BG Capping Direct Debit Discounts!!

Bullshine_2

Just noticed that BG are now capping the amount of discount they give for paying by direct debit.

'Gas customers paying by Monthly Direct Debit will receive a discount off their quarterly consumption charges of 10.3%, up to a maximum of £18.25 (includingVAT) per quarter. Discount received varies with seasonal consumption. Subject to status, and not having an overdue gas account.'

'Electricity customers paying by Monthly Direct Debit will receive a discount off their quarterly consumption charges of 4.8%, up to a maximum of £4.75 (includingVAT) per quarter. Discount received varies with seasonal consumption. Subject to status, and not having an overdue electricity account.'

This means pre sept 2006, if you spent say £300 on gas during a winter quarter then you would have received £30 discount.

After sept 2006 this would drop to the capped amount of £18.25.

The scenario is similar with electricity.

Are BG so strapped for profits that they not only raise prices but also reduce their discounts too???

Sorry if this has been highlighted before!

Cardew

I really do not understand BG's announcement; unless it applies to a particular tariff.

BG's tariffs do not normally include a percentage discount as such, and certainly not varied by season. You have a different tariff if you pay by direct debit rather than every quarter but that is not the same.

Also what do they mean by overdue account?
Most Monthly Direct Debit customers get into debit during the winter and then clear that debit during the summer and go into credit - it is how the system is designed to work. By Sept I am usually in credit and in debit by April.

Where was this quote from?

masonic

The maximum quarterly discount for Gas was £13.25 (£53/year) and for electricity it was £3.50 (£14/year), so it looks like they've gone up.

Bullshine_2

masonic wrote:

The maximum quarterly discount for Gas was £13.25 (£53/year) and for electricity it was £3.50 (£14/year), so it looks like they've gone up.

Not aware of any previous limits to direct debit discounts. I think you are thinking of the average discounts pre sept 2006????

Also the quotes are from house.co.uk

masonic

Bullshine wrote:

Not aware of any previous limits to direct debit discounts. I think you are thinking of the average discounts pre sept 2006????

I'm reading from the leaflet entitled "We've answered your questions, so you don't have to ask them" sent to me a couple of months ago when I tried to apply Click energy.

Edit: Just to clarify, the exact wording was "Paying your gas and electricity bills by Direct Debit saves time for you and us. What's more, you could receive a discount of up to £53 a year off your gas bill and up to £14 a year off your electricity bill."

Mikeyorks

As other replies .. was under the impression BG, as most suppliers, gave a specific value discount for DD. Not a % ... whether capped or not.

But the link below (as OP) denotes otherwise - and appears to apply to DD in general :-

http://www.house.co.uk/cgi-bin/house//house/containers/journeyRedirect.jsp?BV_SessionID=HHHH0067307049.1155068219HHHH&BV_EngineID=cccdaddihmlhjekcefecfngdfhidflo.0&channelId=-8382&_txtJourneyKey=manageYourBills_HowToMakeSavings&intCCNumber=06005122&strBubbleHelpKey=null&strSelName=1073756829

Bullshine_2

Have a friend who works for BG will need to check out if limiting a DD discount is new??? I'm sure BG has always been a %age for DD discount but maybe wrong.

Cardew

I am a little clearer now in that the latest BG tariffs charge the same price per kWh regardless of your payment method(DD or cash/cheque) and the % DD discounts are applied afterwards.
Previously there were lower prices(per kWh) for payment by DD. So in theory your 'discount' was unlimited.

Presumably an "overdue gas account" means when your DD has not been paid, rather than the 'normal' debit balance that occurs during the year.