The British Gas 5% Price Cut and Their Price Fixing Scheme

In the wake of EDF's decision to cut prices by 5% (as a result of a fall in wholesale gas prices of 9%), British Gas have followed suit and have cut their prices (electricity not gas) by 5%.

Hoozah!

However, those of you with long memories may recall that back in July I wrote the following about British Gas's price fixing scheme:

"Watch out for the nice little rip off they tried on my dear old mum recently.

British Gas offer to fix your prices until 2013.

Good offer?

No....you have to pay an extra 5% on top of their new standard tariffs if you wish to fix.

Also, "oddly enough", there is no mention of what happens if prices fall (even if that is unlikely). It seems the hapless customers lock themselves into a fixed price which won't fall if British Gas drop their prices."

So my question to British Gas is as follows:


Will the poor saps who signed up to your price fix scheme (at an extra cost of 5%) benefit from your 5% reduction in prices?

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The British Gas Price Fix Offer

In the wake of the rather paltry £2.5M fine levied by Ofgem against British Gas failing consumers who complain (British Gas made operating profits of £585M for the first half of 2010).

Watch out for the nice little rip off they tried on my dear old mum recently.

British Gas offer to fix your prices until 2013.

Good offer?

No....you have to pay an extra 5% on top of their new standard tariffs if you wish to fix.

Also, "oddly enough", there is no mention of what happens if prices fall (even if that is unlikely). It seems the hapless customers lock themselves into a fixed price which won't fall if British Gas drop their prices.

Rip off Britain!

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Greed

Britain's utility companies are to be congratulated on being even more greedy than banks, insurance and credit card companies, in their brazen fleecing of the consumer.

E.ON added its name to the list of shame by raising prices this morning, electricity up by 16% and gas by 26%.

Similar recent increases were imposed by EDF and British Gas.

Time that the sleepy old watchdogs, that are allegedly looking after the interests of the ripped off British consumer, to wake up and earn their pay.

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British Gas Lambasted

British Gas has been lambasted by Energywatch, which has reported that the number of complaints from customers have more than doubled in a year.

As from October 2006 to March 2007, British Gas had 21,427 complaints mainly concerning disputes over bills.

The total number of complaints and enquiries from British Gas customers hit a stonking 14,001 in March.

Ironically, although British Gas has around 30% of the market, it has over 70% of the total complaints in the industry.

Well done British Gas!

Seemingly, according to British Gas, the problems are being blamed on their new computerised billing system. How many times have we heard that tired old refrain "it's a computer error"?

Let me nail that nonsense once and for all, computers are programmed and operated by humans; the computer is only as good as the software and data input. Where errors occur, these errors are due to human error not computer error.

These problems imply that British gas had not tested its new system thoroughly enough before going live.

As if to add to the hapless customers' woes, British Gas has also managed to find itself without an adequate number of staff available to handle the complaints arising from this mess.

Energywatch noted:

"But it has compounded the error by not having the level of customer service, and the ability to handle customer complaints, in a way that leaves customers assured that British Gas is taking their problem seriously."

British Gas are rather shame faced about this fiasco, and have taken on an 800 extra staff to deal with customer queries (doubtless the extra costs of the face saving exercises will be reflected in gas future bills).

Phil Bentley, MD of British Gas, told the BBC:

"Obviously we apologise for the inconvenience and the stress.

I understand what it's like to get a bill that's incorrect. We apologise to those customers and we're working very hard to improve services."

Finally, as if to rub salt in British Gas's festering wounds, Energywatch's data reveals that most other suppliers have at least halved their complaints on a year-by-year basis.

Well done British Gas!

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British Gas

British Gas have announced that they will not be introducing a £5 late payment fee for recalcitrant customers.

This change of heart is due in no small measure to the pressure applied by consumers, who were upset at facing what they viewed as price rise by stealth.

However, before the champagne corks are pooped, the gas consumer would do well to remember that this is in effect no more than a Pyrrhic victory:

1 Pay your bill on time, and you would never have suffered the late payment fee

2 The cost of recalcitrant customers will be met by all of British Gas's customers, in some form or another.

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