Gas prices: where are they heading?

pacman_2
pacman_2 Posts: 154 Forumite
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in Energy
Fixed deal coming to an end. Seen a 2 year fix deal with Better Energy which is slightly higher than a 1 yr deal. Done a rough calculation and prices would have to be 11% higher than the 1 yr fix to be worthwhile. thanks for any help.

Comments

  • System
    System Posts: 178,090 Community Admin
    Photogenic Name Dropper First Post
    edited 13 March 2017 at 6:48PM
    Zog has just reduced its gas tariffs. Gas doesn't have as many Govt imposed taxes as electricity. My guess is that prices are going to be pretty static for the next few months unless the £ tanks - and then we are all doomed.
  • teddysmum
    teddysmum Posts: 9,471 Forumite
    First Anniversary Combo Breaker First Post
    I remember this situation of long or short fix being discussed some years ago and it was pointed out that there would need to be a large price increase to balance the much higher tariff imposed for a longer fix.


    Gas prices don't appear to fluctuate as much as electricity ones, so perhaps the shorter fix is better.
  • Cardew
    Cardew Posts: 29,036 Forumite
    Name Dropper First Anniversary First Post Rampant Recycler
    Gas prices: where are they heading?

    Also who will win the 2:30pm at Newmarket
  • phillw
    phillw Posts: 5,593 Forumite
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    edited 13 March 2017 at 7:38PM
    Cardew wrote: »
    Also who will win the 2:30pm at Newmarket

    Probably the favourite. Figuring out whether you're better off fixing for 1 or 2 years is harder. I only ever fix for the shortest time, cash back from switching more than makes up for the energy increase next year. I have low energy bills though, YMMV. Although I didn't get cash back from switching this year as I went to Iresa, which were considerably cheaper than everyone else for me.

    Sterling collapsing after brexit is the biggest known unknown. I think it's unlikely that the full extent of that will have hit us within the next 12 months though. In the worst case scenario then what energy tariff you're on will be the least of your concern. Signing up for a long tariff may not be a good idea if your back up plan is to escape to a country with a better economy (which by then could be Greece).
  • ASavvyBuyer
    ASavvyBuyer Posts: 1,737 Forumite
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    For us, the 2 year fixed deal from Zog was only about £7 a year more for the security of a guaranteed price for the longer period. Felt it was very unlikely that the unit rate (and standing charge) would drop enough to make it worthwhile switching to another company or tariff, but if it does, can always pay the exit fee and move on.
  • brewerdave
    brewerdave Posts: 8,505 Forumite
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    Surprised that the OP found 2 Year fix with Better Energy that much more - I found that the difference in my bills would have been only #3% more in year one so I went with 2 yr fix.
  • phillw
    phillw Posts: 5,593 Forumite
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    brewerdave wrote: »
    Surprised that the OP found 2 Year fix with Better Energy that much more - I found that the difference in my bills would have been only #3% more in year one so I went with 2 yr fix.

    I just did a quote and I got exactly the same price for March 2018 and March 2019 online tariffs. However they are both around £11 a year more than getting my gas from Iresa.

    It looks like I could save £13 a year by splitting gas and electricity though (economy energy + robin hood energy).
  • teddysmum
    teddysmum Posts: 9,471 Forumite
    First Anniversary Combo Breaker First Post
    phillw wrote: »
    I just did a quote and I got exactly the same price for March 2018 and March 2019 online tariffs.



    This was for different companies, as it wouldn't make sense for one company to offer the same price on different fixes ?
  • pacman_2
    pacman_2 Posts: 154 Forumite
    First Post First Anniversary Combo Breaker
    For info: Bristol Energy 1 yr fix £1217
    Better Energy 2 yr fix £1294


    so Better energy 6% more expensive in yr1. to make the 2 yr deal worthwhile, prices after the 1 yr fix would have to increase by 11% I think.
  • phillw
    phillw Posts: 5,593 Forumite
    First Anniversary Name Dropper First Post
    teddysmum wrote: »
    This was for different companies, as it wouldn't make sense for one company to offer the same price on different fixes ?

    Same company, I went direct to their web site.
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