Innovative new energy plan needs a ‘buyer beware’ stamp

British Gas’ new wholesale market tracker will allow consumers to peg their energy bills to the wholesale energy market.

It will work in a similar way to a tracker mortgage, where a homeowner can elect to have their mortgage rate pegged to the base rate. But with wholesale energy prices predicted to be on the way up, this innovative new energy plan needs a ‘buyer beware’ stamp on it as it will only be suitable for a very special type of consumer, warns uSwitch.com.

Geoff Slaughter, Energy Manager at uSwitch.com, the independent online comparison and switching service, says: “This is the second energy tracker plan to be launched by a supplier this year and an interesting move from British Gas as it is clearly seeing product innovation as a way to entice customers back into the fold.

“It is an interesting and innovative product. But with wholesale energy prices predicted to be on the way up, this new energy plan needs a ‘buyer beware’ stamp on it. It will only be suitable for a very special type of consumer, who is completely comfortable with the idea that their energy bills could go up as well as down on a far more frequent basis. Although British Gas acknowledges this, what isn’t clear at the moment is how they intend to ensure that it is only taken up by those who fully understand it and who are completely aware of the risks.

“What is disappointing is that the tracker will be making a false start as it is pegged to British Gas’ standard rate, which is currently the fourth most expensive in the market.”