MSE News: British Gas to scrap its standard variable tariff for new customers

Former_MSE_Megan_F

British Gas has pledged to scrap its standard variable tariff for new customers next year, replacing it with a one-year tariff with no exit fees – but it so far can't promise the new deal will be any cheaper...

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'British Gas to scrap its standard variable tariff for new customers'

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Blackbeard_of_Perranporth

But it can’t say whether it would be cheaper.


I take that as always no then!

robin58

Smoke and mirrors British Gas, smoke and mirrors.

House_Martin

Its good news for all the stick in the muds who stay on the dearest tariffs. I would expect BG to follows Eon`s lead and link the cheaper tariffs to customers who agree, sensibly , to accepting smart meters.
Not strictly just for new customers but BG have plans to put the default tariff from existing customers who`s fixed deals come to an end and move onto a "less punitive " tariff other than SVT to be agreed by OFGEM later next year.

badmemory

House_Martin wrote: »

Its good news for all the stick in the muds who stay on the dearest tariffs. I would expect BG to follows Eon`s lead and link the cheaper tariffs to customers who agree, sensibly , to accepting smart meters.

Actually you have missed the most important words in that article. FOR NEW CUSTOMERS. So all those stick in the muds will still be on the same high tariffs.

What it actually means is that they are all banging their prices up & the new fixed prices will be so near the SVT that they won't be worth bothering about.

Consumerist

To me, this smacks of Ryanair tactics.

They may not call their default tariff an "SVT" but it will be priced as an SVT. and called a Standard Fixed Tariff - Look out for the rebranding as an "SFT".

phillw

Consumerist wrote: »

They may not call their default tariff an "SVT" but it will be priced as an SVT. and called a Standard Fixed Tariff - Look out for the rebranding as an "SFT".

This is technically an improvement, you know what date the price will rise & won't be worried each month. Unless you're the type of person who is always surprised that they could be raising their prices.

System

phillw wrote: »

This is technically an improvement, you know what date the price will rise & won't be worried each month. Unless you're the type of person who is always surprised that they could be raising their prices.

How so? For consumers on a SVT, all suppliers have to give notice of a tariff increase. Anybody coming off a fixed tariff today already should know that they will default to the supplier's SVT. The only difference here is that the default tariff is now fixed for a certain term, The unknowns are the difference in cost between what E.oN and BG are now proposing, and whether exit fees will apply? I suspect that exit fees will not be permitted.

This is just a way of adding further confusion to an already confused energy market. What exactly are Government now going to cap?

brewerdave

Hengus wrote: »

How so? For consumers on a SVT, all suppliers have to give notice of a tariff increase. Anybody coming off a fixed tariff today already should know that they will default to the supplier's SVT. The only difference here is that the default tariff is now fixed for a certain term, The unknowns are the difference in cost between what E.oN and BG are now proposing, and whether exit fees will apply? I suspect that exit fees will not be permitted.

This is just a way of adding further confusion to an already confused energy market. What exactly are Government now going to cap?

Exactly !! No doubt, some Govt. minister will be crowing that they have "forced" pegging of price rises:rotfl:

System

brewerdave wrote: »

Exactly !! No doubt, some Govt. minister will be crowing that they have "forced" pegging of price rises:rotfl:

That I do not doubt, but a fixed tariff at, say, £1 less than the equivalent SVT is a victory for no one but the energy supplier. BG has also floated the idea that social and economic costs should come out of taxation. I cannot see any Party agreeing to that. At the moment, they remain hidden to most consumers. Politicians will want to keep it that way.

robin58

House_Martin wrote: »

Its good news for all the stick in the muds who stay on the dearest tariffs. I would expect BG to follows Eon`s lead and link the cheaper tariffs to customers who agree, sensibly , to accepting smart meters.

Sensibly? Do you actually have a smart meter? The first meters don't work if you change suppliers and if you stay with your current supplier, they have trouble relaying the readings back due to the fact they use the phone mobile network.

The updated second versions are better but won't be introduced until mid 2018.

Plus they are now talking about a third standard of software.

I do not and will not allow a smart meter to be installed until they can sort out which software standard they really want.

Plus if anybody can't figure out for themselves that they will save money by turning off a light or turning off equipment instead of leaving it in standby, then they shouldn't be allowed access to a electricity supply.