Can any kind MSE see the catch?

jenniferfluff29

Hi

I have gas/elect with BG on standard variable. Approx £28 electricity £50 gas per month.

I have moved to a fixed deal with another company but BG have now offered me a £200 credit on my gas account to come back. £100 after 3 month, another £100 credit after 12 months.

This seems a good deal as I was only saving £75 for moving plus the £30 cashback from MSE link.

My thinking is that this will easily pay for any increases this year and I can always move after 1 year if required.

But what is the catch that I can't see? thanks for any comments.

victor2

Is there a penalty for terminating the fixed deal you are now on early?
Also, how long would you be locked in to BG?
It's a good few months utilities paid for, but get written or emailed confirmation of the deal, especially as you'll have to wait for the payments.

jenniferfluff29

Awaiting emailed confirmation.

No penalties with new supplier.

I can leave BG at any time with no penalties - although to be confirmed in writing.

Think I will just await the paperwork as seems a good deal.

Thanks

pooch

jenniferfluff29 wrote: »

Hi

I have gas/elect with BG on standard variable. Approx £28 electricity £50 gas per month.

I have moved to a fixed deal with another company but BG have now offered me a £200 credit on my gas account to come back. £100 after 3 month, another £100 credit after 12 months.

This seems a good deal as I was only saving £75 for moving plus the £30 cashback from MSE link.

My thinking is that this will easily pay for any increases this year and I can always move after 1 year if required.

But what is the catch that I can't see? thanks for any comments.

Does the £75 annual saving include the effects of the recent price increase announced by BG?

I would be inclined to accept BG's offer, bank the £100 in 3 months (about what you would save with new supplier after only 1 year, including cashback) and look again then.

undaunted

I'm inclined to believe you rarely get anything for nothing in this life. Whilst there may or may not be a catch I'd read the small print very carefully.

EG if you do decide to leave British Gas again "anytime" are those cash back offers still apllicable or do they have a means of recovering them if you leave within "x"?

It seems to me that if you proceed with your switch you would save £105. British Gas are offering you £200 leaving you £95 better off but their prices are rising by about 6% aren't they meaning you'd lose about £56 (exisiting gas & electric payments plus 6%) of that in the price rise leaving you say about £40 up with British Gas.

How long will the fix apply for if you switch & do you think BG prices could rise another £40 within that time?