Fixed costs versus Capped costs - beware!

TravlinTone_2

At the height of the flurry of advice on switching suppliers several months ago I switched to Southern Electric on a fixed cost tarriff to 2010 foolishly thinking this meant my charges were fixed until 2010. What it turns out to be is that I get a fixed discount against the published tariff until 2010! My bills have lept considerably since they put their prices up! That'll teach me to understand the difference between 'fixed' and 'capped' charges - doh!

Premier_2

You've probably been extremely lucky!

With wholesale energy prices having peaked, there's probably only one direction energy prices will go from now on so you not being on a fixed tariff will mean you will benefit from those price decreases.

Mi_bargains

Hi, I agree with Premier, whilst you did not mean to take this (variable) fixed 2010 plan out, you will be better off for it. I too was going to change to this plan last week but now I will wait and see what the energy suppliers do.

Some of my friends have taken out the British Gas 2011 plan out (rip-off) against my advice, I think they are already paying well over what they should be and this will be even worse when the energy prices are reduced in the near future.

1carminestocky

Agreed! As I predicted mid-September on here (and got accused of 'ranting' by one deranged poster, lol) the Govt are now getting tough with these rip-off merchants. The election grows ever nearer, Brown's confidence is (partly) back and the spectre of re-nationalisation is no longer a political no-no. If I was the energy companies I'd give up the game and accept you've had it VERY good for a long time (with the exception of the water companies, what other private companies answerable to shareholders are allowed to sell a commodity everyone NEEDS as opposed to just WANTS? And is allowed to pay commission to its workforce for garnering sales??).


THOSE BILLS ARE COMING DOWN!! :beer: