British Gas about the Price Increase

MrEnergy

Hello i currently Work for British Gas and im writing thisto inform you all about the reasons behind price increases that some of you may know or not!

Firstly I can understand that people are upset and conserned about the recent price rises but they are definatley not for profit!!

Your bills are made up of 5 areas

1. The Energy Itself

2. Delivery to customers homes; the pipes and wires

3. Goverment Charges

4.Our Operating Costs

5. Our Profit

We Control just two the operating costs and profit. theother three make up 85 per cent of a dual fuel bill and are out of our Control.And these costs are all rising

Of the 15 Per cent of a bill we control, our operating costshave fallen and our profit has stayed the same.

British Gas makes 5% profit (Dual Fuel Customer) of what youand myself spend on Energy! so every £1000 they only make £50 thats it not morenot less. your VAT on the bill is 5% exactaly the same as the profit!

Apple run on a profit margin of 30%, Sky run a profit margin of 14.7%, Tesco4.8% but we all buy from them and have no problem paying them. (Well we may grumble a bit but not as much hatred as has been shown for the energy market)

Earlier this year BG showed a massive "profit"instead of asking why we imediatley assume that its because of price rises etc.Infact the profit margin stayed the same all of the other factors stayed thesame. So why was it so large? Because we used more as a contry due to the awful weather that we have all suffered. (Joys of being British!!)

Now i have listened to our customers over the past few daysand there anger is understandable but aimed incorrectly. We as a nation shouldbe looking at the other three aspects of our bill mainly the Goverment Charges.These Charges pay for Green Energy for example wind farms which in turn do notgenerate enough to out way the costs (this is my opinion not british gas)

I have read other comments and posts on various social mediaand websites reguarding pensioners going cold and affraid to turn on thier gas this winter. This is not whatanybody wants let alone BG. The goverment stopped the Essentials Tariff and allSocail Tariffs across the board. and replaced it with the Warm Homes Discountthis was a goverment decision they didnt want socail tariffs and wanted to makea average payment to all customers rahter than them benifit from socail tariffwhich made it personal to the customers use. Again who do we complain to BritishGas rather than the goverment!



Other schemes can help you save money

1.Free Cavity wall and Loft insulation

2.Free Electricity energymonitor

3. Online Tariff Checker on BG Website

I have put this post up because i beleive that people wouldbe more understanding of the bill and where it goes and on what if the energycompanies just said it how it is. Facts are they run on a 5% margin around thesame as tesco. Goverment increase the prices of Green Energy. Transportation costs increase wholesale prices increase.

I would like to hear what people think about my post and ifyou wish i can help you in anyway i can to save money. I will also be honest about suppliers and who might be best for you.

I know many people will be angry and may be upset with thispost but this is me trying to help educate people who are not in the know howof what the bill is made up of.



Many Thanks

Mr Energy

GooliesOfFire

No worries man. After 8 years with British Gas you finally made me switch. I'll be with EDF within 4 weeks.

Thank you.

silvercar

I have put this post up because i beleive that people wouldbe more understanding of the bill and where it goes and on what if the energycompanies just said it how it is. Facts are they run on a 5% margin around thesame as tesco. Goverment increase the prices of Green Energy. Transportation costs increase wholesale prices increase.

I would like to hear what people think about my post and ifyou wish i can help you in anyway i can to save money. I will also be honest about suppliers and who might be best for you.

I know many people will be angry and may be upset with thispost but this is me trying to help educate people who are not in the know howof what the bill is made up of.

I'm not interested in whether your profits are more or less than Tescos or anyone else. I'm interested in the price I pay.

Antispam

I bet owner of British Gas, Phil Bentley does have to make a choice between food and heating. That said I bet all directors of energy companies never know what its like too

...Time_for_a_brew_then..

There's no mains gas in my village, so obviously I'm an electric customer only.

With my usage, my quarterly bill is going to rise by approx £9.00p. I was considering changing suppliers, but what's the point when they are not interested in customers like me? They all quote a saving for duelfuel customers, and when i enter my details, electric only, the only saving i can make is by 'pre-paying' several hundred pounds to beat price rises.

I'm resigned to the fact that my landlord has banned calor gas heaters outright, we're certainly not going to get permission for a wood burning stove, so it's electric and an extra blanket for me.

I've already changed from CFL bulbs to LED (under 25w to light my 1 bedroomed flat, down from approx 100w with the CFL's) All my cooking devices are plug-in, so a lot less wattage than my full sized cooker that i sold last year...

I can't reduce my electric bill anymore. I even sold my fishtank because of the heater, light and pump using electric.

We're not allowed solar panels either...unless the landlord supplies and fits them - no plans as yet to do this...

MrEnergy

silvercar wrote: »

I'm not interested in whether your profits are more or less than Tescos or anyone else. I'm interested in the price I pay.

Totally agree, my main aim was to help people understand where there money goes as its not just into the profit of shareholders. the main reason i have used other compaines as an example is to show that Profit exsists in all companies we use regularly. Hoping that it gives people a more rounded understanding.

MrEnergy

Antispam wrote: »

I bet owner of British Gas, Phil Bentley does have to make a choice between food and heating. That said I bet all directors of energy companies never know what its like too

agian i totally understand this but would any director of a multi-million pound company feel the strain like everyone else?

MrEnergy

...Time_for_a_brew_then.. wrote: »

There's no mains gas in my village, so obviously I'm an electric customer only.

With my usage, my quarterly bill is going to rise by approx £9.00p. I was considering changing suppliers, but what's the point when they are not interested in customers like me? They all quote a saving for duelfuel customers, and when i enter my details, electric only, the only saving i can make is by 'pre-paying' several hundred pounds to beat price rises.

I'm resigned to the fact that my landlord has banned calor gas heaters outright, we're certainly not going to get permission for a wood burning stove, so it's electric and an extra blanket for me.

I've already changed from CFL bulbs to LED (under 25w to light my 1 bedroomed flat, down from approx 100w with the CFL's) All my cooking devices are plug-in, so a lot less wattage than my full sized cooker that i sold last year...

I can't reduce my electric bill anymore. I even sold my fishtank because of the heater, light and pump using electric.

We're not allowed solar panels either...unless the landlord supplies and fits them - no plans as yet to do this...

Can i just congratulate you on using everything in your power to bring down your energy usage the best as you can. if your bill does exceed 10% of you household income then you possibly could be entitled to the Warm Home Discount which would be £130 on your elec bill. Have you thought about fixing your prices to make sure that you can budget? this again can be used as a management tool. Hope this helps.

thor

The utility companies always bleat on about prices being sensitive to wholesale fuel prices but why is that price reductions are usually a smaller percentage of falls than price increases are of rises?

MrEnergy

thor wrote: »

The utility companies always bleat on about prices being sensitive to wholesale fuel prices but why is that price reductions are usually a smaller percentage of falls than price increases are of rises?

Very Good point, The reason you dont see the same amount fall in price compared to wholesale fall is demand in other sectors of your bill Green levies,Social support and Network Costs from Either the DNO or National Grid.

FLAPJACK

The energy suppliers (all of them = the government of the day...anyday) have us all over a barrell when it comes to using energy.

If we all had 6ft of loft insulation, 3 ft of wall insulation, 2 ft thick triple glazing and "green" lightbulbs all over the house it doesn't make a damn difference.

If the energy is expensive to start with you still need to use it.....if by adjusting your insulation to maximise it you in turn minimise your energy usage,...so the energy supplier gets less revenue...answer wack up the prices in time for the winter...so as Mr Energy says it is maintaining a profit and maintaining a "tax" for the government....why is energy singled out ...because you can't do without it. Simples.

Look at all those wonderful "green" windfarms that have sprung up across the country....notice a reduction in your electic bill.....thought not! Another example of rip-off Britain.

If the population was REALLY p****sed off about the upcoming price rises (and next years and the year after no doubt) then probably we should be looking at a mass cancellation of D/D's and bill payments....they can't take everyone to court.....even if they did it will probably be warmer in nick anyway.....until something like this happens (never of course this is Britain...moan.. but pay) then the suppliers/government say "What can they (the PLEBS) do about it ...nothing.

If an energy supplier was smart maybe they would watch to see all the companies tarriffs rise then step forward an announce a 10% reduction in your tariff.......I'm sure they would get more than one or two new customers...but of course the word greed doesn't equate to serving the bill paying public.

I praise Martin for pushing everyone to "fix" their tariff......but all it's doing is putting off the inevitable....you WILL pay more in the end.

Maybe another way a supplier could make these "ripoffs" more palatable is have a sysytem like fixed rate savings bonds...instead of a piddling year at a fixed rate.....fix the tariff for four or five years.

Lets face it ALL these companies make a profit every year.....even if it isn't as much as previous years it's still a profit not a loss so they have room to always absorb the wonderful "Wholesale" price .....maybe they should say to whoever these "Wholesalers" are "Sorry can't afford it".....the energy companies all have that option however WE don't.