HELP - I just don't get it!

grown_up_girlie

Apologies in advance for what probably seems a very silly question but I don't really understand too much about how Electricity Suppliers work as this is my first time living out of home.

I'm currently with Powergen for my electricity and have a Economy 7 meter. Is it worth me going on capped prices till 2010 paying monthly by direct debit?

Is there some kind of con to being on capped prices, I find it hard to believe they would do this for the consumer without gaining anything for themselves.

Please can someone in simple terms (for the simple mind :rolleyes:) explain the pro's and con's for me as I just don't understand any of it!

Thanks

Cardew

There have been loads of threads on this subject - if you do a search you will find lots of opinions.

As we have been in an period of steeply rising prices over the past couple of years, almost everyone has gained if they elected for a capped/fixed tariff. Some by considerable amounts.

That said it was a gamble at that time and many expressed your reservations - some very strongly.

It is still a gamble for anyone considering a capped fixed today. On the capped tariff you will be paying a higher price for electricity(over your current tariff) to 'insure' yourself against future price rises. So Powergen gain in the short term, and perhaps for a long period, by charging you higher prices. On the other hand you might gain if prices increase a lot more.

There have been plenty of experts predicting that prices should fall by the end of next year - others saying they won't fall.

At the end of the day it is simply your decision to gamble or not. Nobody can give you any informed advice on the best course of action.