price drops soon ???

julie777

Just had a call from Scottish Power who we are leaving. They said there is no point going on a fixed tariff as prices will be dropping again. How true does Martin think this is? Does anyone have any info please?:(

Premier_2

Martin Lewis, MoneySavingExpert.com creator, says: "Predicting gas and electricity prices is a difficult game so it's best to focus on what we know, in that cheap fixed rate deals are being withdrawn.

"That is indicitive of a trend of upward prices but that is far from saying standard prices will rise.

"If you are looking to lock into a cheap deal you should do that sooner, rather than later. It gives insurance against prices rising at the cost of a small penalty in the unlikely event prices drop and you switch to a cheaper deal.

"Most people who fix will save when you factor in the cashback available by switching, so it is a no brainer."

http://www.moneysavingexpert.com/news/utilities/2010/06/households-urged-to-fix-energy-bills


I don't necessarily agree, but you didn't ask for my opinion
(but if you want it, it's in the discussion thread linked to that article)

specialsparky

Just for info :- current wholesale Gas prices are up 45%. I would reccomend fixing your prices as soon as possible. Eon Fix on Line 8 is the best deal around if you want duelfuel and pay by DD and manage your account on line. Will save you big money and fixed until next year. Go for it now , I think it will end soon
Good luck
Hope this helps

MrLazyBones

Hi Julie,

Post below comes with no warranties.

All we can do is work with the information we have at hand.....

Prices have fallen substantially since Oct '08 with suppliers not passing on these falls, more information can be found on my blog - I will post the details if you want.

As specialsparky mentioned - if you look at wholesale gas prices they have increased ~ 55% from their lowest level this year in March '10 (34 p/th) to the high of the year last week (53 p/th) however what you have to bear in mind is that the prices in March were extremely low - especially the 34 p/th (lowest level for 3 years). Also don't forget that energy accounts for ~ 70% of your energy bill so it is not a straight forward increase.

As there is a lag of about 6 months between wholesale market movements and domestic I would not be too concerned about this increase as markets are still lower than where they were a year ago and have since cooled following the budget.

However as Martin mentioned eluded to, markets can go up as well as down and if you can find a deal you are comfortable paying and like the security of a fixed price I would take it.

Hope this was of use

Plushchris

julie777 wrote: »

Just had a call from Scottish Power who we are leaving. They said there is no point going on a fixed tariff as prices will be dropping again. How true does Martin think this is? Does anyone have any info please?:(

I think whoever you spoke to at SP just said that to put you off switching.. Did you tell him/her that you were considering a fixed tariff?