British Gas Tier System

pothole50

Just checked on the BG site trying to sort out when I will start to pay Tier 2 prices, this is what came up.

"Gas:

Tier 1 applies to the first 2680 kWh per year, pro rated across your billing period. All subsequent consumption is charged at Tier 2. "

As I use very little gas I always seem to be on Tier 1, apart from the winter months when I do get to use the gas fire.

The Electric a month is easy I pay the first 60kw at Tier 1 the rest at Tier 2 by dividing 720/12.

Now is that the same for the gas do I divide 2680/12 giving me 223/month on Tier 1 the rest of the month on Tier 2.

I have been looking at the history of my gas bills and something does not seem right.

Thanks for any advice.

Airmike23

Your above assumption re gas primary units is right in theory as 2680kwh charged at higher rate by BG, and all their products adhere to that unit rate structure, remember is pro rated on the basis of 670kwh every 90days so if bill period is only 28 days will be 208kwh at higher rate for example.

dogshome

You don't say just how many Kwh of Gas & Elec you are useing, but it appears low.
Enter your annual Gas & Elec Kwh into a Switch site as it may be worth you switching to Ebico for Gas only or both. The cost per kwh from them is high, but they do not have any standing charges

pothole50

Gas use period 20 Oct 10 to 20 Oct 11 was 3499kw
Electricity used same period was 4499kw

Tier 1 gas for First 2680kw @ 8.674p = £232.46
Tier 2 gas for Other 819kw @3.326p = £27.23

So total British gas usage cost £259.69 inc 5% vat

Result with EquiGas, this amount of gas would cost you £167.532 including VAT (£159.554 excluding VAT at 5%).

This looks too good to be true or are my calculations way out, this is saving me £92 a year, minus the £15 duel fuel, and the £30 fine if I switch now, it still saves me £47 next year.

My websaver 11 finishes May 11 then I go onto the Energy Online Tariff and the £259.69 goes down to £254.28 mainly because the Tier 1 goes down to 8.328p.

So if my calcs are correct then Ebico would have to increase their prices by 55% in the future for me to be paying the same as British gas.

Now my question does any one use Ebico and heave they recently put up their prices and before I switch do they come up on any comparision sites so I might get a bit of cashback.

dogshome

Ebico's billing is run thro' Southern Electric and any price rise by SE gets reflected by Ebico.

The reason Ebico win in your case is because they don't make any Daily Service charge or have a tier of higher priced Kwh on an NSC tariff, so whilst their price per Kwh is higher than other suppliers, this differential is still less than the cost of a Daily Charge or NSC tariff on your level of Gas consumption

So far as the quality of service is concerned, there are very few complaints about Ebico on this site
Whist Ebico will cut your Gas bill, your Elec consumption of 4499Kwh isn't suitable for an Ebico tariff so you will have to use a seperate supplier for each fuel

Suggest you visit the 'switchwithwhich' site in two hits, one for Gas only and another for Elec only

Airmike23

So it may be worth bailing on BG websaver 11 then, even with a £60 early termination fee, Equigas will save moe than the canx charge BG will apply to the final bill, with you having a lower mdd payment with ebico than bg each month.

pothole50

Going to ditch today on the gas, not worth it on the Electric as nothing can beat the websaver 11 at the moment, I am going through quidco, so should recoup a little of the £30 ditch fee, but in the long run a good saving. At least when I switch the gas fire on I know exactly how much it is costing for a kwh, wont have to think I have I used enough on Tier 1 yet to kick into Tier 2, wish I could do that with the leccy, thought I had found a good one with Npower where you pay a standing charge, thought that was good deal but with a few calcs in the spreadsheet its not.