British Gas 23% gas price rise !! -corrected & increased

peter999

So why do British Gas say "standard gas prices will rise by 8.6% for a typical British Gas customer", when it is more like 19% ??


I got letter from British Gas notifying me of price rise from 23 November 2013.

The letter also seems to suggest they will be changing to Daily Standard Charge instead of Tier 1/Tier 2 system.

I recalculated my last bill using new rates and found it would be 19.1% increase !! :mad:

Can someone explain the discrepancy between 8.6% and 19.1 % ?

Can British Gas Company Representative explain the discrepancy ?
.

wongawonga

It was an Average of 8.4% with regional variations but nothing like the increase you have calculated.

http://britishgas.presscentre.com/Press-releases/British-Gas-Household-Tariff-Changes-2ae.aspx

peter999

wongawonga wrote: »

It was an Average of 8.4% with regional variations but nothing like the increase you have calculated.

http://britishgas.presscentre.com/Press-releases/British-Gas-Household-Tariff-Changes-2ae.aspx

I've done the calculation.

My last quarterly bill would 19% higher.

spiro

Very low users (less than tier 1 limit) will see a bigger increase because of the move to standing charge tariffs. This is a OFGEM led requirement.

PollySouthend

They are crooks - could have just had a 0 standing charge but they chose not to.

peter999

In fact it's worse !! :mad: :mad:

It's a 23% rise on my last bill !!

( I used Direct Debit rate, instead of Cash/Cheque rate in my first calculation)

Nada666

Count yourselves lucky. The introduction of standing charges meant a close to 100% increase for me (not from British Gas though), 70% for cheapest alternative. (And that is not including cashback offers - accounting for them results in an infinite increase from some years.)

Nada666

PollySouthend wrote: »

They are crooks - could have just had a 0 standing charge but they chose not to.

No, it is Ofgem who are the crooks - they could have chosen a two-tier tariff as the standard. There is no reason for British Gas to operate at a competitive disadvantage through only running three commercially viable tariffs when their competitiors are not going to.

Write to Ofgem, not your supplier, to complain about their crooked, unfair contempt for consumers with a low useage.

Bluebirdman_of_Alcathays

Must be the 5th thread on this now, the BG press release was not misleading in any way. 8.4% is an average.

As Nada says, thank OFGEM for the ridiculous move to SC tariffs.

pineapple

Bluebirdman_of_Alcathays wrote: »

Must be the 5th thread on this now, the BG press release was not misleading in any way. 8.4% is an average.

Legally correct but misleading as they know full well most people will assume that the average applies to them. They certainly wouldn't expect the huge increase at the top end!

Bark01

Nothing wrong with SC tariffs they are fairer for all. All customers have a fixed costs associated to them that doesn't vary with usage, without them higher users would be subsidising lower users. Why should a person in a 3 bed family home subsidise someone living on their own in a one bed flat?

Standing charges are more cost reflective and easier to compare than banded tariffs. This is one thing that Ofgem has got right.

Even if you use zero consumption you still generate costs unless you have your meter capped.