Fixed price - confusion caused by BG

houmie

Hello,

I just have moved home and as new tenant the readings were sent by the landlord to British gas. I have sent an enquiry to British Gas regarding their tariffs. As expected the current tariff is on the expensive standard tariff. I have asked about the fixed tariff and how it works but my question was completely ignored. Instead they were promoting the Web saver 10.

Also surprisingly British Gas's customer service claimed the prices have already been increased by 7%, hence if I took the Web saver which is 6% less, it would be the better deal. But in Moneysavingexpert newsletter, it is written that the price hike is on 10th December. So which one is true?

If the price hike of 7% is not going to happen until 10th December, I still could fix it right? But how does that exactly work? Is the price per unit fixed for the length of the contract? And the less units I would use the less I would pay? It is not caped on usage or so?!

Many Thanks,
Houman

macman

BG Price Promise (dual fuel only) is fixed to October 2012. There is no usage cap. Switching tariffs can usually be done in just a day or two-if BG are messing you about why not just do it online?
Bear in mind that you will pay a substantial premium for fixing this far ahead, and if you want to get out there is an ETC of £100. You are not necessarily buying cheaper energy, you are just buying a guaranteed price for 2 years.

Pincher

Oh dear, this implies BG expects to increase their rate further before 2012.

If they do not intend to increase further, to beyond Price Promise levels, there is no need to block switching to it. Or are they actually trying to save you money?

houmie

After another enquiry, BG said:

"Although our Standard prices have increased by 7%, the new prices will only come to effect from 10 December 2010.

Right now, we are offering a fixed tariff which is Price Promise October 2012 and with this you can fix your energy prices at a 2% premium above our 10 December 2010 Standard tariff rates. Whether prices go up, down, or remain the same, your prices will be a guaranteed 31 October 2012."

Fixing it would mean 9% raise (7% raise + 2% fixed raise)
If I went with Websaver 10, at least there is only a 1% raise on standard tarif (7% raise - 6% discount)

This is going to be an expensive winter.