British Gas is to offer its customers new and simpler tariffs after managing director Phil Bentley accepted the company had lost their trust.

This may be good news to some, but perhaps a better way of getting customers back on board might be to offer some price cuts. Gas prices rose by 18% and electricity by 16% this summer, despite a levelling out in wholesale prices. Mr Bentley cited increased transportation costs and green levies as playing their part in the recent price hikes.

British Gas will be writing to all customers to offer them the choice between two tariffs, variable or fixed. The fixed tariff will run until April 2014 and the variable tariff will be available in two forms; standard and online... so, wait a minute. Is that three tariffs? It’s being sold as simplified but wouldn’t the simplest option to be to just charge everyone the same price for gas and electricity?

One way to save money on your bills, whatever tariff you may be on, is to do your best to save energy in the home.

Here at BigGreenSmile we offer a range of energy saving products that can help cut down on energy bills.

And then there are the companies out there, other than the ‘Big Six’ who can offer you great energy saving deals on your gas and electricity; companies such as Ovo Energy, who, way before British Gas thought of it, offered their customers two simple tariffs, one of which, The Green Energy Plan, offers 100% renewable energy.

Ovo went head to head with British Gas on Newsnight last week, and although Paxman refereed, I’d say 1-0 to Ovo Energy.

[Image: Karen Roe]