British Gas "Fix then Fall"

nannyviv

Having seen this on TV now had Brit Gas salesman at door trying to promote this. As existing customer who already takes Gas and Electricity from Brit Gas was told the price for Gas would initially go UP by 1.6% then would be fixed then would FALL after 18 months !! But i though i'd read that British Gas cant put up their prices again till 2008 anyway - so this sounds strange to say the least.
Does anyone know what its all about?

oldwiring

Now wht's to stop them doing exactly as they say they willm waiting a couple of months and then hiking the price up again. It is BG after all!

masonic

I think to properly understand the concept of BG's "Fix and Fall" tariff, it is important to understand the correct notions being conveyed by the terms "fix" and "fall"...

fix v.
To capture or hold

fall v.
To assume an expression of consternation or disappointment

LittleJo

Hi,
Next year new storage and production facilities are thought to come on-stream. This will, it is alleged, reduce prices.
Jo

Cardew

LittleJo wrote:

Hi,
Next year new storage and production facilities are thought to come on-stream. This will, it is alleged, reduce prices.
Jo

I think it would be highly optimistic to expect more than a token cut.

All of the supply utilities say they are losing money even with the latest price rise - so the have their 'excuse' ready.

Skiduck

I'm a bit sceptical about this fix and fall business, somethings nagging me about the increase - did they increase the prices a bit more than they should to compensate for a fix and fall program?

is the conspiracy theory getting to me???????

Bullshine_2

Skiduck wrote:

I'm a bit sceptical about this fix and fall business, somethings nagging me about the increase - did they increase the prices a bit more than they should to compensate for a fix and fall program?

is the conspiracy theory getting to me???????

Of course they did, They are a profit making business not a charity!!!