Npower Price Fix 2011 - looking expensive?

goldnet

I switched from Southern Price Fix 2008 to NPower Price Fix 2011 earlier in the summer, just before the huge increases. By my reckoning (based on a spreadsheet showing my actual consumption under the various leading tariffs), prices needed to rise around 35% in 2008 (which they more or less did) plus around 15% in 2009 and 10% in 2010 to warrant the premium for the fix.

It now seems prices may actually decrease early next year and subsequent increases may be fairly modest while the economy is in recession, making the 'deal' less attractive.

The million-dollar question is therefore whether I should stay on the fix or switch to Npower's online tariff which, according to the comaprison sites would save me around £200pa (and presumably, slightly more if prices actually drop).

Does this seem logical, or is there a flaw in my argument which one of our online experts might point out?!

The reason for staying with NPower is that they are within a pound or two of being the cheapest provider in London and, since they fouled up my switch which means I'm paying higher monthly payments to 'collect the arrears' they failed to take payments for. If I switch elsewhere, I'll have to clear the final bills again which means a large lump sum outlay.

Many thanks

1carminestocky

Note: take care listening to self-appointed experts on the internet, they can't see into the future, either. Are there penalties for leaving this fix? That may be a factor in your decision. Problem is no-one can really give you an unequivocal answer because no-one *really* knows what will happen in 2009 and 2010. The World has become a VERY unpredictable place.

If you were to ask me if I am glad I resisted the urge to fix this year, I would say yes. But that doesn't mean to say I'm going to be proved correct. BTW, I personaly don't claim to be an expert at all.

Cardew

No answer to that question.

To take a fixed/capped prices has always been a gamble, and likewise the decision facing you about quitting a fixed/capped tariff is just as much a gamble.

There is little doubt the the odds on the tariff saving you money have lengthened in recent weeks.

I think you have summed up the situation nicely. However as you 'placed your bet' before the huge summer increase I would personally wait until the new year before deciding if you should jump ship.

However with my record on gambling - I shouldn't venture any opinion!