Bord Gais level pay

Ciarrai76

I’m looking to switch providers this week as my contract ends with Energia. I’ve noticed Bord Gais has the best rates via Bonkers.ie, but it says it’s a level pay contract. Would people recommend this? Our bills have been getting quite high with Energia so it seems good, but is there a catch?

limnam

Why would you think there's a catch?

L1011

You need to make sure your readings are accurate / submitted if not being read and that the level pay amount is not ending up hugely in debt or credit - it would be normal to be in debt in winter and credit in summer though. That's about it. I've used it before, ended up in credit when I left. Prefer to pay the actual amount at the time but if you need to budget it could be useful.

Ciarrai76

limnam wrote: »

Why would you think there's a catch?

I asked is there a catch as I want to make sure theres not going to be some sort of extra payment at the end of it. I am asking here so I know for sure if it’s recommended! :rolleyes:

limnam

L1011 wrote: »

You need to make sure your readings are accurate / submitted if not being read and that the level pay amount is not ending up hugely in debt or credit - it would be normal to be in debt in winter and credit in summer though. That's about it. I've used it before, ended up in credit when I left. Prefer to pay the actual amount at the time but if you need to budget it could be useful.

They re-adjust it now if you're consistently paying too much/little

Ciarrai76

L1011 wrote: »

You need to make sure your readings are accurate / submitted if not being read and that the level pay amount is not ending up hugely in debt or credit - it would be normal to be in debt in winter and credit in summer though. That's about it. I've used it before, ended up in credit when I left. Prefer to pay the actual amount at the time but if you need to budget it could be useful.

Thanks. I usually always submit a reading. It appeals to me regarding budgeting as our bills are getting too high & starting to worry me before they arrive! Tempted to try this.

limnam

Ciarrai76 wrote: »

I asked is there a catch as I want to make sure theres not going to be some sort of extra payment at the end of it. I am asking here so I know for sure if it’s recommended! :rolleyes:

Ok but you're not buying electricity from a few lads on a street corner


There would be no point in them trying to "catch" you out.



The only "catch" is you might pay more than you use in some months but in general it should level out

whelan2

They review the amount you pay every 4 months. I submit a meter reading every 2 months about a week before the bill is due.

OldMrBrennan83

limnam wrote: »

Why would you think there's a catch?

With any provider of anything there's usually a catch.

L1011

Ciarrai76 wrote: »

Thanks. I usually always submit a reading. It appeals to me regarding budgeting as our bills are getting too high & starting to worry me before they arrive! Tempted to try this.

Effectively you end up paying for more than you use in the summer - particularly if you have gas or electric heating and an older house - and less in the winter. I think some of the other operators offer it too, but Bord Gais really heavily push it. That's it, nothing else to it.

limnam

Patww79 wrote: »

With any provider of anything there's usually a catch.

They're not banks :pac:

Ciarrai76

limnam wrote: »

Ok but you're not buying electricity from a few lads on a street corner


There would be no point in them trying to "catch" you out.



The only "catch" is you might pay more than you use in some months but in general it should level out

Ok, thanks. Wasn’t sure hence asking here if any ‘catch’! Other replies much more helpful!

L1011

limnam wrote: »

They're not banks :pac:

There are energy suppliers in this market with extremely devious sales tactics so it's a valid query.

Ciarrai76

L1011 wrote: »

There are energy suppliers in this market with extremely devious sales tactics so it's a valid query.

Thank you!

judeboy101

You are giving them an interest free loan as they tend to build in a premium on the level
pay

limnam

judeboy101 wrote: »

You are giving them an interest free loan as they tend to build in a premium on the level
pay

They normally base the starting point as an average of your previous bills or a similar house if you've no history.


This is adjusted every few months if you're paying too much/little.


So in the months you're using more than you're your paying, you're getting an "interest free loan" and vice versa in summer months.


That "catch" is the whole point of level pay

L1011

judeboy101 wrote: »

You are giving them an interest free loan as they tend to build in a premium on the level
pay

If you start your contract term in Summer.

They are giving you an interest-free loan in Winter

judeboy101

limnam wrote: »

They normally base the starting point as an average of your previous bills or a similar house if you've no history.


This is adjusted every few months if you're paying too much/little.


So in the months you're using more than you're your paying, you're getting an "interest free loan" and vice versa in summer months.


That "catch" is the whole point of level pay

Except they even in summer they charge you slightly more to cover extrenums. And they are none too quick giving u back an overspend if you decide to leave.

L1011

You ask for it, its EFTed back immediately.

Hurrache

Ciarrai76 wrote: »

but is there a catch?

If you haven't been with them the previous year or two they'll take a guess at what your yearly bills will be spread over a month. I personally believe they may slightly underestimate this so as it appears you're getting lower bills. Then after a few they'll adjust your monthly bill. It's in the small print but it'll still catch you out if not expecting it.

Despite us using a tiny bit of gas over the summer because of the weather we had, ours was adjusted upwards for the last few months of the contract, and our meter is read regularly enough.

whelan2

When I joined them first they said 150 per month. I'm a dairy farmer and knew it should be 2 or 3 times that. Rather than get caught out we set it at 350, it's now 430 per month. Reviewed every 4 months. You can also make one off payments

zell12

Ciarrai76 wrote: »

I’m looking to switch providers this week as my contract ends with Energia. I’ve noticed Bord Gais has the best rates via Bonkers.ie, but it says it’s a level pay contract. Would people recommend this? Our bills have been getting quite high with Energia so it seems good, but is there a catch?

You should also check www.switcher.ie
Do the calculations yourself.

Ciarrai76

Does Bord Gais insist on this level pay or can you just do the normal way of paying by dd? I’m not sure if it will be of much benefit to us. We would be switching from Energia, and our bills have been getting quite high with them. I know they are all after increasing their rates but Bird Gais does seem to have the lowest from what I can see.

Our high bills aren’t helped by our old appliances which are probably not energy efficient. Ideally we would like to get better ones, but not an option for now.

L1011

The rate you're seeing will only be available on level pay; their normal post-pay rates are significantly higher.

zell12

Ciarrai76 wrote: »

Does Bord Gais insist on this level pay or can you just do the normal way of paying by dd? I’m not sure if it will be of much benefit to us. ..

Why don't give us some basics
Nightsaver/none
Kwh usage per annum

Ciarrai76

L1011 wrote: »

The rate you're seeing will only be available on level pay; their normal post-pay rates are significantly higher.

I was thinking that!

dubrov

Ciarrai76 wrote: »

Does Bord Gais insist on this level pay or can you just do the normal way of paying by dd? I’m not sure if it will be of much benefit to us. We would be switching from Energia, and our bills have been getting quite high with them. I know they are all after increasing their rates but Bird Gais does seem to have the lowest from what I can see.

Our high bills aren’t helped by our old appliances which are probably not energy efficient. Ideally we would like to get better ones, but not an option for now.

The main reason why they offer level pay is because they can debit your account much more quickly *i.e. on the day the billing period ends). With post-pay, they would have to wait 2 weeks after issuing an invoice before collecting payment.

I've also found their "estimates" are consistently about 10% above the actual reality. You get it all back at the end of the year but you end up effectively lending the difference to them for the period at 0%.

lawred2

judeboy101 wrote: »

You are giving them an interest free loan as they tend to build in a premium on the level
pay

this

we're about 600 quid up with BG

The Mulk

I'm using it at the moment, switched from energia for both gas and electric.

I'm still in credit for my gas,(you can check your bills/account on line) after the summer and mild winter so far, so it seems to be accurate.

Handy for us as it' s DD every month, paperless billing etc. I'll review it after a year, see who has the best rates, but nice to know I won't get a large bill early next year

Fol20

I’m with energia at the moment. Do they stop whatever promotion they give you after a year so you just revert back to their base package?

The Mulk

Fol20 wrote: »

I’m with energia at the moment. Do they stop whatever promotion they give you after a year so you just revert back to their base package?

yeah, you're on a 'new customer' rate. I rang them and they gave me an offer, not as good as the one i was on so I shopped around.

Ciarrai76

Fol20 wrote: »

I’m with energia at the moment. Do they stop whatever promotion they give you after a year so you just revert back to their base package?

Yes, when your contract ends so does any promotion you’re on. Ours ends next Saturday so I’m shopping around this week.

Ciarrai76

zell12 wrote: »

Why don't give us some basics
Nightsaver/none
Kwh usage per annum

No nightsaver at home. Is this something you can get & is it recommended?

I’ll have to work out our annual usage.

Tar.Aldarion

I like paying each month and it being the same price. I've ended up hundreds in credit and that will disappear over the winter when I spend way more on heating, so it works out ok. They are much cheaper than what I was previously on.

3DataModem

Level pay is fine, and a great idea for this country where heating costs vary so much by season.

The reason they do it is people on level pay are less likely to switch providers, and direct debits are less likely to bounce.

Ciarrai76

zell12 wrote: »

Why don't give us some basics
Nightsaver/none
Kwh usage per annum

Looks like we are using roughly 9,600 kWh per Annum. It’s a 4 bed semi, 2 adults & 1 small child.

Ciarrai76

Tar.Aldarion wrote: »

I like paying each month and it being the same price. I've ended up hundreds in credit and that will disappear over the winter when I spend way more on heating, so it works out ok. They are much cheaper than what I was previously on.

It does sound good. Thanks.

Degag

dubrov wrote: »

The main reason why they offer level pay is because they can debit your account much more quickly *i.e. on the day the billing period ends). With post-pay, they would have to wait 2 weeks after issuing an invoice before collecting payment.

I've also found their "estimates" are consistently about 10% above the actual reality. You get it all back at the end of the year but you end up effectively lending the difference to them for the period at 0%.

They don't debit a customer's account on the day the billing period ends. They simple debit it once a month on a date of the customer's choosing.


Also they don't estimate readings. That's done by Gas Networks Ireland who maintain the network and provide estimates to all energy providers.

tomplate

I'm none too pleased since I switched

I'm paying more on level pay than I was on standard billing with my previous provider

Also most of the €150 switching bonus is left sitting in the account 8 months later which suits them I guess.

Also it's a dogs dinner to make sense of the payments and billing on the website

Ciarrai76

tomplate wrote: »

I'm none too pleased since I switched

I'm paying more on level pay than I was on standard billing with my previous provider

Also most of the €150 switching bonus is left sitting in the account 8 months later which suits them I guess.

Also it's a dogs dinner to make sense of the payments and billing on the website

I’m still not sure what to do. I don’t see any switching bonus with them at the moment either. I have a few days before we can switch so I need to have a bit of a ring around tomorrow.

EverythingGood

If you are a Tesco shopper or Tesco mobile customer, you can add your clubcard and build up points this way also. And use the points against your bill.

Ciarrai76

EverythingGood wrote: »

If you are a Tesco shopper or Tesco mobile customer, you can add your clubcard and build up points this way also. And use the points against your bill.

Rarely shop in Tesco & don’t have a Tesco phone so it wouldn’t benefit me.

Degag

Ciarrai76 wrote: »

I’m still not sure what to do. I don’t see any switching bonus with them at the moment either. I have a few days before we can switch so I need to have a bit of a ring around tomorrow.

People over-complicate Level Pay. When it comes down to it all you are doing is paying a set amount every month against your two month bill. You will therefore then always have a running balance on your account. Sometimes debit, sometimes credit.


If you are happy to have a running balance on your account then Level Pay will probably work for you. Some people however like to pay their bill when it comes in and clear it. If you are like this then Level Pay is probably not for you.

dubrov

Degag wrote: »

They don't debit a customer's account on the day the billing period ends. They simple debit it once a month on a date of the customer's choosing.


Also they don't estimate readings. That's done by Gas Networks Ireland who maintain the network and provide estimates to all energy providers.

I checked my payments last year (bi-monthly invoicing)
24/03/17 = Sign up date
28/04/17 = Paid first level pay amount
29/05/17 = Paid second level pay amount
31/05/17 = First invoice issued

If I wasn't on level pay, the first bill issued would still have been 31/05/17 but they wouldn't have debited any money until 2 weeks after that. Cashflow is a big thing for suppliers.

Also, I am aware that Gas network providers provide gas meter estimates for historical periods (ESB Networks do electricity). They do not provide annual forecasts and Bord Gais are free to make their own. All I am saying is that my level pay amounts consistently overcharge when the whole year is considered. They also do not provide any details on how they calculated their level pay amount.

martingriff

Hi have my Gas and electricity with Bord Gais and both are level pricing throughout the year. What they then do is at the end of the year see your actual level and then up or lower the bills for next year plus whatever extra over the 12 months if it was higher. I am actually in credit this year with my Gas

Degag

dubrov wrote: »

I checked my payments last year (bi-monthly invoicing)
24/03/17 = Sign up date
28/04/17 = Paid first level pay amount
29/05/17 = Paid second level pay amount
31/05/17 = First invoice issued

If I wasn't on level pay, the first bill issued would still have been 31/05/17 but they wouldn't have debited any money until 2 weeks after that. Cashflow is a big thing for suppliers.

There is no doubt that it works well for the suppliers in terms of getting regular payments every month but the same is quite true for the consumer. I know i'd rather pay a set amount every month instead of perhaps getting a huge bill that needs to be paid on week 4 of a month when i'm monthly paid.

Gooser14

martingriff wrote:

Hi have my Gas and electricity with Bord Gais and both are level pricing throughout the year. What they then do is at the end of the year see your actual level and then up or lower the bills for next year plus whatever extra over the 12 months if it was higher. I am actually in credit this year with my Gas

Why would you stay with the same supplier for more than a year. Surely you are missing out on lower prices by not switching to an alternative supplier.

van_beano

Gooser14 wrote: »

Why would you stay with the same supplier for more than a year. Surely you are missing out on lower prices by not switching to an alternative supplier.

I've been with Bord Gais for about 4 years now, I ring on the contract ending day every year to renew. They have always credited me €150, gave me whatever the discounts on the gas & electricity is and a further 1000 Tesco points.

The Tesco points are great as they can be doubled and that's €20 that can be paid of gas and electricity. I am still on level pay - Electricity about €44 per month, gas was the same but it has been knocked down to €28 from this month, it'll change again in a few months I reckon. Between both gas and electricity I am €800 in credit. Over the course of 4 years I have benefitted by over €1100 by using the Tesco vouchers boost. I do all my shopping in Tescos and had a Tesco Credit Card (now Avantcard, same points benefit) so the points really add up.

Xterminator

this year when i went out of contract i signed up with the one big switch offer. It just happened this was with my existing supplier, BG.
so i got the discount 28% and did not change supplier. if you see an offer and call them up you should get it once your out of contract.

Its only the people who dont call up that get screwed.

EverythingGood

Xterminator wrote: »

this year when i went out of contract i signed up with the one big switch offer. It just happened this was with my existing supplier, BG.
so i got the discount 28% and did not change supplier. if you see an offer and call them up you should get it once your out of contract.

Its only the people who dont call up that get screwed.

I have that 28% discount also, plus call each year and get at €100 cashback and Tesco club points, been with BG for 8 years now and wouldn't move.

NIMAN

Been with BG for approx 7 years now, and currently on level pay.

Anyone know if they have any offers on at present, or would it be worth calling them?