MSE News: British Gas hikes energy prices by 9.2%

chaddy21

does anyone know if I want to change from british gas what would happen to my
warm home discount

chris1234567_2

Here is an article taken from the Which? magazine. An expert VIEW
written by Jonathan Smith | Head of pricing and risk.(Management, First Utility)

" At First Utility we have almost 200,000 domestic customers and, unlike the major six providers, we are not vertically integrated, so we buy our electricity on the wholesale market. But this is more easily said than done.

Very little electricity is actually traded on the
wholesale market (because the big six energy
companies sell most of it to themselves), and
when we want to buy there are often times
when the products we need are not for sale.

Vertical integration of companies, which sell
electricity from their generation businesses to their
supply businesses, is a barrier to competition from
independent suppliers. This is bad for consumers.
Based on our analysis, the lack of energy traded on
the wholesale market can add up to £50 annually
to consumers’ bills.

I think the UK wholesale electricity market today
works against independent suppliers: it stifles
competition, damages transparency and erodes
consumer trust. The industry needs to urgently
solve this problem if consumers are to truly benefit
from competition. "

Which Magazine: Where your electricity comes from PDF.
www .staticwhich.co.
uk/documents/pdf/28-31_energy-333941.pdf

agrinnall

I switched from Npower to BG for electricty (no gas supply here) in June, and today I've switched back to Npower's fixed to April 2015 tarrif, which is about the same as I'm paying now but will obviously be cheaper once BG put their electricty price for this region up by 11.2%. Strangely that deal isn't mentioned in the MSE guide, even though it's cheaper than the November 2014 fix which is listed as a best buy.

chris1234567_2

CashFortune wrote: »

guys so what do you think? stick with BG or switch? others will eventually hike up as well but maybe still cheaper than BG?

Change - move away from BG. Chose your best Mar 2015 deal if it matches what you are using to date. It basically depends on how long you are tied in to current deal and if you are tied in with a penalty exit fee. It will be different for everyone.

I would change now, but will wait until 30th Nov to save £60 early exit fee. Use the MSE comparison guide. Know your KWh and your price plan.

I believe that the Big 6 will hike prices up by 10% every year so a fix for 2 or 4 winters makes a lot of sense even if it is more costly immediately. :j

Perelandra

chaddy21 wrote: »

does anyone know if I want to change from british gas what would happen to my
warm home discount

Do you know if you qualify for the discount as a "Core" or "Broader" customer?

If you're a "Core" customer, you'd still get the discount from British Gas hen it becomes due. If you're a "Broader" customer you would not get it from BG (and probably wouldn't get it from whoever you moved to, until next year- if you qualified for the "Broader" criteria of the company you moved to).

However, I think you would forfeit the additional discount that BG announced today for customers who qualify for the warm homes discount.


NB: I work for British Gas, but post in a private capacity. Anything I post is my own opinion, and does not necessarily reflect those of my employer.

Bazofts_Revenge

One potential way of reducing your bill in the long term is to buy shares in your energy supplier and reinvest the dividends. Anyone who made a bit on Royal Mail shares could consider it.

Many of our Pension funds will be tied up in these companies and those funds need the income.

Personally I'd like to see it nationalised but there would be a lot of compensation to pay out to share holders.

Wolf3

does anyone know if I want to change from british gas what would happen to my
warm home discount

As Perelandra said if your a "Core" group customer, i.e got a letter from the DWP, you would still receive the payment from them.
If your a "Broader" group customer and had to apply for the scheme, you would forfeit the application. Most energy companies schemes should still be open, they generally close in Nov/Dec i think.

Scottishmummy

I qualify for BG's Warm home discount as a broader group. I don't qualify in edf's broader group. Haven't yet checked the others but since comparisons sites say I would only be saving £47 if I switched I think I'll stick with BG and go with their fixed March 2016.

Scottishmummy

Perelandra wrote: »

Do you know if you qualify for the discount as a "Core" or "Broader" customer?

However, I think you would forfeit the additional discount that BG announced today for customers who qualify for the warm homes discount.
.

I am a broader customer but haven't heard of this additional discount. Can you link to more information? Thanks.

ihateyes

BBC reported millibands annoucement last week wiped £2.7b off the value of sse and bg. Any wonder the prices have went up quick