Gas Meter standing charge / I do not use gas!

shanouck

I had my gas meter turned off as i know longer use it, this has been off for about 3 years now and all this time i have still been asked to put my meter reading in to British Gas, i have always used the same reading from last time it was used. Not once have i been charged i get a bill and have nothing to pay, At the weekend i logged on to my account and i have to pay £16.36p i could not find on the statement what this was cost was for so i contacted them, I recieved this reply from them -
I have had a good look at your account for you and see that historically and presently you do not use any gas. British Gas along with other suppliers has under the Retail Market Review changed the way we bill our customers. All suppliers must bill customers in the same format and part of this change a daily standing charge was introduced.
The bill shows since the introduction of the standing charge on the 22nd November you have been charged.
You may choose to have your meter removed if you have no use for gas at your property this can be done.
This as you can imagine since the change in charges, has been the topic of conversation, and to make sure you are aware after 6 months of the meter being disconnected, we have to advise the Network operator that there’s no gas being used. When this happens, there’s a chance of them cutting off the gas pipe to the house. This may in the future result in an additional charge by the distributors for reconnection. And then this was the second email from them -

I can understand your frustration at the new charges that have been introduced, all companies agreed to this change with Ofgem so that all customers can compare their prices on the same billing system. Does not make sense to me - (so customers can compare their prices on the same billing system) - how can i compare when i do not use any gas? Has any one else had this ? and what if anything is being done about it ? Because i do not think that its right at all when the meter has been off and not in use at all.

bsms1147

You're being charged for your house having the capability of receiving gas. Get disconnected if you no longer want that capability, or continue to pay the £8 a month to keep that possibility. It's standard practice so you probably won't find a way around it, but other providers may have a lower standing charge.

wakeupalarm

With thousands of zero gas users moving to them, its only a matter of time. Being a non-profit making organisation doesn't mean you can run unlimited losses.

molerat

It is the law of unintended consequences, often occurs when those in authority see a problem that is not really there and poke their beaks in. Pats on the back all round and as usual joe public gets stiffed once again.

Mrs_Badger_2

We kind of had this problem when we moved in, (our supplier mis led me saying there would be no charges on an unused meter and put us on very expensive tariffs for G and E)
Did they notify you to the changes to the way you'd be billed? This could be an email or on a paper bill. If they didn't you have a good chance of not having to pay it especially if you feel you have been mis led, BUT the cost of the phone calls is likely to cost more than £16!
Personally I would just pay it and switch to EBICO.

shanouck

[FONT=&quot][/FONT] [FONT=&quot]All suppliers must have simplified their tariffs by the end of December 2013. As a result suppliers will be limited to offering up to four “core” tariffs per fuel (electricity and gas), per payment type. However, they will also be able to offer extra fixed term tariffs into schemes that meet our criteria. All tariffs will have a standing charge and a single unit rate. Suppliers can set the standing charge at zero if they wish and some are doing this. This means that complex two tier tariffs will no longer be allowed. You can however find such information by contacting suppliers directly or by checking with price comparison websites. Further information is also available in our factsheet: https://www.ofgem.gov.uk/publications-and-updates/simpler-clearer-and-fairer-energy-market-consumers [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I am disappointed to learn of the advice that you have been provided by British Gas, which unfortunately is incorrect information. Evidently, some suppliers have made a commercial decision not to provide a zero standing charge tariff for their consumers. Further information is also available in our factsheet: https://www.ofgem.gov.uk/publications-and-updates/getting-best-deal-energy-market. I refer you to paragraph 2.3 of our decision document, which states: [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]“Simplifying tariff structures to ensure that all tariffs have a simple standing charge (which could be zero) and unit rate structure (no multi-tier tariffs)” [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]In addition, we put in place rigorous new Standards of Conduct in August 2013, and energy suppliers must carry out all their dealings with their consumers in an honest, transparent and jargon-free way. Therefore I am disappointed that this was not the case.[/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Finally, further information regarding our reforms are available on the following page of our website: https://www.ofgem.gov.uk/simpler-clearer-fairer.
[/FONT]

[FONT=&quot][/FONT]

[FONT=&quot][/FONT]
[FONT=&quot]I had this reply this morning from Ofgem. Interesting reading.
[/FONT]

Bluebirdman_of_Alcathays

shanouck wrote: »

[FONT=&quot]All suppliers must have simplified their tariffs by the end of December 2013. As a result suppliers will be limited to offering up to four “core” tariffs per fuel (electricity and gas), per payment type. However, they will also be able to offer extra fixed term tariffs into schemes that meet our criteria. All tariffs will have a standing charge and a single unit rate. Suppliers can set the standing charge at zero if they wish and some are doing this. This means that complex two tier tariffs will no longer be allowed. You can however find such information by contacting suppliers directly or by checking with price comparison websites. Further information is also available in our factsheet: https://www.ofgem.gov.uk/publications-and-updates/simpler-clearer-and-fairer-energy-market-consumers [/FONT]

[FONT=&quot]I am disappointed to learn of the advice that you have been provided by British Gas, which unfortunately is incorrect information. Evidently, some suppliers have made a commercial decision not to provide a zero standing charge tariff for their consumers. Further information is also available in our factsheet: https://www.ofgem.gov.uk/publications-and-updates/getting-best-deal-energy-market. I refer you to paragraph 2.3 of our decision document, which states: [/FONT]

[FONT=&quot]“Simplifying tariff structures to ensure that all tariffs have a simple standing charge (which could be zero) and unit rate structure (no multi-tier tariffs)” [/FONT]

[FONT=&quot]In addition, we put in place rigorous new Standards of Conduct in August 2013, and energy suppliers must carry out all their dealings with their consumers in an honest, transparent and jargon-free way. Therefore I am disappointed that this was not the case.[/FONT]

[FONT=&quot]Finally, further information regarding our reforms are available on the following page of our website: https://www.ofgem.gov.uk/simpler-clearer-fairer. [/FONT]





[FONT=&quot]I had this reply this morning from Ofgem. Interesting reading.[/FONT]

OFGEM are correct - but make no mistake, this mess is entirely their doing, and not the suppliers.

Who said the previous system was too complex? They knew full well that banning two tier tariffs would lead to this.

ebico are (to my knowledge) the only supplier offering a 0p standing charge, and how long can they keep this business model up? Having an abnormal of 0/very low users on their books and them not contributing any revenue is a situation that surely they can't sustain? They are paying all the costs to keep these people on supply, and getting nothing back.

The previous system was only complex for those that
a) couldn't be bothered to take 5 minutes to understand how energy is charged
b) are singularly incabable of mental arithmatic.

I understand OFGEM are now looking into DD discounts. Be very careful what you wish for....

undercover_peon

Someone beat me to it, I was going to say that this bit wasn't entirely accurate

"British Gas along with other suppliers has under the Retail Market Review changed the way we bill our customers. All suppliers must bill customers in the same format and part of this change a daily standing charge was introduced."

However Ofgem have, once again, made a bit of a howler. They state suppliers have the option of having a zero standing charge. Would it be that hard to draft a regulation OBLIGING them to have a single price per unit?

Too often Ofgem's interventions have negative unintended consequences for consumers. They need to be replaced by a competent regulator.

You would think Ofgem would take action about suppliers mis-representing the position to make it sound like they were forced to bring overt back standing charges (I say this because the higher rate was always a hidden standing charge). I have yet to see any evidence that they care about this.

Who do we complaint to that Ofgem is totally unfit for purpose and ineffective?

scaredofdebt

I've emailed Ofgem about this as I think it could lead to vulnerable and elderly people having their meters removed and then deaths if we get a cold snap.

It's unfair on low users for a start.

No response as yet, will keep you posted.

macman

Whether you use gas or not, there is still a cost for maintaining the network, providing and reading the meter, and billing you.
If you only drive your car once a year, you still have to pay the same for your road fund licence as someone driving 50K miles a year.

[Deleted User]

I agree with OFGEM, the two tier billing system was nt working. I m out there talking to the public and believe me it was over their heads. BBC Watchdog did a story on confusing energy bills and the winner of Mastermind was enrolled to try and fathom what was going off in a domestic electic/gas bill, he struggled. Even the term "no standing charge tariffs " got people enraged when they found out the standing charge was being paid in tier one units. The daily standing charge is at least straightforward to understand and whilst Ebico stick to their zero pence standing charge all the non users can move their gas to them.
Its Ok for all the people who use this forum as they have an interest in energy bills, but your average man in the street was baffled by the two tier billing. and Ive spoke to plenty of well educated customers about it