Could capping prove a mistake?

1carminestocky

I have a feeling BG's 35% increase in gas prices will make them look even greedier than usual when the remaining 4 of the Big 6 eventually announce their increases. IMO fixing with BG at the moment is madness. They would love to tie you in now so that it will cost you to switch when you compare all the other's tariffs once they have all brought in their increase.

space_rider

I capped mine the day before Eon increased their prices in Feb. I came off the cheapest tariff which was the energyonline winter saving. I lost the discounts which were really good but when they put the price up I broke even. Now if they do increase again, then I will begin to see the benefit.

garytheplumber

If it looks too good to be true then it probably is.So a gas company tells me prices are going to go up and up but I can avoid it by paying slightly more now but at a capped price.mmmmmmmmmm
This gas company wants me to buy gas at a cheaper(future) rate than standard rate meaning they make less money.The cynic in me says stay clear

jem16

Cardew wrote: »

My tariff finishing on April 30 2010 and started in 2005 had a modest premium at the beginning and the 2006 rises put me 'in profit' and is certainly their cheapest tariff even now, and presumably a rise for Click 5 is imminent.

Cardew and I had many discussions on this back in 2005. He opted to go onto Price Fix 2010 and I opted to change to London Energy (now EDF) online tariffs.

At the time I compared tariffs London Energy were cheaper for me by almost £300pa, perhaps slightly more. Apparently Cardew's area was slightly cheaper than mine but that was at least 25% more for me.

Throughout a couple of months of 2005, all of 2006 and the first half of 2007 my tariff was still cheaper (we compared prices a few times). Around November of last year as EDF began catching up and becoming less competitive I took a chance and moved away to Scottish Hydro Price Fix 2008as it was only about £30 dearer over the year - got £30 cashback for switching as well so worked out even.

So for all this time and until end of November 08, I have saved money over the BG 2010 tariff, in the beginning as much as £300 in one year. I would estimate over the 3 years I have saved around £550 by not being on the BG tariff.

1carminestocky

jem16 wrote: »

Cardew and I had many discussions on this back in 2005. He opted to go onto Price Fix 2010 and I opted to change to London Energy (now EDF) online tariffs.

At the time I compared tariffs London Energy were cheaper for me by almost £300pa, perhaps slightly more. Apparently Cardew's area was slightly cheaper than mine but that was at least 25% more for me.

Throughout a couple of months of 2005, all of 2006 and the first half of 2007 my tariff was still cheaper (we compared prices a few times). Around November of last year as EDF began catching up and becoming less competitive I took a chance and moved away to Scottish Hydro Price Fix 2008as it was only about £30 dearer over the year - got £30 cashback for switching as well so worked out even.

So for all this time and until end of November 08, I have saved money over the BG 2010 tariff, in the beginning as much as £300 in one year. I would estimate over the 3 years I have saved around £550 by not being on the BG tariff.

Interesting. But not surprising (to me, anyway). Like I have said before, fixing with BG means you are paying an immediate premium on (historically) just about the most expensive tariff on the market. Then, to further compound the 'error' of fixing, BG decide to introduce their click family of much cheaper online tarifffs a year after they had 'snared' their fixed customers (on a fix based on a product that was much more expensive than the click tariff!). They are a crafty lot.

zorber

I dont understand why people are still talking about energy companys increasing prices, with fuel prices now on the slide and the cost of a barrel down by 25%+ then surely any company now increasing prices will be seen as profiteering in this country. If it is also true we are now susidising the EU price then something needs to be done by the watchdog on this.

I would be expecting energy prices to actually decrease before long!!

SwanJon

SHIPSHAPE wrote: »

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!

I can be surprised by many things - often I don't decide to be surprised, it just happens.
In this case someone has been overcharged £900 in between 18 months and two years.
The average electricity bill for a year is less than that, so they would need to have been charged double or used a huge amount - hence my suprise.

moonrakerz

garytheplumber wrote: »

If it looks too good to be true then it probably is.So a gas company tells me prices are going to go up and up but I can avoid it by paying slightly more now but at a capped price.mmmmmmmmmm
This gas company wants me to buy gas at a cheaper(future) rate than standard rate meaning they make less money.The cynic in me says stay clear

You obviously went to the same school as me !

moonrakerz

After I posted the above, the postman came and left a flyer from e-on, inviting me to "protect" myself.

A few comments:
1. The only place it mentions "savings" is in the blurb about the free energy saving monitor - everywhere else it is all about "protection".
2. I would rather have the £45 off my bill than a monitor "worth" £45.
3. "A premium applies" - " The premium varies by consumption, payment method, meter type and location". No monetary value mentioned !
4. If standard prices fall...."yours will go down too". "The extent of the reduction will be determined by us". (My highlighting)
5. "A cancellation fee of £35 applies".
6. "Benefit from a 9% total discount" - then in very small print at the bottom of the page - "includes any discounts you may already be receiving".
What exactly does this mean? I am already receiving an 18% discount !
7. And, of course - "Hurry ! This offer is limited."

Talk about buying a pig in a poke !

Geoff_W

moonrakerz wrote: »

After I posted the above, the postman came and left a flyer from e-on, inviting me to "protect" myself.

A few comments:
1. The only place it mentions "savings" is in the blurb about the free energy saving monitor - everywhere else it is all about "protection".
2. I would rather have the £45 off my bill than a monitor "worth" £45.
3. "A premium applies" - " The premium varies by consumption, payment method, meter type and location". No monetary value mentioned !
4. If standard prices fall...."yours will go down too". "The extent of the reduction will be determined by us". (My highlighting)
5. "A cancellation fee of £35 applies".
6. "Benefit from a 9% total discount" - then in very small print at the bottom of the page - "includes any discounts you may already be receiving".
What exactly does this mean? I am already receiving an 18% discount !
7. And, of course - "Hurry ! This offer is limited."

Talk about buying a pig in a poke !

Yes, it's definitely all about scaring the customer into capping.

There were two variants of the E-on price cap, the one you mention above with the 'free' energy monitor and £35 get-out penalty. The other was the same tariff, but without the energy monitor and £35 penalty. I know because I was panicked into changing to the second one!

Now I'm concerned I've made a huge mistake, especially as there's no sign of E-on announcing any increases yet. At least it won't cost me £35 to get out of it, though.

Geoff