee

Bargain_Rzl wrote: »

Perhaps I'm missing the point (I live in a flat with electricity supply only, no gas) but how does this new initiative save anybody any money? Surely the only difference between paying a bill based on an estimated reading and based on an actual reading is that with an estimated reading one party remains in the other's debt until an actual reading is taken and an accurate bill issued, whereas with an actual reading there is no debt involved on either side.

Either way, as soon as an actual reading is supplied (which presumably the householder can do at any time) the account balances out. It doesn't result in net gain or loss to either party

There is still a debt to the energy company until the 'accurate' bill is paid, as gas and electricity are paid for in arrears (I believe British Gas have the highest unsecured debt of any company in the UK on the basis that EVERYONE pays after they have been supplied, although monthly DDs averaging out the bills have helped reduce this).

I think BG are probably trying to deal with the negativity that surrounds estimated billing and averaged DDs - and possibly get customers used to paying accurate bills in advance of smart metering.

They're still going to need meter readers too, as they will need to make sure that customers are being honest when supplying their meter readings (and we've all seen enough discussions on these boards about over/under estimating when there are price changes to know that this is a real possibility).

The chances are that the reason some tariffs are excluded is that they set themselves a launch date for the product, and then couldn't get all the changes made to the billing system on time, so launched it for the majority of customers and will see how it goes before they deal with the rest. Setting up the system to cope with what could be a phenomenal increase in the volume of meter readings supplied (and providing the data storage to cope with it) is a significant investment in IT at a time when they are 'rationalising' their IT dept drastically.

Further work will be needed prior to smart metering being rolled out fully (I believe it is now being piloted) to allow the system to cope with half-hourly meter reads from all the smart meters - so this may well be a half-way house.

Cardew

greenbee wrote: »

Setting up the system to cope with what could be a phenomenal increase in the volume of meter readings supplied (and providing the data storage to cope with it) is a significant investment in IT at a time when they are 'rationalising' their IT dept drastically.

Further work will be needed prior to smart metering being rolled out fully (I believe it is now being piloted) to allow the system to cope with half-hourly meter reads from all the smart meters - so this may well be a half-way house.

BG's computer system has been something of a disaster, and legal action is now in progress with the software developers I believe.

However, it is my understanding that the functionality to cope with 'instant' generation of bills after receipt of meter readings is already built in to the system.

As you say this will be to cope with 'smart metering'. For those who are unaware of this term, it means that the meter readings will be sent electronically to the Utility firm and a bill automatically generated. I have this system in a USA property. My meter is 'read' and I receive my bill almost instantly.

Some months ago I was asked by email to provide my gas and electricity readings. I did so and almost instantly I got back an email saying my bills were ready. I checked and they were accurate using my readings; there clearly could have been no human intervention.

However since then, although I am on 'e billing' the bills have been using 'normal' procedures.