Currently with npower - but looking for some advice....

LCFC_Foxile

Hi fellow Moneysavers,

I'm currently with npower, on their online 4 tariff, & I've managed to get this info from them about my usage over the last 12 months...

Electricity usage - 3,631 kw/H
Gas usage - 30,153 kw/H

The advisor mentioned that I could switch to their online 12 tariff, which as far as I can see on the above usage, works out cheaper, all things being equal.

However, there is obviously the prospect of rising prices over the next year or so, that could render any switch useless.

So - the question is, should I switch to a capped-tariff? I would obviously need to pay off any debit balance on the above before switching, but in the current climate, would switching to a capped-tariff be the best option?

With the above usage, moneysupermarket.com informs me that, on their 'Fixed Discount 2010 Online' tariff, that I would save £8, which isn't much, but at least I would be covered by any increases until 2010 (I'm assuming this from the name of the tariff).

Cheers in advance...

benchyboo

The major benefit from fixed priced tariffsis is the security of protection from price rises. If this is important to you it's probably the best time to think of taking one, huge price rises seem inevitable at the moment. In the past they were a fifty fifty bet as price rises were exceptional events occuring once a year at most.

It will definately cost you more in the short term, however if you find one that is less than 40% higher than your current target it may be wise to take it. I must stress that it's probably only worth it if you value the psychological safety net of a protected price (it can't be overstated how important this is to some people) as savings are unikely to be huge.

I would advise a few checks before switching to a new tarrif

1- Don't agree to the switch unless you're fully prepared. Ring the relevant suppliers, get the kwh figures, then check online for reports on the tariff, have a look on independent sites like uswitch how the tariff stacks up against competitors

2- Make sure that you will not be stuck in the tariff for a fixed term and that you can get out of it without paying a penalty charge. As far as i am aware, the best fixed price tariffs levy no penalty, nor do they tie you into a lengthy, inescapable term of usage

3- Avoid nasty surprises by checking the end date of the tariff. Having worked in the energy industry and seen how they operate it would not surprise me in the least if the 2010 tariffs ended on 01/01/10

Hope this helps