martins email this morning

DGJsaver

Cheapest cap closed Tue, only two remain. My emergency weekend e-mail urgently warned to cap (fix) your gas & elec tariff; ie lock in at today's prices, to beat price hikes. Yesterday, as predicted the cheapest cap, Scottish Power's Fixed Price energy 2009 Dual Fuel, was pulled from comparison sites and is likely to close to direct customers asap. Only two other cheap caps remain, and they could go any moment. If you haven't capped use the compare energy guide ASAP.

Why cap? EDF hiked prices 22% on Fri, and other energy companies are likely to follow in the next few weeks. Yet it doesn't stop there, another raft of rises are expected at the end of the year, so capping at current rates should be a massive MoneySaver. As I've been swamped with questions, here's a Q&A.



Why does he say `current prices` when my current prices are quite `good` and to cap would cost me 18% more....

debbiefletcher

I'm confused, I switched in January to Click energy 4 with British Gas. I checked the comparison site this morning to cap and it says that British gas is my best bet but the tarriff makes me around £400 worse off 15%. As the capping is only until 2009, Is it worth me capping?

I would be grateful for any advice

DGJsaver

most caps are only till then , i dont consider that long enough

debbiefletcher

I really don't understand, I imagine if they go really high then I would save but as it's only until 2009 I can't see it making much difference.

easy

This is ridiculous.

Scottish power's website can't cope this morning, I can't get a quote from them at all.

And I've realised I have spent 6 hours on this so far this week, still can't decide what to do, it does seem to go against the grain to pay more for fuel, speculating that prices may rise HUGELY.

The price of oil is currently coming down. Maybe the price of electricity may level because of that?

If we all really really worked at reducing our demand for power (rather than working at fixing our price), maybe the suppliers (currently raking in profits) would drop their prices a bit?

Zork

Hi, My cheapest cap is 39% (Nearly £400) more than I am paying now. Is it worth the risk? Does anyone really know? ( However if everyone does the opposite to me they will win, that's what usually happens!).:rotfl:

Rob.

AndysDad

Zork wrote: »

Hi, My cheapest cap is 39% (Nearly £400) more than I am paying now. Is it worth the risk? Does anyone really know? ( However if everyone does the opposite to me they will win, that's what usually happens!).:rotfl:

Rob.

I would stick where you are as 39% seems a very high premium to pay as the worst indicators only predict something like 40% for the year and may only be 20% so if they did go up by 40% you would only be 1% worse off.Also don't forget you will be paying 40% extra on all your bills from now,not a gradual increase thoughout the year.

easy

Well, If I change now to an npower tarriff, (not fixed) then I save 32% on my current prices (sainsburys). So I will be saving until the next rise, and will still be saving assuming that rise is less than 32%

Whilst we have been told they may go up by 40%, I'm guessing that wouldn't be in one rise, so over 12 months I'd be winning.

Zork

That makes some sort of sense Easy. Im with npower now.

Rob

Zork

Thanks 'Andysdad'. However, I've just capped with Scottish Power. It will cost me about £300 for the year if nothing changes. So just for the peace of mind I'm willing to take the risk. I can always bail out for fifty quid if it goes horribly wrong! ( I think the British gas price hike did it for me!)

Rob.