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