British Gas trumps rival's cut-price online deal

0 Comments | Sunday Herald, The, Oct 14, 2007

BRITISH Gas has thwarted Scottish and Southern Energy's bid to offer the cheapest online energy plan in the market, by undercutting its rival by 32p.

The energy giant retaliated after Scottish and Southern launched a new internet tariff last week. Its Price Fix 2008 was GBP5.71 cheaper than the Click Energy 4 online deal from British Gas. The two firms have been engaged in a price war since the end of September, snipping pounds off their online prices in a series of bill-busting moves.

The price cuts are good news for consumers, but they are limited to online deals. At the moment, only one in eight households are signed up to an online tariff, according to uSwitch.

Tim Wolfenden of uSwitch favours the Scottish and Southern Energy plan over the cheaper deal from British Gas.

Wolfenden says: "Price Fix 2008 offers consumers the best of both worlds - a cheaper online plan coupled with a fixed price until end of November 2008 - from a supplier that consistently provides good customer service. British Gas, with its poor track record in customer service, has undercut by 32p so now it just remains to be seen what price consumers will put on customer service."