Thousands of British Gas customers who signed up for one of its fixed-price tariffs two years ago have, in effect, been overpaying for their gas and electricity since then, it has been claimed. In some cases they have paid £800 more than if they had taken a rival deal.
In May 2011 British Gas contacted many of its long-standing customers to offer them a new tariff called Fixed Price March 2013. At the time, the company was just about to increase prices, but offered this deal on the basis that it was more expensive than standard prices, but there would be no hikes until it expired at the end of March.
It was marketed, in particular, to those coming off previous British Gas fixed-price tariffs as offering them peace of mind. But while thousands of other households coming off rival fixed tariffs will soon be paying more for their energy, those who signed up to this particular deal will see their prices fall after being moved on to British Gas’s standard tariff.
With the average household energy bill having risen to an estimated £1,350 a year, and against a backdrop of energy chief executives constantly warning that bills are only set to increase, experts often suggest that the best bet is a fixed-price tariff.
In recent years all the big energy firms have offered fixed-price and guaranteed-discount tariffs in a bid to keep hold of customers. While those on other British Gas fixed tariffs have done well in the past, those unlucky enough to have signed up to this deal have overpaid.
According to an analysis by the switching comparison site TheEnergyShop.com, they have typically paid £480 more than they would have done had they been on the most competitive fixed price tariff offered by rivals.
via British Gas customers whose ‘special’ tariff cost £800 more | Money | The Guardian.
British Gas customers whose 'special' tariff cost £800 more
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