British Gas simplifies tariff standing charges

British Gas has announced plans to simplify tariffs by streamlining its standing charges

British Gas has announced plans to simplify tariffs by streamlining its standing charges. British Gas will be aligning its standing charge across payment types and products in order to help consumers better understand and more easily compare tariffs.

Following a review, British Gas will move to offering customers a single standing charge per fuel. This will apply to all new products launched from 9 July. By the end of August, British Gas will have completed the rationalisation for all but one of its current products* and will have one standing charge by the end of 2013.

This change reflects British Gas’s ongoing work to make tariffs and bills easier for consumers to understand and improve transparency in the energy market. It also forms part of the changes British Gas is making in line with Ofgem’s Retail Market Review.

Ian Peters, Managing Director of Residential Energy at British Gas said:

“The changes to our standing charges are part of continued improvements to the way we sell energy to our customers. At British Gas, we are determined that the way customers buy energy should be simple, transparent and fair. We’ve simplified tariffs, made comparison of prices easier to understand and led the way in clearer bills for customers.

“British Gas customers can also be confident they are on the right deal as British Gas is the only supplier to contact customers every six months with a personalised ‘Tariff Check’ helping them save money and move to a different tariff if it’s cheaper for them.

“We are continually working to improve simplicity and clarity in the energy market and Ofgem’s Retail Market Review should establish a common standard across all suppliers and help improve trust in the sector.”

*Whist we work through all the implications of the Retail Market Review our Clear & Simple product will continue to offer direct debit customers a 6% discount off the standing charge and unit rate and will move to one standing charge once we have completed the implementation of all of the changes required under the Retail Market Review.

Clear & Simple will move to a single standing charge by the end of 2013.

Customer on existing fixed price contracts will be unaffected and their tariff structures will remain unchanged until the end of the product term.


Standing Charges

A standing charge is a fixed amount that is applied to gas and electricity bills daily. The standing charge covers an energy supplier’s fixed costs to provide energy to a home. For example, distribution and metering services as well as Governmental costs such as carbon reduction commitments and supporting the vulnerable.