Originally Posted by
Rosie1958
I received an email today from British Gas which I thought I would share:-
Why are we putting up prices?
There are a number of costs that make up an energy bill that we don’t directly control. Unfortunately, these costs continue to rise.
1. The costs of implementing government policies designed to make Britain more energy efficient are going up
2. The nation’s grid (the pipes and wires that transport and deliver energy around the country) requires a major upgrade. The amount we have to pay to use this network is being increased to pay for this upgrade
3. The price of energy remains volatile and is increasing in a number of key markets
Not increasing prices would mean our investments in Britain’s energy future – keeping the lights on and gas in the pipes for years to come – would be at risk. This means that, for a typical British Gas customer, Standard gas prices will rise by 8.6%*, and Standard electricity prices will rise by 10.8%* from 23rd November 2013.
B]Avoid future rises with Fix & Fall November 2014[/B]
Sign up to Fix & Fall November 2014, and fix your gas and electricity prices at our new Standard rates until 30th November 2014. It means your prices won’t go up, and if our Standard prices fall, your prices will too. Please see below for Fix & Fall November 2014 terms and conditions.
Alternatively, with our Fixed Price March 2016 tariff you can choose to fix your gas and electricity prices until 31st March 2016, at a premium of 0.28p/kWh for your gas, and 0.84p/kWh for your electricity (including VAT) compared to our new Standard rates as at 23rd November 2013.
To fix your prices with Fix & Fall November 2014, sign up by 23rd November 2013
B]Other important changes you need to know about[/B]
All of the energy companies have been working with Ofgem, the energy regulator, to make energy pricing simpler and easier to understand. As a result we need to make some changes to your account:
[B]Clearer energy pricing[/B]
Currently you are charged two different rates for your Standard tariff, a higher rate for the first few units of energy you use and a lower rate for the rest. You will now be charged one rate for all the energy you use, plus a daily standing charge‡‡. The difference this will make to the amount you pay will vary depending on how much energy you use. For an estimate of what the new standing charge and the other changes will mean for you, use our ‘Energy Changes’ calculator.
Simpler Direct Debit discounts
Your Direct Debit discount will now be for all the energy you use rather than on a capped amount. This discount will be included in your unit rate. If you do not keep up your Direct Debit payments new terms will apply. Customers paying by Direct Debit are charged a lower unit rate than customers paying by Cash or Cheque. If you do not honour your Direct Debit payments, we can require you to pay by the higher Cash or Cheque unit rate - meaning you will lose your discount and your prices will increase. The difference between Direct Debit rates, and rates for customers paying by Cash or Cheque, is set out in your new prices. We will give you seven working days notice before changing your payment method.
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