British Gas - £570m Profits Reported

Teacher2301

Hi SwanJon - yep too right - but I had to haggle for it though. Their customer service was atrocious and leaves one wondering what actually happened to creating my account in November 2006? Fortunately the account was set up in 12 months - I wonder why? You say it's a common occurance - I no doubt it is but what is the impact on those people who can't really afford £300 overpayments - I'm lucky, I earn a good wage and can cope but not many people can and technically it's daylight robbery. Direct debit is very useful but here's my improvement...

BG bill you every 3 months (quarterly - as they use to do in the good old day ) - then you pay this amount over the next three months. Yes the DD's will vary but at least you know that you're paying for something that you've used rather than a computers estimate. Now this does require customers to provide accurate readings though I agree (which I know alot don't). However, didn't BG use to send a 'man round' - what about remote sensing? What about digital meters sending the gas reading to a central processor - all costs money I know but as a science teacher - these are 21st Century technologies that are available. With all that profit, surely BG could justify some R&D and investment into these technologies to make our lives as customers easier and theirs to?

SwanJon

If the account wasn't set up, usually you wouldn't be making payments, but there's always some weird thing happening somewhere.

The issue with your plan is that the supplier has to pay for the energy and can only expect payment at least three months after it is used, and that from the 'good' customers. Just keep giving them readings - every month if you like - and then you only pay each month for what you use, on average over the year, each month.

The 'smart' meters are coming - just taking a while to get here. I heard talk about 5 years ago of meters that are able to send readings by text (or similar), and meters that give readings by bluetooth, so the reader can just walk down the street and the technology does the work.
Issue is that there are about 25 million domestic electricity meters, and about 21 million domestic gas meters. Every one of those can switch supplier, so where is the incentive for one supplier to start the ball rolling, paying for the new style meters, only for them to go to another supplier?
The government has started doing something in the last few months, so we should see the beneift in about 10 years.

Cardew

JohnG wrote: »

Thanks for the clarification Cardew but I still struggle to believe the figures given are anywhere near accurate even based on averages.

I can't help feeling the government are basically at pains to keep the 'Official' inflation rate down so as to keep a lid on pay rises, especially in the public sector.

With any Government, especially one as devoted to 'spin' as New Labour, I can understand your scepticism.

However in this case I don't think it is justified. As far as I am aware no consumer organisation/bank etc challenges the calculations of inflation rate and it is an accepted formula.

There was a dispute about which of the two main rates the Government should use - the CPI(Consumer Price Index) or RPI(Retail Price index). The CPI is used for comparing with other countries.