To Cap or Not - what's gonna happen next ?

US4

Following the latest increases I'm now a mere 10% better of Powergen's Capped 2010 deal,

Powergen online 19k Gas, 5k elec c£1,040, Capped 2010 c£1,140

Ae prices likely to plummet by the 20%s we've seen or continue to rise, with 2 price rises each year - a near 4year fix seems a good deal, so long as I brace myself for a massive DD increase in 2010.

masonic

Clearly if Powergen are offering that deal, they do not believe prices will continue to rise as they have done in the past.

Jolinar

I've read in several places that prices are likely to drop next year possibly coinciding with the new gas pipelines being completed? I think I read this on thisismoney.co.uk site but can't for the life of me find the link right now, d'oh!

Makes you wonder if they fix you in then the price drops they'll be laughing all the way to the bank again as people will be paying over the odds plus they can't get out of it without paying the penalty fees.

humfer

Think most think they will probably continue to rise for another 6 months and then start to fall about the middle of next year

deanos

You can always fix and if prices fall move to another product as i beleive there are no tie-ins with Powergen.

oldwiring

Did anyone hear the bit on News/newsnight last evening. It was that petrol was at its lowest for some months at the pumps- reason the fall in oil and gas prices.

Make what you like of it, but I would not be precipitate.

masonic

deanos wrote:

You can always fix and if prices fall move to another product as i beleive there are no tie-ins with Powergen.

But then you will have been paying the higher prices of the fixed tariff for nothing.

humfer

masonic wrote:

But then you will have been paying the higher prices of the fixed tariff for nothing.

Agree - they make even more profit out of you for the period up until the prices start to fall. To be honest no one really knows when the gas/elec companies will start to drop bills, but just by the news of new gas supply lines, lowering oil prices, fingers crossed we are towards the end of the rising prices...

deanos

masonic wrote:

But then you will have been paying the higher prices of the fixed tariff for nothing.

Depends on when you fixed dosent it, bit like fixed rate mortgages you know what you are paying for a certain period of time, as mentioned above oil has been falling over the past few weeks yet gas and electric prices are rising, at the end of the day its a gamble, i did a check to see how my rates compared and its only slightly dearer on the fixed tarrif im on compared to the cheapest quote i got on Uswitch about £20 a year.

masonic

deanos wrote:

at the end of the day its a gamble

Sure, but this tariff is 10% more expensive than the normal one. That means that on average, prices would need to rise by 20% over the fixed period just for the OP to break even. That is the gamble that needs to be taken.

Edit: Also, it would appear that Powergen's Online tariff in my area is 20% more expensive than the cheapest one. Presuming this trend also applies to the OP, then they could save 20% by switching supplier, meaning that unless energy prices rise by a whacking 60% over that fixed term above, this tariff will not pay off as compared with the cheapest variable tariff.