British Gas Launches Price Promise Tariff to Save on Energy Bills
British Gas has introduced a new fixed-rate tariff named Price Promise, aiming to offer households significant savings by undercutting the energy price cap by £299.
This tariff is available to both existing and new customers, providing an opportunity to benefit from lower energy costs during the winter period.
Details of the Price Promise Tariff:
The Price Promise tariff, costing a typical household £1,699 annually, aims to help customers experience immediate savings on their energy bills.
However, it’s crucial to note that the 15-month fixed term only guarantees cheaper rates for five months: the two months under the January price cap and the subsequent April cap lasting until the end of June.
Considerations and Exit Fees:
While the fixed-rate deal seems appealing, consumers are urged to carefully consider the terms and conditions.
British Gas imposes exit fees of £75 for both gas and electricity if customers decide to switch providers, adding a layer of consideration for those contemplating a change.
Consumer Perspective and Ofgem’s Stand:
Consumer champion Martyn James emphasizes that fixed deals have traditionally appealed to cautious consumers but warns about carefully reviewing the deal’s fine print.
He notes the significant commitment with a 15-month lock-in period and urges consumers to weigh the pros and cons.
Melissa Giordano from Ofgem highlights the importance of consumer choice and quick supplier switching for better deals or in cases of poor service.
Ofgem’s impending announcement on energy rates for April adds a layer of anticipation to the market dynamics.
Conclusion:
As British Gas unveils its Price Promise tariff, promising savings and a lower price cap in April, consumers are presented with an opportunity to assess their energy plans.
However, the cautionary notes about exit fees and the fixed term’s implications underscore the need for informed decision-making in the complex energy market.