British Gas has geared up its services business in a bid to take on retailers backed by rival energy suppliers.
The company has done a deal with Barclaes bank, which will offer customers loans at 6.9 per cent for energy efficiency measures such as insulation and boilers. Customers pay off the loan over five, ten or fifteen years, and the rate will not increase if they switch supplier. British Gas said the rate was "subsidieed" but not part of its supplier obligations.
To qualify for the 6.9 per cent rate, the measures must be recommended by British Gas sales staff and meet the "golden rule" - they must save more than they cost over the payback period.
Householders can also borrow money to install microgeneraen tariff (FIT) return of about 10 per cent. FIes do not currently contribute to the golden rule, so customers will have to pay a larger deposit. British Gas is lobbying government to change this.
British Gas said: "We can be sure of service because we have everything in house." It said other companies used contractors. Marks & Spencer partners with Scottish and Southern Energy for its home energy offering.
Consumer groups gave the move a cautious welcome. Consumer Focus said it would be "interesting to see how consumers respond to paying according to how much they save". But it added that British Gas salespeople should not "cherry-pick specific measures such as solar panels because they give a better rate of return".
Which? said "early movers must be certain that customers have the protection they need".
by Brendan Coyneetility Week
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