British Gas "prompt payment" discount a joke!

usignuolo

House is as insulated as it can be, but it is Victorian semi detached and every room has two outside walls and there is no cavity for insulation. I had a new energy efficient boiler installed two years ago. I am on one of BGs special tarriffs, (June 2010 it expires from memory) plus I pay a monthly SO amount to offset the cost.

This is what it says about BG discounts on the BS site

Gas Price Protection 2010 prices

Quarterly Cash or Cheque
Exc VAT Inc VAT
Tier 1 p/kWh 3.717 3.903
Tier 2 p/kWh 2.100 2.205
Tier 3 p/kWh 2.062 2.165
Exc VAT Inc VAT
Standing Order Prompt Payment discount per quarter (maximum) £2.38 £2.50
Monthly Direct Debit
Exc VAT Inc VAT
Tier 1 p/kWh 2.888 3.032
Tier 2 p/kWh 2.012 2.113
Tier 3 p/kWh 1.954 2.052
Advanced Payment
Exc VAT Inc VAT
Tier 1 p/kWh 2.832 2.974
Tier 2 p/kWh 1.970 2.069
Tier 3 p/kWh 1.970 2.069
Notes :
1. Prices are in pence per kWh and represent a 2.8% premium on the price as at 19th September 2005. Will apply from 29th November 2005
2. For credit customers Tier 1 rate applies to the first 1,143 kWh per quarter. A quarter is equivalent to 91 days. If the period between accounts is greater
or lesser than 91 days, the Tier 1 rate is allocated on a pro-rata basis. Please see our Schedule of Charges (available on request) for further details.
3. For credit customers Tier 2 applies to all consumption in the quarter from 1,144kWh up to 73,268 kWh.
4. All further consumption in the quarter or year will be charged at the Tier 3 rate.
5. Standing Order Discount is based on a maximum discount of £10 on an average annual bill at 20,500 kWh, including VAT. It is set at 6.6% of the bill
up to a maximum of £2.38 per quarter (exc VAT), £2.50 (inc VAT)
6. The Standing Order discount is not fixed for the duration of the contract and may be subject to change from the current rate shown above.
The discount applies currently to payment of quarterly cash or cheque bills within 10 days of the bill issue date.

7. Vat is shown at the current rate of 5%.

Standing Order Discount is based on a maximum discount of £10 on an average annual bill at 20,500 kWh, including VAT. It is set at 6.6% of the bill

up to a maximum of £2.38 per quarter (exc VAT), £2.50 (inc VAT)


I was not aware that there was any other special DD facility where I could potentially save hundreds on my bill. Can you tell me more about it?

(I did apply for a meter to monitor usage but it seems it needs a mobile phone sginal to work and there is not enough signal where the meter is located, for it to work, we tried three different networks and none was strong enough).

Michael_Nottingham

RHYSDAD wrote: »

I'm on click 6 qtrly billing and could indeed save by going on monthly DD but what with energy companies making DD payments up as they go along, i won't even entertain them having my bank details. I just knock the thermostat down a degree to compensate.

Have you calculated how much you would save in £ from going to DD? And then calculated the equivalent interest rate that they are giving you (as they also save on Bad Debt and servicing costs)? It will save you a substantial amount

Dont forget if you go onto DD you have all the protection of the DD guarantee scheme just like any other DD (i.e. they have to tell you in advance of any proposed changes). Also you can always check your DD by doing the simple calculation yourself if you don't trust them