Energy Prices over the next 24 months?

imroberts

I'm currently on a Fixed Price tariff with Scottish Power. It's one of the earlier ones which I got just in the nick of time before prices started sky-rocketing last year and was a fantastic deal at the time compared with what I had previously. The tariff is fixed until March 2011 and I had anticipated sticking with this deal until that time.

I've just been looking around at current deals and npower's Sign Online 14 would actually work out cheaper for me at the moment, not significantly but along with a cashback scheme I can save around £100 over the next 12 months.

My question is this...

Are energy prices likely to continue dropping (in which case the Sign Online 14 would definitely pay off as the savings would become even greater) or are they likely to go back up? How do people think I would fair over the next 2 years compared with the fixed price tariff I already have?

jimexbox

With the world economy in such a state most countries are using less oil/gas, even China which was sucking up every drop it could find. Its a simple case of supply and demand, less demand, prices drop. Although that's a very simplistic view, it only takes a crisis in Russia or the Middle East to send oil sky rocketing. If Israel attacks Iran or terrorists blow up a Russian pipeline oil prices will rise, although it takes months to affect bills.

So the short answer is who knows. If anyone does, let me know.

KimYeovil

Less demand, prices (to the consumer) go up.

housebug

KimYeovil wrote: »

Less demand, prices (to the consumer) go up.

And less ready credit. Its not just demand that drives prices. Weirdly enough, when money is plentiful, prices are lower. British housing and energy excepted.

jimexbox

KimYeovil wrote: »

Less demand, prices (to the consumer) go up.

Can you give an example please.

KimYeovil

jimexbox wrote: »

Can you give an example please.

You don't do your family's household shopping in supermarkets, do you?

jimexbox

All Im asking for is a specific example where oil price dropped this has caused a rise in the retail price of a fuel.

mech_2

Yeah, I don't follow the logic there either.

paulyowen

IMROBERTS - I also have the Scottish Power Fixed Online 2011 and have today carried out the same comparison and got the same results - i.e. recommending the same Npower tariff.
HOWEVER - On closer inspection by checking "current tariff details" on the results page the tariff is incorrect. Having checked all the comparison sites it appears that none of them have to 2011 tariff as an option.
If you choosed the undated fixed price online option IT IS NOT THE CORRECT ONE?
Can anyone else confirm this or shed any light on it?

storminbalder

jimexbox wrote: »

With the world economy in such a state most countries are using less oil/gas, even China which was sucking up every drop it could find. Its a simple case of supply and demand, less demand, prices drop. Although that's a very simplistic view, it only takes a crisis in Russia or the Middle East to send oil sky rocketing. If Israel attacks Iran or terrorists blow up a Russian pipeline oil prices will rise, although it takes months to affect bills.

So the short answer is who knows. If anyone does, let me know.

How exactly would Israel attack Iran?

Cardew

storminbalder wrote: »

How exactly would Israel attack Iran?

With aircraft! On specific sites, designed for generating electricty I believe!

A lot of informed opinion believes that they will act as a proxy for a large superpower.

Getting back on subject it will only take something of that magnitude to create turmoil in the energy markets.