To cap or not to cap?

caringa

We are moving in a month or so and want to know if we should go for a capped rate for gas and electricity or not? Any advice?

Cardew

There have been scores of posts on this subject, with conflicting views. I suggest that you search to get the various opinions.

One thing everyone agrees about, it is a gamble whichever route you choose.

There is a convincing argument that with the very recent crash in the oil price, that the forecast rise in gas/electricity prices is less likely, even that there might be a reduction if the oil price on world markets remains depressed(from the recent unprecedented highs)

I think most people would consider that it is better to wait for a while before deciding.

Plushchris

You really need to work it out, look at unit rates etc. to see if the capped rate is cheaper than your current provider, then compare that with the cheapest non-capped rate. Only you can decide if its worth it or not.

Just be aware though that there is only one capped tariff available at the mo ant thats with E-on, all the others are fixed rate tariffs and are even more of a gamble to go onto at the moment.

Magentasue

I think you're best off going for the best deal at the moment. As soon as there are mutterings about rising prices, you need to re-evaluate and decide whether to take a gamble.

That said, if you find a fixed/capped tariff that is competitive and has no penalty for switching early, it would seem a good deal.

Haven't looked lately - are there competitive capped/fixed with no tie-ins?

1carminestocky

The energy companies have been as quiet as David Cameron of late :rolleyes: . Trust me, if they saw the potential for more rises in the new Year (and the current market conditions didn't make such a claim ridiculous and laughable!) I'm sure we would have been getting regular 'domestic fuel prices may have to rise again' press releases. We haven't. Of course, it would be lovely if the energy companies could give us a boost and suggest there's potential for LARGE DECREASES in gas/elec in the new year but that wouldn't help them sell their IMO now discredited and expensive fixed deals.

Totally up to you at the end of the day but suffice to say I'm glad I haven't fixed.

margaret_rake

Im as lost as everyone else i signed up to click 5 with BG recently but left electricity with NP but now am thinking should i change to click 6 and move elec with it what does anyone advise i have checked the comparison sites but still no wiser