leaving BG

gordon2

If I switch to BG websaver 12 on 1st July when my fixonline 8 from eon finishes, will I be able to switch away from them without any penalty if BG increases its prices?

ihateyes

there is a cancellation fee.... its a 12mth contract

gordon2

there is a cancellation fee.... its a 12mth contract

So they can't increase the price then?

st999

The cancellation fee is £30 for gas and £30 for electricity (this is including VAT),

I sign up for websaver 12 at the present tariff, 2 months later BG increases the tariff and I can't leave that tariff without paying a penalty of £60.

Is that not illegal?

If it isn't who can I complain to?

Gerrard_8_lfc

As long as they stay 6% cheaper than standard prices then they are keeping to their side of the agreement it would be you who is breaking the contract early so the cancellation charge would apply.

macman

It's variable tariff so of course they can increase the prices.

Grendel90

Actually, it's a guaranteed 6% discount compared to Standard tariff on your rate 2 usage only.

Edit: Direct from the T&C's for Websaver 12 - "The WebSaver 12 discount period applies until and including 30th September 2012 subject to VAT and regulatory changes and changes to discounts applied to your bill. The WebSaver 12 rates are at a guaranteed discount of 6% on tier 2 rates for electricity and a discount of 6% on tier 2 rates for gas below our Standard variable credit rates from and including 19th May 2011 until and including 30th September 2012.

gordon2

So they can increase the price and if you want to leave because of the price increase you are penalised?

Gerrard_8_lfc

gordon2 wrote: »

So they can increase the price and if you want to leave because of the price increase you are penalised?

Yes. Virgin Media just increased my line rental however I have to see out my 12 months contract before I switch.

eurmalian

gordon2 wrote: »

So they can increase the price and if you want to leave because of the price increase you are penalised?

Yes. You are signing into a contract where you promise not to change suppliers for a set period of time and British Gas promise that you will pay at least 6% less (for the tier two price) than people who are still on the basic, standard tariff. There's no mention of not changing prices, so long as they maintain that 6% discount.

It works both ways though. If prices at some point drop (I know it seems unlikely just now, but it has happened before) they have to drop Websaver to maintain that 6% discount as well.

It's not a fixed price deal. They're pretty much always set at x% above the standard prices, not below. If you're looking for one at 6% under standard and guaranteed to not change then I think you're going to be searching for a long, long time...

bengasman

1. Always read the contract you sign up to very carefully; by default the advertising highlights the advantage but completely forgets the downsides as much as legally possible.
2. Why would a company want you to sign up for a 12 month deal when consumer legislation says you are entitled to a 30 day rolling contact? The answer would seem obvious.
3. Check with the ASA (advertising standards agency) which gas company has been found guilty of more forbidden and/or misleading advertising than any other gas company. I would not want to sign up with them.