BG announce 10% price cut.

notbritishgas

1carminestocky wrote: »

smidgey, as you are a proud BG employee and clearly know your stuff and don't believe there is confusion, please would you inform people on here of the %tage decrease in Websaver1 gas prices? TIA!

And also Click Energy 6 please.

filmnoir

I must admit Ive worked for Suppliers, Distribution and both in Gas and Electric, however Im still a consumer, my families consumers and so is the rest of the people in my street.

Actually my advice when people were shouting FIX FIX FIX was no dont fix, the economic downturn, oil going down were the signs to watch for, if people who fixed earlier this year did thats your choice, not the companies. Also are you going to demmand your fixed contract back if prices go up later this year or next?

I totally agree with Smidges comments.

You cant take your betting slip back to bookier if you horse comes in last can you?

1carminestocky

notbritishgas wrote: »

And also Click Energy 6 please.

That old tariff?? It must be at least a couple of months since that was released from captivity I'm assuming BG will follow their usual business pratice and ensure Click 6 will be reduced by a proprtionately lesser amount so as to allow the punters on it to fund the Websaver1 switching site headline-grabber?

basmic

I'm surprised people couldn't see through the energy companies sudden flogging of fixed tariffs, when the prices went up. They prayed on people's fears of the prices going up further, and used this to get them onto premium priced tariffs.

I'm glad I stuck with Scottish Power's Online Energy Saver 4 - any other tariff uSwitch/Energyhelpline/etc brings up, is more expensive than it!

1carminestocky

basmic wrote: »

I'm surprised people couldn't see through the energy companies sudden flogging of fixed tariffs, when the prices went up. They prayed on people's fears of the prices going up further, and used this to get them onto premium priced tariffs.

I'm glad I stuck with Scottish Power's Online Energy Saver 4 - any other tariff uSwitch/Energyhelpline/etc brings up, is more expensive than it!

Some of us on here were criticising the energy companies for pushing their fixed tariffs (BG were even taking out huge ads in the dailies to advertise its ridiculous fix). I said at the time that they don't do stuff like that if there isn't a massive financial incentive to do so. They even had the temerity to stick a Best Buy icon on their 2012 Fixed Deal on their site only a matter of a few weeks ago. :eek: I think the motto would be: If British Gas really pushes a product, DON'T BUY IT!

alared

This so called price cut is a mere gimmick.
A year ago gas prices were increased by 15% and then in the late summer by 35% making a 50% increase in total.
Now they seem to think it`s a great deal cutting a miserly 10%.

No doubt somewhere in the small print most of their customers won`t get the full cut anyway.

1carminestocky

Like has been said before, it's also for publicity purposes because you can bet your bottom dollar that one of the other Big 6 will announce a slighly larger decrease and then BG will announce another (very small) decrease to match it - and gain more publicity.

KimYeovil

alared wrote: »

This so called price cut is a mere gimmick.
A year ago gas prices were increased by 15% and then in the late summer by 35% making a 50% increase in total.
Now they seem to think it`s a great deal cutting a miserly 10%.

No doubt somewhere in the small print most of their customers won`t get the full cut anyway.

To be tiresomely pedantic, a 15% followed by a 35% (which includes that extra 15%) rise is a 55.25% increase. Take 10% off and you end up with a 39.7% increase.+

Or, combining just the +35% and the -10% comes to +21.5%, not +25% ++

+ 1.15 x 1.35 x 0.9 = 1.39725
++ 1.35 x 0.9 = 1.215

alared

KimYeovil wrote: »

To be tiresomely pedantic, a 15% followed by a 35% (which includes that extra 15%) rise is a 55.25% increase. Take 10% off and you end up with a 39.7% increase.+

Or, combining just the +35% and the -10% comes to +21.5%, not +25% ++

+ 1.15 x 1.35 x 0.9 = 1.39725
++ 1.35 x 0.9 = 1.215

Thanks very much for the maths lesson which goes to prove a mere 10% cut after a massive 55.25% increase (your figures) is chicken feed.

As I have said in an earlier post,this cut is more for the benefit of not being referred to the competition commission.

Cardew

filmnoir wrote: »

Actually my advice when people were shouting FIX FIX FIX was no dont fix, the economic downturn, oil going down were the signs to watch for, if people who fixed earlier this year did thats your choice, not the companies. Also are you going to demmand your fixed contract back if prices go up later this year or next?

However BG(and others) have been offering fixed price contracts for years and generally they have been excellent for those who took the gamble.

Go back 3+ years to Autumn 2005 and there was a long and at times heated thread about the BG fixed to April 30 2010 tariff.

There was a small premium over standard for gas and reduction from standard for electricity; plus quite heavy penalty clauses for withdrawing early.

The argument then was much like now - BG are conning people as they know prices are going to drop etc.

Well those who took the Gamble are now paying about 50% less than the cheapest on-line tariff on the market -BG Web Saver(cheapest for my area/consumption) - with anothe 15 months of those cheap prices to go.

So those on the 2011 and 2012 fixed tariff have to make a decision. 'Bite the bullet' and leave, or gamble that by the end of their fixed term they will be in profit overall.

Personally I would leave the 2012 tariff(i wouldn't have joined in the first place) however I might just stay with the 2011 tariff. - however a gamble either way.

The overall point is that the Regulator should put an end to this confusion marketing and have simplicity in tariffs.

It is quite wrong that we should be forced into taking a gamble on an essential commodity.