British Gas Reviews: Give your feedback

System

Barbara1001 wrote: »

In October 2016, I transferred to British Gas through the Cheap Energy Club. I understand that equal Direct Debit payments allow for high and low useage over the year.
I have had two statements so far and have been told in today's email from British Gas that my payment is to be increased by over 40% in April.
Am I within my rights to refuse to the change ?
Or...
Am I allowed to use a Standing Order?
No rationale has been offered for the change but I suspect that they extrapolate from recent readings, presume constant use from thereon and, mistakenly, recalculate the whole year.

Any advice?

The first thing to check is that your account is up to date. Have you been providing BG with actual meter readings?

You are not allowed to change the terms of your fixed contract unless BG agrees to a mutual variation which is unlikely.

When your account is up to date you need to review your usage compared to what was estimated when the DD was set up. For example, if my usage was assessed at £960 for the year my initial DD would be £80. However, if my usage was reassessed to be closer to £1080 for the year then, at the 6 month point, I could expect my DD to increase to £100 for the remaining 6 months to achieve a zero balance at the contract year end.

luckwudaveit

Success. BG have responded to me again after I asked them if they denied the existence of the conditions of supply. They now agree that if the switch date is within 20 days of the end of a tariff that the tariff extends. Hurrah!

The bill can't be amended but a credit will be applied, which is fine. It was more about the principle.

Thanks particularly to Hengus for their advice. Top job.

Barbara1001

Thanks for this. I have had a recent reading taken which may have prompted this proposed change by BG. I have a record of five years prior useage so should be able to check that the figures are unusual or just part of the annual increase/decrease pattern.

trumpeter_2

Hi Everyone

I managed to switch energy suppliers from BG and still owe BG some - not a lot of - money. Long story, not an issue in itself.

I expected a demand from BG for the outstanding payment. But I didn't expect to be threatened with debt collectors in the FIRST email.

I told BG that I would let others know what kind of attitude to expect, so here I am doing just that:

"CALL US URGENTLY TO DISCUSS PAYMENT OF YOUR FINAL BILL
YOU STILL OWE US XXX
If we don't hear from you in fourteen days, we'll pass your details on to a debt collection agency who'll be in touch to collect the money from you. And we'll have to add an extra £18 fee to your bill..."

I've used caps where BG used a large red font.

British_Gas_Rep_Matt

Luckwudaveit wrote: »

Success. BG have responded to me again after I asked them if they denied the existence of the conditions of supply. They now agree that if the switch date is within 20 days of the end of a tariff that the tariff extends. Hurrah!

The bill can't be amended but a credit will be applied, which is fine. It was more about the principle.

Thanks particularly to Hengus for their advice. Top job.

Hi Luckwudaveit, I'm glad to hear that a credit will be added to your account but it isn't actually correct that your tariff should continue until your transfer is completed.

********Correction **********
I've had my understanding checked by our Tariff Team and have to eat humble pie as I'd got this totally wrong.

When you're switching from a fixed rate tariff, you will still be charged the same fixed rates as long as your switch is completed within 20 working days.

On your final bill, you'll notice your tariff will still have changed when it expired; however we'll automatically apply a credit to make up for the difference. This will show on your bill labelled as a Misc Adjustments, along with any other payments you've made.

If you've received your final bill and the credit hasn't been applied, please call our offices on 0800 048 0202 or contact us online at https://www.britishgas.co.uk/help-and-support/ and we'll make sure it's added for you.

Thanks, Matt

British_Gas_Rep_Matt

Barbara1001 wrote: »

Thanks for this. I have had a recent reading taken which may have prompted this proposed change by BG. I have a record of five years prior useage so should be able to check that the figures are unusual or just part of the annual increase/decrease pattern.

Hi Barbara1001, I totally understand you wanting to check your payments and hope you've got things sorted. However if you need to help, please just call our Collective Tariff Team on 0800 975 9712.

An advisor will explain any increase in your payments and can make any necessary amendments for you. It's free to call and lines are open 8am to 8pm weekdays & 8am to 6pm Saturdays. Thanks, Matt

luckwudaveit

British_Gas_Rep_Matt wrote: »

Hi Luckwudaveit, I'm glad to hear that a credit will be added to your account but it isn't actually correct that your tariff should continue until your transfer is completed.

Just to explain if we were to announce a price rise or the withdrawal of a tariff that didn't have an end date, then you can switch within 20 working days and you would still be charged at the same rates.

When a fixed term deal is coming to an end, we'll write to you to remind you and you can switch up to 49 days before it's due to end without any penalty.

However it's not a price rise or change to your contract as it was always agreed the tariff would end on a specific date and if you didn't switch or sign up to another tariff before the end date, you would switch to our Standard tariff rates.

If you wish you can view the Electricity Supply Standard Licence Conditions at https://www.ofgem.gov.uk/licences-codes-and-standards/licences/licence-conditions & you'll find the necessary info on page 141 Section 22C.3 (c) (iv) which states:

If the Domestic Customer does not change supplier or does not expressly agree a new Evergreen Supply Contract, a new Fixed Term Supply Contract or a further fixed term period for a Fixed Term Supply Contract by the date the fixed term period of the existing Fixed Term Supply Contract is due to end, the Domestic Customer will become subject to the Relevant Cheapest Evergreen Tariff.

Thanks, Matt

Thanks for your reply, Matt.

However, I'm now very confused. The email I have received from BG states "We have agreed with OFGEM that the same tariff rates will be applicable to customers if you are switching to a new provider and the transfer date is within 20 working days from the tariff end date".

System

luckwudaveit wrote: »

Thanks for your reply, Matt.

However, I'm now very confused. The email I have received from BG states "We have agreed with OFGEM that the same tariff rates will be applicable to customers if you are switching to a new provider and the transfer date is within 20 working days from the tariff end date".

Matt's response is absolutely right if you intended to stay with BG and took no action to change your supplier. The e-mail that you received from BG is only partially correct in that I believe that the notification of a transfer to a new supplier does not mean that the transfer has to take place within the 20 days. The SLC is as follows:

24.10 This paragraph applies where one of the following conditions are satisfied:
(a) no later than 20 Working Days after (but not including) the date on which the fixed term period of a Fixed Term Supply Contract ends, the licensee receives Notice under the Master Registration Agreement that another Electricity Supplier will begin to supply the Domestic Customer’s Domestic Premises within a reasonable period of time; and
(b) another Electricity Supplier begins to supply the Domestic Customer’s Domestic Premises within a reasonable period of time after the date on which the Notice referred to in sub-paragraph 24.10(a) is given;

One could argue that as suppliers have 35 days under SLCs to transfer a supply, then 35 days might be construed as a reasonable period. I have had a supplier agree that 3 months was reasonable.

I should add that I am not trying to pick a fight with any supplier. Clearly, there is some confusion about switches within BG CS, and it might be helpful if a response was posted that had the full authority of Ofgem's Regulatory compliance team, and then we might all know where we stand. Consumers should not have to read Supply Licences: one would hope, and expect, them to be part of all CS staff training.

footyguy

British_Gas_Rep_Matt wrote: »

Hi Luckwudaveit, I'm glad to hear that a credit will be added to your account but it isn't actually correct that your tariff should continue until your transfer is completed.

Just to explain if we were to announce a price rise or the withdrawal of a tariff that didn't have an end date, then you can switch within 20 working days and you would still be charged at the same rates.

When a fixed term deal is coming to an end, we'll write to you to remind you and you can switch up to 49 days before it's due to end without any penalty.

However it's not a price rise or change to your contract as it was always agreed the tariff would end on a specific date and if you didn't switch or sign up to another tariff before the end date, you would switch to our Standard tariff rates.

If you wish you can view the Electricity Supply Standard Licence Conditions at www.ofgem.gov.uk/licences-codes-and-standards/licences/licence-conditions & you'll find the necessary info on page 141 Section 22C.3 (c) (iv) which states:

If the Domestic Customer does not change supplier or does not expressly agree a new Evergreen Supply Contract, a new Fixed Term Supply Contract or a further fixed term period for a Fixed Term Supply Contract by the date the fixed term period of the existing Fixed Term Supply Contract is due to end, the Domestic Customer will become subject to the Relevant Cheapest Evergreen Tariff.

Thanks, Matt

I think the important part of the term you refer to there is "If the Domestic Customer does not change supplier...", but as I understand it, the situation people are discussing here is if a domestic customer changes supplier (albeit within 20 working days after the fixed term expires)

Therefore, I would say it's terms 24.9 and 24.10 that apply (page 207)

24.9 In relation to each Fixed Term Supply Contract, unless the Domestic Customer has entered into a new Fixed Term Supply Contract with the licensee or paragraph 22C.5 of standard condition 22C applies, the licensee must ensure that where paragraph 24.10 applies a Domestic Customer will continue to be subject to the same Charges for the Supply of Electricity and the same terms and conditions (but not any Termination Fee) that applied to that Fixed Term Supply Contract until they have changed their supplier.

24.10 This paragraph applies where one of the following conditions are satisfied:
(a) no later than 20 Working Days after (but not including) the date on which the fixed term period of a Fixed Term Supply Contract ends, the licensee receives Notice under the Master Registration Agreement that another Electricity Supplier will begin to supply the Domestic Customer’s Domestic Premises within a reasonable period of time; and
(b) another Electricity Supplier begins to supply the Domestic Customer’s Domestic Premises within a reasonable period of time after the date on which the Notice referred to in sub-paragraph 24.10(a) is given;

(for the sake of simplicity, let us assume paragraph 22C.5 does not apply - it relates to a transitional agreement i.e. an agreement that occured whilst these latest conditions were brought in)

System

Thanks Footyguy - we are on the same page. In my view, SLC 24.9 et seq is based on switching as it was - not as it is now, bearing in mind that 17 day switching is still a voluntary code. It follows that if a fixed tariff ended on, say, 31 March and a consumer initiated a switch on that day then, under the old system, nothing would happen for 14 days. Thereafter, the new supplier would do what it needs to do to initiate a transfer. Presumably, the industry has agreed that this should take no more than 7 days. (Contract End plus 20 days). The consumer then has price protection until the transfer does through (in a reasonable time). Iresa, for example, is not signed up to the 17 day switching code.

Clearly, a possibility exists that a consumer who forgets to initiate a switch within the fixed term contract period can select a 17 day switching supplier at, say, contract end plus day 6, and still end up with consumer tariff protection as the new supplier initiates the switch immediately; i.e., within the cooling off period and the old supplier would be notified of a transfer in progress by Contract End plus 20 days. The E.oN rep confirmed that this was possible and that 'price protection' would be honoured - even if this meant that the change to the standard tariff had to be reversed.

The reason that this is now becoming an issue is down to the fact that prices are rising and consumers are trying to hang on to their old (cheaper) tariffs for longer. This time last year when a cheaper deal came along, people switched as soon as they could. This doesn't however change how SLC 24.9 should be implemented by suppliers.