Will Energy Prices fall?

flashnazia

I'm interested on opinions on this (apologies if it has been discussed to death already elsewhere).

Does anyone think it's likely that gas and elec will fall this year between the main suppliers?

I'm asking because I'm thinking of switching but all the cheaper ones are all fixed prices with penalty clauses. I'd hate to commit myself if prices fall over the next year. I've never been into fixed price contracts.

Dave_save

The suppliers have been digging their heels in on this for some time. OFGEM is toothless and it's unlikely to force prices lower, particularly now all these energy companies are on the green/carbon saving bandwagon.... using 'green investment' to excuse future increases. My view is that they are bound to rise, but who knows? I fixed my prices last year based on the view that prices would rise above the tariff I fixed at. I've since gone on to a variable tariff with no penalty clauses and there are now at least 2 fixed deals marginally cheaper than my variable deal. I'd quite willingly fix again if I thought I could get a significantly better deal.

Best way you can play it is to compare the best fixed deal with the best variable deal and weigh up the cost difference against the risk/likelihood of a variable rate increase/decrease.

flashnazia

I find the idea of a fix quite scary.

I'm on BG click 6. OVO and EDF are showing as cheapest although potential cashback from EDF can cover any termination fee. (That is, of course, if I get the cashback!)

Premier_2

flashnazia wrote: »

...I'm asking because I'm thinking of switching but all the cheaper ones are all fixed prices with penalty clauses. I'd hate to commit myself if prices fall over the next year. I've never been into fixed price contracts.

Now is not the time to start thinking about doing so.

Simple rule for fixed price deals, whatever they relate to (energy prices, mortgages, etc):
If they are cheaper today than anything else on the market, prices are not expected to rise.
If there is a premium being asked for a fixed deal today, prices are expected to rise.

flashnazia

Thanks. Now all I have to do is find the effort to do it!