British Gas fixed-price 'promise'

A British Gas offer to pay 5% extra to fix your gas price until March 2013 would, in reality, mean a 23% increase

British Gas invited me to pay an extra 5% to fix the price of gas until March 2013 for, it said, peace of mind. It was not spelled out that this meant the cost of gas would rise 23% because its price has also just gone up by 18% for everyone. I sent back the form, not signing up to the 5% but writing across the slip that I thought it was a con trick. I was therefore surprised to receive a letter headed: "Great news ? your prices are protected for the next two winters." As in the original letter, a 23% increase was not mentioned, just the 5% premium.

The letter was sent on 1 August, received on 4 August, and you had to phone within seven days of the date on the letter to cancel. I phoned and the surcharge was deleted but many people would be on holiday at that time. Anyone who wants to pull out before March 2013, to switch to another tariff or a different provider, faces a �50 cancellation fee or �100 if they take both gas and electricity.
VH, Sheffield

British Gas said that giving seven days' notice is a statutory requirement under the Distance Selling Regulations to allow customers a cooling-off period. That is not precisely accurate because seven days are a minimum requirement, not a fixed period companies must follow. In fact, you had longer to react than you realised because this is seven working days and the timing starts on the day after you received the confirmation, not the date on the letter.

British Gas failed to read your acerbic comment on the form and interpreted it as an application for the new fixed-price tariff, which is why it sent a confirmation letter. It has now moved you back to the standard tariff.

You can email Margaret Dibben at your.problems@observer.co.uk or write to Margaret Dibben, Your Problems, The Observer, Kings Place, 90 York Way, London N1 9GU and include a telephone number. Do not enclose SAEs or original documents. The newspaper accepts no legal responsibility for advice.

Margaret Dibben

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Source: http://www.guardian.co.uk/money/2011/aug/27/british-gas-fixed-price-promise

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