British gas' withdrawal of its WebSaver 1 tariff

British Gas has announced that it is to withdraw its WebSaver 1 tariff - which tracks its standard tariff with a 10% discount, irrespective of price changes - and will replace it with the WebSaver 2 tariff, which only offers a 6% discount.

Gareth Kloet, head of utilities at Confused.com, says: "It is disappointing that British Gas has decided to pull its WebSaver 1 tariff, which frequently topped best buy tables, and replace it with an inferior tariff. This move could be an indication that British Gas, along with Scottish & Southern Energy, is actually predicting a rise in wholesale gas prices, and it is hedging its bets now to take advantage of this. The withdrawal of WebSaver 1 demonstrates how important it is for customers to shop around regularly, as deals are added as quickly as they are taken away.

"While switching suppliers is quick and easy for the customer, it can take up to 28 days for the energy suppliers to complete the switch. Therefore, customers should consider switching as soon as possible, to make the most of the savings available in the energy market.

"Our message is simple: if customers want to make larger savings, they need to take matters into their own hands and choose a supplier and tariff that rewards them for their custom. In some cases, they may not even need to switch supplier; simply moving to an online dual fuel tariff and paying by direct debit can bring substantially better savings. Customers do not need to wait until the price changes become effective; they can and should act today."

"Customers who switched with Confused.com saved an average of £252 on their annual energy bill in 2008."