BG charging wrong rate for years.

Eddmr

This is my first post, so I hope that it's in the correct place and that someone can help me.

My Grandmother is 90. She has been with British Gas for her gas for at least 24 years. My mother happened to pick a bill up off the side the other day and noticed that she is paying business rates for her gas. She lives in a one bedroomed, sheltered housing flat - certainly not running a business.

We have contacted BG and they say that their records only go back to 2007 and that she has been on business rate all that time. They are happy to transfer her to domestic rate but will only rebate for the last quarter. They haven't really given a reason for not rebating anymore.

Where do we go from here? I know that she should have realised that she was on the wrong tariff but at her age it does seem a bit harsh.

Thank you in anticipation

jbuchanangb

I suggest you draft a strongly worded letter for your grandmother to send.

Ask her to find the oldest bill she has got. Sometimes people stash their bills diligently away.

Whatever the oldest bill you can find, unless it is after 2007, ask them to recalculate the whole period from that bill until now at both the business rates and the domestic rates, and refund the difference. Otherwise even 6 years of recalculated bills would be worthwhile

The for goodness sake help her find the best tariff for her actual usage and switch to it.

macman

The difference will be at least 15%, as she's been paying 20%, not 5% VAT.

Eddmr

Thanks. I will get writing. Should I threaten the ombudsman or would they not be able to help in this case?

littletommytucker

British Gas Business and British Gas Residential are two separate energy firms. It isn't possible for BGB to charge anything other than business tariff rates.

If your grandmother wishes to receive residential tariff rates, she will need to switch to a residential energy supplier. Whether she switches to British Gas Residential, EDF, E.On or any of the other firms is her decision. The switching process will take between six to eight weeks and it won't be any quicker if she switches to BGR as opposed to any of the other suppliers.

BGB aren't at fault, how are they to know your grandmother wasn't running a business? It isn't the responsibility of the supplier to contact each customer to check their circumstances.

It's a shame to hear she's been paying more than she needs and I sympathise, but this is a good example of why people who are unable to sort their own bills out should have either family or social workers to do it for them.

sheffield_lad

Eddmr wrote: »

My Grandmother is 90. She has been with British Gas for her gas for at least 24 years. My mother happened to pick a bill up off the side the other day and noticed that she is paying business rates for her gas. She lives in a one bedroomed, sheltered housing flat - certainly not running a business.

I have heard of this before, if I remember last time the reason for the business rate was the care home negotiated a deal for all residents to get a better deal on their electric. Yes the VAT will be more expensive but it may be worth chatting to other residents and having a look at the unit rates your gran is on.


GL

undaunted

Eddmr wrote: »

Thanks. I will get writing. Should I threaten the ombudsman or would they not be able to help in this case?

You could try that but they aren't the fastest of movers & faced with a (vulnerable?) 90 year old lady who really couldn't be expected to understand what was happening here I'd say copying your letter to BBC Watchdog and / or your favourite newspapers might be the faster & effective route to try here. Very poor PR if this isn't sorted out quickly & reasonably I would imagine

undaunted

littletommytucker wrote: »

BGB aren't at fault, how are they to know your grandmother wasn't running a business? It isn't the responsibility of the supplier to contact each customer to check their circumstances.

You don't think that when someone is signed upto a business tariff - and particularly if they appear to live in a residential area or be elderly - that it would be reasonable to ask them what kind of business they run then?

Ryune

undaunted wrote: »

You don't think that when someone is signed upto a business tariff - and particularly if they appear to live in a residential area or be elderly - that it would be reasonable to ask them what kind of business they run then?

Not really. Housing Associations for example have hundreds of supplies (usually landlords supplies or door entry systems) on business tariffs in residential areas. Its not an uncommon or abnormal thing.

What rates was she paying (excluding VAT)? Business contract rates are usually better than equiv. domestic. If the rates are good then it may be worth staying on the business rates and submitting a VAT declaration to get the account billed on 5% VAT.

More likely the account is on horrible rates if its not been managed (since commercial suppliers usually want supply contracts in order to offer good rates). If that's the case then you're probably better off switching.

If properly managed a commercial tariff will often work out better than a domestic one. If not it can be considerably more expensive.

Cardew

undaunted wrote: »

You don't think that when someone is signed upto a business tariff - and particularly if they appear to live in a residential area or be elderly - that it would be reasonable to ask them what kind of business they run then?

These days accounts are 'untouched by human hand' and left to 'The Computer'.


There must be scores of thousands of small businesses not only in residential areas but in private dwellings. For example, near me is a smallish house with a hairdresser in one room and Chiropodist in another, with a small flat upstairs. I know they have separate accounts.


Also how would a company know if the account holder is elderly? As far as I am aware none of the Utility companies have my DOB.


Obviously if the Grandmother is paying a very high rate, and 20% VAT(which would have been 15% and 17.5%) then a case for a rebate should be made. However I wouldn't start from the position that this is outrageous/rip off etc.

Cardew

sheffield_lad wrote: »

I have heard of this before, if I remember last time the reason for the business rate was the care home negotiated a deal for all residents to get a better deal on their electric. Yes the VAT will be more expensive but it may be worth chatting to other residents and having a look at the unit rates your gran is on.


GL

IIRC one of the advantages on a business rate was a deal could be negotiated where customers didn't pay tier1/tier2 rates but a single rate.