MSE News: British Gas hikes energy prices by 9.2%

MillicentBystander

How woeful is the regulation of this shambolic industry? Example: Ed Davey (Tory Energy Minister) on being asked what people can do about the BG rise? Answer? Switch away from BG as there are far cheaper deals elsewhere. Well, yes Ed that would in big part be due to 4 of the Big 6 not actually announcing their rises yet. Amazing. I'm surprised he didn't also suggest replacing your boiler with a new one to 'save' £100 a year on your gas bill.

hanlou007

so if we are all paying for the insulation grants through our bills.....why is it i cant have it done for free?? :mad:

oh yeah the poor and needy and benefitters get it all again dont they

pooch

Please do not be misled by the average figures BG quote - check your own particular situation.

Whilst I cannot argue with the average figure per se, the huge variation in increases could adversely affect many, particularly the elderly and less well off, much more than the headline figure suggested unless they act now.

For gas, B.G say the average increase will be 8.4%

However, the huge majority of energy customers are still languishing on the legacy supplier and tariff, so for gas that is gas supplied by British Gas on their standard tariff (unless you are a recent new customer as this tariff was withdrawn for new applicants about a year ago I think)

Now there are some significant changes other than unit prices to the BG standard gas tariff.

For those who pay by direct debit (or now choose to), the increase in unit cost is just 4.4%

However, for those who pay on receipt of bill by cash, cheque, etc, the increase in unit cost is a whopping 11.45% :eek:

And it doesn't stop there. Previously customers were entitled to a prompt payment discount that was worth a further 1.7% saving (up to a maximum of £3.75 per quarter, so applied in full for bills up to £220 per quarter). That is now scrapped. BG cite Ofgem regulations.

And the other big change hidden in the small print is the introduction of a daily standing charge that will cost 26p per day or £94.90 per year.

Whilst this is offset by the removal of the higher cost tier 1 units, it is only offset in it's entirety if you use a minimum of 670kWh per quarter.

However, for those who perhaps only use gas for heating, then they may not use any gas at all for the 6 summer months which could mean an additional increase of almost £50 a year too! :eek:

(And if you only use gas for cooking, perhaps you never use 670kWh per quarter, so you will be affected to an extent too)

This is quite a significant, retrograde step for British Gas who are being forced to abandon 2 tier pricing by the regulator, Ofgem.
Significant, because those older members amongst us will remember that it was British Gas who, after privatisation, was the first supplier to introduce the idea of no standing charge tariffs (and using 2 tier pricing instead). You will also remember the reason why they introduced this change which became so popular that almost every supplier charged on this basis at one time. The reason B.G introduced this change was, they said, for fairer pricing, so people only paid for what they used, and those that used nothing paid nothing.

Now I appreciate the arguments of some in favour of daily standing charges, that there is a cost involved in supplying gas even if you don;t actually use any, but I am sure everyone agrees this retrograde step could adversely affect many, particularly the elderly and less well off who are often low users.

Well I've done my bit to highlight the issues within the small print.

For me? British Gas - switched!

chris1234567_2

Could someone answer me this question pls.

I am with BG and am in the process of finding a better deal, as my "online variable Nov 2013" is due to end in a months time. If i switch now to a longer term (say 2015 or 2017) fix deal with another supplier , will that deal be effective from the moment I press the accept button on the computer or from 6-8 weeks time, when the switch over takes place? i hope that makes sense. I don't want to sign up and then be stung by increased prices !

DragonQ

It takes effect in 6-8 weeks, once the switch is complete.

chris1234567_2

I have been trying to find out when that I need to start the switch over process to another company without incurring early exit fees of £30 per utility as I am currently with BG "online variable November 2013".
If i wait until after 1st December then it may be too late to get a good rate long term (2015 or 2017) fix rate. I am fully aware that a switch over should take between 4 - 8 weeks but don't want to chance it by taking out a switch over contract too early.

Having been in touch with the customer service of BG , EDF, EON etc. I am aware that the 12 day cool off period (allowing you to get out of a new contract) is one way of delaying the switch over process. However OFCOM have told the BIG 6 that due to their price increase BG has to waiver their early exit fees for customers where contract would end within a month. (Which means in my case that I don't need to carry out the delaying 12 day cool off period trick).

I asked for this in writing and was told that it was nowhere to be read on any official document and won't be available and also they cannot give me any email confirmation. However the customer service people can guarantee that this is the case so if you are on a contract ending on 30th Nov 2013 then contact your supplier as you won't need to pay the standard early exit fees.

Good luck.