British Gas & Capping Clarifications.

MSE_Martin

Hi folks,

I've been getting a number of questions about 'I've capped but not saved' and wanted to clear up some of the answers.

One of the problems is that as I write the energy comparison services haven't yet updated their sites with the new tariffs, which means you get false results in terms of price difference.

1. Is the new BG cap more expensive than the old one?

The basic answer is yes. The December 09 cap is much cheaper than the new cap, which is set at the same level as BG's new standard rate.

According to Energyhelpline who crunched the numbers for me, for those paying by monthly direct debit this is 14% more expensive than the old cap, for those paying by quarterly billing it's 24% more expensive.

2. Is the old cap cheaper than the Click 5 tariff?

The answer is no. The Click5 tariff hasn't been increased yet, normally that happens six weeks or so (or a bit more) after the main rise.

The old cap (dec 09) was set 28% higher than the click5 tariff. If click5 increases by 25% for dual fuel, then even after an increase it will be cheaper. However as the difference between click5 and standard tariff is usually around £250 for a typical bill, if BG continues to maintain this differential its likely click5 would be put up around 30%, so the old cap will be cheaper.

Either way the difference between click5 and the old cap is likely to be small.... however... that negates the fact that MORE price rises are expected in January and the old cap lasts until December 09. If these price rises happen, then the old cap will have worked out a great deal, if it doesn't happen then the old cap will, at worse, have been a few percentage points more expensive.

Martin

KBarnett_2

Have BG updated their standard tariff prices on their website as these currently are dated 30th July but are not showing much savings to those who have joined capped to 2009

shedman_2

I changed over to BG from EDF on Friday
should I use the "cooling off" period and not change to BGas from EDF.
What tells me that the rate given by BG is a capped rate?

bristolleedsfan

Worth a mention that the energy companies will continue to want to lure new customers onto its variable rate tariffs with cheaper prices than its existing variable rate tariffs by launching new variable rate products, and that people are free to switch provider every single quarter gaining a cashback each time for doing so which on a dual fuel switch basis is worth in the region of 55-70.00 each time.

tricky0000

I'm stuck!

I'm on the Click5 dual fuel tariff with BG. Martin says above that this tariff may not be increased for a few weeks. Will there be a separate capping option then, or should i do it now?

cheers.

ascsbe

I have just switched to the BG Price Guarantee December 2009 rate - this evening - can anyone confirm that this is still the old capped rate and will go through as that even though BG has announced big price rises today - I switched through the energyhelpline site.

Thanks for your help.

SARAHH98

Hi

I have done the same this evening and contacted the engery helpline who stated this would be fine. Fingers cross will we have fixed to dec 09.

ascsbe

Thanks for that - did they confirm that the rate is still the pre rise rate - it now seems to have been removed from the options - only half an hour after I changed.

Thanks

KBarnett_2

You can till find the Dec 09 rates if you look in the bit that lists all their tariffs including ones that have been withdrawn which are at the bottom.

BG told me either they will be honouring anyone who takes out the Dec 09 tariff until 8pm when they close tonight

michaels8666

Hi
I also joined british gas december 09 tariff this evening. Tariff changed about an hour after completion but still had no confirmation email. Will it still be honoured?

Inchy_2

Anyone that signed up for the Price Protection today will have it honoured:j, I work for BG and although they look bad now the others will look worse:eek: