British Gas - Price Guarantee March 2011 - daft idea?

rob.h_2

I've been on the British Gas price guarantee scheme which is due to end at the end of this month (December). British Gas have just written to me offering me a 'special opportunity' to switch to a new capped scheme starting immediately after this one expires. Here's the details...

A guaranteed price for two winters - exclusively for you

We can’t provide fixed prices to all of our customers but for you we have created a new product, Price Guarantee March 2011. This is based on feedback from our customers about wanting peace of mind and certainty for two winters. To guarantee today’s prices to you there is a small premium of 3% compared to our Standard tariff.

We’ve taken care of everything so that you don’t need to take any action

To make life easier we will automatically transfer you on to Price Guarantee March 2011 This new tariff starts from 1 January 2010 and ensures that your prices remain fixed until the end of March 2011.

Of course, if you decide that you would not like to take up this offer then we will happily move you to our Standard tariff. Simply follow the online instructions before 31 January 2010.

Am I mistaken or is this the most bonkers idea British Gas have ever come up with? Aren't UK energy suppliers already charging a huge premium over and above the wholesale price of gas which has fallen considerably? If anything, UK suppliers might grow a conscience and actually reduce prices, albeit slightly, over the next 12 months. So a deal that takes the current, over-inflated price, adds 3% on top and then freezes it for 18 months sounds.... well, daft surely?

Capistan

The idea the British gas want to save you money is absurd.
They want want you on the most profitable tarrif they have.
I would suggests,. without calling British gas profiteering scumbags, that that is precisely what
they have offered you

Capistan

Given that the company is charging twice for what they charged for gas bought at the same price 6 years ago, who do you thing is getting a good deal?

Capistan

Some figures

month ______year ___price they paid____Customer bill
January__ 02, 2004_______ 31.87_________ 600
December 08, 2009_______ 29.53________ 1200

Cardew

Welcome to the forum.

I have to say I completely agree with you.

The problem is that until fairly recently most of the BG fixed tariffs have served their customers pretty well. The customers on the fixed/capped 2007, 2 x 2009 tariffs and April 2010 tariffs all benefited - the best being the April 30 2010 which started in 2005.

However with prices rising that was not difficult to achieve.

The 2011 fixed tariff introduced last year has turned out to be very expensive.

Giving an opinion about fixed tariffs is always difficult as essentially it is a gamble. However I can't see anyone who could argue that the 'odds' would favour taking the gamble on the tariff you have been offered.

That said a huge percentage of gas and electricity customers don't understand gas and electricity prices, will do nothing and be automatically moved to that tariff.

I predict a justified outcry about this deal - as there was with SP.

Plushchris

Given the amount of other fixed price tariffs available from other suppliers, I have no doubt in my mind that you find a cheaper fixed deal elsewhere (OVO or E-on are some of the cheapest at the moment)

Punch your usage figures into a comparison site and look at the other fixed tariffs available and you will see how much of a good deal the BG one is for you.


EDIT: Forgot to add, That new tariff that BG have been kind enough to automaticaly switch you onto, I bet it comes with a cancelation fee, check that out before taking them (or anyone else for that matter) up on it.

monlchr

Cardew wrote: »

Welcome to the forum.

I have to say I completely agree with you.

The problem is that until fairly recently most of the BG fixed tariffs have served their customers pretty well. The customers on the fixed/capped 2007, 2 x 2009 tariffs and April 2010 tariffs all benefited - the best being the April 30 2010 which started in 2005.

However with prices rising that was not difficult to achieve.

The 2011 fixed tariff introduced last year has turned out to be very expensive.

Giving an opinion about fixed tariffs is always difficult as essentially it is a gamble. However I can't see anyone who could argue that the 'odds' would favour taking the gamble on the tariff you have been offered.

That said a huge percentage of gas and electricity customers don't understand gas and electricity prices, will do nothing and be automatically moved to that tariff.

I predict a justified outcry about this deal - as there was with SP.

i have just spoken to british gas and have told them not to put me on price guarantee 2011 or there standard tariff.he said he has made a note of this on my account i asked if i could go on websaver 5 and he said yes on 1st january 2010. might consider this, but going to shop around and see what the other companies are offering

carcookie

I too have just received BG's "especially for you" offer to cap until March 2011 which I am very wary of, especially as they say "We've taken care of everything so that you don't need to take any action" - this always makes me nervous! It would be good if Martin could mention this new cap in an article on his main site.

Pincher

I left British Gas 15 years ago. I have a standing offer to British Gas, every time their sales team call me up. Give me £10,000 welcome incentive, and I will sign up with them again.

E.ON's current FixOnline 5 is a little bit cheaper than WebSaver 5, and it's actually fixed. WebSaver 5 is not a fixed tariff, so there is no cover for upside risk at all. The WebSaver 5 deal is only good right now, when the Gas rate is equivalent to 23% discount (with the capped 0.196p extra discount), but once you are roped in, BG will bring out WebSaver 6, and cut the discount down to the minimum 6% guaranteed for everybody on WebSaver 5. WebSaver 5 will only be better if BG lowers their standard tariff by more than the cut in the variable discount.

If you do sign up with WebSaver 5 on 1st January, please come back to this thread when you get your June bill and tell us what happened.

For the record, BG standard tariff currently is:
Gas 3.41p(7.16 1st 670kWh/Q), Electricity 10.289(23.794 1st 125kWh/Q)

WebSaver 5:
Gas 2.838-0.196(5.958), Electricity 8.561(19.798), less Dual Fuel discount. Until 28 February 2011.

FixOnline 5:
Gas 3.409725(6.5247), Electricity 10.71(22.1865), less 25.50% total discount. Fixed until 1st March 2011.

I am currently on FixOnline 4, which is 23.40% total discount, but the £30 penalty makes it not worthwhile to switch. I am interested in seeing whether I made the right choice, further down the road.

petrus47

I've decided to opt out of Price Guarantee March 2011 in favour of Websaver 5, however, I can't see anywhere on their site or my acount page where I can do this. I can't even see anywhere that tells me what Package I'm in! I've asked BG where I can find this but if any kind soul out there can let me know, too, I'd appreciate it very much.

Thanks in anticipation,

Chris