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

Totality

Were people forced to take Martin's advice? No.

Is Martin responsible for what people choose to do with their bills? No.

Is Martin seen as a respected figure whose advice is worth paying attention to? Yes.

I'm one of those who capped following Martin's "CAP CAP CAP!" comments. I capped with British Gas until 2011.

Why did I cap?

Admittedly largely because of Martin's comments. These were comments that I saw him make on television and via these forums. They were also comments I received in my Inbox via the newsletter.

If I respect and trust somebody's opinion and judgment, I'm likely to take some notice of it - especially in an area where I consider myself to have some basic knowledge but no indepth knowledge of the industry and how it will work pricing wise in the future.

Is Martin to blame for me capping? Ultimately, no. However, its likely that without reading, listening and watching his advice, I wouldn't have changed my tariff and especially for those who see him on TV but don't use this website for whatever reason, they may feel more irked than I do.

I've chosen to look at things long-term. Will prices come down? Quite possibly. But will they be higher than my current cap by 2011? I'd say that's quite possible too.

ixwood

When BG started pushing fixes on TV a few months back, I instantly thought it must be the wrong thing to do. The advice was good a year or 2 ago though!

Plushchris

I've said before that Martin should have made the difference between capped and fixxed tariffs a lot clearer when he was on TV jumping up and down saying "CAP CAP CAP NOW!!" when at the time I belive there was only 1 capped rate tariff available (E-on I believe) and all the others were fixed.

Totality wrote: »

I'm one of those who capped following Martin's "CAP CAP CAP!" comments. I capped with British Gas until 2011.

Thats just the thing, You didnt cap with BG, you fixed, as far as I'm aware BG havent had capped rate tariffs for ages, thats where the difference is. I think prices are likely to drop, I doubt if prices are likely to drop by more than the recent hikes though, probably not in the next year anyway.

So if you switched to a capped or a fixed rate and it was actually saving you money to switch onto it, I wouldnt start panicing just yet.

At the time Martin was on the TV I was on Scottish Power's Price fall tariff, a capped deal that runs out at the end of this month, I had the desicion of switching before the price hikes and getting onto another cap/fix or riding it out on price fall.

Now it works out I was right to switch, having checked on the price fall tariff now, the cheapest tariff I could get onto would be about 40% more than the prices on the price fall tariff. When I switched to E-on I took a 13% rise and capped til next year.

So by my maths, prices would have to drop by at least 27% in the next 12 months to make that a bad decision, even if they go down by more than 27% it wouldnt happen until next year when my cap is near its end anyway so the way I see it I was right to cap.

Yes I know it means I'm not on the cheapest tariff available, but I'm a low user and would prefer to have the knowledge not tthat my bills wont rocket up by 30% thanbe on the cheapest tariff with the threat of massive hikes.

I didnt do it on Martins say so though, I did this a week or two before he went on the TV.

I thinkn if people capped at the time Martin went on the TV they *should* be ok, if they left it for a couple of weeks after then some of the better tariffs had been removed and they might come unstuck.

Totality

OK, I fixed. Perhaps that's the problem - I see the two words and consider them the same thing!

teddyco

I didn't cap my energy rates because I knew it was all HYPE.

Noz

Same story as the flack Martin got for recommending Icelandic banks.

If you describe yourself as a Money Saving Expert and the recommendation goes wrong, people are going to proportion blame towards you - justified or not.

Its a tight rope in giving finiancial advice (or "journalistic research"), and not one you are going to win 100% of the time - but MSE do their best to give all the facts and educate the consumer before purchase, another case of buyer beware.

Meadows

I capped mine a while ago, I am with Eon, they had two similar choices, the difference being you had to stay with one for a fixed period of time, not wanting to be tied to anything I chose the none fixed time cap, and I also asked what happens if prices dropped, and was told my price would also drop!

Stuart_W

As some here have mentioned, there are other benefits to capping prices. There is a certainty of no big, unexpected price increases. I chose not to fix, as such a low user it won't affect me massively and I'm quite happy with Ebico. I am however, much happier about fixing my mortgage (10 year fix 3 years ago) because it gives me certainty.

It is possible, surely, to look back at every financial decision with hindsight and decide if it was the best one or not - but fixing prices is one way of managing, or restricting the risk as a variable cost becomes more fixed (all we need to do now is fix the weather so we don't need as much heating).

Magentasue

I don't get this thread. I'm sure the advice to cap/fix was tempered with the usual warnings that it might not be right for you and that it was only a sure fire thing if you needed the peace of mind that your bills wouldn't go up.

I fixed at a price slightly lower than I was already paying (gas and elec overall) before the big price rises. It was time for me to switch anyway, and even if prices drop next year, I'll probably be no worse off given I'd be paying more now if I hadn't fixed. If prices stay the same or go up, I'm better off.

If prices drop a lot, the savings will cancel out the penalty charge for most people.

Cardew

The debate on the wisdom of taking a Capped/fixed tariff has 'raged' on MSE for the last 3+ years and will doubtless continue all the time these tariffs are on offer.

Personally I am against these tariffs as I don't believe we should have to gamble on an essential service, especially as even the most informed pundit has no idea of the odds; and it is still a gamble if you do nothing!!

Whilst nobody likes 'throwing good money after bad' if anyone considers they have made the wrong decision in fixing, then it is time to 'bite the bullet', pay the penalties and get out!(only on the internet can you get away with writing such a sentence!!!

It seems inevitable that there will be a reduction soon in gas(and electricity?) prices if world energy prices stay around current levels. So those on fixed tariffs have another gamble to take; quit now or take the view that in the longer term they might gain.

Whatever opinion people have of ofgem's latest report, surely everyone would agree that a simplification of tariff structures and an end to 'confusion marketing' is long overdue.