25% hike with British Gas

Irratus_Rusticus

The headline increases don't tell the whole story.

I got my email from BG this week and checked what I'd pay from November. With like-for-like consumption as a below average user my gas and electric was actually going up 25% because BG have brought in standing charges for their Online Energy deal and the maths penalised me.

Presumably all the 'below average' users end up facing higher than the advertised hikes? Quoting averages doesn't mean there as as many customers below average as above - that's the slippery thing about theoretical averages. My suspicion is there are far more below average folk all too scared to switch up their thermostats. Do the Uts publish more meaningful figures than a national-wide average? Does the published average include businesses/hotels etc, or just private domestic dwellings?

Anyhoo... just switched to a fix with EDF. Not a great saving, but it was the principle.:(

Nada666

Write to Ofgem and complain.

You got off lightly. Try a 100% increase for some low users (even higher if you take into account cashback). But ignoring cashback and those who don't use any gas - for hot water and cooking only customers a 25% penalty is pretty low.

Even Ebico are 70% more expensive than last year's best offers.

Bark01

The average figure is based on a Median of national residential consumption figures provided by DECC and calculated by OFGEM. DECC take the relevant steps to try to discount businesses from their residential data flows.

As of Jan 1st 2014 the average consumption figures will be reducing slightly so would more reflective of lower users. The average consumption figures will be reviewed every 2 years using the previous 2 years worth of data. So if people use less the average will reduce.

Individual customers will receive different % changes as they use different amounts and will be on different products. This is why each customer is written to and provided the actual rates that are applicable to them.

Nada666

Bark01 wrote: »

As of Jan 1st 2014 the average consumption figures will be reducing slightly so would more reflective of lower users. The average consumption figures will be reviewed every 2 years using the previous 2 years worth of data. So if people use less the average will reduce.

That sounds like lunacy. What is the point of changing the base every couple of years? I thought Ofgem was wanting to reduce confusion. Surely you want to use the one reference for solid periods of time. Pretending that the average is £1400 one year and only £1490 two years later - but using different usages.

The current new base, down by 4,000 kWh of gas, misleads by nearly £200 (£180 at 4.5p). You are saying they are now going to mess around and make average statements even more useless than ever.

Of course you want to publish the averages and medians every year to see what people are actually using - but to start altering the typical usage cost metric so regularly is crazy. Why on earth is that happening? How is it supposed to help?

Bark01

The consumption will only change if it is altered by 100 kWhs for electricity and 500 kWhs for gas.

It is supposed to reflect what is happening in the UK if it changes then the UK has changed so previous values are no longer relevant. % changes will always be expressed based on bill values calculated using the same consumption, so it will always be a like for like comparison.

Annual statements are provided at a customers actual consumption and will look 12 months back on that consumption and 12 months forward on the same consumption.

If anything is adding to the confusion here it is yourself with your poorly researched opinionated answers.

LesU

I know this might seem a daft question. This calculated median for the whole UK, updated every 2 years, is for whose benefit?
Why would anybody want to know what the middle of the range consumption of all UK households is?
I can see that someone in Government might want to see the effect of increased insulation on consumption patterns, but there are other variables which will produce so much variation (weather, locality, prices?) that it will be useless for that.
As a householder I would be stupid to use these figures, rather than my own, to calculate comparison costings.

Bark01

LesU wrote: »

As a householder I would be stupid to use these figures, rather than my own, to calculate comparison costings.

Couldn't agree more they shouldn't be used for comparisons.

Typical consumption draws a line that is the most representative amount that can be provided in a press release. They also provide sounds bite for the media to use. Most press releases drill down into further detail outlining how changes will affect particular customer groups i.e. regionally or by payment type but this kind of detail is to much to go into for new channels and the media.

As of next march you will be provided with a projection on your own consumption that shows last years cost vs this years costs.

Nearly all the complaints people are raising already have legislation already in the works to appease them.

Excess profits hidden by non vertical integration are the main industry problems that need talking about, press release headline figures are not.

DragonQ

If the average usage lowers then that'll be good for the energy companies because they can claim to raise prices by, say, 7% next year instead of 8%, but it'll actually be the equivalent to a 9% rise on the old figures (as a random example).

Bark01

My god this is a struggle…..

Previous figures bare no relevance, yes the increase reported would be less but customers would be using less so the new figure is more representative than the last figure….

It also makes hardly any difference.

DFDD % change at current consumption 9.0%
DFDD % change at new consumption 8.8%

Info taken from Scottish Powers press release.

gem1978_2

So Brtish Gas lie to take more money, quell surprise

if it was the little people doing this they would be put in prisons.

Bluebirdman_of_Alcathays

gem1978 wrote: »

So Brtish Gas lie to take more money, quell surprise

if it was the little people doing this they would be put in prisons.

The troll is out of the cave!