Energy insurance criticised for costs

05/10/2009

An insurance policy from British Gas is rising sharply in price for many customers, it has been warned.

According to a report in the Guardian newspaper, people with HomeCare plans could pay up to 50 per cent more for the policies.

One customer cited in the report is now expected to pay an extra £144 a year.

The insurance covers customers against malfunctions and accidents relating to central heating and plumbing systems, which can be very expensive to repair.

Customers facing an increase in prices have been told that a switch to "risk-based pricing" is responsible for the change.

The type of boiler a householder has, its breakdown history and where the property is located all now has a bearing on overall costs.

Talking to the newspaper, a spokeswoman for British Gas highlighted the advantages of the HomeCare service.

She commented: "You don't have to sign up for a contract to get your boiler fixed by a British Gas engineer.

"Just call us when your boiler breaks down and we'll fix it as a one-off repair with a competitive fixed price, with no extra charges and all parts and labour included."

British Gas provides energy for roughly 15 per cent of UK residents, making it the nation's largest supplier.

Tags; Housing Debt and Bills, Retirement Money Problems, Recent Graduate Debt,

• Share
• 
• 
• Store
• 
• Follow
•