British Gas Electricity Price Cap

keithsav

Hi Everyone,

British Gas are offering to fix the price of my electricity (at the current standard rate) with a 2.25% surcharge until April 2007. They also promise to cut prices should electricity prices fall in this time (don't laff).

In the small print, it seems as though there 'could' be a 20 quid penalty should I cancel the agreement before April 2007 (except for a house move). I expect it's to stop people shifting to a cheaper supplier...

Good deal or not ? I'm undecided ...

Thanks,

Keith.

c_smith

I've never seen the point of going for capped prices, for the simple reason that these companies are out to make a profit. They have a fair idea of how much prices are likely to rise in a given space of time and charge you the surcharge for the privilege of the capped rate accordingly.

Maybe I'm wrong, but I've always believed the best thing to do is check the competition's prices regularly and jump ship frequently to get a better deal.

keithsav

I suppose it's down to how much you think that the prices will rise over the next 18months - bit of a gamble either way, although I've just listened to a phone in about the price of petrol and the general opinion of the 'experts' was that all energy prices are likely to be at least 10% higher by Christmas than they are now.

Maybe the real question is how much higher than the cheapest supplier are BG at the moment - if they are less than 10%, it may be better to cap.

Gambler

just had the same email, and am seriously considering it. I know moving suppliers will give you savings but is it worth it for the hassle involved.

pennies2pounds_3

british gas also charge a fee to go to a capped tarriff so I have gone for the Powergen one

Gambler

pennies2pounds wrote:

british gas also charge a fee to go to a capped tarriff so I have gone for the Powergen one

How much? It doesn't mention a fee in the email.

If I decide to cap I would prefer to cap for both elec and gas.

keithsav

I think the 'fee' is in the 2.25% surcharge.

Gambler

Thanks keith, I may ring them up ask if they can cap the gas too, otherwise Powergen is an option.

keithsav

No problem - Let us know how you get on please !

Grimbo_2

Hi folks, there is no fee for capping your prices as one poster mentioned there.... however there is a 2.25% increase in price upon entering into the agreement as mentioned above.

The capped offer for gas has lapsed im afraid, both were open to a 1 million customer signup quota and the gas has already passed the 1 million mark sometime ago, however as you can guess the electric has not yet met the mark.

Yes there is a £20 fee for leaving the scheme but lets be fair if prices go up by 10% and your paying at 7.75% below any other BG customer why would you want to leave ?

Gambler

Grimbo wrote:

Hi folks, there is no fee for capping your prices as one poster mentioned there.... however there is a 2.25% increase in price upon entering into the agreement as mentioned above.

The capped offer for gas has lapsed im afraid, both were open to a 1 million customer signup quota and the gas has already passed the 1 million mark sometime ago, however as you can guess the electric has not yet met the mark.

Yes there is a £20 fee for leaving the scheme but lets be fair if prices go up by 10% and your paying at 7.75% below any other BG customer why would you want to leave ?

Thanks for the info Grimbo. I'd like to keep a dual supplier so unfortunatley if I decide to cap I will have to move supplier.

I see you can also get a discount on the elec rate if you sign up to online billing.