British Gas Fixed price August 2010

squiggledpig

Have been on BG fix and Fall since 2006. Just received a letter headed Fixed Price Auguast 2010.
The letter says British Gas have bought an advance supply of gas and electric up to August 2010, and have automatically put me on to this scheme at a 4% premium to their standard tariff, but I can phone and cancel.
Several things confuse me.

1. why should I have to call them (at a possible cost to me of 25p a minute) to cancel something I have not asked for?

2. If they have bought an advance supply of gas and electricity, why do they want me to pay a 4% extra premium over their standard rate to receive it?

3. If I choose not to accept their offer and revert to their standard rate tariff, surely they can't increase the standard rate as they have admitted that they have already bought the gas and electricity up to August 2010.

Premier_2

squiggledpig wrote: »

...1. why should I have to call them (at a possible cost to me of 25p a minute) to cancel something I have not asked for?

Use a BT landline!
Look at saynoto0870.com to see if there is a cheaper or free number to call

squiggledpig wrote: »

2. If they have bought an advance supply of gas and electricity, why do they want me to pay a 4% extra premium over their standard rate to receive it?

Because that's possibly the premium they paid for the forward contract

squiggledpig wrote: »

3. If I choose not to accept their offer and revert to their standard rate tariff, surely they can't increase the standard rate as they have admitted that they have already bought the gas and electricity up to August 2010.

They have only forward purchased a fixed amount - the amount they will be offering on a fixed price tariff.
If you don't want to accept it, then don't but then you'll pay the market rate at the time.
They'll flog the fixed price energy to someone else who does want it.

squiggledpig

Premier, thank you for your reply, but you seem to miss the point.
Why should I have to go out of my way to cancel a contract which I have not agreed to or asked for?
Would you be happy to walk 3 miles to a BT phone box to make a call, or pay 25p a minute to listen to BG's on-hold music on my moble?
Wholesale gas prices are falling, or so it says on this site, so a poor business decision by BG if they have paid a 4% premium to buy a limited supply.

bristolleedsfan

squiggledpig wrote: »

Premier, thank you for your reply, but you seem to miss the point.
quote]

IMO, You have answered your own questions :T and I personally agree with the points you have made. :T

Heres a freephone number should you wish to make a phone call to BG.

0800 048 0202

If you dont fancy a walk to the phonebox. https://www.britishgas.co.uk/Help_Advice/ContactUs/

CiderBoy

If you don't want to phone them then just tick, sign & date the bit on the bottom of the letter & return it in the freepost envelope supplied by BG.

Alternatively, go online & switch to Click 6 as this has no penalty charge if you need to change again when (if?) they reduce their prices in the Spring.

Whils I was also somewhat miffed that BG wouldn't automatically revert to the standard tariff it forced me to take a look at the other options & work out that Click 6 would actually work out slightly cheaper than Fix & Fall for me.

smidgey

squiggledpig wrote: »

Why should I have to go out of my way to cancel a contract which I have not agreed to or asked for?

Because when you agreed to the terms & conditions from going onto Fix & Fall you agreed that you may automatically be switched to a new fixed price product dependant on what is available when your current one ends.

You have been given the option to opt out of the new contract if you choose to do so but that's what everyone on a fixed price product agrees to in the T&C's when taking out a fixed price product.

EfficientEnergySolutions

1. Say for example they did this the other way around. I.e. Contact us if you would like to go onto a capped rate until 2010 and if we don't hear from you then you will remain on the standard tariff.
Most people will disregard the letter and if the prices rise again next year, people will complain about why they weren't put onto the capped rates!

2. Suppliers have to pay the wholesale forward contract rates when offering customers a capped rate, and since the forward prices are higher, they have to charge extra to cap your rate.

3. It doesn't work like that unfortunately; increases in the wholesale gas market implies higher costs for suppliers to purchase the gas, and hence they will have to increase their prices.