Product update – Flexible electricity

Flexible Electricity - British Gas Business

Our Flexible product is now more aligned to the rest of the market and is easier to understand. Based on your feedback we focused on three key areas to improve:

Balancing charges

Balancing is now a fixed cost as standard.

How will it work?

The balancing figure you see on your offer is fixed for 12 months. If you are signing a multiple year offer, this balancing figure is updated annually.

Shaping premium

Use of a shaping premium is now the standard way to treat residual volume, making it easier to see exactly how commodity costs are built up.

How will it work?

A single shape is aggregated from all of the meters to be priced. This shape is then assessed to accommodate as many 0.5 MW baseload and peak blocks as possible, this is where we chose the best fit to minimise the shaping premium. We’ll do this just before contracts are signed to make sure we have the latest view of the market.

The shaping premium is then fixed. If you are signing a multiple year offer, this figure is updated annually. The exception is the shaping premium is recalculated if your portfolio needs reforecast.

At rates production we apply the shaping Premium to the volume for the period.

Offer document (Flex summary annexe)

We’ve improved the format of our offer document to make it clearer and more transparent. Based on your feedback we’ve removed any information which wasn’t used for like-for-like comparison and we’ve added pricing at all three levels (MSP, GSP, NBP). We’ve also included a glossary to help explain industry jargon.

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