Posted by British Gas in Your Bills
As part of our commitment to making buying energy simple, transparent and fair for all our customers, British Gas has unveiled a radical new energy bill design – and a new pricing structure with standing charge, simpler discounts and single unit rate for new energy customers.
The new bill has been ‘de-cluttered’ of jargon and repetition. British Gas bills will now help our customers focus on ways to save money - there will even be a dedicated ‘can I save money?’ section to make this extra easy. This will offer each customer tailored advice setting out how they could keep their bills down in future, including energy efficiency advice, details of other cheaper tariffs, and savings that could be achieved by paying by direct debit.
British Gas has made all key information for customers visible at a glance, in clearly defined, easy-to-digest areas – including:
- The amount owed
- The due date for payment
- The amount of energy used
- Ways to contact British Gas
The new bill has been designed with customers – including members of the independent British Gas Customer Board, which has championed the issues of simplicity and transparency within British Gas. Our customers will start benefiting from the new bill this summer.
British Gas has also introduced a single unit rate for consumption alongside a fixed standing charge, brought together in a new clear and simple tariff. This new approach removes the complex Tier 1 and Tier 2 tariff system, making it simpler for you to understand exactly what you are paying for and which costs you can control. The new tariff structure also makes it easier for customers to compare British Gas tariffs with those of other suppliers. The new standing charge tariff structure is for all new customers; existing British Gas customers can stay on their existing tariff, or choose to switch to the new tariff structure.
The standing charge reflects British Gas’ fixed costs. These include:
- Transport and distribution energy to customers’ homes via the national grid, and the cost of maintaining this infrastructure
- Social and environmental obligations imposed by Government
- The fixed cost of providing a service to customers, including metering costs
For the average dual fuel customer, paying quarterly by cash or cheque, the standing charge will be around 52p per day (£190 per annum). In line with making energy pricing more transparent, the new structure will simplify the range of discounts available. Customers who choose to pay by direct debit will now receive a flat 6% discount on the total bill, reflecting the lower cost involved in running energy accounts with this type of payment.
Ian Peters, managing director of energy at British Gas, said:
“At a time when household budgets are under immense pressure, we want to make energy bills more useful – moving from a document that’s just about how to pay, to something that’s about how to save. We want to make it simpler for customers to find ways to take control of their energy use and help keep bills down. For most customers, energy bills are the single most important communication they receive from British Gas. They are the key to understanding exactly what’s been used, and what it’s costing.
Over the past six months we’ve made several changes to the way our customers buy energy, to make it more simple, transparent and fair. The new bill and the new clear and simple standing charge tariff are natural and important next steps for us and our customers.”