What's the catch?

GreatProphetZarquon

As my present deal with Scottish Power has just finished, I've been looking at the options. Several comparison sites have come up with the same result, which is that the cheapest deal for me right now is from Sainsbury's Energy (apparently provided by British Gas). This is a fixed price until end June 2013. At a time when we might be expecting prices to fall, I'm a little wary of embarking on fixed prices. However, it also says "no cancellation charges" so I presume as soon as I find anything else that is cheaper I could move onto it whenever I like. I'm happy to change providers as often as necessary.

Is there any other catch that I'm missing?

HappyMJ

No catch. Best used with a Nectar card. Must be managed online. Must be paid by monthly direct debit. Must take dual fuel. Apart from those reasonable terms it looks like a good tariff.

jalexa

GreatProphetZarquon wrote: »

Is there any other catch that I'm missing?

Answer 1: there is no obvious catch.

Answer 2 (the cynic in me):

The website says "Direct Debit gas customers will receive a discount off your Tier 2 consumption charges of 0.196 p/kWh, up to a maximum of £65 per year pro rated across your billing period.....Discount received varies according to seasonal consumption.

I do not know why such a convoluted explanation but what if the full (quarterly?) pro rated consumption was not earned in a billing period?

Sorry my hackles are up due to the "convoluted" explanation, the "no cancellation charge" and lack of trust in suppliers.

You decide.

MillicentBystander

Surely the fact that the majority of the tariffs at the top of the switching sites are now (unusually) fixed ones should tell you something about where the utility suppliers believe prices are going in the next year or 2? Although the BG one with no cancellation charge seems like a good deal (subject to the strange T&C's which Jalexa has highlighted).

macman

Did you use your annual kWh figures to do the comparison? Monthly DD figures do not produce accurate results.
I do wish people would stop thinking of fixed tariffs as a possible 'cheaper' option than variable. It may be, it may not; no one knows. The point of them is that you are buying an insurance against possible further rises. At the moment, that insurance is cheap or at no cost. Draw your own conclusions as to why-though Millicent has summed it up very well.