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Fixed so cheap - prices due to go down??

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G1LES
G1LES Posts: 6 Forumite
in Energy
Should I fix with EON till 2011 or switch to EDF’s variable rate which is a similar price?

Does it suggest that because many fixed rates out there at the moment are the same or even cheaper than competitive variable tariffs gas and electricity prices are due to go down? Or do I stop being cynical and just lock in to the cheaper rate!?

If I do switch from EON to EDF can someone please advise the best way to go about it in order to reap maximum cashback/rewards

Thanks in advance
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Comments

  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    G1LES wrote: »
    Should I fix with EON till 2011 or switch to EDF’s variable rate which is a similar price?

    Does it suggest that because many fixed rates out there at the moment are the same or even cheaper than competitive variable tariffs gas and electricity prices are due to go down? Or do I stop being cynical and just lock in to the cheaper rate!?

    Question such as you have posed have been asked on here over the past few years and it is rather like asking who will win the 2:30 at Epsom;)

    It is simply a gamble as it has always been!

    My gut feeling is that prices will reduce slightly next year!
  • kippen_noedel
    kippen_noedel Posts: 822 Forumite
    Cardew wrote: »
    It is simply a gamble as it has always been!!
    Yes as Cardew points out it's a gamble

    so ask yourself this question, would you be more upset if you took the fixed rate and prices went down or you took the variable option and prices went up ?

    Personally I would be surprised if we ended 2010 with prices lower than they are today. If the £ can gain back a lot of it's losses against the Euro it might still be possible but I think the economy is still far to weak for that to happen next year. & of course as soon as the economy starts to regain some strength, industry will be competing once again with domestic users for the same gas supplies.

    I made a prediction nearly 9 months ago on the forum that we would not see any prices rises this year and even though I gave specific reasons for making such a statement I was pilloried for saying something so stupid. Turns out I was right.

    It''s still a gamble though.
  • Capistan
    Capistan Posts: 3,019 Forumite
    Cardew wrote: »
    Question such as you have posed have been asked on here over the past few years and it is rather like asking who will win the 2:30 at Epsom;)

    It is simply a gamble as it has always been!

    My gut feeling is that prices will reduce slightly next year!

    Well the prices the supply companies reduced 9 months ago, they price
    halved. When will they be halving the price they charge us?
    I only had a 10% cut, when will I get the other 40%?
    Toffs laying into the less well off? Surely not!! :naughty:

    The Following 932 Users Say Thank You to Capistan For This Useful Post: Show me >> :D
  • kippen_noedel
    kippen_noedel Posts: 822 Forumite
    Capistan wrote: »
    Well the prices the supply companies reduced 9 months ago, they price
    halved. When will they be halving the price they charge us?
    I only had a 10% cut, when will I get the other 40%?
    If you want to understand how the price of your gas is calculated, you need to learn a bit about operating a business.

    Just because the price of a commodity halves or doubles doesn't mean the price you pay follows suit. You have to factor in all the other costs.

    If, for example, the price of wheat halves it doesn't mean the price of your bread halves and the same is true in the opposite direction if the price doubles, the price of your bread doesn't double.
  • 1carminestocky
    1carminestocky Posts: 5,256 Forumite
    Cashback Cashier
    kippen_noedel wrote: »
    I made a prediction nearly 9 months ago on the forum.......


    Interesting. What username were you posting under 9 months ago? :rolleyes:

    Join Date: Jun 2009
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    Capistan wrote: »
    Well the prices the supply companies reduced 9 months ago, they price
    halved. When will they be halving the price they charge us?
    I only had a 10% cut, when will I get the other 40%?

    There is loads of water about at the moment - falling from the sky!

    So to follow your logic, as the water companies don't have to pay for the water, we shouldn't be charged anything for water.
  • G1LES
    G1LES Posts: 6 Forumite
    kippen_noedel wrote: »
    Yes as Cardew points out it's a gamble

    so ask yourself this question, would you be more upset if you took the fixed rate and prices went down or you took the variable option and prices went up ?


    As simple as that. Top advice, thank you. :rolleyes:
  • kippen_noedel
    kippen_noedel Posts: 822 Forumite
    edited 11 December 2009 at 11:05PM
    1carminestocky wrote: »
    Interesting. What username were you posting under 9 months ago? :rolleyes:
    I stopped using it because it could reveal my real identity by searching google and finding a site I used to own.

    amusingly by searching on your name the best I could find was A Stocky Mincer
  • MrLazyBones
    MrLazyBones Posts: 7 Forumite
    Hi,

    This post comes with no warranties!

    Wholesale prices have fallen over 45% in 2008, but suppliers have not passed this on yet. Interesting comments about 'gambling'; while you can not with any certain guarantee if suppliers will reduce or increase prices you can use information that is available to you. I have recently posted a section about this on my blog (purely informative, I do not have any affiliate connections as I post this), however as a new user I cannot post the URL. Furthermore Ofgem are making noises that suppliers should reduce prices (even though they can not enforce this).

    Suppliers, IMO, will reduce prices after winter by a token percentage.

    There is also an article on my blog that shows why if the respective commodity falls by x% that not all of this is passed on - not sure how to get you to it to see.

    Hope this helps - best of luck with your decision
  • kippen_noedel
    kippen_noedel Posts: 822 Forumite
    MrLazyBones wrote: »
    I have recently posted a section about this on my blog (purely informative, I do not have any affiliate connections as I post this), however as a new user I cannot post the URL.
    welcome to the forum MrLazyBones

    If you feel comfortable sending me the link by PM, I will post it for you, assuming it has nothing against this forums rules.
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