In this section we have outlined some basic information to help you review your gas buying policy. There are also some handy tips to help you find the right supplier for you.
· FAQs
· Jargon
Gas was the first of the energy utilities to be privatised. Today, gas consumers in Great Britain have the right to purchase gas from many different suppliers.
With the opening up of the marketplace, many companies now offer supplies to customers of all sizes. All the major electricity companies have gas sales divisions, as do most of the major oil companies.
There are two main user groups in the UK: Domestic Consumers and Industrial & Commercial (I&C) consumers. These two markets have very different characteristics and behave quite differently. For this reason we have split them in this advice section. Smaller customers (customers using less than 2,500 therms a year) are normally charged a flat rate per therm of gas and are billed quarterly. Some suppliers may also charge a monthly standing charge.
The Government has been keen to encourage smaller customers to move to a new supplier and away from British Gas. This has been achieved by fixing BG's tariffs and allowing competitors to undercut their price.
Buying Tips for Small Businesses
Due to the number of suppliers in the market there are a multitude of different deals available to customers. Shopping around will help to find the best deal for you. Our calculator contains prices from all suppliers; use it to help you find the most competitive supplier for you. Through this website it is also possible to request a contract to be sent to you, and with some suppliers, you can even sign the contract online. For larger customers (i.e. those using over 73,200 kWh per year), we recommend obtaining quotes for the supply of your gas, since this will ensure you receive the most competitive price available. We suggest that you obtain a quote from them as a benchmark against which to compare any other quotes you receive. We find Enron to be one of the most competitive suppliers in Britain.
With larger customer there are a far greater number of issues to consider when buying Gas. Below we have listed points that should be considered before a contract is signed. However, ultimately only you will know your exact requirements and therefore the best supplier for you.
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Buying tips for larger customers
The final gas price is made up of a number of items, the two most important of which are the price of the fuel itself and the transportation cost.
In addition to distance, the transportation charge is also affected by load factor, which is a measure of the stability of consumption over the year. If demand does not seesaw up and down, then transportation costs are likely to be lower than if it was extremely variable.
Changing supplier is actually very easy. Each meter or site has a unique identification code or Meter Point Reference Number (known as the MPR number). When the transfer to a new supplier is requested by a customer the M number and the transfer request are recorded on a database held by Transco. The old and the new suppliers then agree a transfer meter reading, known as a Shipper Agreed Read. After this the customer will receive a final bill from the old supplier and, in due course, be billed by the new provider.
Smaller customers will normally be on a rolling contract and will need to give their existing supplier 28 days notice before transferring. The new supplier will need to know the meter point reference number, which will be printed on bills as well as other basic details like address, etc.
If you are in debt to the existing supplier, or have a bill more than 28 days outstanding, that company may be able to object to the transfer until the debt or bill is settled.
Some people may have entered into fixed period contracts which typically run for one or two years and are normally at a fixed price. To switch to another supplier part way through the term may mean paying a termination fee in addition to giving the 28 days notice. The contract terms will make this clear. This penalty does not apply if you are moving premises or the supplier is changing the price. In the latter case, customers can terminate the contract by informing the supplier within 14 days of receiving details of the increase in price and giving 21 days notice.
Problems have been known to occur in the transfer process. Transfer normally takes approximately 28 days. Check your first bill after a transfer request, if it appears nothing has changed contact your new supplier immediately. They will instigate an investigation, which should quickly uncover and correct the source of the problem.
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Is the gas the same, regardless of who I buy it from?
Yes, all gas from any supplier in Great Britain will meet the same specifications and quality. The supplier does not actually supply his own gas into the system he buys from the producers and sells on to the customer.
What happens if my supplier goes out of business?
Centrica (trading as British Gas) has an obligation to supply as a stop-gap, but any supplier should be willing to take on supply, subject to the signing of a new contract with them. Indeed, all suppliers are required by their licence conditions to accept any customer who agrees to abide by their published terms and conditions.
In the deregulated market, who is responsible for repairs?
Transco operates the emergency gas leak service. The telephone number is 0800 111 999, or you can contact your gas supplier.
Repairs on the supplier's side of the meter are the PGT's responsibility. Those on the customer side are the customer's responsibility, although Transco will make the system safe on an emergency call out.
Work on gas appliances must, by law, be carried out by a qualified CORGI engineer.
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Calorific value (CV): the amount of energy per cubic metre of gas, which will depend on the density at which it is transported among other things. Transco is required to deliver gas within a narrow range of calorific values in order to ensure that gas can be burnt safely by customer appliances.
Domestic sites: those sites using less than 73,200 kilowatt hours (kWh) – 2,500 therms – per year
Firm gas supply: non-interruptible (see below)
Gas Consumers' Councils: The 1986 Gas Act set up a Gas Consumers Council (GCC), which has responsibilities for the investigation of problems, but no legal powers. It has regional offices and will investigate and make judgements on consumer complaints. These regional bodies are being reorganised and their successors will also have responsibility for dealing with complaints about electricity supply. The new bodies will also have increased powers.
Industrial & Commercial (I&C) sites: those supply points with an annual gas consumption of more than 73,200 kilowatt hours (kWh)
Interruptible gas: gas supplied under contracts where the customer is required to stop using gas when instructed to do so by the supplier or by Transco. There is normally an upper limit on the number of days 'interruptibility' per year.
M number: the meter point reference number, a unique identifier of each supply point on Transco's national database.
Network Code: document that lay out the rights and responsibilities of all those using a PGT network. 'The Network Code' is normally used to refer specifically to the Transco network.
Ofgem: the Office of Gas and Electricity Markets, the industry regulator.
PGT: public gas transporter – a pipeline network operator, the largest of which is Transco.
Shipper: a company that buys gas from producers, sells it to suppliers, and employs a PGT to deliver it to the consumer
Supply point: a group of one or more meters at a customer's premises
Therm: an (Imperial) measure of the energy content of a unit of gas. It is equivalent to 29.307 kWh. Although officially its use has been superseded by the kilowatt hour, it is still in common use as a measure for gas. For contract purposes units will be denoted in kWh.
The gas and electricity regulator, Ofgem – www.ofgem.gov.uk
The Office of Fair Trading (OFT) – www.oft.gov.uk
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CHANGING TO A CHEAPER SUPPLIER |
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Complete our enquiry form and provide the
MPR
number along with full supply address on an existing bill (even if this is
not the correct postal address).
If it is not on your bill, which it is not always, it can be obtained from Transco on 0870 608 1524. |
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Additional Gas Information
Gas supply |
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This information applies to England, Wales and Scotland Who can supply gasThere are many companies who can supply you with gas.
You can find a list of companies which supply gas in your area on the website of energywatch, the gas and electricity consumer council, at: www.energywatch.org.uk.
All gas suppliers are licensed by the Office of Gas and Electricity Markets (Ofgem).
The company which supplies gas to your home will not be the same as the company which is responsible for the gas pipeline, storage system and emergency service.
Gas marketingMost suppliers have agreed a code of practice on the face to face marketing of gas. You may be entitled to compensation if a sales agent fails to follow the guidelines in the code. For example, agents must only call at your home between 9.00am and 8pm, except at your request, and if they are visiting sheltered accommodation must first approach the warden. Sales agents must try to make sure that customers have understood any contract signed and their right to cancel.
If a gas sales agent has broken the code of practice, contact the supplier and claim compensation. If you are unsuccessful in reaching agreement with the supplier, contact energywatch (see under heading Useful organisations). If energywatch cannot resolve the complaint they may refer it on to Ofgem.
Dual fuel offersMost gas and electricity suppliers are licensed by Ofgem to supply customers with both gas and electricity. Some gas suppliers supply both fuels under one contract, while others give one contract for gas and another for electricity.
Suppliers who make dual offers will often give a discount off the total bill as they make administrative savings by issuing combined bills and collecting combined payments. However, this does not necessarily mean that gas and electricity under a dual offer will be cheaper than that bought from separate suppliers.
For information about electricity supply, see Electricity supply. Choosing a gas supplierYou can change your gas supplier if you want to. If you are thinking about changing to another gas supplier, bear in mind that prices, policies and services offered by the different suppliers will vary. You should carefully check the information and contracts of the different suppliers and compare these to your current gas supplier to make sure that you choose the best deal for your needs.
Find out:-
You can check the most up-to-date fuel prices on the energywatch website at: www.energywatch.org.uk.. You can also call energywatch for a price comparison fact sheet, or use online price comparison websites which make it easy to compare and switch suppliers. You can find a list of the price comparison websites on the energywatch website.
The right to gas supplyYou have a right to a gas supply unless:-
If you are refused a supply of gas for reasons other than those listed above, take the matter up with energywatch (see under heading Useful organisations).
Dangerous pipesIf the gas pipes are in a dangerous condition, they must be repaired before gas can be supplied. Pipes located on the house side of the meter are the responsibility of the house owner. Pipes on the mains side of the meter are the responsibility of British Gas National Grid Gas (formerly Transco), - see under heading Who can supply gas - which can be contacted through a customer’s gas supplier.
SquattersA squatter who has not used force to enter the property should not be refused a supply of gas. If the gas supplier is aware that the property is being squatted, financial security will normally be required (see under heading How to obtain a gas supply or change gas supplier). If the premises are in a poor condition, the gas supplier may refuse a supply on safety grounds.
How to obtain a gas supply or change gas supplierWhen you move to a new home, tell the gas supplier the date you want to take over the supply. If it has to be reconnected, the supplier may make a charge. energywatch (see under heading Useful organisations) can advise on whether a charge should be made and what is a reasonable amount. If the supply has not been disconnected, read the meter and inform the supplier of the reading. Keep a copy of the reading.
If you want to change your gas supplier, notify both the current and the new gas suppliers. Both will want a final meter reading taken on the day you change suppliers. Some suppliers will send a meter reader; others will ask you to read the meter and send the reading to them. In either case, keep a note of the meter reading in case there is a dispute later.
For information and advice about changing to a new supplier, contact energywatch on 0845 906 0708 or at www.energywatch.org.uk. energywatch can provide advice on what to check if you want to change suppliers and a list of local gas suppliers. You can also get price comparison factsheets. If a supplier agrees to supply, it must normally:-
If you have a gas debt, you may not be accepted by a new supplier. A protocol exists which ensures that if you have a debt of up to £100 and use a prepayment meter, you are allowed to transfer to a new supplier and take your debt with you. For more information about this protocol you can contact energywatch whose details are given above.
If you have problems getting a gas supply, or it is going to be stopped, consult an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
Providing financial securityIn some circumstances the gas supplier will refuse to connect the gas supply until you have provided suitable financial security. You may be asked to:-
The gas supplier will normally only require security in certain circumstances, for example, if you are a new customer and cannot provide proof of your identity or previous address or have a poor payment record at your present or last address.
GuarantorsIf you name a guarantor, the gas supplier will check whether their record of gas payments is satisfactory. The guarantor will be legally responsible for paying your gas bills if you don't pay. In practice, the gas supplier will only require the guarantor to pay the bill if you don't pay and cannot be traced. The gas supplier will review the arrangement after one year. At that point, if you have paid your bills in full, a guarantor will no longer be necessary.
DepositsThe maximum deposit you can be charged is the two higest quarters of gas used (estimated if necessary). The gas supplier must only request a ‘reasonable’ amount as a deposit. If you believe that the amount of the deposit is unreasonable, take the matter up with the gas supplier. If still not satisfied, complain to energywatch, who may refer the matter to Ofgem (see under heading Useful organisations). The gas supplier will review the deposit after one year. If the bills have been paid in full, the deposit will be returned within two months of the end of the year.
MetersA gas supplier must provide an appropriate meter to a customer who asks for one. There are two main types of meter:-
Credit metersMost customers will have a credit meter, which records gas consumption. A bill is sent out quarterly and calls to read the meter are made every two years. Estimated bills are sent in alternate quarters. You can pay the bill in a number of ways (see under heading Gas bills). Prepayment metersIn most areas, coinless prepayment (‘smartcard’) meters have replaced token, key and coin meters and are the only option for a new installation. If you already have a token, key or coin meter, you can continue to use it until the meter breaks down and cannot be repaired or until you choose a different type of meter. The gas supplier will give you a list of the places you can get the card, token or key charged, which may include vending machines. The meter will record the amount of gas used.
What type of meter will be suppliedThe gas supplier will normally supply a credit meter. If you have difficulty paying for your gas and have not been able to negotiate paying by instalments or similar arrangements, you can ask for a prepayment meter.
If you are over pension age or disabled, you can have a prepayment meter if you want, as long as it is the best way to pay and it is safe and practical to do so. For example, it may not be safe and practical if the meter can easily be broken into or cannot be installed in an accessible place.
Meter readingsYour gas supplier must read the meter at least once every two years. If the gas supplier has been unable to gain access to read the meter it will leave a card for you to fill in with your own reading. If you are disabled, chronically sick or of pensionable age, you can ask the gas supplier to read your meter every three months. The gas supplier must inspect and test the meter at least once every two years.
If you are disabled, chronically sick or of pensionable age and find it difficult to read your meter because of its position, you can ask the gas supplier to move the meter, where reasonably practicable, free of charge.
If you think the meter reading is wrongIf you think the meter reading given on your bill is wrong, take your own reading. If this shows the meter has been misread, inform the gas supplier of the correct reading and a revised bill will be sent. If you think the meter is faulty, report the matter to the gas supplier, who can arrange for the meter to be independently tested.
If you have had an estimated reading, read the meter yourself and contact the gas supplier to give your own meter reading. You will then get an adjusted bill.
Theft from and tampering with a meterIf you have a coin prepayment meter, you are responsible for taking reasonable care of it and the money in it. If the meter is broken into, you are responsible for proving to the gas supplier that the break-in was done by a third party. You should therefore report the break-in to the police. If you have taken adequate care to secure the premises, you will not be held liable for any money stolen.
If you are accused of stealing from or tampering with a gas meter, you should consult an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
Gas billsWho is liable to pay the gas billThe person who requested a supply of gas will be liable to pay for it and their name will appear on the gas bill.
If your name is not on a bill but you are asked to pay it, consult an experienced adviser, for example, a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
Paying the gas billGas suppliers must allow you to pay your bill in a variety of ways, for example, by cash, cheque, postal order, or monthly direct debit. Unless you have joined one of the payment schemes detailed below, the bill is due to be paid in full when you get it.
Regular payment plansAsk your gas supplier for information about payment schemes. Some gas suppliers offer a discount to customers who pay their bills by direct debit, standing order, a fixed payment budget scheme or a flexible payments scheme.
Direct debit, standing order and fixed payment budget schemesWith these schemes, your annual use of gas is estimated, usually based on previous consumption, and you pay this amount by equal instalments throughout the year. If you pay by direct debit or standing order, the payments will be made automatically from your bank account, either monthly or quarterly. If you use a fixed payment budget scheme, you must pay the agreed amount to the gas supplier at the specified times - this is usually weekly but may be fortnightly or monthly.
At the end of the year, you may have a balance owing or a credit. Any amount owed will be taken into account when calculating the next year’s instalments or, if large, will usually have to be paid. Refunds of credits are normally made at six monthly or annual reviews.
Flexible payments schemesThe gas supplier may offer a flexible payments scheme, which allows you to pay any amount at any time. You may find this is a useful payment option if your income is variable. Check carefully the terms of the scheme, for example, how the payments are worked out and what happens if you build up a credit or go into arrears.
Saving money on gas billsYou may be able to reduce your gas bill by choosing a payment method which offers a discount, and by efficient use of gas or insulating your home. All gas suppliers must have a code of practice on using gas efficiently. If a customer asks for it, the gas supplier must also provide, on request, free information and advice on:-
For more information about energy efficiency and saving money, see.Energy efficiency and saving money.
You can also visit:
Gas arrears and disconnectionsIf you have gas arrears, you risk being disconnected.
If you have gas arrears, seek help from an experienced adviser, urgently if you have been threatened with disconnection, for example, a Citizens Advice Bureau To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.
A gas supplier cannot issue a disconnection notice until at least 28 days after issuing a bill. A disconnection notice must be in writing and will give you seven days notice of the gas supplier’s intention to disconnect, giving you an opportunity to pay the arrears, provide a security deposit, or have a prepayment meter installed (see under heading Meters) as an alternative to disconnection.
A gas supplier must not disconnect a gas supply for arrears during the winter period (1 October to 31 March) if you:-
Even if you do not meet the above conditions, the gas supplier should always offer a prepayment meter as an alternative to disconnection (see under heading Meters).
The Home Heat Helpline offers advice on energy efficiency and fuel debts to low income consumers. The Helpline's advisers can help identify where free energy efficiency measures might be available and can also ensure that vulnerable customers are not at risk of fuel supply disconnection. You can contact the Home Heat Helpline on 0800 33 66 99.
Some energy suppliers have set up independent charitable trusts which give grants to some of their customers to help them pay for gas arrears. You can also get grants to pay for electricity arrears and other household bills.
For more information, visit www.edfenergytrust.org.uk or get the Utility Trusts and Schemes booklet from www.britishgasenergytrust.org.uk.
Gas safetyA gas supplier can authorise its officials to enter premises to inspect the gas installation and appliances. If a gas leak is reported, it will be made safe free of charge. Made safe can often mean simply turning the supply off. If an appliance is faulty and has to be disconnected, you will be responsible for buying a replacement and getting it installed. National Grid Gas (formerly Transco), the main public gas transporter, runs a 24 hour freephone national gas emergency service on 0800 111999.
Safety checks for tenantsLandlords must ensure that any gas appliances installed by them are maintained in a safe condition.
For more information on how to get repairs done, see Disrepair in rented accommodation. Safety checks for older people, disabled people and people with long-term ill-healthThe gas supplier will provide a free gas safety check of appliances and fittings for some older people, disabled people or people with long-term ill-health. One free check a year can be requested. The check includes a basic examination and very minor work. Any additional work must be paid for. For more information about other free services you might be able to get from your gas supplier, see under heading Free services for older people, disabled people, and people with long-term ill-health.
Buying and installing gas appliances
Anyone supplying a gas appliance must ensure that it is safe and that it meets European safety standards.
Anyone installing or repairing a gas appliance or equipment must be registered with the Council for Registered Gas Installers (CORGI) (see under heading Useful organisations). They must carry an ID card listing the types of gas work which they are competent to carry out.
Free services for older people, disabled people and people with long-term ill-healthFree services are available from all gas suppliers to customers who:
Services which may be available, depending on your circumstances, include:
For more information or advice about free services from your gas supplier, visit the website of engergywatch, the independent watchdog for gas and electricity consumers, at: www.energywatch.org.uk.
Complaints
If you have a complaint about your gas supplier, first raise it with the supplier. If you are dissatisfied with the way the gas supplier dealt with a complaint, take it up with energywatch (see under heading Useful organisations).
CompensationYour gas supplier may have standards of service together with a scheme to pay compensation if it fails to meet these standards, although this is not a requirement of licence conditions. Ask your gas supplier for details.
Useful organisationsenergywatchenergywatch, the gas and electricity consumer council, is an independent organisation which represents and protects the interests of gas consumers. It can help with complaints about the supply of gas. Tel:
0845 906 0708
The Energy Supply OmbudsmanIf you have a complaint about your gas or electricity bill or a problem when you change your supplier, you can make a complaint to the Energy Supply Ombudsman. You must have complained to your gas or electricity supplier first.
Your supplier must me a member of the Energy Supply Ombudsman scheme. You can find a list of scheme members on the Energy Supply Ombudsman website.
You can contact the Energy Supply Ombudsman at:
PO
Box 966 Tel:
0845 055 0760 or 01925 530263
Office of Gas and Electricity Markets (Ofgem)Ofgem is an independent regulatory body, set up by the government to monitor and regulate the activities of gas suppliers. It has the power to make a gas supplier supply gas to a particular customer, or not to disconnect a gas supply. Ofgem also monitors gas suppliers’ Codes of Practice and seeks to ensure that people with gas arrears are dealt with fairly, reasonably and sensitively.
Consumer complaints are dealt with by energywatch.
Tel:
0845 906 0708
Council for Registered Gas Installers (CORGI)CORGI is an independent organisation which promotes gas safety. Anyone who installs or services gas equipment must register with CORGI. CORGI ensures that the Gas Safety Regulations and the British Standard Codes of Practice are met, although it does not prosecute firms itself but refers the case to the Health and Safety Executive.
If you wish to complain about a gas installer, or want details of CORGI registered gas installers, contact CORGI at:- |
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