Switching from prepayment to quarterly billing - savings?

gfx_student

Hi everyone, I would just like to know what the savings would be changing both gas and electricity from pre payment meters to quarterly billing.
I assume there would be some savings?

Extra info: I am with British Gas for both gas and electric.

t0rt0ise

With British Gas the prepayment meters charge at their standard rate so you will save if you change to normal meters and sign up with their latest online deal. Websaver 9 is the latest I believe. I'm in the process of changing over myself. Interesting that the prepayment advice guys when you call don't know that there are cheaper deals to be had so don't take notice of what they say.

SwanJon

Tortoise (and gfx) - sorry if the people you have spoken to didn't mention that other tariffs are cheaper - they should at least make you aware.
Quarterly & PP are the same price (you may get a discount for prompt payment with quarterly)
DD is next cheapest
Online is cheapest.

t0rt0ise

And sorry, I shouldn't have generalised so much. Of course I can't speak for all the adviser guys, just the ones I have spoken to. Sorry.

Premier_2

gfx_student wrote: »

Hi everyone, I would just like to know what the savings would be changing both gas and electricity from pre payment meters to quarterly billing.
I assume there would be some savings?

Extra info: I am with British Gas for both gas and electric.

Use a comparison site and see for youreslf the costs of different suppliers/tariffs and methods of payment.

gfx_student

Ah right that's surprised me actually, for some reason I thought that prepayment was going to be a lot more expensive. I may just stay as I am then, thanks

DaveHogarth

I tried to change from Pre-Paid to DD this afternoon. I failed the credit check (I've never defaulted on a payment or been in debt but I pay cash for everything and don't own a credit card).

Anyway the person on the phone said I'd have to pay £510 deposit which i'd get back in 6 months if I wanted to go DD.

After 5 mins the person on the phone changed that 6 months to a year but said it's o.k because BG pay interest on my deposit. "They pay whatever the Bank of England Base rate is -1%". -0.5% interest :T

macman

gfx_student wrote: »

Ah right that's surprised me actually, for some reason I thought that prepayment was going to be a lot more expensive. I may just stay as I am then, thanks

It is not more expensive than a standard credit meter tariff. But it is a lot more expensive than the cheapest online or monthly DD tariff. No one in their right mind chooses a standard tariff, they usually just end up on it by default if they don't realise.

Premier_2

DaveHogarth wrote: »

I tried to change from Pre-Paid to DD this afternoon. I failed the credit check (I've never defaulted on a payment or been in debt but I pay cash for everything and don't own a credit card).

Anyway the person on the phone said I'd have to pay £510 deposit which i'd get back in 6 months if I wanted to go DD.

After 5 mins the person on the phone changed that 6 months to a year but said it's o.k because BG pay interest on my deposit. "They pay whatever the Bank of England Base rate is -1%". -0.5% interest :T

Hi DaveHogarth, and welcome to MSE :hello:

Looks like you got the typical dumbo these suppliers now employ, probably paying peanuts (you know what they say about that ) and maybe even an outsourced call centre.

At least the person correct the period the security deposit is usually held ... it is indeed typically 12 months (assuming you pay the bills in full and on time)

However, the interest rate payable is that of Barclays Bank Base Rate (which always seems to mirror the BOE rate), so +0.5% currently.
http://www.consumerfocus.org.uk/energy-help-and-advice/your-energy-questions
(More than you get in most typical deposit accounts )