British Gas Fixed Price 2012

shelleyman

I have had the benefit of British Gas Fix and Fall for a few years which comes to an end on 31 December this year. I was sent a letter asking if I would be interested in Fixed Price 2012 Tariff which guarantees no price rises on Gas and Electric until January 2012.

This is set at British Gas standard rates as at 30 July 2008( date of the massive increase) plus an added 7.4% premium on top. Although this says no price rises, it is fixed at that rate with no movement if it comes down.

I thought it might be a good idea and showed an interest and sent off the form, my impression being that it would " kick in" at the completion of my current Fix and Fall cap.

That wasnt the case, I received two letters, one gas, one electric both indicating that they have already changed me to the new tariff rates a week before I got the letter, denying me the benefits of staying on my current fix and fall tariff until the end of this year.

I contacted them, although fairly helpful, they gave no reason why this was done and said they would " put me back" until my present tariff ended on 31st December.

They also indicated that I would have to contact them in the New Year if I still wanted to go ahead with it as it would not be done automatically now..

So...at the mo, not sure what to do, I appreciate that I will have to deal with the increased Standard Rates after 31st Dec, but is the extra " fixed premium of 7.4% on top of that still a good idea ?

Any advice would be welcomed, anyone else in this particular boat ?

Many thanks, take care all...

smidgey

I have to say that Fixed Price 2012 isn't a very good tariff at all. Not only do you have the premium but you don't receive any direct debit discount (this is to keep the premium to a mimimum).

If you're the sort of person that wants the peace of mind your prices will not change then go for it. If you do go for it and prices fall by a huge amount then you can come off the tariff but it will cost you £35 per fuel to do so.

Stay on your Fix n Fall and see what is available as that's coming to an end - FP2012 may not even be available then... I'm going to cry when Price Protection 2010 comes to an end

Cardew

Whilst any fixed capped price tariff is a gamble, the consensus of opinion on MSE was that BG 2012 was a poor bet; and that was before the current situation in which a price reduction seem probable.

1carminestocky

I know you have to careful with advice (look at what's happened to Martin and his cap cap cap rant on gmtv a few months ago) but I'll bite the bullet and say it. There's ABSOLUTELY no reason to go for a fixed tariff at the moment. As Cardew says, this 2012 fix was considered a cr*p tariff even when the price of oil was 200% higher than it currently is! There has been a culture on this board of resignation to inevitable price increases, very few have been brave enough to talk about decreases. We've had all this talk about this is the end of cheap fuel blah blah blah.

Well, fact is, this could be the start of a RETURN to cheap domestic fuel, even the energy companies can only do their King Canute act for so long. It's just a shame that we will have to endure a global recession to see cheap fuel prices return, I suppose...

phoenix1964

It seems to me that BG are trying to get everyone onto the 2012 price-fixed tariff.

Is this because it is a complete rip off?

It looks likely that prices will come down in the near future, so anyone on this tariff will lose out. Also, it will cost more than the standard dual fuel tariff and there is no direct debit discount. Not to mention a cancellation fee of £35, which will affect anyone wanting to change supplier.

On top of all this, I had to opt-out of this new tariff. Otherwise they would have put me on it automatically.

Will these big utility companies ever learn to put the customer first?