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

1carminestocky

Magentasue wrote: »

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.

I'm assuming you didn't see Martin on gmtv that fateful morn, Magentasue?

Magentasue

1carminestocky wrote: »

I'm assuming you didn't see Martin on gmtv that fateful morn, Magentasue?

No - don't watch daytime TV!;)

c0113tt3

I have always believed that the utility companies are a business to make money / pay share holders. Just like any other company, to make profit.

Would a company therefore fix its prices to possibly make a loss?

Companies also market / advertise products, they want to achieve more sales / targets. When would the most appropriate time to advertise such a fixed price product? At and when it hits it peak, with lots of media coverage perhaps, which is exactly what happened.


The energy companies are just like any other company, they want to meet and excell targets, make the biggest profit they can, and pay high dividends to its share holders, and obviously big payouts to its executives.

This is the common sense that I saw when all this fixing prices came about.

If companies were so really concerned over us and fuel poverty / struggling to cope with rising prices, then why are so few people on social tariffs compared to normal tariffs, why so many different tariffs / variations, and why then advertise such things as fix for free, or price fix, but then to find out you pay an increased amount over the normal tariffs, or find that prices could still change / vary, or a cancellation fee / clause etc.. Would they also care so much for us, to the extent they spend perhaps millions on very expensive television advertising? For them to risk losing money / profit?

Its a business to make money / profit, not to care about the public.
They are also very aware that OFGEM and Energy watch is a toothless tiger, has a growl but no bite !!

We have all heard the term "rip off britain" where nationally companies charge more in uk, compared to elsewhere or the prices are unfair, why should the energy companies be any different?

This is not justifying in any way their behavior but, it does give you the understanding that is required.

lindseykim13

Martin advices you don't have to listen! i expect he's fed up of this site be a shame if he closed it down cause he'd had enough.

Totality

lindseykim13 wrote: »

Martin advices you don't have to listen! i expect he's fed up of this site be a shame if he closed it down cause he'd had enough.

That's not the point though. Of course you don't have to take the advice of any one person. But when somebody is an EXPERT in a certain field, people are likely to listen to him.

1carminestocky

lindseykim13 wrote: »

Martin advices you don't have to listen! i expect he's fed up of this site be a shame if he closed it down cause he'd had enough.

A bit silly, really. Like I have said earlier Martin is a bit of a hero for me but the fact is his whole career is BASED on people actually listening to him...isn't it?

love2save

I listened to the information Martin gave then made my own decision after taking everything into consideration.

I changed to a capped deal with Scottish power which ends Sept 09 which meant I would still be paying the same as I was with Southern Electric, who only a month later put their prices up by 30%. Even if Southern Electric's prices go down it will not be less than the original amount I was paying so I haven't lost out.

Cardew

Totality wrote: »

That's not the point though. Of course you don't have to take the advice of any one person. But when somebody is an EXPERT in a certain field, people are likely to listen to him.

Agreed.

The problem Martin has is that he gets a minute or so for a 'sound bite' on TV/Radio to put across his message - presumably why he speaks faster than anyone in the media - with the possible exception of John McCririck on horse racing!!

His recommendations are however based on a prediction of future market trends - a guess - not so different from John McCririck!!

It certainly doesn't come across like that on TV, everything is delivered in an exciteable breathless manner and leaves the uninformed listener in no doubt he should Cap Cap Cap!

He simply doesn't have the time for a carefully measured approach giving all the caveats.

As stated above, Martin has carefully cultivated an image as THE Money Saving Expert and some people understandably hang on his every word.

We know they shouldn't, but they do!

If his firm recommendations(the Green traffic Light) to Cap/fix turn out to be a mistake, we will doubtless have the same line taken as with the Iceland banks fiasco. - in essence, you are silly for for taking note of my 'Best Buy' recommendation.

Martin has some huge successes - the bank charges in particular - and rightly gets the plaudits. He has also made some errors!

In which category will capping/fixing fall? The jury is still out!

bristolleedsfan

No offence meant to :money: I dont read any of his newsletters, nore do I listen to what hes got to say, once upon a time I found his hand waving about antics entertaining, that novelty has long since worn off.

Lets remember that when :money: advises people/ instructs people to switch energy companies, ( advice/instruction is by means of red and green traffic lights if i remember correctly, red is for sitting tight and green is to go and switch) :money: hopes that people switch via Money Supermarket ( who in the 12 months up to August 2008 were paying the switcher 50% less than the 100% cashback sites were paying the switcher to switch.) or via other affiliated switching sites. :money: Site gains from everyone who switches via Money Supermarket and/or other affiliated switching sites, so its in :money:interests to get people to both switch supplier and/or switch supplier to a fixed/capped tariff.

Incidentally during the middle of August 2008 when :money: had the traffic lights on red, I was off switching to BG Click 5 ( now switched to Click 6) and got myself 60.00 switching Cashback for my trouble, so its not all about "hindsight"

mattymoo

Plushchris wrote: »

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.

Thank you for someone speaking sense and knowing the difference between fixed and capped. It's just the same as the mortgage market really.

The energy companies do not appear to be applying any "collars" on their capped deals. A cap and collar deal sets max (cap) and min (collar) prices for the deal. Therefore if and when prices fall, the capped rates should fall in line with the normal tarrifs, but with a slight premium in terms of unit cost for the cap in the first place.