ALL YOU NEED TO KNOW ABOUT GAS COMPETITION

This information was 'originally' put together by OFGAS but it will still help you make an informed decision on which company might best meet your needs.

CONTENTS

watchdog
Why competition?
Competition stages
Who will supply gas?
Will I need new pipes?
What about cost?
Do I have to switch?
If I switch, what is involved?
What about people with special needs?
What if I can't pay my bill?
What if I'm in debt to my existing company?
Who takes care of safety?
Will I need a new gas meter?
Who will read it?
What if my supplier goes out of business?
What about complaints?
How will gas be sold?
What about contracts?
Questions to ask gas companies
Questions new gas companies may ask you
Need further advice?

WHY COMPETITION?

Until 1997, everyone has been supplied with mains gas from one gas company. Competition allows you to choose between different gas companies.

 

Gas companies will complete on both price and service, allowing you to choose the one that best suits your needs. There are already a number of new gas companies able to supply you with mains gas for cooking and heating.

 

As well as offering significant price reductions, these energy specialists are also likely to offer different services. For example, you may be offered a 'package', including energy-saving measures such as a new boiler, heating controls or the installation of cavity wall insulation; or maybe a service agreement where the company maintains your gas appliances.

 

competition

This information applies to domestic supplies on mains gas who use less than 2.500 therms or 73,000 kWh's a year.

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COMPETITION STAGES

Competition was introduced in stages.

Stage 1 2.5 million homes 1st November 1997
Scotland, Durham, Hartlepool, Middlesborough, Northumberland, Redcar & Cleveland, Stockton-on-Tees and Tyne & Wear.

Stage 2 2.8 milion homes 27th February 1998
Cumbria, Greater Manchester, Merseyside, the City of Kingston-upon-Hull, Lancashire, the East Riding of Yorkshire, North Yorkshire and York.

Stage 3 2.9 million homes 27th March 1998
Cheshire, Derbyshire, North Lincolnshire, Nottinghamshire, Shropshire, Staffordshire, South Yorkshire, and West Yorkshire.

Stage 4 3.2 million homes 24th April 1998
Wales and the counties of Gloucestershire, Hereford and Worcester, Liecestershire, Oxfordshire, Warwickshire, the West Midlands and Wiltshire.

Stage 5 2.1 million homes 22nd May 1998
Bedfordshire, Berkshire, Buckinghamshire, Cambridgeshire, Essex, Hampshire, Hertfordshire, the Isle of Wight, Lincolnshire, Norfolk, Northamptonshire and Suffolk.

Stage 6 3.1 million homes 19th June 1998
Greater London and Surrey.

Competition was introduced to Cornwall, Devon, Somerset, the former county of Avon, Dorset, Kent and East and West Sussex prior to April 1997.

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WHO WILL SUPPLY MY GAS?

Only companies which have been granted a licence by Ofgas will be allowed to supply gas.
Licensed gas companies will have to meet certain conditions.

These include:supplying gas to anyone connected to mains gas in the licence area who asks for it; and
offering a variety of ways for customers to pay for their gas - for example by cash, by cheque or postal order.

Having met these and other conditions, companies are free to offer a wide range of other services and prices.

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WILL I NEED NEW PIPES?

NO. So there is no need to dig up the road or your garden. The gas will be delivered through the same pipelines and will still meet the requiredstandards. In fact, the only change will be who sells you the gas and sends you the bill.

WHAT ABOUT COST?

New gas companies will set their own prices. To attract customers their prices will have to be competitive. To help you make an informed choice, they will publish their prices and other terms. These will be available on request.

DO I HAVE TO SWITCH?

No. The choice is yours. If you do nothing, your gas will continue to be supplied by your existing company.

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IF I SWITCH, WHAT IS INVOLVED?

First, shop around. Check for the best price and other services that rival companies are offering. Make sure the one you choose best suits your circumstances.

 Once you have made your choice, you will agree a new contract with your new gas company. The contract is a legal document. Once it is signed you must give 28 days written notice to cancel it if you decide to change to another company. If an uninvited sales person comes to your home and you sign a contract, you will have 7 days to change your mind and let them know you wish to cancel.

You should only sign one contract to supply gas to your home - two competing firms cannot supply gas at the same time to the same meter. If you have more than one house you can, of course, have a different gas comany supply each address.

If you decide to switch to a new company, quoting your meter point reference number (which can be found on your gas bill) will make changing a lot easier.

Your new company will read your meter, or ask you to do it for them, within two working days before or after they start to supply your gas. This reading will be used to produce a final bill from your previous company.

If possible, keep a note of your meter reading on the day you transfer to the new company.

For more information about contracts, look in the section headed What about Contracts?

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WHAT ABOUT PEOPLE WITH SPECIAL NEEDS?

Companies must provide special services to some pensioners, chronically sick or disabled customers. This includes help and advice on the safe use of gas, a free safety check on request, and special adapters and controls for those who have difficulty using their gas appliances. They must also provide help for people who are blind, partially sighted or have hearing difficulties - for example, by helping them read their bills and make enquiries.

WHAT IF I CAN'T PAY MY BILL?

If you have problems paying for your gas, companies must offer assistance and advice. They must agree a plan with you to repay the debt, and/or offer you a prepayment meter. A prepayment meter would allow you to pay for your gas as you use it and at the same time to pay off any debt.

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WHAT IF I'M IN DEBT TO MY EXISTING COMPANY?

If you are in debt to your existing company or you have a bill outstanding for more than 28 days, you may be unable to transfer to another gas company until you pay the amount outstanding.

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WHO TAKES CARE OF SAFETY?

The gas industry in Great Britain has an excellent safety record and BG Transco will continue to be responsible for dealing with the gas leaks and emergencies.

If you smell gas, the national emergency FREEPHONE number for help is 0800 111 999.

 

WILL I NEED A NEW GAS METER?

 

No. You can keep your existing meter, although in a few instances a company may offer a different one.

WHO WILL READ IT?

Your new gas company will arrange for your meter to be read. Meter readers must carry identification so you can check who they are.

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WHAT IF MY SUPPLIER GOES OUT OF BUSINESS?

complaint

It's unlikely, but should your gas company go out of business your gas will not be cut off. Ofgas will immediately appoint another company to supply you temporarily until you have chosen tour new company.

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WHAT ABOUT COMPLAINTS?

If you have a complaint, first tell the company who supplies your gas - the address and telephone number will be on your contract or gas bill. If you are dissatisfied with their response, contact:
the Gas Consumers Council which will take up valid complaints with the company. The address of the GCC is at the bottom of this page;
if the Gas Consumers Council cannot resolve the problem and it involves a possible breach of current legislation, it will contact Ofgas. Ofgas has statutory powers to make sure gas suppliers comply with their licence conditions.

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HOW WILL GAS BE SOLD?

The new gas companies will sell their services in different ways:
selling gas

You should always ask doorstep sales people for some identification and which company they represent.

Telephone and doorstep sales people can be very persuasive. Often they will offer a discount or some other incentive to get you to accept on the spot. Because of this, the law allows you 7 days to cancel the contract. This does not apply if you have invited them to call.

There is no need to pay any agent to find you a gas supplier. All gas companies will advertise their services and you can contact them direct.

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WHAT ABOUT CONTRACTS?

If you switch to a new company you will be asked to enter into a new contract. This will say, for example, how you have agreed to pay the bill; explain arrangements for termination of the contract, and confirm any extra services that the company has agreed to provide.

You are likely to be offered two sorts of contracts;contract

Before signing any contract, it is wise to compare the prices, terms and conditions with the deals offered by rival companies. Make sure you understand any contract before you sign it.

If you already have a service contract for your gas appliances, this is not affected by a new contract to supply gas.

Shop around before you sign.

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QUESTIONS TO ASK GAS COMPANIES

 
"How much will the gas cost?"

"Is this contract for a fixed period or is it a rolling contract?"

"How long does the contract last?"

"What are the arrangements for ending the contract?"

"What services are you offering - for example, how often will my meter be read?"

"Who do I talk to if I have a query?"

 

ASK THE QUESTION "What are the payment options? (for instance, direct debit, monthly or quarterly instalments, cash, cheque or prepayment meter?)"

"How often will I get my bills/statements of account?"

"Will there be a standing charge - if so, how much?"

"What help can you give me if my boiler or gas appliances break or need servicing?"

"Do you offer any other services - such as energy-saving measures which can save money on gas bills?"

 

To help you compare companies, ask the above questions.

The answers you recieve will help you to choose the supplier who offers the best deal to suit you.

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QUESTIONS YOUR NEW GAS COMPANY MAY ASK YOU

 
"How much is your
average quarterly
bill?"

"What type of meter do you use at the moment - eg: prepayment or credit?"

 

QUESTIONS FOR YOU "What is your preferred method
of payment?"

 

"What is your full address and postcode?"

"Are there any other services
you require - eg: help with
reading your meter?"

"What is your meter point
reference number?"

 

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NEED FURTHER ADVICE?

If you feel you still need more information or have unanswered questions, further advice can be obtained from:

Gas consumers council (GCC), Abford House, 15 Wilton Road, London SW1V 1LT. Tel: 0645 06 07 08

The gas consumers council is a statutory body representing the interests of gas consumers in the UK which offers free help and advice.

  Ofgas, the Office of Gas Supply, was set up by the government in 1986 to protect the interests of gas consumers both by controlling British Gas' prices and by developing competition in the gas market. Ofgas also issues gas licences and ensures companies comply with their terms.

This booklet is also available in some other languages, in braille and large print at your local Citizens Advice Bureau.

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