Does the British Gas billing change make a difference?
News that British Gas is looking to introduce a new system which will accurately record month by month energy usage, rather than estimated usage, has caught many consumers by surprise. However, when you consider that some of your historic estimated bills have been too high and some have been too low, the net effect to consumers is likely to be minimal. However, there may be some impact upon the cash flow of the likes of British Gas.
Those who pay by direct debit have for many years been subsidising the likes of British Gas, paying the same amount per month and often building up a substantial credit during low energy consumption times of the year. If these customers were to move to the month by month basis, which would see payments taken to cover energy used, rather than estimates, it may well impact upon the cash flow and interest which the likes of British Gas have earned on their significant credit cash piles.
To all intents and purposes many people believe this is nothing but a publicity stunt to catch the headlines while the real issue, i.e. energy prices, is yet to be tackled. Despite the fact that the UK government and UK regulators have "put the squeeze" on UK energy companies there has been little joy for UK consumers over the last few years.
Share this..
Related stories
Slowing market offers opportunities for first-time buyers
The slowing property market may offer the perfect opportunity for first-time buyers to invest, according to First Rung Now who offer advice to first time buyers.Nationwide have reported that there are now "clearer signs" that demand in the property market has slowed, and its most recent house price survey showed that annual house price inflation had dropped to 9.6 per cent this month, down from 9....
Read MoreHome insurance flood effort 'going well'
The government minister in charge of flood relief has received a progress report on the recovery effort from last summer's extreme weather.After speaking to the Association of British Insurers (ABI), John Healey said that home insurance firms' efforts were well on track.Three quarters of those forced into alternative accommodation thanks to flood damage to properties are expected to be back home b...
Read MoreAXA rewards safe motorists
Financial giant AXA has revealed a new car insurance policy which will see those with eight or more years no claims bonus receiving a 90% discount on their premiums. This compares to the average discount of 65% on a maximum five-year no claims bonus and will obviously further benefit the vast majority of drivers in the UK who do not claim on their car insurance. This comes at a time when the AA...
Read More'Borrowers will need larger deposits in 2008'
Financial institutions are more likely to insist on larger deposits from potential buyers this year, it has been claimed. According to the Royal Institution of Chartered Surveyors (Rics), the slowdown in the housing market is set to continue during the coming months. This, coupled with concerns over the credit crunch, will lead banks and building societies to tighten lending criteria, and insist o...
Read MoreSubdued share trading to hit tax income
The UK government is set to suffer a significant fall in tax income related to share trades as activity on the UK stock market has now fallen back to 2002 levels. The government banked a record £4.2 billion in the 2007/8 tax year due to the 0.5% stamp duty charged on each and every share transaction. However, the figure for this year will be nearer £3 billion and many experts believe it is unlik...
Read More