BG announce 10% price cut.

bubblesbonbon

jostenning wrote: »

I went on that british gas fixed until 2011 deal - does anyone know if the penalty for leaving this deal with british gas would outweigh the potential savings of this 10% discount announced?

The penalty for leaving the FP2011 is £35 so if your consumption is over £350 you should start to save money.

However, pay heed to Kim's comment regarding the volitile market.

It is galling to think that you may have made the wrong decision but at least you know what your tariff is going to be until autumn 2011 so the only variable will be how much gas you use.;)

alared

The only reason they are making a token gesture of a 10% cut on standard rates is because wholesale gas prices have dropped so much that they are in danger of being investigated by the competition commission for their rip-off prices.

Up 35% down 10% not a bad deal eh?

swebb

A question + answer taken from:

http://www.britishgas.co.uk/gaspricedecrease/helpandadvice.html

I'm on Price Protection 2010/ Price Protection December 2009/ Price Guarantee December 2009 - will my prices go down? Am I better off moving to another product? Your prices will not be affected by this as fixed price tariffs are designed to ensure that prices will not increase above the rates detailed in your contract.

However the good news is that you fixed your prices at the right time so you're still paying less than customers on our standard tariff, even after the price reduction.*

*Based on average annual consumption of 20,500 kWh for gas and 3,300 kWh for single rate electricity.

agent_orange_2

Funny how they leave it until February, just as people are starting to use less gas.

1carminestocky

KimYeovil wrote: »

Have a look at the prices. Have a look at your consumption. Do the sums. Remember, there's plenty of scope for prices to rise again over the next two years.

It's a sort of catch 22 situation, I suppose. The only way prices are going to increase over the next 2 years is if we come out of the global recession earlier than many are predicting. I really hope Phil Bentley was just being rubbish at forecasting the future at the end of July 2008 (and not encouraging the take up of fixed deals) when he predicted that we were entering a period of prolonged high energy prices. :rolleyes:

filmnoir

"We'll also be introducing prompt payment discounts for our customers who pay by Quarterly Cash or Cheque, Quarterly Equal Payments and Quarterly Variable Direct Debit We'll also be introducing prompt payment discounts for our customers who pay by Quarterly Cash or Cheque, Quarterly Equal Payments and Quarterly Variable Direct Debit"

Interesting they're applying Prompt Payment Discounts and a variety of methods.

filmnoir

1carminestocky wrote: »

It really is curious that they are not stating by how much their online tariffs are going to be reduced by, don't you think? It can't be by 10% or more or surely they would have made it clear?

Some are quoting 10% others 8.4% but the later deals aren't and proposing a monetray average value. I think the savings are that close to the wire and well under 10% that it wouldn't look as good as a percentage in the terms of marketing compared to a monetary value.

deanos

agent_orange wrote: »

Funny how they leave it until February, just as people are starting to use less gas.

Its not funny, they have made sure they have made there profit over the winter, gits :mad:

AstarothCY

You put prices up by 35%; why are you only cutting them by 10%?

Last summer wholesale gas prices were at record high levels - almost double the price they were the year before. But we didn't pass the full impact of that increase when we raised prices. Wholesale prices are not at those record levels any more, but they are still high - in fact they recently rose again because of the cold weather and the dispute between Russia and the Ukraine. We're doing what we can, when we can. Wholesale prices have come down enough for us to begin lowering prices for our customers.

It's important to remember that we have other costs that are continuing to rise - for example the cost of transporting and distributing gas has risen. And we're still paying high prices for the gas we bought in advance for delivery now.

Pathetic answer. People are not IDIOTS, this price reduction makes no sense. It shouldn't be LESS than the price rise, it should be MORE, since wholesale fuel prices are the lowest they have been in a decade.

And don't even get me started on this:

Why aren't you cutting electricity prices?

There are different drivers for pricing electricity and gas for our customers, and wholesale electricity prices remain high. Over the past two years there has been a 60% increase in wholesale electricity, yet our prices have risen by 5%. Our competitors increased their electricity prices by around 25% over the same period. We remain around 10% cheaper than our competitors in their "home" regions.

Is this even pretending to be an answer? What nonsensical bullsh1t.

I am FURIOUS.

daveyjp

I'm happy. I've been on fixed tarriff for over 2 years, expires at the end of this year. I've missed all the rises and now it's falling.

The return of prompt payment is also most welcome - they dropped this a couple of years ago. Since it was dropped I've always waited for the reminder and paid just before the second reminder was due.

Enough customers must have done this to make them realise the prompt payment discount is better for business.