British Gas – Duel Fuel Discount Calculation Issue

[Deleted User]

I'm seeing BG bills that appear to be understating the amount of discount on quarterly electricity statements. On the standard tariff there is a discount of £15 per year applied pro rata as the year proceeds.

The formula used to calculate the discount:

Days/365 x £15

So for a period of 90 days the discount should be 90/365 x 15 or £3.70

Is anybody seeing the amount coming up short of what it should be?

SwanJon

Did you get £3.08 for 90 days?
If so this is the discount before VAT. (Technically not allowed to discount VAT).

Same effect - you will pay £3.70 less.

If you are getting a different figure on your bill it would help if you told us what it was.

[Deleted User]

SwanJon wrote: »

Did you get £3.08 for 90 days?

No I didn't but the £15 has a VAT element that I didn't appreciate. To get the VAT divide 15 by 21 the VAT fraction this equals £0.71. Next subtract this from £15 which gives £14.29.

The math then becomes:

90/365 x 14.29 = £3.52

the amount stated on the bill

Thanks for the heads up.