A frugal life is an easy life!

The days of car body repairs being done at home, by the car owner are sadly long gone. We live in an age where everything car related has to be covered by an insurance premium and backed up by a no claims protection premium.
As most garages charge the same, for the more frugal amongst us, there is little choice between them. Or so it would seem...

Many people do not realise that finding an exact paint match for your car, is relatively cheap and easy to do!

On your engine plate (which can be found around your engine) or on the side of one of your doors, there exists a paint colour code for your car.
If your paint code (which every car has) is particularly hard to find, you can always ring up a dealer in the make of car you have (ford, peugeot, etc.) and quote your registration plate, they will have your paint code on file.

Once armed with this code, you can walk into any Halfords, or other car maintainence shop which mixes paint and pick up either a touch up pen, handy aerosol or even a two and a half litre tin (for use in a spray gun if you have a large area to cover) of paint exactly matching your car's paintwork.
This can also be obtained, from your local college that trains apprentices in car mechanics and car body repair.

Once you have found a college that runs these courses, you have in an instant, given yourself a choice, and by definition, will also open the door to saving more of your hard earned money!
One of the biggest costs to anyone having their car repaired, is labour charges.
On average, labour charges are around £90 per hour.
Factor in the charges that insurance companies pass on to each other, often for relatively low cost claims, if a repair bill comes to less than £1000, we can all save some money, in labour charges, insurance premiums, etc.

A small graze, no bigger than a 50p, on a 10 year old car cost the following to repair;
* Garage quoted £152 to repair, saying they would have to spray a quarter of the bumper
* Bloke got his own insurance to put it through my insurance, who then billed my insurance £552
* For a 50p sized graze, that one sheet of wet and dry would smooth out and a £12 aerosol of exact matched paint (or a touch up pen) and a pound of rubbing compound would have blended in nicely, cost me two years of my no claims bonus, on my insurance premiums next year!

If your car is damaged, your options are limited to premium prices of a car dealership or a general garage, which is costly.
Before you use any of these, use your thrifty head and check with your local colleges, it could save you a small fortune!

British gas are charging customers differently, depending which area of the UK customers live in.

Billing and meter staff admit to this without exception, british gas' own website states this when a customer checks individual tariff charges. So why does nobody at british gas know exactly how they get to the price they are charging?

Is the area charge decided by the way each unit (kWh) is calculated?
Definately not.

Each customer is charged for gas based on a kilowatt hour (kWh) - the formula for working this out contains four variables, that only differs week to week, on a national average:
M3 (1 metric unit on your meter) x 1.02264 (VCF) x Calorific value (CV) divided by 3.6 = kWh

M3 - This is one unit on your meter and does not vary.
VCF - The volume conversion factor, is an industry constant, to allow for temperature and pressure of gas differing at each household's meter. The figure used in the kWh formula does not change.
CV - The calorific value is worked out by taking two readings each week, from two testing stations, one near Middlesbrough, one near Birmingham.
The lowest reading from either of the two stations is used, added to the previous 12 lowest readings (from the testing stations) and a 13 week average CV is calculated.
I have checked with friends in various areas of the UK, that their calorific value is the same as mine - option 16 on your smart meter - and it is constant, there can be no difference in area here.

Is the different area charge arrived at by different tariff/tier prices?
Definately not!

A third level british gas billing manager attempted to explain that the tier price (a customer's unit price minus VAT) will be different, depending on which area of the country they live in.
With the help of friends, I have checked this also and found it to be constant throughout the UK.
To check this, the billing manager entered his own postcode into british gas' pricing system and was shocked to find that the tier price in Scotland, is the same tier price as Lancashire, is the same price as London, etc, for each tariff.
The only difference in price was obviously for differing tariffs - online only, prepayment, standard billing, etc. - He admitted that he now had absolutely no idea how different charges were arrived at by british gas!

British gas charging different prices depending on areas, is not being calculated in the per unit (kWh) formula, nor is it being calculated in the tier price/tariff pricing structure, so how exactly do british gas arrive at different charges for different areas of the country?

I asked the third level billing manager, could it be the case that british gas don't always charge different prices to people in different areas of the country?
He was adamant that different prices are ALWAYS charged to british gas customers in different areas of the country.
It was suggested by other british gas billing staff that they can only enter a postcode and their computer systems automatically calculate charges for different areas of the UK.

So, if british gas staff and british gas' website are to be believed, energy customers are paying a price for energy that cannot be worked out, is being deliberately hidden from customer's bills and statements and is not being monitored by OFGEM and other so called energy regulators.

I cannot name one other product or business that is allowed to charge a price that cannot be known or calculated, which is hidden from the customer. This is a clear misrepresentation at the point of sale.
We could be paying £40 more than another area of the UK, we could be paying £200 more, we will never know. British gas staff don't know.

This joke of a situation cannot be allowed to continue!

UPDATE:
British gas via twitter, have now released their own data, showing what gas/electricity is used per town/city - the first energy company to do so!

It is posted via the Guardian's website: British gas map of customers and energy supplied (Link opens a new browser window)

Sadly this is still not an answer to the question we asked, which is, how does british gas calculate it's different prices per area?

I have currently one case awaiting an ombudsman to pick up and rule upon. The Financial Ombudsman Service (FOS) have had this for well over a year now.

My last communication with them was by telephone, since October 2010 (It's now March 2011), it has been sat on a desk waiting to be looked at. In January 2011 the FOS informed me that they are being burdened with thousands of new cases, that also would have to wait considerable time to be decided upon.

Today I received a letter from the FOS, that stated it was, "To keep you updated about your complaint"

It started by stating the following;

"You maybe aware from press reports that in October 2010 the British Bankers Association (BBA) - on behalf of a number of high street banks - filed papers in the High Court requesting a judicial review of the Financial Services Authority (FSA) and Financial Ombudsman Service.

The legal challenge relates to the FSA's new payment protection insurance (PPI) complaints handling procedure.

The judicial review took place in the High Court in London during the week beginning Monday 24th January 2011.
It is likely to be a number of weeks before an outcome is known. At this stage I have no more information about the outcome or possible consequences."

The FOS have had my complaint 7 months before any judicial review was put forward, so why don't they apply the existing LAWS and award on this basis?
The letter continues;

"We are continuing to deal with PPI complaints and are now receiving more than 2500 cases each week. Hoever, the approach of some businesses is affecting our ability to process cases and means the rate at which we can settle all complaints is now slowing down.

I realise your complaint has been with us some time and I'm sorry we have not been able to settle your case before now. While I am not able to give you a timeframe at this stage, I'm afraid some cases are likely to take over a year from this point to be resolved - depending on when and how the legal action is concluded."

Another year? Ridiculous!

Still taking on complaints? What is the point?

If businesses are delaying cases being ruled upon, then give them 28 days to defend in writing, if they fail to do this then rule against them?
They will soon stop pushing boundaries to protect their money and reply in a much more speedy fashion?

That the Financial Ombudsman Service is now advising people with complaints that the process and an outcome could take a year, even for cases that have been waiting for over a year already, is a complete farce and not good enough!

After many requests for the formula used by British gas, to work out the amount of money they charge me for gas, I have finally managed to get hold of a copy of what British gas staff are using to calculate and check billing amounts and the figures required for the calculation formula.
It looks complicated, but it's really quite simple once you read through it a couple of times.

Step 1:
Work out how many units the customer has used, since their last bill.

Present reading minus previous reading = number of units used.
(HCF = Imperial units, M3 = Metric units)

Step 2:
Convert imperial units into metric units.

If customer has imperial meter (HCF) then multiply imperial units by 2.83 = Metric units (M3)
If customer has a metric meter (M3) then skip to step 3.

Step 3:
Convert units used on meter to kWh (Kilowatts per hour) - this is the formula British gas use to convert.

M3 x 1.02264 (VCF) x Calorific Value (CV) divided by 3.6 = kWh (kilowatts per hour)

* For Calorific value (CV) on metric meters, press Button A and skip to menu option 16, this will give you the calorific value (this changes every week, normally on Wednesdays at 2am) being used that week.
Once you have the calorific reading, convert this into BTU's - British Thermal Units - by dividing the CV number on your meter by 0.0373 - use this figure in the formula above.
If you have an old imperial meter, then ring British gas and INSIST that they tell you the calorific value being used for that week.

Step 4:
Next we need to work out which kWh are charged at tier 1 and which at tier 2 (Or "unit price 1" and "unit price 2" on your statement/bill, without VAT added)
The tier prices can be found on the British gas pricing website here, they are different from your statement/bill "unit prices" as the tier prices quoted online don't include VAT at 5% (Which we will add on to the total of the bill at the end).

Tier 1 is charged for the first 7.34 kWh per day, all other kWh is charged at tier 2.

Number of days the bill covers x 7.34 = Number of kWh to be charged at tier 1 rate.
Total number of kWh - Number of kWh to be charged at tier 1 rate = Number of kWh to be charged at tier 2.

Step 5:
Calculate the bill.

Tier 1 kWh x tier 1 tariff rate (found on pricing website) = Cost of gas used at tier 1
Tier 2 kWh x tier 2 tariff rate (found on pricing website) =Cost of gas used at tier 2
Add them both together to get the total cost of gas.

*NOTE - This total EXCLUDES VAT.

Step 6:
Add VAT.
Domestic gas customers pay VAT at 5%.

Total bill = Total cost of gas + 5%

* Important notes:

- When working out your gas bill, don't forget to take off any payments/credits you have on.
These credits/payments would be knocked off after you complete step 5.
- The calorific value (CV) used to convert each meter unit to kWh is calculated as follows;

"Gas supplied to customer's homes is passed through a testing station where the calorimeter measurements are recorded.
There are two stations, located at Elton, near Middlesbrough and Halton in the East Midlands. Either station can be used to take the measurements although one station recordings may have a higher Calorific Value than the other. We have provided an undertaking to the Department of Trade and Industry that the lower calorific value will always be used when calculating gas bills.
A British/Scottish Gas representative records the readings given by the calorimeters every Thursday.
These readings are then used to determine the value we will use on bills to be produced the following week. This is done by calculating a rolling average, using each of the previous thirteen weeks lowest recorded values from the calorimeters"

- This process is the same regardless of your british gas tariff, it's a universal process which changes weekly due to the calorific value (CV) readings. As you will see, this means that nobody benefits from a "set price" for their gas.
The other difference in price comes from the "Tier price" which varies dependant on which tariff you are on. Your tier prices can be found on the British gas pricing website.
I have tested tier prices with the help of friends of the website around the country, for prepayment gas tier prices, they all came in exactly the same.

Once again, another report/study into the money lavished industry of car insurance has revealed that customers are being exploited and lied to, by the companies that are supposedly there to protect them!

A report from the Transport Select Committee (Read the news story about it here) found that car insurance companies are receiving "Paid referral" fees, when the accident victim's details are passed to solicitors and the victim makes a compensation claim.

The Association of British Insurers (ABI) disagrees, blaming the "Compensation culture" for pushing up the price of people's premiums and legal costs.

"The [select] committee has failed to recognise that the main cause of the recent increases in motor insurance premiums is ever-increasing personal claims and spiralling legal costs," said Nick Starling from the Association of British Insurers (ABI).

The ABI said the rise in legal costs had added £40 a year to average motor premiums.

A crazy idea... Does the ABI not realise, that if its members (the insurance companies) didn't sell on customer details when they have had an accident and receive referral fees for doing so, there would be far fewer claims for compensation, hence lower premiums for everyone?

As for the claims by the ABI that rises in legal costs have added £40 a year to average premiums, utter rubbish!
They maybe able to explain £40 of increases in my premiums, now ABI, try explaining away the other £400 INCREASE that I had to pay for 2010/2011?

I've been told various excuses for over charging;

• "We've just had a record bad winter!"
• "We have had a lot more claims over the past few months"
• "Every insurance company is doing the same as us"
• "You don't have anymore no claims bonus to take into account"

All of course, are complete tripe!
No mention of the disappearing aspects of my "fully comprehensive" policy - like no longer being able to drive any other vehicle, courtesy car, etc.
Add to this, an increase in the excess from £150 to £250, a major part of my policy for which 28 days notice in writing should be given, by law!

The motor insurance industry are awash with profits from the pockets of their customers.
The passing on of customer's details after they have been involved in accidents, to compensation companies is a disgraceful act. Could it be in breach of the Data Protection Act?

Factor in that motor insurance companies do not check any claims for less than £1000, regardless if fraud is taking place, as most insurance companies have private agreements in place with each other (competition commission should be investigating this) and there is a growing case for official intervention and regulation of the insurance industry.

Those in power are supposed to be looking out for the public's interests.
Regulation is failing and it's us, the ordinary people who are facing continuously higher premiums (for a legal requirement) as the insurance industry make up and fantasise about what is causing the increases.

Something has got to give.... and soon!