Could capping prove a mistake?

SwanJon

SHIPSHAPE wrote: »

For an example, one person from yesterday was into the last six months of a three year fixed tariff for BG and they have overpaid by a massive £900 had they just switched to the cheapest supplier, and actually stayed with them for that period, rather than capping.

Sounds like Fix & Fall (only one I can think of that ends in the next 6 months, but thought it came out Sept 06, not as early as Jan 06)
Yes, one of them had a premium.
Yes they didn't get the 2007 20% price drop.
Yes they did have a 5% (or 4.5% if no premium) drop in Jan 2008
No they havn't had the Jan 2008 15% increase
No they havn't had the latest 25% (Average G+E) price rise.
And when the fix comes to an end in Jan 2009 they can look around for the best deal.

I'd be suprised if they have overpaid by that much, but if they used loads more between Mar 07 & Jan 08 than they have/will between Jan 08 and Jan 09 it is possible.

SHIPSHAPE wrote: »

BG's prices which are, and always have been, the most expensive.

Care to back that up?
How about March 07 when they were the first company to drop prices? Were they more expensive than every other supplier then? What about April 07 when they dropped them again (days before other suppliers' drops, specifically so they would be cheaper than them?)

If you are going to make sweeping statements like that, be prepared to back them up.

moonrakerz

Cardew wrote: »

Moonrakerz,
I don't think I have ever disagreed with a post of yours before, but I take a different view to you on this subject.
......................................

Just my opinion of course.

Cardew, I don't dispute your own figures; but without wishing to flatter you too much, you probably are a little more astute than the average energy consumer.

My post was aimed more at what is going on at the present time. All of the energy companies are making a great play of going for a capped/fixed deal - "offer must end on Monday" (where have I heard that before?)
Mention a 40%, 50%, 60% price rise (if oil prices stay high - oops ! they have fallen substantially since that statement ) then offer capped deals starting now, with prices at a premium over standard variable rates. Stand back and watch the punters sign up - and the profits soar.

One of the other major problems with energy prices in the UK is the willingness of the media to make wild accusations about the energy companies - the most popular one being that "foreign" companies are ripping off the British consumer. The result is that no one knows what a "fair" price should be.
You may remember that a few months back I posted a comparison of prices (with Eon) between myself and a colleague in Germany - he was paying 30% more than I was; shock, horror !
There is also a very pertinent letter in the Telegraph today from the CEO of EDF - but don't let the facts get in the way of a good scare story on page 1 of the Mail !

The biggest problem, which is approaching far too quickly, is not how much our energy is going to cost - but where is it going to come from ! Our present bunch, and previous ones, of "leaders" have ignored this for 20 odd years - very soon this is going to bite them - sorry, US - on the bum !

Cardew

moonrakerz wrote: »

Cardew, I don't dispute your own figures; but without wishing to flatter you too much, you probably are a little more astute than the average energy consumer.

My post was aimed more at what is going on at the present time. All of the energy companies are making a great play of going for a capped/fixed deal - "offer must end on Monday" (where have I heard that before?)
Mention a 40%, 50%, 60% price rise (if oil prices stay high - oops ! they have fallen substantially since that statement ) then offer capped deals starting now, with prices at a premium over standard variable rates. Stand back and watch the punters sign up - and the profits soar.

One of the other major problems with energy prices in the UK is the willingness of the media to make wild accusations about the energy companies - the most popular one being that "foreign" companies are ripping off the British consumer. The result is that no one knows what a "fair" price should be.
You may remember that a few months back I posted a comparison of prices (with Eon) between myself and a colleague in Germany - he was paying 30% more than I was; shock, horror !
There is also a very pertinent letter in the Telegraph today from the CEO of EDF - but don't let the facts get in the way of a good scare story on page 1 of the Mail !

The biggest problem, which is approaching far too quickly, is not how much our energy is going to cost - but where is it going to come from ! Our present bunch, and previous ones, of "leaders" have ignored this for 20 odd years - very soon this is going to bite them - sorry, US - on the bum !

You may well be right about capping currently being a poor form of 'insurance' in that the 'premium' is too high.

Taking any capped/fixed price tariff has always been a gamble and today is no different - except the premium has increased.

However people take these tariffs to at least delay being 'bitten on the bum'.

I couldn't agree with you more about the wild accusations implying the excess profits of Utilty companies are the reason for high energy prices - look at the posts on this forum from those who have digested the tabloid stories.

The non-profit making Ebico don't seem to have prices below the greedy big 6

P.S.
Don't worry about too much flattery - I can take it;)

carolann312

I am on the Click 5 with BG at the moment. If I change to the fixed rate 2011 would my bills increase? Is this a higher tariff? Confused!!

NAV123_2

just fixed with scottish power then decided to cancel phoned conversation was yes you cango back to old tarriff but what about rises in jan feb to which i said no you mean aug no she says there a forgone conclusion. now we are now looking ahead for winter:eek:

Cardew

carolann312 wrote: »

I am on the Click 5 with BG at the moment. If I change to the fixed rate 2011 would my bills increase? Is this a higher tariff? Confused!!

Yes it would increase - quite a lot.

The BG 2011 tariff is based on their standard rate tariff. This was always a lot more expensive that Click 5 and has just had a large price increase, so the differential over Click 5 is massive.

It is widely expected that Click 5 prices will soon have large increases, but will still be cheaper than BG2011

StrawberryJam_2

just use less energy and gas... thats the best way to get cheaper fuel bills so simple but effective!

SHIPSHAPE

SwanJon wrote: »

I'd be suprised if they have overpaid by that much, but if they used loads more between Mar 07 & Jan 08 than they have/will between Jan 08 and Jan 09 it is possible.

How on earth would you be suprised that a random household I mentioned overpaid with a capped tariff by some £900??!!:huh:

How can you possibly decide one way or other?

Weird!

SHIPSHAPE

SwanJon wrote: »

Care to back that up?
How about March 07 when they were the first company to drop prices? Were they more expensive than every other supplier then? What about April 07 when they dropped them again (days before other suppliers' drops, specifically so they would be cheaper than them?)

If you are going to make sweeping statements like that, be prepared to back them up.

Yes I will back it up.

Simple math will tell you that a small drop in price from the most expensive tariff equates to not very much, and it wasn't for very long either!

Scottish & Southern energy customer's prices were raised three months later than BG in the last round of price rises, for example, and at a lower percentage.

And all the other companies rises also worked out cheaper than BG.

The only reason BG are still in business is because of their traditional hardcore customers who will never switch from them no matter what.

In a generation BG will be just a bit part player and at least 3 of the other big 6 will overtake them with one poised to do so by 2010.

Wake up and smell the coffee!

[Deleted User]

oil is now < $112