British Gas offers monthly bills to customers

Wednesday, 25 November 2009 11:58

British Gas is to give its customers the option of paying accurate energy bills each month instead of quarterly estimated bills.

The company says its research has shown that estimated bills are unpopular among its 16 million customers. The move comes well ahead of government proposals to install so called "smart meters" in every home by 2020.

Customers who take up the energy providers offer will receive a new energy-use monitor and be asked to submit monthly readings online or by text.

British Gas said there would be "no direct effect" on its team of meter readers, but said that the new system would allow people to only pay for the gas they actually used.

Customers who sign up will also get a £40 loyalty bonus at the end of the year, providing they have consistently submitted monthly readings.

British Gas has previously been criticised for overcharging customers through its estimated bills. Yesterday in an acknowledgment of previous failings the company took out full page adverts in several national newspapers publishing an open letter, which invited its customers to join a consumer panel to see how the company works and publicly report back its findings.

Consumer groups gave a cautious welcome to the announcement of the "Energy Smart" scheme and consumer panel.

Gareth Kloet, head of utilities at Confused.com, said: "I am a fan of encouraging customers to pay their energy bills on a monthly basis and the incentive of a free energy monitor should help people to take more interest in the amount of energy they are using, especially if they are being reminded to read their meter every month. It should encourage a change in behaviour and therefore reduce the amount of energy that people waste."

Meanwhile, Robert Hammond, energy expert for Consumer Focus, said while the new proposals from British Gas were welcome a detailed examination by the Competition Commission of the energy market itself was overdue.

He added: 'Millions of people are paying over the odds to heat their homes this winter, despite huge falls in the wholesale price of gas. A truly competitive market would ensure that when energy companies pay less to supply energy, customers pay less to receive it. Yet none of the big six energy companies are breaking ranks and passing on lower wholesale costs to their mainstream customers."

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