British Gas Major Price Rise Special Email Discussion

MSE_Martin

To discuss or ask a question about this special extra tip: click reply

British Gas Major Price Rise
Don't listen to anyone saying 'switch supplier now!'

British Gas has just announced a 12.4% gas price rise and 9.4% electricity price rise effective 4 September. You'll read comments telling you 'switch, switch, switch', yet that message is pumped by companies with a vested interest in churning the market. Actually the sensible thing to do is sit tight!

Please tell/forward this to people who are interested, to save them making a mistake

Why you shouldn't switch now

What British Gas does, others follow, so if you do a comparison to find your cheapest supplier today, it's likely any savings detailed will be eaten up tomorrow or next week when that company announces a price rise too. Yet this isn't what you hear in the media, as the energy comparison services grasp the PR opportunity and yell 'switch supplier now'. Unsurprising really as each switch nets them £20 to £60.

When to switch?

Once all players have made their price rise announcements and it's as near to a level playing field as possible. This will probably be in four to six weeks. It's not a science, but after monitoring the market I will change my best guess to 'TIME TO SWITCH!' and this note will be included in that week's Money Tips e-mail. For those who don't get that email directly (i.e. this has been forwarded), you can join the free e-mail's distribution list or view old tips as examples.

The only people who should switch right now!

If you've never changed supplier before, i.e. you use British Gas for gas and your regional electricity company for electricity then you're paying so much over the odds, whatever move you make should save you cash. To do that read the full Find the Cheapest Energy Provider and Get Cashback article to find out how to do it the best way.

British Gas' disgraceful behaviour

Of course none of this mitigates British Gas' disgraceful price rise. Centrica, British Gas' parent company, announced record £1.5 billion profits this year and to argue this is about wholesale gas prices is nonsense. To protect and keep its enormous customer base, a legacy from its once monopoly, it could’ve chosen to take the hit itself, and slightly shrink some of its enormous profits.

Still, by acting like a savvy consumer and timing it right you may not be able to cut the cost of your energy, but you should be able to mitigate future price rises somewhat.

I hope you save some money

Martin

Toreador

So, if I've been forgetting to do anything about it since the last lot of price rises (I'm with NPower for both gas and leccy) - I should still sit tight for a month or two?

janiemumoffive

Help! I have just received your urgent email - I am already in the process of switching - started the ball rolling last week, and am waiting for them to contact me .

"Confirming your change
Congratulations on changing energy provider. You've used uSwitch.com to select Atlantic Electric and Gas as your new gas and electricity supplier. Your chosen plan is Dual Fuel Domestic Standard Online Nil Service Charge.



2. Checking your details
Please check your details carefully. If we've made any mistakes let us know and we'll correct them.


Contact number: Date of order: 13/07/2006


Contract details: gas and electricity supply from Atlantic Electric and Gas



3. The changeover process
Your new energy supplier, Atlantic Electric and Gas, will contact you directly within the next couple of weeks to inform you of the changeover process. They will also tell your existing energy supplier about the change.

If you have any questions while it is going on, please contact "

Should I be doing anything?

lucy_t

Thanks for the pointers Martin.

Toreador -I'd sit tight for those few weeks until the markets settle or Martin gives the "TIME TO SWITCH" call then have a look around with comparison services. It has taken me 6 months to switch to BG for my elec and now I am looking at Ebico though as they have been consistently cheap. If you want have a look at http://forums.moneysavingexpert.com/showthread.html?t=201650

Ghost

Toreador wrote:

So, if I've been forgetting to do anything about it since the last lot of price rises (I'm with NPower for both gas and leccy) - I should still sit tight for a month or two?

Same here, only I'm with BG for gas and leccy. Guess I'll wait until Martin's "Now's the time" e-mail arrives.

MSE_Martin wrote:

Of course none of this mitigates British Gas' disgraceful price rise. Centrica, British Gas' parent company, announced record £1.5 billion profits this year and to argue this is about wholesale gas prices is nonsense.

I agree. I think it's immoral that there should be any price increase at all in light of such gigantic profits. Besides switching, is there anything else that consumers can do?

jerseygirl_3

USwitch.com do not include the cheapest provider around in their comparisons - ie EbiCo.
If you want a proper comparison including EbiCo go to energyhelpline.com.
EbiCo are by far the cheapest supplier around for both gas and electric and more so if you pay via a prepayment meter. They are a not for profit organisation which means that they will always be cheaper than the others because they have no shareholders demanding dividends.
Martin does make a very good point about waiting to see what all the other suppliers will do but Sept 1st is only 6 weeks away and it takes that long to switch your supply!!!
Hope this gives people another option to investigate!!!!

located

Does this hold on switching also include Fixed Price Offers.? If prices are likely to rise...

Petlurcher

Has anyone analysed whether price-capping energy prices actually saves the customer in the long run? I've considered doing it in the past but wonder whether it is actually worth doing. I have been with EDF for about 2 years now and wondering where to go next.

markdavey

Hi,

I have just contacted the Energy Helpline to stop my switch to BG and they have advised me that the increase DOES NOT affect the Internet Tarrifs, only their Standard ones, I have gone for Green On-Line Click and was advised that this tarrif was not effected?

Anyone else had this conversation (as Energy Helpline said they have had a large number of callers about the same thing).

Edit: WARNING!!!! I have just contacted BG Directly and they confirm that the price rises DO in fact effect ALL tarrifs as it effects the unit price. Energy Helpline are giving out misleading information!!!

JamesDB

I thought that about the profits too - they could have absorbed it, retained customers, and introduced a smaller increase later on.

And Ann Robinson from USwitch has been on the radio all day talking about it.

If cheapest suppliers aren't on USwitch it's probably because they keep costs down by not offering affiliate schemes, or the kick back is so small that comparison sites would rather you choose something that'll earn them more money.

Gambler

jerseygirl wrote:

Martin does make a very good point about waiting to see what all the other suppliers will do but Sept 1st is only 6 weeks away and it takes that long to switch your supply!!!
Hope this gives people another option to investigate!!!!

I've still not had my switch to London energy finalised. 28th October 2005 I started the process !