With energy prices falling and pressure mounting on the main 6 suppliers (British Gas, nPower, EDF Energy, E.ON, Scottish Power and Scottish & Southern) to reduce their tariffs I find it quite surprising to see British Gas offering their ‘Fixed Price 2012’ gas deal as their Best Buy. It sounds a good idea to be able to have a guaranteed gas price with no more price increases until 2012, however is it really the best option to tie into just at the moment?
Checking for my postcode under the Fixed Price 2012 deal, it would cost 8.186p per KWh for the first 670 KWh per quarter. The price having been fixed as at 30 July 2008 with a premium of 7.41% on the standard rates at that time.
However, with the same postcode, under the standard British Gas contract the equivalent price is 7.622p per KWh. Even better is the ‘Click Energy 6’ deal which is basically offering a price reduction if you manage your bills online and have paperless billing, the price is 6.860p per KWh. In addition, neither of these have a cancellation penalty whereas under the Fixed Price 2012 deal you could be charged £35.
I’m sure there are a lot of people who like to budget for their gas (and other) costs and would welcome the ability to fix them for a good length of time. It just doesn’t seem sensible to me to lock into a high price in the knowledge that in all probability prices will be reduced in the relative short term. Perhaps when the energy supplier prices do fall, including those from British Gas, then such a deal would be worth some serious consideration.