Switch Now or Wait?

chambta

I'm currently on British Gas' Fixed Price May 2015 which I have exit penalties on until 31/5/2015.

The constant emails from MSE Cheap Energy Club have alerted me to the news that I can get cheaper deals elsewhere.

British Gas will charge me £30 x 2 to switch now which would likely (in my head, we're moderate users) wipe out any benefit in changing now.

They have though offered me the chance to switch without cost to their Fix and Reward Feb 2016 which they assure me is 'cheaper'. They will also give me a £50 Amazon gift voucher.

Should I take them up on the offer or wait to switch later?

lvf

Is there any early termination fees on the new tariff? If not, then why not switch to their new tariff if it is cheaper for you? If a better deal does come up, you are free to leave later down the line.

chambta

Yes there are charges - the same. I should have mentioned it, though if there weren't I'd have done it already!

jessmist

On the British Gas website it says that they don't have any exit fees if you leave early.
So i can't see how they can put the charges onto your new tariff.
I would give them a call tomorrow and check again.

matelodave

Is it really cheaper - check the actual cost per kwh and daily standing charge to check that it is.
In my view, energy costs are dropping a bit at the moment so I'd be inclined to stay with your existing deal unless you can save the cost of the early termination fees.

I've got a deal until April 2015 - the comparison sites reckon I can save £480 by swapping. However, I will be changing suppliers or tariffs at the end of April and I'll be using over 50% of my annual energy consumption between now and then. I'm much better off staying put to the end of my present tariff and hoping that there's a decent deal to be had in April. My actual savings over the period between now and April would be -£14 taking into account my early termination fee.

chambta

jessmist wrote: »

On the British Gas website it says that they don't have any exit fees if you leave early.
So i can't see how they can put the charges onto your new tariff.
I would give them a call tomorrow and check again.

Interesting - the way the email was worded I assumed there was the same £60. I've emailed back asking for clarification - if there isn't I might as well switch, get the fifty quid and then move it to another supplier and in effect get the gift certificate paid to me to escape the £60 exit fee!

Hopefully that's what I can do.

chambta

FYI - they've confirmed I can switch (it's actually marginally more expensive per unit I think), get the £50 gift certificate and then leave without penalty.

The gift certificate is emailed within 28 days of the tariff starting so I intend to instigate a switch shortly so I can leave and take my fifty quid (minus a small additional energy cost) to a cheaper provider.

jessmist

chambta wrote: »

FYI - they've confirmed I can switch (it's actually marginally more expensive per unit I think), get the £50 gift certificate and then leave without penalty.

The gift certificate is emailed within 28 days of the tariff starting so I intend to instigate a switch shortly so I can leave and take my fifty quid (minus a small additional energy cost) to a cheaper provider.

That will work out great for you then.

chambta

Should do, yes. Probably instigate the switch a week or so after confirmation of the new tariff.

Victor_Vincent

Have just changed to British Gas Fix and Reward, from the Standard tariff (but I am still within the free cancellation period if I am quick!). Not sure if I should have done this switch given that gas prices are falling. Any thoughts?

chambta

Is there a cancellation charge? I'm waiting for my £50 e-voucher for Amazon then jumping ship ASAP!