*UPDATED* British Gas decrease- effect on the various tariffs, new tariffs & offers

tripled

There are quite a lot of questions such as 'am I eligible for this' and 'will prices be dropping for that', so I have done some digging.

Firstly, the price decrease only affects the standard tariff. This means people who pay the standard rate on a credit meter. The drop in gas is fixed across the country (they only have one rate), but electricity price changes vary from region to region, ranging from about 6% to 18%. Gas prepayment customers only get a 10% decrease. All other tariffs are excluded. This not just includes price protection/fix and fall, but click energy is also excluded (thanks Aldridge Andy for confirming that).

Penalties for existing customers on special tariffs:

Those on price protection 2007 and 2010 will be charged a cancellation fee if they come off that tariff. However it would be lunacy to do so.
There are 2 versions of price protection 2009. Version 1 (Price Protection April 2009) did have a cancellation fee but this has now been removed. Version 2 (Price Protection December 2009) does not have a cancellation fee. They are both now more expensive than the new rates, although not by much. They were cheaper than the old rates, so you have saved money so far.

Fix and fall is more expensive than the new rate. There is no cancellation fee.
Click energy has no cancellation fee.

Offers available to new customers only

£40 free gas. This is credited to your first quarterly gas bill if you sign up for dual fuel. Credit customers only.

Free night in a hotel/free fuel offer. This is available to new customers including those on prepayment.

Offers available to new and existing customers

Price Guardian 2008 fixes your gas and/or elec prices at the new rates until Spring 2008. There is no tie in. Also if BG drop their prices again you can either cancel or stay on price guardian. If you do stay on price guardian if prices drop you get a loyalty discount of up to £50 when it expires. Note that when it expires in the t&c it says they may automatically enroll you in a new capped/fixed tarriff if available. Credit customers only.

£25 free electricity - this is a £25 credit off your ele bill in 12 months. This is only available to electricity/dual fuel customers on the standard tariff, not on any fixed/discounted product. There is no tie in but you don't get the bonus if you don't stick with them or if you switch to a different rate. Any existing customer on this tariff should request the £25 before the offer closes unless you know you are definately going to move elsewhere, as if you are with them in 12 months it's £25 quid for nothing, if you're not it doesn't make any difference. Credit customers only.

'Click 2' is replacing click. Existing click customers won't be enrolled unless you ask. Also the premium rate support number has now gone (due to a nasty fine from ICSTIS). Also you no longer have to pay by direct debit (I'm not sure if this affects the rate though). There is a 3 month tie in. Credit customers only.

For those wanting a green tariff, you can have all your electricity sourced from renewables at no extra charge (although I wonder if they buy more renewable capacity, or just count you as part of the % they source from renewables anyway. You can also offset your co2 emissions from a price.

Existing customers only

'Essentials' tariff (social). People with prepayment meters on receipt of certain benefits will always be charged at the lowest available standard rate, currently direct debit. People who receive the winter rebate and who are on the standard tariff will be enrolled automatically, otherwise you need to register if you are eligable. This is limited to 750,000 accounts. If you are not a BG customer and want this one, you would need to sign up as normal then register if there is space left. Prepayment customers only.

Offers cannot be combined.

Hopefully this will clear things up for people, and the £25 free ele and the essentials tariff may be useful for some.

Don't forget if you are thinking of switching to BG that in a few weeks there almost certainly will be cheaper offers from other companies - and better customer service too! Then again there are no guarantees and not all these offers may be available by then.

Updates:
16th Feb, confirmation of click arrangements
19th Feb, gas prepayment correction
5th March, cancellation fee on 2009 updated

briskly_2

I'm on the Click 1 tariff and am still baffled by the lack of info on what is going to happen to prices on March 12. As you say, the price reductions only apppear to apply to the stadard tarif. Yet yesterday I was sent an e-mail telling me that the price reductions would save me £160 a year and that I should do nothing. As I only got this e-mail because I'm on Click 1, can I sue BG in March if I find I have lost money by sticking with click 1 and no price reductions are made to this tarif? If it wasn't for the mail I'd switch to Click 2 now to make sure of making a saving, but because the click 2 primary rate is about 20% higher than Click 1, I'm reluctant to change until absolutely positive. Also, surely BG can be done for puting misleading ads in the press if it seems they are only reducing the standard tarif

magoogy

im on a prepayment meter and would love the essentials tarriff - but, dont understand - how can you be on a meter and be direct debit too?

can you explain exactly how to make sure you get this or do you have to switch to dd?

thanks

tripled

Magoogy, you are only eligable for the essentials tariff if you are in receipt of a state benefit/pension. It simply means that instead of being charged at normal prepayment rates, you will be charged at whatever the cheapest avaiable rate is. You do not have to pay by direct debit, they will simply cut your rates to match those of direct debit customers.

briskly, I think that mailing is a standard one, I'm not even with BG and I got that. I've been told there is nothing which indicates click rates will be dropping, no new tariff has been published and that key phrase 'standard rate only'. However someone is supposed to be checking into it and getting back to me. As the price changes don't come in for another 4 weeks it is probably worth holding off switching to click 2 until I or someone else can get it confirmed.

tripled

I've updated it slightly now Aldridge Andy was able to confirm click is not included in the price cuts.

Waldir

Do you know if the "discounted regional" tariff is included in the price cut or not?

Thanks,
Waldir

keefrto

So I am currenltly on the price protection apr 2007, here is the email bit that i wonder if anyone could advise me on:
When your PP2007 contract comes to an end on 31st March, you will automatically be switched onto our Price Guarantee 2008 product. This fixes your prices at our new lower rates until May 2008

Now my question is (without taking into account other companies offering new discounts soon) is this a good offer from BG or not?

Cardew

keefrto wrote:

So I am currenltly on the price protection apr 2007, here is the email bit that i wonder if anyone could advise me on:
When your PP2007 contract comes to an end on 31st March, you will automatically be switched onto our Price Guarantee 2008 product. This fixes your prices at our new lower rates until May 2008

Now my question is (without taking into account other companies offering new discounts soon) is this a good offer from BG or not?

I believe that is just the new BG standard Rate that comes into effect next month.

It is one of the cheapest rates on offer, but will doubtless be under cut by others soon.
You have a few weeks left on your very cheap rates(PP2007) and by the time it expires the situation on prices should be much clearer.

keefrto

Cardew wrote:

I believe that is just the new BG standard Rate that comes into effect next month.

It is one of the cheapest rates on offer, but will doubtless be under cut by others soon.
You have a few weeks left on your very cheap rates(PP2007) and by the time it expires the situation on prices should be much clearer.

cheers 4 that. I have just asked them for an annual kw usage as I am keen to get the right deal. I normally scour around using my monthly payments as a guide but thats crude andthe Kw will be more accurate when the new deals come out

keefrto

Where we live we have no gas just leccy and oil. So the dual fuel discounts etc are no use and yes the corporates don't give a $h%t. Now where is the cs in this I ask. Try other incentives like we will give you the discount if you were on dual fuel with us at the end of a year, just to say thanks. See? easy, that would keep me. Also it would capture another market as there are thousands of people who have oil and cannot get gas. Lots of referrals as well. ANYONE OUT THERE from the corporates that might want to try it? give me a shout as well!!

Cardew

keefrto wrote:

Where we live we have no gas just leccy and oil.

It may be worth you looking for an Economy 7 tariff to make comparisons. It can often be cheaper to heat hot water with E7 than oil; enable you switch off your oil boiler in the brief summer you have in those parts!!