If gas and electric prices DO come down...

Totality

Would I see my tariff with British Gas reduced, bearing in mind I'm locked in until 2011?

I know the cap prevents prices rising, but what happens if prices are lowered?

1carminestocky

Totality wrote: »

Would I see my tariff with British Gas reduced, bearing in mind I'm locked in until 2011?

I know the cap prevents prices rising, but what happens if prices are lowered?

I believe that's a FIXED deal, so if that IS the case, you haven't got a prayer of the tariff rates being reduced and would need to pay their ridiculous penalty to be released from the contract.

Totality

Ugh, thought that may well be the case.

I capped after Martin was doing the "CAP, CAP, CAP" thing a while back. Bit gutted if prices are to come down, even though by 2011 I'm sure I'd have made it back.

Bismarck

it's a toughie that I'm still getting my head round...

Totality

Are you locked in as well?

KimYeovil

You are not locked in. You can change whenever you like. The penalty charge is relatively quite small - about two to three weeks typical energy useage. If it were just this termination charge fixing would be a no-brainer (for medium or high users.)

The main problem is the PREMIUM you pay - 19% more expensive for gas and 35% more expensive for electricity.

Correction - above figures are for the 2012 tariff.

And I see Carmine is fixated on a windmill again - it is not the 'ridiculous penalty to be released from the contract' that is the gamble with these tariffs.

Totality

So what do you recommend? Stop worrying and bump this thread IF prices fall or what?

Bismarck

it's more the hype thing...you go for a fixed rate as everyone's raving about it and a price cut seems to be looming in the New Year and you can't quite believe you're still on the wrong tarrif!

can't help believing there's sme kind of conspiracy going on...where the shift you off the good rates for now and then leave you high and dry in the Spring.....

KimYeovil

Totality wrote: »

So what do you recommend? Stop worrying and bump this thread IF prices fall or what?

If you're on the 2011 contract, yes, you should be fine. The 2012 contract is a different kettle and much harder to call.

Bismarck

and then there's the really perverse thing where a small part of you wants prices to stay high so you can be "right" to be on a long term fixed deal...

1carminestocky

KimYeovil wrote: »

You are not locked in. You can change whenever you like. The penalty charge is relatively quite small - about two to three weeks typical energy useage. If it were just this termination charge fixing would be a no-brainer (for medium or high users.)

The main problem is the PREMIUM you pay - 19% more expensive for gas and 35% more expensive for electricity.

Correction - above figures are for the 2012 tariff.

And I see Carmine is fixated on a windmill again - it is not the 'ridiculous penalty to be released from the contract' that is the gamble with these tariffs.

I never said it was But my take on the penalty charge is it's ridiculous in the sense that, at least with the inflated prices you are paying with the fix you are actually getting *something* in return, i.e. heat and light. With the penalty charge you get nothing in return...unless you class being back to where you were before you fixed and quite a few quid lighter as a 'return'. :rolleyes:

Edit: My take on all this is the enery companies will have killed the goose that laid the golden egg with their greedy pursuit of fixed deal punters. WHEN (I'n not even saying IF, please note) the prices plummet (the govt. are starting to focus attention on these scumbags, it won't be long now) and there are loads of people left high and dry on these fixed tariffs and their ridiculously high tariff rates there will be a massive backlash. There's an election next year, there's much tougher regulation to come IMO. Can't wait, personally...