british gas

[DrFilth]

i get my gas and leccy from british gas they have sent me a letter saying leccy going up 16% gas 18%
if i sign they will put an extra 5% on top and this price will stay the same till march 2013

is it a good idea to sign this as i don't want to move to another supplier


your thoughts please

[factor-fiction]

I'd read teh contract very carefully- I had something similar with Utilita about 4 years ago. Then they suddenly charged all its customers an additional amount (about £100 I recall) retrospectively - and then pointed to some small print that gave them the right to charge more in the event of sudden/unforeseen major changes in wholesale prices- which to me defeated the whole point of the deal.

It sounds a pretty good deal given that:
(a) everyone else seems to be putting their costs up by similar amounts, and
(b) The trend in energy prices is for them to rise by at least 10% p.a.
(c) even when wholesale prices fall suppliers don't seem to pass them on, so it's unlikely others will ever pay much less than you

Having said that, BG know what they are doing and must feel this is a good deal for them too