Word of Warning - British Gas Online + 1 month free electricity

Dodgybloke

A couple of weeks ago, I started the supplier transfer process using energy helpline (utilising cashback).


I went for seperate gas and electric on this occassion. British Gas came top in the electric stakes with the Online tariff with one month free electricity. When the confirmation came from British Gas, they were trying to stick me on tariff which would tie me in until April 2007. Now the prices looked right, but the tariff had no tie in, just pay back of one months electricity after 12 months continious custom. I cancelled the current transfer. Through energy helpline I'm trying again.

In short, check the tariff on the energy helpline letter to those you get from the new supplier. Otherwise, you might not sign up to what you were thinking.

elliot330

Hi Dodgybloke,

I too took the British gas option for electric, I can't find anywhere about a tie in. The leaflet does state that it guaruntees that the prices won't rise until April 2007 and that should you decide to leave their scheme, that if "could" cost you £20 for doing so. or am I reading and understanding it wrong...??

Dodgybloke

I think your interperatation is more accurate:

"The leaflet does state that it guaruntees that the prices won't rise until April 2007 and that should you decide to leave their scheme, that if "could" cost you £20 for doing so. or am I reading and understanding it wrong...??"

You can leave before then, but that may in the wording is almost certainly meaning will. So in my eyes that's a tie in. OK, so it's only a shade over year by the time the transfer occurs. I just wanted to make people aware of the point.

renegade_si

both of you. Either way, prices WILL rise again between now and April 2007 (I know, I work in the industry) and so I don't see this as an issue.

jem16

This tariff will rise at the end of 2005, possibly as much as 14.5%. It's stated quite clearly on BG web site.

The discount is 8.6% below standard tariff. The Discounted Electricity tariff did not put up its prices in September but will do so at the end of the year.

Talked about on this thread akready
http://forums.moneysavingexpert.com/showthread.html?t=107180

elliot330

Dodgybloke wrote:

I I just wanted to make people aware of the point.

Fair comment.

Its typical, I only moved suppliers after Martins money saving email last week, although Martin didn't actually recommend BG, the comparrison web site, marked them as being the cheapest. I don't usually bother switching between utlilty companies because of problems like this :mad:

As jem states on the other thread i failed to read all the T&C's. Should I cancel the contract..

Elliot

jem16

elliot330 wrote:

Fair comment.


As jem states on the other thread i failed to read all the T&C's. Should I cancel the contract..

Elliot

I think this would depend on how much you are saving? For example if prices were to rise by 14.5%, what difference would it make to your bill? I don't think you can really worry about every increase as they will happen but the important one is the one happening at the end of the year.

ffym

I had my "contract" letter yesterday and it is really confusing. After spending over half an hour on BG's helpline, speaking to two different (also confused) people and countless periods on hold the consensus is:
The price quoted on the letter, the BG website and the comparison sites is the current discounted price you pay and DOES include the Sept 05 increase.
The sentence ".....discounted electricity prices have been frozen until 2006." means that these prices stay the same (I was told until 1st April 2006) whatever happens to the price of thier "standard rate" between now and then.
i.e. If they raise prices again in Feb 06 you will not be affected until April.
After April 2006 the discounted rate is charged at the percentage discount quoted to you off the standard rate, whatever the standard rate is at the time. The discounted rate will then track the standard rate for as long as the contract lasts.
The discount and the standard rates vary depending where you live.
They claim no rate rises are imminent!
My quoted discounted period is up to April 2007, not sure what will happen then. There is a clause that if I leave before April 2007 there "may" be a charge of £20 inc. I think this is to claw back the £26 "free month" they have offered me.
Despite my original confusion this now seems to make more sense to me.
Hope this is of help.

jem16

ffym wrote:

I had my "contract" letter yesterday and it is really confusing. After spending over half an hour on BG's helpline, speaking to two different (also confused) people and countless periods on hold the consensus is:
The price quoted on the letter, the BG website and the comparison sites is the current discounted price you pay and DOES include the Sept 05 increase.

Not according to this taken from their own website.

Discounted Electricity and British Gas Online Customers
You will continue to pay a discounted rate on our 20th September 2004 standard electricity prices until 2006

Please note: For your re-assurance we will be writing to you very shortly confirming how you are effected by the recent price changes.

The sentence ".....discounted electricity prices have been frozen until 2006." means that these prices stay the same (I was told until 1st April 2006) whatever happens to the price of thier "standard rate" between now and then.
i.e. If they raise prices again in Feb 06 you will not be affected until April.
After April 2006 the discounted rate is charged at the percentage discount quoted to you off the standard rate, whatever the standard rate is at the time. The discounted rate will then track the standard rate for as long as the contract lasts.
The discount and the standard rates vary depending where you live.
They claim no rate rises are imminent!
My quoted discounted period is up to April 2007, not sure what will happen then. There is a clause that if I leave before April 2007 there "may" be a charge of £20 inc. I think this is to claw back the £26 "free month" they have offered me.
Despite my original confusion this now seems to make more sense to me.
Hope this is of help.

Full T & C taken from their website

Terms and Conditions
The price discount period runs from 21 February 2005 (or date of request if later) until 31 March 2007 for domestic electricity customers. Limited availability. The price discount guarantees that your electricity charges until 31 March 2007 will be charged at the applicable discounted rate outlined in your application confirmation sent via Royal Mail, less than our standard variable prices for electricity applicable for your area, as published in our Schedule of Charges.

If you move house during the agreement period due to a home move the agreement may be transferred to your new address and the discount rate applicable to that area will be applied to our standard variable price for electricity in that area.

We will honour the price discount unless any governmental or statutory body takes action, or action is anticipated, to prevent us from doing so. We may repeat this offer in the future. If you cancel the agreement, either by moving to another electricity supplier or requesting to change to another of our products at any time before the 31 March 2007, we may add a change of £20 inclusive of any VAT applicable to your next bill. This charge will not apply if you cancel the contract during the agreement period.

Excludes electricity prepayment customers. Our standard prices change on 19 September 2005, however the Discounted Electricity prices have been frozen until 2006. We will write to you to advise you when your prices will change.


Unfortunately what you have been told contradicts their own website. However you never know - maybe BG changed their minds!

ffym

gem16
I have followed this and previous threads and therefore I was specific in my questions to BG. I agree in all that you quote, however I think some of the website wording could be out of date as it doesn't refer to the Sept 05 increase.
Discounted prices (BG say) will remain fixed until 2006 (1st april, I was told). They will then track the standard price. These "fixed until 2006" prices are what are quoted on the comparison sites now for new customers (I am interested in any existing "Internet discount" customers confirming whether they have fixed prices on pre Sept 2005 prices until 2006).
If the standard price goes up then the Discount price will too (after April 2006 I was told).
The website refers to the discount "rate" not the price you pay. The "discount rate" i.e percentage discount, will not change, the price will - dependant on the price of the standard tariff. This discount "rate" is contracted until April 2007. The actual price is not guaranteed as it will vary as per the standard rate as per the market conditions.
I think the 2006 clause is meant to be an additional incentive but it's worded so ambiguously it's having the opposite effect.
I think our main difference in interperatation is that you are expecting an additional increase in the discounted prices early in 2006. I was assured by BG this is not the case - the quoted discounted prices now are based on the post sept 05 increase standard prices (so they told me).
I have to say that the reps took great care in what they told me, they frequently put me on hold. I did not get the impression I was deaing with a flash sales shark. However it would not be the first time I have been mislead so if you have any evidence that a "hidden" rise is imminent I, and I'm sure every reader of this board, will be gratefull to read it.
Thanks for your warning.

jem16

ffym

I wish I had evidence as I am an existing BG Discounted Electricty customer. I am expecting an increase but who knows when