MSE News: British Gas to add comparison tables to energy bills

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"The giant will add details of its top tariffs from April to show cheaper options, but won't include rivals' deals ..."

Read the full story:
British Gas to add comparison tables to energy bills

Plushchris

"Statements will show in pounds and pence the amount of energy used in the previous year, the forecast for the next six months, and based on that estimate, what they would pay on another tariff."

Why go from a year to six months??

Bit pointless doing a comparison on six months usage is it not?

So in April people will get a comparison based on the six months over the summer when usage is lowest then get stung in the winter when the usage goes up.

SnowMan

A much clearer approach would be to simplify their tarriffs so that (say) variable rate customers in identical circumstances paid the same for their gas and electricity.

Having large numbers of tarriffs and then having comparisons to show cheaper tarriffs customers could move to is pretty ridiculous if you think about it.

It seems like a deliberate attempt by Ian Peters to confuse the situation rather than an ongoing commitment to the obvious solution of simplifying tarriffs and reducing the number of tarriffs.

To be fair to British Gas they did simplify their tarriffs back in November. I just don't like the emphasis of their latest comments.

With the simplest tarriff system all that should be required on bills would be simple statements showing how customers could reduce their bills such as:

'you are currently not paying by direct debit, if you pay by direct debit we will give you an x% discount or about £z based on last year's bills'
'if you switch to managing your account on-line we will give you a discount of y'

victor2

Plushchris wrote: »

"Statements will show in pounds and pence the amount of energy used in the previous year, the forecast for the next six months, and based on that estimate, what they would pay on another tariff."

Why go from a year to six months??

Bit pointless doing a comparison on six months usage is it not?

So in April people will get a comparison based on the six months over the summer when usage is lowest then get stung in the winter when the usage goes up.

Exactly!
You have to ask what BG are hoping to take their customers for. Perhaps they are thinking customers will look at the cost for the last year, see a range of costs for the next 6 months (which one would hope are lower) and think "look at these deals with BG, I'd better stay with them."

Plushchris

victor2 wrote: »

Exactly!
You have to ask what BG are hoping to take their customers for. Perhaps they are thinking customers will look at the cost for the last year, see a range of costs for the next 6 months (which one would hope are lower) and think "look at these deals with BG, I'd better stay with them."

The sad fact is there will be thousands (if not millions) that get taken in by it..

Airmike23

You do realise all this talk of "simplifying tariffs" means the power company makes more money and we have less choice in terms of cost and there for reduced savings between the power co's ultimately making it an almost pointless exercise to switch and thus have an open energy market, we might as well go back to gas and electric boards!

Consumerist

Ian Peters, the firm's managing director of energy, says: " . . . If other energy suppliers follow our lead, even more customers will reap the benefit."

Without commenting on the specifics of BG's approach, where is the regulator on this? Why aren't all the energy suppliers compelled to provide comparisons among their tariffs?

Edit
It occurs to me that nPower adds new tariffs so often that the bill might be eight feet long. :eek:. Scary!

davidgmmafan

"To be fair to British Gas they did simplify their tarriffs back in November. I just don't like the emphasis of their latest comments.

With the simplest tarriff system all that should be required on bills would be simple statements showing how customers could reduce their bills such as:

'you are currently not paying by direct debit, if you pay by direct debit we will give you an x% discount or about £z based on last year's bills'
'if you switch to managing your account on-line we will give you a discount of y'"

If they did this the cynic in me imagines all the people who may comment that its a scandal that they are penalised for NOT having direct debit or paperless billing...

Consumerist

Does Clegg read this forum?

From BBC Teletext Business News:

Energy companies will be required to let customers know what their best deal is, in a move which ministers say could save households up to £100 a year. Firms will be obliged to tell people about the most suitable tariff for them and to offer it if they request it.

About time too, if you ask me.