Suggestions on fixing gas & electricity prices please

soulspirit

Recently about two months ago, following the advice on Martin's site, I have switiched both my gas and electricity to British Gas, now they are offering to fixed the energy prices for three years. Does anyone know if this is a better deal??? Thanks for any suggestions.

Cardew

If you look through this forum you will find a number of threads on the pros and cons of electing for a fixed price contract. This is one of many:

http://forums.moneysavingexpert.com/showthread.html?t=155759

BG offered a fixed to April 2010 tariff last year and there was much debate on the merits of that scheme. Those that elected to go on it 'escaped' the last 22% rise in March and it is looking a wise decision.

Some analysts think that prices might come down in 2007 or 2008, others feel at best they will stabilize. Frankly the question you posed is like asking who will win the 2:30 race at Kempton races in that it is a gamble. However you could argue that the Utility companies are like bookmakers in that the odds are in their favour!

Personally I do not feel there will ever be a reduction in domestic prices, or at best a token amount. If you elect for the fixed price(offered now by most of the companies) the penalties for dropping out of the scheme are not that high. Even the 2010 BG offer(which has the highest penalties) is only £45 & £30 for gas & electricity. If they ever reduced their normal tariff I would simply exercise my option to drop out and pay the penalty.

smudger1964

I have just opted for a capped price deal with my supplier Powergen I am paying on an average consumption of £1000 per year approx £77 more but this is fixed to march 2010 and unlike british gas there is NO penalty for getting out of the deal.I think its a good deal as I like cardew dont think that the prices will come down and after the next round of price rises I will be gaining and if they come down my capped deal will come down also so how can i lose?