British Gas lying to customers - where's OFGEM?
By Value hunter on Apr 12, 2011 | In In real life, In the home, Bad business, Frugal wars, What is the point?, Quango watch
British gas have finally responded to constant questioning by frugal ways, via the website, via telephoning their billing department and repeated questions on twitter.
The summary of their answers can be summed up in one sentence, "Our rates are entirely transparent and have been provided to our customers!"
It is my firm belief, that British gas are deliberately complicating the selling/pricing of gas to it's customers, for the sole purpose of increasing their profits.
At best, british gas are confusing the issue, at worst they are misleading customers and telling them outright lies!
Charging different prices for different areas of the country:
It should not take more than 13 weeks to obtain an accurate answer to this question.
British gas customers on pre payment meters, are charged exactly the same "Tier" price regardless of where you are in the country.
I am only told after weeks of questioning, that pre payment meters are unable to vary a tariff price, "We don't have the technology to do this" - I'd wager good money that this is a lie!
It would explain why pre payment customers pay more money for their gas with British gas, than any of British gas' other tariffs, with ALL pre payment customers being charged the maximum cost, so that the tariff price shows the same for all prepay customers, but some will be paying higher premiums than others in different areas, incorporated into their bills.
British gas tell us that smart meters cannot charge a tariff rate in any given area, even though the tariff rate shows on everybodies meter (smart meters) and this tariff rate that British gas allege, doesn't show/can't be charged, cannot be varied?
The next British gas lie, comes in the form of a misrepresentation at the point of sale, via their "Price checker" website;
It clearly states, when a customer enters their postcode and requests a price for their pre payment "Tier" price, that, "Prices will vary depending on the area that you live" - clearly false, if the reply from British gas is to be believed?
ALL other tariffs for gas are charged at varying rates.
This could be £40 per year more, it could be £200 a year more, make your own figure up as British gas not only "Don't know" but also don't want to tell you how they arrive at the price they charge for gas.
No British gas staff from call centre staff to senior managers know that prepay prices are not varied, only when I persisted with the question in writing did I get an answer from their back office.
Each kWh for gas is a fixed price, but the amount of gas you get for a kWh varies every week:
You could be on British gas' online tariff, you could be a British gas prepay customer, it matters not, the fact is that the amount of gas you get for one kWH of gas varies EVERY week!
The formula to convert each unit used on your meter (for any tariff) to a kWh (kilowatt per hour) is as follows - M3 (1 unit on your meter) x 1.02264 (The volume conversion factor - VCF) x Calorific value (CV) divided by 3.6 = 1 kWH
The calorific value changes every week - a fact that British gas make it as difficult as possible for customers to find out.
For example, it has taken more than two months of continued questioning to find out that this calorific value can be found on all smart meters (option 16 on your meter menu) - whereas if you have the old imperial meter, you are basically stuffed, as British gas billing staff have no access to an updated figure!
The menu option to read the calorific value from your meter has been conveniently ommitted from the meter's instruction sheet, given out on installation!
The lower the calorific value, the less gas I get per kWH (regardless of what tariff I am on).
Who's to say that the calorific value won't be lower during winter months when I use more gas?
This would explain why I top up £45 per month up until mid october, which then magically increases to £120 - £140 per month until mid February the following year (as it has done for the last three years!)
British gas are unable to explain why this is - I have been told my meter is faulty, a british gas meter fitter has told me to monitor and work out usage each week, as this is a common occurance in winter months.
I have used a 30 odd year old back boiler without a thermostat on it and I have a spanking new combi boiler with thermostat, both use excessive gas during winter months.
I have no gas leaks and had this checked to confirm it is the case, I have had a meter change. It has even been suggested by British gas billing staff that I should, "Turn down the combi boiler's gas supply" - even though a device for this does not exist!
British gas telling lies about how the calorific value is worked out:
On the 7th March 2011, I received in writing the following;
"The calorific value (CV) is the heat given out by the combustion of gas. Calorimeters measure this every 8 minutes.
Gas supplied to a customer's home is passed through a testing station, where the calorimeter measurements are recorded.
There are two stations, located at Elton near Middlesbro and Halton in the east midlands.
Either station can be used to take the measurements, although one can have a higher calorific value than the other, we have provided an undertaking to the Department of Trade and Industry that the lower value will always be used when calculating gas bills.
A British gas representative records the readings given by the calorimeters every Thursday.
These readings are then used to determine the value we use when calculating bills for the following week. This is done by calculating a rolling average, using each of the previous thirteen weeks' lowest recorded values from the calorimeters.
The Department of Trade and Industry checks the accuracy of the calorimeters, evaluates and certifies the readings every two weeks."
* On 6th April 2011 (One month later) I received in writing a totally different account of how the calorific value was arrived at and used in working out gas bills;
"The calorific value changes daily and by region. It is set independantly by the National Grid, so it doesn't matter who the supplier is.
We do not use a national number [constant] as the energy content of gas in Scotland can be different from the energy content of gas in Wales."
Gone are the references to British gas representatives checking the calorimeter readings every week - no mention of the two testing stations used each week for ALL gas calorific value metering?
The first account was confirmed by three billing managers in February and March, the second account I have not heard before until I received the reply in April.
Do the national grid supply the calorific value or do british gas take readings?
Do the calorific values vary by region, or are they arrived at by a national average from the lowest reading of the two testing stations?
If the CV does vary by region (14 regions by the way) are British gas taking readings from other testing stations in each individual region? If so, are these readings being provided to the Department of Trade and Industry? Are they being verified and checked?
When I checked the calorific value of friends in other regions, their calorific value was identical to mine.
British gas can use either explanation, but NOT BOTH!
British gas are deliberately confusing customers for profit?
* Statements that quote "Unit" prices
On their price checker website, British gas quote a lower "Tier" price - your statement unit price is your tier price plus VAT.
A recent request from Frugal ways has resulted in "Excluding VAT" being added to the tier price results page on British gas' website.
The tier prices quoted, are also given to 3rd party price comparison websites, which do not include VAT
Why not keep it simple and show a unit price with VAT included on the British gas website?
* Statements that show how many kWh of gas were used over the past 12 months and projected usage and cost estimate for the next 12 months.
Why show a graph of the past years gas usage, which is dated from September to September, when each price estimate runs from December to December?
In case British gas hadn't noticed, this leaves a three months gap unaccounted for.
* Statements for pre payment customers which state, "Customers on our standard tariff (quarterly billing) will pay the same price for their gas as pre payment customers" - NOT TRUE!
The tier price quoted on british gas' price checker website for standard tariff customers is different from prepayment tier prices.
In British gas' own words, tier prices vary in ALL 14 billing regions, for every tariff except pre payment - so it cannot physically be the same can it!
* Not a single mention that the energy of gas you get per a kWh varies from week to week. Both on bills and statements, on all tariffs.
Where are OFGEM, consumer focus and the various watchdogs on all this?
You tell me!
Customers are being misled, being fobbed off, etc. These watchdogs and regulators are receiving Millions in funding every year to PROTECT CUSTOMERS!
Either do your job, or close down. As it stands you are no use what so ever!
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