British Gas Price up 35% - full details

magyar

blue_monkey wrote: »

Petrol has fallen 10p a litre in some places at the moment so the price of oil is dropping. For everyone having capped they are going to have to pay if they want to get out of their capped rate if the prices fall.

Just to let you know, the forward curve for most energy companies doesn't forecast a fall in price until ~Q1 2010.

blue_monkey_2

You take your chance though don't you. I think the energy companies know full well what they are doing. It's a gamble either way. We recently moved and had the highest bills ever in the last place and here is it 50% less than we was paying 3 months ago so if they double then we would have been used to paying this anyway. if you know what I mean!! LOL!!

It's all a gamble. And let's be honest, if they told you they were going to drop their prices then no-one would cap. Would they?

magyar

It might be worth explaining a little bit about the way the energy companies work.

They literally buy energy at future prices, so they will know that they can supply [x] customers at [y] price up to e.g. Winter 2011 (which is about as far out as the prices go).

Once they have sold that, then they can no longer offer that price. The energy companies don't know what way the market's going to move, but they do know what price they're getting in the future, if that makes sense.

Sorry, it's a very hard subject to explain.

1carminestocky

When the energy companies start placing massive ads in the newspapers for their capped deals (as is happening) then you KNOW it's not something to go for. I *still* think Martin is wrong on this one (I know he's now saying don't cap but I do think his over the top pleading for people to cap last week caused unecessary panic). Just my honest opinion...

magyar

1carminestocky wrote: »

When the energy companies start placing massive ads in the newspapers for their capped deals (as is happening) then you KNOW it's not something to go for. I *still* think Martin is wrong on this one (I know he's now saying don't cap but I do think his over the top pleading for people to cap last week caused unecessary panic). Just my honest opinion...

Personally I think the time to cap was just after the last price rises. At that time you could get much better deals.

pault123

1carminestocky wrote: »

When the energy companies start placing massive ads in the newspapers for their capped deals (as is happening) then you KNOW it's not something to go for. I *still* think Martin is wrong on this one (I know he's now saying don't cap but I do think his over the top pleading for people to cap last week caused unecessary panic). Just my honest opinion...

I agree, i'm of the frame of mind to change to the cheapest provider in your area but don't like the idea of paying more and fixing it just because the market is panicking so much :mad:

nets_2

I dont know what to do..
I had a leaflet from BG telling me about fixing prices until 2011.
I don't know whether to fix the price or go onto their clickenergy5 plan,
I know we can't predict whats going to happen regarding gas prices in the future, but after reading some posts on not fixing prices, which i was going to do, i am now left wondering which would be the best thing to do....

frannyann

I have fixed until 2011, its a gamble but I need to budget so I am risking paying a bit more against peace of mind of future hikes!

RichWrexham

frannyann wrote: »

I have fixed until 2011, its a gamble but I need to budget so I am risking paying a bit more against peace of mind of future hikes!

I'm with BG for both my gas and electric and about a month ago switched to clickenergy5 plan, today l recieved a letter from BG asking if l want to fix prices until 2011, think l'm better off staying as l am. Any views?

1carminestocky

RichWrexham wrote: »

I'm with BG for both my gas and electric and about a month ago switched to clickenergy5 plan, today l recieved a letter from BG asking if l want to fix prices until 2011, think l'm better off staying as l am. Any views?

Think about it - did BG ever get in touch with you when you were paying over the odds on their standard tariff to suggest you switch to their much cheaper click 5? If my hunch is correct (i.e. no, they didn't ), then why would they want you to go for the 2011 fix? Because it will save you money or make THEM money? :rolleyes: