British Gas Price Freeze

jem16
jem16 Posts: 19,397 Forumite
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in Energy
I just got a letter from BG offering to price freeze prices until 2010 but to be honest I'm just confused.

I'm using BG dual fuel with online management. Gas is £41.50pm and Electricity is £61.50pm. They claim that the freeze will offer discounted rates of 4.8% for electricity and a 2.8% premium above for gas - both based on their new standard variable rates ( whatever they are! )

Cancellation before 2008 brings a £75 cancellation fee, before 2009 a £55 fee and before 2010 a £35 fee. This is what I don't like.

Is this capping a good deal or not?
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Comments

  • vansboy
    vansboy Posts: 6,483 Forumite
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    I saw the ad in the paper today - gonna check https://www.house.co.uk later.

    It does look confusing, to say the least - if you use LOTS of fuel, guess it'd be worthwhile. We don't, luckily enough.

    & have only just switched to direct debit, to see if we can save something, already on duel fuel & on line billing.

    Chosen to stay with BG for the free onetel evening & weekend calls package.

    We'll see if you lot agree, no doubt!!!!

    VB
  • sallysaver
    sallysaver Posts: 800 Forumite
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    vansboy wrote:
    I saw the ad in the paper today - gonna check https://www.house.co.uk later.

    It does look confusing, to say the least - if you use LOTS of fuel, guess it'd be worthwhile. We don't, luckily enough.

    & have only just switched to direct debit, to see if we can save something, already on duel fuel & on line billing.

    Chosen to stay with BG for the free onetel evening & weekend calls package.

    We'll see if you lot agree, no doubt!!!!

    VB
    In yesterdays Daily Mirror, British Gas announced price increases of 14.2%!
  • vansboy
    vansboy Posts: 6,483 Forumite
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    Yep! Saw that too, Sally!

    Not sure if it's clever marketing, or whether you'll avoud this increase, too!!

    VB
  • jem16
    jem16 Posts: 19,397 Forumite
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    It says it's based on their "new standard variable rates" so I would think it#s based on the increased prices.

    I was only thinking about avoiding future increases as it seems to be a trend with gas prices at the moment. Looking at switching it's always Npower that comes out cheapest but haven't heard any good comments about them
  • Cardew
    Cardew Posts: 29,036 Forumite
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    If you are on dual fuel with BG you will pay the new increase of 14.2% +2.8% for Gas -a total of 17% over current prices.

    On Electricity you will pay 14.2% - 4.8%(9.4% over current prices).

    All fixed until 2010.
  • isayoldchap
    isayoldchap Posts: 1,262 Forumite
    sallysaver wrote:
    In yesterdays Daily Mirror, British Gas announced price increases of 14.2%!

    Sallysaver
    Wow only 14.2%.What really annoys me is that sometime ago I went onto an
    online fixed tariff with Scottish Power and it seems like over the 3 years I may save around £400 inc the £36 bonus if I go the term.I'm totally gutted I didn't go with BG where I could have been up with the joneses and be ripped off for ages.
    I hate searching energyhelpline for a good deal and changing for the better.To make things worse my parents also changed at the same time and they are pensioners.Surely they don't need the money.
    Best of all I can't wait when the nice man selling the British Gas tariff is at the door or at the supermarket.I always can be proud to show him my energyhelpline up to date tariff.

    Please British Gas keep hicking your prices-you are the best.
  • Hunnymonster
    Hunnymonster Posts: 751 Forumite
    I expect the only freezing going on where BG are concerned are pensioners who've not bothered to switch yet... if you have an elderly relative, know an elderly person, etc. do your good deed and help them save money on their utility bills.
    There are 10 types of people in the world, those that understand binary and those that don't

    In many cases it helps if you say where you are - someone with local knowledge might be able to give local specifics rather than general advice
  • jem16
    jem16 Posts: 19,397 Forumite
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    OK you all say switch but who provides good service?
  • speedyjoe
    speedyjoe Posts: 339 Forumite
    jem16 wrote:
    Looking at switching it's always Npower that comes out cheapest but haven't heard any good comments about them

    I was tempted by Npower standard variable tariff, it worked out to an alledgedly 23% saving - I am really dubious about the comparison sites.

    Anyway I did some checking and the prices are based on prices set in October 2004, now BG have raised prices I'm willing to bet that Npower will be doing the same next month.

    Currently I'm looking at Scottish Power capped tariff, about the same cost as BG but fixed till May 2007 with apparently good customer service. I can't see that the current energy crisis is likely to get better in the near future.

    Joe
    Joe
    As through this life you travel,
    you meet some funny men
    Some rob you with a six-gun,
    and some with a fountain pen
  • Hunnymonster
    Hunnymonster Posts: 751 Forumite
    jem16 wrote:
    OK you all say switch but who provides good service?

    Benchmarked against whom though ?

    For me I've had awful service from BG (and it's previous incarnations) over several years previously so the opportunity to switch was great - however bad the alternatives were they couldn't come close to BG.

    I previously lived in an nPower area, and got fed up of their doorstep selling "we can save you thousands of pounds" lies. Their actual service was ok - but their doorstep behaviour was the reason I left them.

    Who have I had as alternatives ? Scottish Power have been ok service-wise as both gas & electricity supplier, but since I moved to their old local area, their pricing has become less attractive - and of course being a new build BG were the incumbent.

    So I moved over to Scottish Hydro, and they have been as good if not better (same level of service, but on 0800 number instead of an 0845 for CS)

    That's my (limited) experience - but most of the switching sites have service ratings - done by research.... take it with a pinch of salt, but one with 1/5 is going to be less good than one with 4/5 - see where your current suppliers are compared to potential new ones.... etc.
    There are 10 types of people in the world, those that understand binary and those that don't

    In many cases it helps if you say where you are - someone with local knowledge might be able to give local specifics rather than general advice
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