3 years fixed rate from British Gas - Good Deal?

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We have been offered a 3 year fixed rate deal (till 2011). It doesn't say that this is capped, but fixed, so I assume if rates go down, this won't. In a dilemma as to what to do.

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  • Cardew
    Cardew Posts: 29,038 Forumite
    Name Dropper First Anniversary First Post Rampant Recycler
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    There are lots of posts about the wisdom(or not) of fixing your rate; and this has been a recurring theme over the past few years on MSE.

    You don't know what to do, and neither does anyone else - it is a gamble pure and simple.

    I think most of us who follow utility prices would advise that you should at least wait for a while, as with wholesaale prices falling, there is certainly no hurry to cap - see how the market develops.

    However the decision if/when to cap will always be a gamble.
  • 1carminestocky
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    Problem with these BG fixed deals is that they are 'linked' to BG's ridiculously expensive standard rate, ie. the 'premium' they will quote you is based on just about the most expensive tariff on the market. People who took out the 2005 fix, for instance (and started paying a premium over the afore-mentioned ridiculously expensive standard tariff immediately) then had to 'endure' BG bringing out their much cheaper tariffs (the 'click' family!) the year after. BG really do extract the urine on occasions. IMO now is by no means the time to fix. BG have increased their gas prices by a whopping 35% so the fix will be based on a premium of that. Since they 'jumped the gun' the price of the commodity that the energy companies have decided affects the price of gas (namely oil) has seen a significant reduction. Wholesale gas prices are also significantly depressed.

    4 of the 'other' Big 6 have yet to announce their increase but it wouldn't surprise me if it's significantly less than BG's!! My advice would be to get on the cheapest (currrent) tariff and keep your powder dry until all the increases are in. Then have a scour of the market again.
    Call me Carmine....

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