British Gas & Capping Clarifications.

MSE_Martin · 31 July 2008 at 12:32PM

Hi folks I know many are confused about the new 2011 cap - so i've added this to the guide... I hope it helps

Should you cap on British Gas’ new 2011 cap?

This has become a very common question. Its new capped tariff ISN’T one of the cheap caps. It’s set at the same as BG standard tariff rate. People on cheaper tariffs like Click Energy will a hefty premium if they switch to it, and its unlikely to be worth it in the short run.

For others while it’s the same price as BGs standard tariff, if you get it and need to leave there’s a penalty of up to £70; so if prices come down sometime between now and 2011 (sadly I don’t have a crystal ball to look that far) it’ll hurt. Overall I wouldn’t cap with this, yet, as there’s no rush, so its worth waiting until all the energy suppliers have put their prices up to see where the land lies.

Totality · 31 July 2008 at 12:37PM

Nuts, that'll teach me to be impatient. I was on Click 5 and moved to Fixed Price 2011

housebug · 31 July 2008 at 12:37PM

MSE_Martin wrote: »

Hi folks I know many are confused about the new 2011 cap - so i've added this to the guide... I hope it helps

Should you cap on British Gas’ new 2011 cap?

This has become a very common question. Its new capped tariff ISN’T one of the cheap caps. It’s set at the same as BG standard tariff rate. People on cheaper tariffs like Click Energy will a hefty premium if they switch to it, and its unlikely to be worth it in the short run.

For others while it’s the same price as BGs standard tariff, if you get it and need to leave there’s a penalty of up to £70; so if prices come down sometime between now and 2011 (sadly I don’t have a crystal ball to look that far) it’ll hurt. Overall I wouldn’t cap with this, yet, as there’s no rush, so its worth waiting until all the energy suppliers have put their prices up to see where the land lies.

Thanks! :cool:

omicron3 · 31 July 2008 at 12:53PM

Does that mean there are no capped tariffs left worth having now, unless there are substantial future price increases?

housebug · 31 July 2008 at 1:04PM

I'm confused (dot com...hehehe). Oil and gas are two entirely different commodities. Why are the gas companies siteing the cost of oil as one of the reasons for the big price hikes?

£1b Centrica Profits

From the BBC Have Your Say:

"Why is it that the rest of Europe are restricting price rises on fuel to levels on average 30% less than the UK? Is it that the mainly foreign owners of UK utilities are charging us more to subsidies their own domestic markets and satisfy their shareholders?"

"The gas price hikes don't make sense to me. I trade the futures market and NGAS (natural gas) was 300 cents in Nov 2006 and is 215 cents today Wed 30th July 2008."

Grendel_2 · 31 July 2008 at 1:06PM

omicron3 wrote: »

Does that mean there are no capped tariffs left worth having now, unless there are substantial future price increases?

Sure looks that way.

energyworries · 31 July 2008 at 1:12PM

Ive just read a qoute from martin saying "Martin's MoneySavingExpert.com website is keeping consumers up to date with a special Cap Watch facility, but he said: "My advice when they've all gone, is to sit tight. There is no point ditching British Gas because they have now increased gas prices by a total of 55 per cent this year, when other energy companies are certain to follow suit.""??????? read this on http://www.manchestereveningnews.co.uk/news/s/1060642_fury_over_centrica_profits

SORRY MARTIN that totally contradicts the idea behind this website..... SAVE MONEY!!!!
and your advice earlier this year made no sense at all "southern electric are the cheapest supplier (this was said by you in january) but dont switch to them switch to the second cheapest as southern will be putting the prices up".
I followed your advice that time and I reckon as southern put the prices up in APRIL a full 3 MONTHS after everyone else your "sage" advice cost me at least £45. HOW CAN THAT BE CONSIDERED MONEYSAVING.

British gas have increased prices by 55% this year SO SWITCH AWAY if the cheapest company then raises prices SWITCH AGAIN you have already switched once... its not that difficult to do.
your still saving money!!!

and the idea of these capped deals makes me laugh "we'll charge you £120+ more than our normal prices to cap your prices till 2009.... oh and if you find a cheaper deal in that time have a cancellation charge"
Sorry but martin has lost nearly all credibility with me.

I would love a response to this to see what martin's take on this is.

kjsmith7 · 31 July 2008 at 1:16PM

housebug wrote: »

I'm confused (dot com...hehehe). Oil and gas are two entirely different commodities. Why are the gas companies siteing the cost of oil as one of the reasons for the big price hikes?

£1b Centrica Profits

Okay let me explain this again. Oil and gas ARE two completely different commodities. However, as the UKs natural reserves are depleting rapidly and we don't as yet have a viable sustainable source (eg wind power, at the moment it couldn't power the whole UK) ALL of the gas companies are having to buy from Europe. Europe's market is very different to ours, in the sense that they have plenty to spare and are only selling it to the highest bidder. Asia, for instance, is willing to pay a lot more than we are, so the price is pushed up. In Europe, they 'base' their price for gas directly on the oil market, perhaps as a sort of justification.

Centrica may have £1b profits, but remember that they don't just own British Gas. British Gas' profits are a lot less, as they're continually reinvesting and only have a 3% operating margin, which is much less than say Tesco, for instance.

Hope that helps!

Jennifer_Jane · 31 July 2008 at 1:34PM

Hi all - just to mention that you can get cashback via the cashback sites, too:

www.quidco.com

British Gas - £55 for dual fuel
Scottish Power - £62
e-On - up to £55
Energy Helpline £13
Save on your bills £10
Moneysupermarket.com £20
and U-switch

These would be in addition to any savings/discounts/cashback when you eventually get onto the sites themselves. (Remember to clear cookies when you've made your decision).

Jen
x

Jennifer_Jane · 31 July 2008 at 1:37PM

kjsmith7 wrote: »

Okay let me explain this again. Oil and gas ARE two completely different commodities. However, as the UKs natural reserves are depleting rapidly and we don't as yet have a viable sustainable source (eg wind power, at the moment it couldn't power the whole UK) ALL of the gas companies are having to buy from Europe. Europe's market is very different to ours, in the sense that they have plenty to spare and are only selling it to the highest bidder. Asia, for instance, is willing to pay a lot more than we are, so the price is pushed up. In Europe, they 'base' their price for gas directly on the oil market, perhaps as a sort of justification.

Centrica may have £1b profits, but remember that they don't just own British Gas. British Gas' profits are a lot less, as they're continually reinvesting and only have a 3% operating margin, which is much less than say Tesco, for instance.

Hope that helps!

Don't we (UK) also sell our gas stocks in the summer to Europe who have storage capacity that we don't. Then in winter when we need, we buy it back from them at winter prices? Shouldn't someone be building the storage we need?

I have heard this from some reliable source on TV, can't remember who, but it was either an energy person or a minister. So am sure it's reliable info, but cannot understand why we aren't rioting about this (or at least doing a petition!)

Jen
x

British Gas & Capping Clarifications.

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