British Gas to launch 'fix and fall' campaign following price hike

By Matthew Chapman, marketingmagazine.co.uk, Friday, 12 October 2012 01:00PM

British Gas will launch a five-week "fix and fall" ad campaign tomorrow (13 October), following today's confirmation that it would raise its prices by 6% this winter.

British Gas: 'fix and fall' campaign

Activity will feature the brand’s Planet Home animated world and push its new "fix and fall" tariff, which will offer customers a fixed price tariff that can drop in price if British Gas standard prices fall across the year. 

British Gas managing director Phil Bentley has blamed the price hike, which is likely to anger cash-strapped consumers, on factors including North Sea gas supplies running out and the company's commitments to producing clean, efficient energy.

The energy giant previously launched a "fix and fall" tariff to lessen the blow of a price hike, which drew criticism from rival Npower when it launched six years ago because electricity prices were likely to rise, effectively rendering the price promise meaningless.

An impending television activity will be supported by print, radio and poster activity, with creative by CHI & Partners.

Phil Bentley, managing director, British Gas, said: "We know that household budgets are under pressure and this £1.50 per week rise will be unwelcome. However, we simply cannot ignore the rising costs that are largely outside our control, but which make up most of the bill.

"Britain’s North Sea gas supplies are running out, and British Gas has to pay the going rate for gas in a competitive global marketplace. Furthermore, the investment needed to maintain and upgrade the national grid to deliver energy to our customers’ homes, and the costs of the Government’s policies for a clean, energy efficient Britain are all going up."

The British Gas campaign will break on the same day E.ON launches its own campaign, which will see it drop its animated style as it seeks to be less "remote".

In May E.ON committed to freezing its energy prices for the entire year, but it is not yet known whether it will follow in the footsteps of SSE and British Gas by hiking its prices in the New Year.

British Gas will hike its prices by an average of 6% on 16 November and its "fix and fall" tariff will be capped from and including 16 November until 30 November 2013.

This article was first published on marketingmagazine.co.uk