Has Martin Mis-Advised Us Into Capping Our Fuel Rates?

1carminestocky

Woby_Tide wrote: »

*raises eyebrows....*

Roger Moore made a very good living out of that.

Like I have said before, hindsight is a marvellous thing in times like these. What these crazy times HAVE re-affirmed for me is the belief that people who proclaim themselves experts should never be relied on for advice. Not getting at Martin here, we've had instances on here whereby apparently knowledgeable people have stated repeatedly that the days of cheap energy are over and prices will only ever go one way - up. Really??? I know of at least one total self-proclaimed non-expert who was suggesting in early September that gas could reduce by as much as 30% shortly. Self-appointed experts are like anybody else in that they can't see into the future but the worrying thing about them is they believe their opinion is somehow worth more than anyone else's (mentioning no names but I DON'T mean Martin here, lol)

BallandChain

Has gas or electric ever gone down in price? I usually just see the price rises. It would be nice if we were in for reduced bills!

fatlad1971

to be fair , the only reason that energy prices have and are falling is the melt down in global finance markets. I'm not any sort of financial expert but its fair to say nobody really saw it coming.
Predicted world wide demand for oil and gas is weakened which will effect prices.
Believe it or not but energy companies are making smaller margins than they did 2 years ago , when wholesale prices were much lower.
E4B went pop today and the possibility is there that more may go. What ever your feelings about E4B the fact is 170 people lost their jobs with only a months pay 8 weeks before Christmas. No one deserves that

MrsTinks

I've capped - why? Because I want to know that should prices rise dramatically I can control the cost of electricity for a set time period at least... But it's CAPPED - not FIXED That means yes I might pay a few pence a unit more than someone else should the prices fall, but I have that peace of mind that should it go the other way I'll not get kicked too hard. My reason being that we are relying on heating oil and the price for that has increased to much the last few years it's not even funny... At least I have ONE thing that is at a controlled cost to us.
It's all about taking the information available and making a decision based on your circumstances. No solution will ever be universal so you should always take any advice and consider YOUR situation before taking action

mech_2

I'm glad I switched to the fixed deal I am on. There is no cheaper option now that the prices have risen. The premium was short lived and low (because my usage in summer is low). The saving in winter is what it's worth switching for and I should make a decent saving by the new year.

What happens beyond that is not really important as I'll make a decision if and when there are any reductions in energy prices, but I don't expect that to happen before the new year. Even then, it would have to be a decent saving to throw away the price guarantee by switching away. If I make it into the spring before any better deals come up, I'll ride it out until the end of the summer and have a look at the marketplace again then, in preparation for the next winter. Winter prices are key. Summer prices don't matter.

To be honest I'm not sure when the idea of fixing before price rises became bad advice. This board has been full of lots of nonsense recently though.

seven-day-weekend

We capped for the same reason as Mrs Tine - we did not want it to spiral out of control and were happy to pay slightly extra for this privilege.

The price can fall, but can only rise to the level of the cap.

I agree, you read the advice and then apply it to your own circumstances. I did this and decided to cap (but have never invested anything in Iceland)>

SwanJon

Hindsight has popped up a couple of times, and no matter what happens, it's probably too soon to look back clearly (distance adds perspective).
If prices drop in the new year, then the fixers are worse off at that time, but if their fix lasts another year - what'll happen then? Will prices drop further or go back up?
Once again, people will need to look at the price they pay against what can be offered (take into accout exit fees), and decide if the difference against the time left on the fix is worth it for them.
As always, the fixed deals are a gamble, as the variable rates are another gamble. The worst choice is to do nothing and stick on the 'Standard' tariffs.

iamesbo

SwanJon wrote: »

Hindsight has popped up a couple of times, and no matter what happens, it's probably too soon to look back clearly (distance adds perspective).
If prices drop in the new year, then the fixers are worse off at that time, but if their fix lasts another year - what'll happen then? Will prices drop further or go back up?
Once again, people will need to look at the price they pay against what can be offered (take into accout exit fees), and decide if the difference against the time left on the fix is worth it for them.
As always, the fixed deals are a gamble, as the variable rates are another gamble. The worst choice is to do nothing and stick on the 'Standard' tariffs.

Why should the worst thing to do be to stick on the standard tarrif?
You have provided no evidence whatsoever to back up that assertion.
If you are on the standard tarrif you would pay a fair price - well you would if the gas companies did not operate as a cartel and charge artificially high prices.

Given as energy prices world wide have slumped, except for bizarrly in the UK,
it seems fairly reasonable to to assume our prices should fall, moreso now that we are in recession and demand will be less.
The only way prices could remain high under those circumstance would be due to
criminal price rigging.

Bismarck

iamesbo wrote: »

The only way prices could remain high under those circumstance would be due to
criminal price rigging.

but the big energy companies never do that do they?

I'm on a fixed and thought I was happy with it....will it turn out right in the long run? dunno. Could I have foreseen a price cut...possibly, but I've not witnessed many...and certainly not big ones to match the price hikes.....

1carminestocky

Bismarck wrote: »

but the big energy companies never do that do they?

I'm on a fixed and thought I was happy with it....will it turn out right in the long run? dunno. Could I have foreseen a price cut...possibly, but I've not witnessed many...and certainly not big ones to match the price hikes.....

Ordinarily I would agree with your synopsis of the future but you must remember these are extraordinary times we are witnessing when the 'old ways' and indices are totally out of the window (who would seriously forecast HBOS could go bust and so many banks would basically end up in Govt ownership even a year ago, for instance?). I think energy prices will have to, in the future, reflect more closely other commodity prices...and in a recession (especially a global one) commodity prices gnerally come down with a bump. I genuinely believe energy prices are on the way down and will stay down for at least the next couple of years. I'm NOT an expert, btw, and don't profess to be able to 'see' into the future, so NOT financial advice blah blah blah....