New scottish power capped price offer

ads_2

Just wondered if anyone else has been offered a new capped price with scottish power until August 2008?

I am on one of their capped price schemes that runs out this month (July 2006) and they have offered a new 2 year deal.

If anyone else has been offered this do they think it's a good deal? It looks to me like it might be a good idea as there is no sign of prices dropping and it looks more likely prices will continue to increase.

The capped deal looks like the same unit price as their online premier plus scheme but you pay extra towards the standing charge (£2.70 inc VAT for Gas / £1.50 inc VAT for Elec) per month.
ads

fergee

Firstly if the oil companies thought that the prices were going to continue to rise they would not be offering a Fixed rate.

It is widely expected that the price of oil will half in the next 18 months ( the President of BP even said this 4-5 weeks ago )with new supply coming on line in Oct 2007. It is also expected that the LNG supply will ease the market.

I advise companies on their long term energy policy and everyone in the industry expects the price to ease. If i were you i would use a price comparison site to check if it is a good deal. Remember Quidco will pay up to £16 for going through Uswitch. I hope this helps.

selbmag

We are on Scottish power and also received the same offer.

I ran ours through Uswitch and everyone came out more expensive. The fact is it is capped and not fixed. So in theory if they do reduce prices to standard customers they should also reduce prices to those on the capped rate. If they didn't then the regulator may have somethign to say.

Don;t know about other energy suppliers but Scottish Power have been great in supplying energy saving products. They subsidised our loft and cavity wall insulation so cost me only £49.00

They supplied energy saving lightbulbs for just a couple of quid each. They have also sent details of gettign a Combi Boiler for 50% off. My understanding is that energy companies have such tight emmissions controls now that it is cheaper for them to get people to save money and cut carbon than pay the Government fines.

kingshir

selbmag wrote:

We are on Scottish power and also received the same offer.

I ran ours through Uswitch and everyone came out more expensive. The fact is it is capped and not fixed. So in theory if they do reduce prices to standard customers they should also reduce prices to those on the capped rate. If they didn't then the regulator may have somethign to say.

Don;t know about other energy suppliers but Scottish Power have been great in supplying energy saving products. They subsidised our loft and cavity wall insulation so cost me only £49.00

They supplied energy saving lightbulbs for just a couple of quid each. They have also sent details of gettign a Combi Boiler for 50% off. My understanding is that energy companies have such tight emmissions controls now that it is cheaper for them to get people to save money and cut carbon than pay the Government fines.

I agree with all of the above!! I've been with them for a long time and (so far) I'm happy with their service and my bills! As you say it is capped and not fixed so it is not a 'lock in' offer.

selbmag

In addition you get a £36 loyalty bonus back in Oct 2008 if you stay with them until then.

Cardew

fergee wrote:

Firstly if the oil companies thought that the prices were going to continue to rise they would not be offering a Fixed rate.

It is widely expected that the price of oil will half in the next 18 months ( the President of BP even said this 4-5 weeks ago )with new supply coming on line in Oct 2007. It is also expected that the LNG supply will ease the market.

I advise companies on their long term energy policy and everyone in the industry expects the price to ease. If i were you i would use a price comparison site to check if it is a good deal. Remember Quidco will pay up to £16 for going through Uswitch. I hope this helps.

Firstly, whilst the oil price obviously has some effect on electricity prices we are talking both gas and electricity here.

Secondly, what is the point of checking with a comparison site to see if it is a good deal? It will be more expensive than even their own standard tariff. The 'gamble' is that you pay more now and are insulated against any future rise.

Thirdly, the deal is 'capped' not fixed'.

Fourth, Fixed and capped deals have been on offer for quite a while and almost without exception those who opted in have done well. That said it was a gamble then, and it is a gamble now.

Lastly who is President(sic) of BP - I didn't know they had one - and when did he state he expected the price of oil to halve?

Vivienne Cox BP's Chief Executive - Gas, Power & Renewables gave a speech
to the UK Parliamentary Energy Group on 12 June 2006 on the Prospects for Global Gas and Low Carbon Power and she predicts supply next winter will be difficult and then should ease. Full details here:

http://www.bp.com/genericarticle.do?categoryId=98&contentId=7018724

ads_2

I think I will go with the capped deal with scottish power because even though there are different opinions, mine is that prices are probably going to keep going up.

As a few have mentioned this is a capped deal and not fixed so if prices do come down then mine will too.

This deal does not tie you in but you do have to pay a monthly premium for the privilege.