to cap or not to cap that is the question.....

lynneinjapan

lynneinjapan wrote: »

I'd say that if the increase is no more than 10-15% then it's probably worth doing, otherwise maybe not. Depends how much YOU think prices are going to rise before the capped rate ends - if you think they'll go up by more than the increase in what you'll be paying by changing to a capped/fixed rate then it's worth switching.
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I'm currently with E.ON - only switched from EDF earlier this year - and have just been looking into switching to a capped rate, but the cheapest capped rate (with Scottish Power) is 28% more than I'm paying at the moment. There's good cashback to be had - £62 via the cashback sites - but even taking that into account I'm still going to be paying 20% more than before... and that ignores the fact that I'll no longer be getting Tesco Clubcard points (worth about £40ish once converted into Deals - more if prices go up substantially) if I switch. So overall, I'm not going to be gaining unless prices rise by more than 25% by next August. I think I'll probably just stay put for now.

In fact, come to think of it, it's only worth capping (well, fixing) if the price between the date of the switch and the end of the capping period AVERAGES out higher than the capped rate - and as there's about a year to run until the end of the capping period, that equates to a price rise of 25% IMMEDIATELY or a rise of 50% half-way through the year, so very unlikely to be worth switching.

Sounds like Molescroft has found a good option though (albeit without any cashback!) so I might look into that.

lovelylass_2

lynneinjapan wrote: »

In fact, come to think of it, it's only worth capping (well, fixing) if the price between the date of the switch and the end of the capping period AVERAGES out higher than the capped rate - and as there's about a year to run until the end of the capping period, that equates to a price rise of 25% IMMEDIATELY or a rise of 50% half-way through the year, so very unlikely to be worth switching.

Sounds like Molescroft has found a good option though (albeit without any cashback!) so I might look into that.

After reading everyones logs - i'm now starting to settle with the idea of staying where i am and collecting argos points. Customer services plays a bit part in it for me too as both British Gas and Npower have left bad memories:eek: Thanks everyone for your help.

ultramagnetic_commuter

On Martin's advice I have moved to a capped tariff. Having searched around it didn't seem worth switching provider so I just switched online staying with EON. I'ts worth noting that you aren't tied into these fixes anyway so if after 6 months prices do drop then you can just change tariff or supplier. In fact EON says if prices drop on their capped tariff then my price will drop but I am protected from price rises. Like a previous poster, I went for the Price Protection 17.

The increase from variable to capped was 10% and 16% (not sure now which was gas and which electicity). It feels counter intuitive to switch to a more expensive deal but at least I know it won't change now for about 15 months.

AndysDad

easy wrote: »

I've got this same problem. I need to switch (currently dual fuel with Sainsburys), but should I cap? How do I factor in my reward points? I know someone who wants to quote me for Utilities Warehouse, but I'm scared of damaging a friendship if don't accept his quote, or if I do, and end up payong thru the nose. Help....

I would definitely steer clear of Utilities Warehouse,friend or no friend.

easy

AndysDad wrote: »

I would definitely steer clear of Utilities Warehouse,friend or no friend.

Do they not keep prices low then?

I can't see an issue over service. The Gas and Electricity comes down the same lines/pipes whoever you pay, so price seems to be the only issue, I think.

UK007BullDog

I am not going to cap. I am with the cheapest at this time and they come up tops in the league pricing tables.

PEOPLE: You are missing a trick here!!!!! We are supposed to be saving the money, not giving it away!

I pay by direct debit and call them every 2 to 3 months to give them my latest meter readings. I pay £50 per month for gas and the same for electricity. And every 3 to 4 months I get whopping returns as I am starting to USE LESS ENERGY! Everything gets turned off at night (except for the timer on the heating, fridge freezer and the security alarm) and during the day.

I use energy saving bulbs everywhere! Got a new boiler 3 years ago which halved the amount of gas I was using. Dishwasher and washingmachine only get turned on when properly full. Less oven cooking as that uses a lot of power too. No airconditioning units at home and all those other gadgets to make "life" more bearable... Open a window and if the house gets too hot draw the curtains to keep the sun out. In winter wear warmer snuggly clothes inside the house. Heating a bedroom and sleeping in heat is unhealthy anyway. Insulate the house, there are many grants for the elderly etc. Double glazing makes a huge difference and adds value to the home and get the old radiators sorted out and buy a new electric heater which is safer and uses less energy.

But the trick is to get things unplugged, everything uses energy, microwaves, game machines, tvs, radios, washing machines, dryers, dischwashers, electric cookers, mobile phone chargers, modern phones, extention cables with switches, computers, laptops, alarms, modern kettles....... they all use small amounts of energy 24 hours a day for our convinience. We started buying electric machines which do not have funky electric displays, blinking and winking at you. I have been offered a reduction of my monthly payment but I will just keep it at the current rate due to the pending increase. I am going to gamble that even if energy costs go up I will be able to keep within my budget.

Remember, the aim is to save money. I dont trust this capping.