British Gas bill following price increases - is it fair?

crispy9582

Hi All,

We have recently received our dual fuel bills from British Gas for the last period. However the estimated meter readings were way off, so we submitted the correct ones. They then sent us the updated bills but I'm not sure I fully understand them.

They have split the bill into two separate billing periods - one from 23rd October to 10th December (the date the price increases were effective) and one from 10th December to the 22nd January.

Whilst this would seem to make sense, I think it has resulted in us paying more than we should. The first x units are charged at a higher rate, and the remaining units are charged at a lower rate. However due to the split in periods, we have been changed the higher rate twice - once for each period. Thus the total bill is more than it would have been had they simply lumped the extra units into the first period and adjusted the payment pro rata for the price increase.

I have emailed them about this but I'm sure I can pre-empt the response.

Therefore my question is, can they do this? It seems awfully unfair.

Chris

spiro

They will have prorataed the higher rate across the 2 periods so if you add the 2 together they should total what you would see on a normal quarterly bill.

crispy9582

Well that will teach me not to look at all the information in front of me properly!

You're right - having reviewed the previous bill, the higher rate allowance has indeed been split pro rata across the two periods.

Panic over, sorry for time wasting

Chris

dogshome

Hi crispy9582 - Those higher price units are the equivalant of a Daily Standing charge, and usually there is a fixed amount per annum, which when divided by 365 gives so many a day to be charged on each bill for the number of days it covers -
Note None of the above applies to n'power customers, heaven help them

So divide your annual allocation of prime units by 365 and check that that the correct amount has been charged for the number of days on each section of this split tariff bill.

Whilst you are at it, divide the total Kwh consumed by the total days the bill covers to establish how many Kwh were used a day, then apply this to each section on the bill to check that BG have not undercharged the Kwh per day on the old tariff, so they can load up the Kwh per day charged on the new tariff

Cardew

dogshome wrote: »

Whilst you are at it, divide the total Kwh consumed by the total days the bill covers to establish how many Kwh were used a day, then apply this to each section on the bill to check that BG have not undercharged the Kwh per day on the old tariff, so they can load up the Kwh per day charged on the new tariff

You are correct about the pro-rata allocation of Tier1(primary units)

However to do as you suggest in the post above would be fraud - pure and simple fraud.

This comes up time and again(for all companies) when there is a price change in the middle of a billing period.

The estimated meter reading at the time of a price rise is obviously done by a computer. The algorithm(program) for this has input from the Met Office as well as other factors and is independently audited.

So it will not be an exact pro-rata allocation of Tier2(secondary) units. If the rise was in the billing period, say, Sept to Dec the post rise period would have proportionally more Tier2 units per day.

If the rise was in the billing period, say, March to June, the post rise period would have proportionally less Tier2 units per day.

crispy9582

I now have further questions based on the last couple of posts.

My bill states the following:

Reading as of 21/10/2010 - 5486 (actual)
Reading as of 09/12/2010 - 5536 (estimated)
Reading as of 22/01/2011 - 5591 (actual)

Therefore they have allocated the units as follows:

First period (21/10/2010 - 09/12/2010)
50 imperial units over 50 days

Second period (10/12/2010 - 22/01/2011)
55 imperial units over 44 days

Shouldn't they have reassessed the estimated 5536 value when I gave them the actual readings? It seems rather convenient that the estimate results in us using only 1 unit per day at the old rate, but 1.25 units per day at the new, higher rate!

I understand this is based on a computer algorithm, but shouldn't the submission of my actual current reading alter the estimated value in the middle?

Sorry if this has been covered before.

Premier_2

crispy9582 wrote: »

...Therefore my question is, can they do this? It seems awfully unfair.

Chris

Have you expressed your dissatisfaction to your supplier?

crispy9582 wrote: »

...Sorry if this has been covered before.

Always useful to do a search before posting ... you never know, it might save you the trouble.

e.g. https://forums.moneysavingexpert.com/discussion/3003132

crispy9582

I have indeed contacted them but received no response yet - I await their reply with much anticipation!

Apologies for posting the same question again; I did search, but my search skills are obviously not very good.

Thanks again for all the responses. I will post the outcome.

daff

Did you get anywhere?

I had the same on my bill.
Surely the Tier1 is used at the start of the billing period.
B_Gas web site says " Tier 1 is for the first ... KWh."
There can oly be one set of first units and that should be at the earlier (lower) Tier 1 rate.

Obviously if the rates had gone down (yea right!) the we would be worse off - but it would be fair.
I don't think their operating within the terms & conditions.

While the net effect is less than a £, I wouldn't mind all those £'s.

Cardew

daff wrote: »

Did you get anywhere?

I had the same on my bill.
Surely the Tier1 is used at the start of the billing period.
B_Gas web site says " Tier 1 is for the first ... KWh."
There can oly be one set of first units and that should be at the earlier (lower) Tier 1 rate.

Obviously if the rates had gone down (yea right!) the we would be worse off - but it would be fair.
I don't think their operating within the terms & conditions.

While the net effect is less than a £, I wouldn't mind all those £'s.

"Surely the Tier1 is used at the start of the billing period"

That I am afraid is wrong!

The Tier 1 units are(in effect) a standing charge and charges are pro-rata daily.

So take gas, BG charge for 2,680 Tier 1 units pa(670 a quarter). They are charged pro-rata 7.377kWh per day. So if a bill covered slightly more than a quarter - say 100 days you would be charged for 738kWh at tier 1 rates on that bill instead of 670kWh.

Where there is a price rise after, say, 30 days from your last bill, you would be charged for 30 x 7.377kWh at the pre -increase rate and 60 x 7.377kWh at the new higher rate(for a 90 day bill)

silverjay

I have a vague recollection that as far as electricity supplied by BG goes that not only did they increase the unit prices they also increased the Tier 1 Kwh so that you are paying for more units at the higher rate.

Not sure about gas though as I don't have a supply.

I do remember going through the price comparison sites and my electricity bills with a fine tooth comb and noticing there was a difference on the Tier 1 rates.