An offer I can't refuse?

[Theodoric]

I've just had a letter from British Gas saying that they'll fix the price of my gas until 2007 if I pay a surcharge 3.5% on the current price.

Well, firstly, it's only until April 2007, a little over 2 years. However, a little thought soon exposed other flaws. If the price immediately rose by over 3.5% in January next year, then I'd be quids in. However, if it only rose linearly over the next 2 years, then it would have to rise by about 7% in this period for me to make a profit. And if any price rises were back-loaded over this period then the price rise would have to be well over 7% over the period before I made a profit.

So, not such a good deal as it first appears. Of course if anyone has some inside information on gas price rises over the next 2 years . . .

[Chris]

The only information I have - and it's not inside information really - is that British Gas is a great big pile of pants, you are guaranteed to save money if you switch to just about any other company you can find, and they will muck you about like nobody's business if you actually try to switch. But it's worth the hassle. Ditch them, now.

[Theodoric]

Originally Posted by Chris T

The only information I have - and it's not inside information really - is that British Gas is a great big pile of pants, you are guaranteed to save money if you switch to just about any other company you can find, and they will muck you about like nobody's business if you actually try to switch. But it's worth the hassle. Ditch them, now.

Yes, I remember hearing about energy companies getting awkward when you try to leave them. Is this still a problem?

[danielf]

Originally Posted by Chris T

The only information I have - and it's not inside information really - is that British Gas is a great big pile of pants, you are guaranteed to save money if you switch to just about any other company you can find, and they will muck you about like nobody's business if you actually try to switch. But it's worth the hassle. Ditch them, now.

I'm actually in the process of moving. I had a look at www.uswitch.com, and I have to say it is a bit of a nightmare to figure out what is cheapest. According to uswitch London Energy online is cheapest, but I found their website didn't exactly instill confidence. I opted for Powergen dual-fuel online.

Generally, I found the comparison quite difficult. Just looking at duel-fuel, London Energy have two tariffs (but no details regarding the on-line plan). BG have four tariffs, and Powergen have one tariff plus a standing charge.

I'm not surprised there is a fair amount of customer inertia...

[Chris]

Originally Posted by Theodoric

Yes, I remember hearing about energy companies getting awkward when you try to leave them. Is this still a problem?

Always.

BG's trick is that if you are on the Direct Debit scheme, and you are trying to move during the winter, the chances are your account will be in the red (not a problem because you pay more than you use in the summer and it balances out). However, if you are in the red by more than £25 the industry regulations allow them to bar you from switching to another supplier. And boy, do they use this to good effect. My account was red by about £40.

The best solution is to make a one-off debit card payment before you try to switch and clear your balance.

And make sure you know what you're doing if you try to give them your own final meter reading. Their second favourite trick is to reject meter readings as erroneous and hold up the switch in that way instead.

They used both of these tricks on me, one after another, and delayed my move to Virgin Home Energy by three months.

[Stuart W]

The door swings both ways.....
A while back I had someone knock on the door trying to get me to switch to Powergen. At the time, I was happy with my supplyer, so I refused. She asked me to sign a document explaining that I DID NOT want powergen and would keep my curent suplyer.

I double checked the form and there was indeed a box ticked which clearly said NO to powergen.

3 months later, Powergen billed me £30 or so.

I called and explained I didn't switch to Powergen, but they said I had.

Fortunatly, I had a 'budget meter' at that address (key meter) so could not incur debt.
I explained to Powergen that if they had suplyed my electricity, they should seek monies from TXU (my then provider) as I had paid TXU in advance for my electricity.

They took me to county court.

Needless to say, once all was explained in county court, Powergen were told to bugger off.

Nice CCJ on my credit record though eh?

Lucky for me, I don't have a bank account, nor do I use credit, so any CCJ's are not an issue.

[Theodoric]

Originally Posted by Chris T

The only information I have - and it's not inside information really - is that British Gas is a great big pile of pants, you are guaranteed to save money if you switch to just about any other company you can find, and they will muck you about like nobody's business if you actually try to switch. But it's worth the hassle. Ditch them, now.

Well, a bit of quick googling suggests that you're not the only one to suggest this. And re the price fix offfer, a report from the Guardian finishes with, "So what to do with BG's offer? The advice seems to be, throw it in the bin and put your efforts into finding a cheaper supplier."

[danielf]

Originally Posted by Stuart W

<snip> She asked me to sign a document explaining that I DID NOT want powergen and would keep my curent suplyer.

I double checked the form and there was indeed a box ticked which clearly said NO to powergen.

<snip>

Why would you sign -anything- to explain you don't want certain services

[Stuart W]

Alegedly, it was for the sales rep to get 'credited' for trying to sell the service.

[danielf]

Originally Posted by Stuart W

Alegedly, it was for the sales rep to get 'credited' for trying to sell the service.

I presume this was the last time you honoured such a request?

[Stuart W]

ooooh yeah!

Now I just open the door, if I don't know the caller..."No thanks" door closed.

[Jason1]

Went on holiday a few months ago (went in may gone so quick) left me mum to pop over for me and feed my lizard. British gas salesman knocked on the door and told my mother she was signing for information to be sent to me 3 months later got a 1/4 bill from british gas they accepted and contact signed by my mother someone that didnt live at the property went ape they waived the bill. Cant imagine it been hard to change over it was done without my knowing. Back now with powergen online dual fuel monthly payment plan cheapest supplier where i am only spend £30 a month electric and same for gas

[Chris]

Dodgy sales tactics I have endured:

1. Powergen come to the door and the smarmy git with the clipboard opens his pitch by asking me if I've noticed any smell of gas recently. Once I'm suitably hooked into the conversation the sell begins. As soon as I realise what he's up to, he is sent packing. Stupid goit. I should have reported him to Transco for a trick like that.

2. A BG man, claiming to be in the area reading neighbours' meters, knocks at the door to ask if I'm happy with Virgin. Presumably he knows this because I moved to Virgin from BG. In any case, when I tell him that I am happy (why, sir?/because they're cheaper than you, mate!) he informs me gravely that Virgin is just reselling London Electricity products, and London Electricity is (shock, horror) owned by THE FRENCH. As if this fact alone should have been enough to send me scurrying back to nice, safe, BG where I might get robbed blind by a complacent quasi-monopoly, but hey, at least it's home grown. Idiot.

Originally Posted by Theodoric

I've just had a letter from British Gas saying that they'll fix the price of my gas until 2007 if I pay a surcharge 3.5% on the current price.

Well, firstly, it's only until April 2007, a little over 2 years. However, a little thought soon exposed other flaws. If the price immediately rose by over 3.5% in January next year, then I'd be quids in. However, if it only rose linearly over the next 2 years, then it would have to rise by about 7% in this period for me to make a profit. And if any price rises were back-loaded over this period then the price rise would have to be well over 7% over the period before I made a profit.

So, not such a good deal as it first appears. Of course if anyone has some inside information on gas price rises over the next 2 years . . .

or you could move away from Britsh gas as im about to do and save yourself 10%