HELP: Should I cancel and change to capped?

RebekahLFC

Hi

I went to the comparision websites suggested for my gas and elec but not sure what to do. Firstly I found British Gas came up best on them all saving me around £200 costing £62 to pay by monthly DD.

But as Martin is suggesting I checked out capped price's. This has come up with Scottish Power and N-power as the best, saving of only around £35 costing £77 per month DD.

So Im now thinking I should cancel the British Gas application (still within 7 days) and actually go with Scottish Power or N-Power, possibly N-Power as they have offer of free 12 month boiler breakdown cover.

Any advice very welcome

Thanks from a confused Rebekah

mrs_baggins

Its a hrd one isnt it??? I have looked at some capped charges and working on my current useage and present supplier/rates the capped one is at the moment rates works out £52 more expensive. now obviosly if rates go up as predicted them it will start to break even but I really dont know either. Most of the capped rates as well appear to be on a 2 teir system with paying so much for the first x amount of KWH. I think I am tempted to go for maybe Atlantic who are doing a fixed discount and you get one month free after the 12 months. I really dont know but if the prices go up really high I will just have to stop using gas or seriously cut down

SwanJon

This is a gamble no metter which one you take. You just have to make a best guess about when and how much pricesare going to go up.
Based on your numbers above, will they go up by £165pa (for you) sometime soon? The longer before the change the more the rise need to be for the capped to catch the cheapest price in the first year.
the other thing to think about is how long you are capped for - the longer the better in the current climate - Too short and you don't give yourself time to catch up.

Ultimately it is your choice - check if either has restrictions on leaving. If not, there's nothinng to stop you switching again in a month or so.

RebekahLFC

Thanks for replies, the fixed plans do have a 12month contract and also forgot to say that my average gas usage for last year is before I got cavity wall and loft done as they had nothing in them, so that should bring my usage of 13,692 pa down abit. So im thinking would the rise in gas costs be balanced by a reduction in kwh?

Still unsure

Plushchris

SwanJon wrote: »

This is a gamble no metter which one you take.

How can it be a gamble if the fixed price tariff is saving her money from the start?

Given that the fixed tariff is saving you money from the start I would say its a no brainer, the BG click 5 tariff reporting that it would save you £200 is assuming prices dont go up in the next year, if they didnt then you may well save that £200, if they go up by the estimated 40% you wouldnt save anything or could even cost more.

The fixed tariff is saving you money and wont go up in the next 12 months therefore that saving of £35 is certain (or as certain is it can be based on usage)