Centrica confirms price increases for BG customers

lisyloo

It really is very difficult to say (and that isn't a cop out).
If you are just comparing prices between companies then it's just straight maths.
We are now into the realms of speculation because you need to think about what prices might be in the future.

My own "view" (which may or may not be correct) is that prices are likely to rise in future.
This is because I see massive demand from countries like India and China who are now becoming somewhat developed off the back of globalisation i.e. manufacturing, IT, call centers etc.
The demand from these countries could be huge and I think our ability to invest elsewhere will be slow to catch up because we are only just starting to think seriously about alternatives.

Given what I've said above, I would have to say that a capped tarriff has got to be a sensible idea, especially for people who are on fixed budgets.
I don't know how the BG tarrif compares with others to be honest but I will be looking into it.
I think 22% now could look quite small compared with what we are going to see in future - unfortunately.

[Deleted User]

My belief is that energy prices will go down for next winter. The government have to keep inflation under control and high energy prices affect manufacturing etc They can only put up interest rates by a small amount so the rest has to be done by reducing energy costs. This may happen via the negotions to open up the various pipelines abroad

loubie_lou

Your right I think 22% is peanuts.

lisyloo

This may happen via the negotions to open up the various pipelines abroad

This is the problem. There are a nuber of scenarios.
Whenever you go onto a fixed or capped tarrif you need to speculate on the future.

I think it is sensible to take into account your personal circumstances.
If you are poor or on a fixed income then the fixed/capped tarriffs offer some rpotection from price increases although they can be more expensive to begin with.
If you are well off you can afford to take more of a chance and stay on a variable tarrif.

In that sense I don't think there is one "fits all" solution.

It's down to your personal circumstances and views.

Sorry I can't be more definitive, but it would be misleading if I were.

ceegee

I'm with BG for gas and electricity and I took advantage of the fix until 2010 because:

1) I wanted the certainty for budgeting purposes, being on a low wage and

2) when I worked out what the initial premium was for both, it was less than £1.50 more per week, which didn't seem as bad as what future price rises were likely to be.

I suppose it was a bit of a gamble, but now I am happy with having done it.

superscotsman

kittie wrote:

My belief is that energy prices will go down for next winter. The government have to keep inflation under control and high energy prices affect manufacturing etc They can only put up interest rates by a small amount so the rest has to be done by reducing energy costs. This may happen via the negotions to open up the various pipelines abroad

Apart from one thing, there is nothing particularly wrong with what you say, Kittie. But you are making one fundamental mistake: you are assuming that the government and that bunch of pinhead civil servants are as intelligent as you are.

You are quite wrong about negotiations to open various pipelines. The Russians are going to look after nomyer odyeen. "Pay what we ask, or we turn off the tap." That's what they did with The Ukraine; that's what they did with Georgia. And they had written agreements with both countries. They waited till the coldest winter in living memory, and they tore up the agreement. And when the Ukrainians and the Georgians objected, the Russians turned off the taps not only to these countries but to any other country along the same pipeline. And that's what's going to be happening a lot more from now on.