Scottish Power Online 2010 Price Guarantee

Cranky

My current deal ends with scottish power at the end of December 06.
I have been sent this today is this a good deal?

Electric Prices

Before Jan 2007

DSC 14.45p
All day units per kwh 4.890p

Premier plus Online
gas and electric prices from 01/01/07

DSC 12.88p
All day units per kwh 7.572p

Online 2010 price guarantee from 01/01/07

DSC 16.01p
All day units per kwh 7.572p

Gas Prices

Before Jan 2007

DSC 13.19p
All day units per kwh 1.296p

Premier plus Online
gas and electric prices from 01/01/07

DSC 11.63p
All day units per kwh 2.653p

Online 2010 price guarantee from 01/01/07

DSC 25.72p
All day units per kwh 2.653p

Is it worth payiny the extra DSC to save money in the long run????

BlondeHeadOn

I received one of these letters too, and I can't work out whether this is a good deal or not either! Can anyone of you maths gurus help?

Cardew

Nobody can give you an answer unless they have a very good crystal ball.

There are 2 unknown factors.

Firstly it depends on how much gas/electricity you use. For instance on the 2010 tariff someone using an average of, say, 25kWh of gas per day(ie 9,125kWhpa) will be adding 0.56p per kWh to the price of their gas. Someone using 100kWh per day(36,500kWh pa) is adding 0.14p to each kWh. So the more you use the lower the unit cost.

Secondly nobody knows what the future holds for gas/electricity prices. This has been a debating point for all the fixed/capped price offers. Historically most have turned out to be a good deal for the customer; but that is no garantee for future deals.

In effect in taking the 2010 deal you are gambling £51.42 & £11.42 per year on the future of gas and electricity prices.

Me I would take the gamble!!

BlondeHeadOn

The other question I have (I have one of these letters too) is what is the small print? If I accept the capped prices deal, does this make it difficult to swap to a cheaper supplier later if they have a better deal?

I can't decide.....

Cardew

They don't normally have financial penalties for leaving; although BG did for their 2010 deal - not that anyone would now be leaving.

Just read the 'small print' or call them.

John_3:16

Can you take one without the other.

My feeling is that Gas may stay still in price for a while but electric will always tend to rise.

You can of course take up the offer and watch for a while. If it looks like the costs are comming down cut your losses and go on another tariff.

We have until Oct 2007 with scottish power to make our minds up. My feeling is take a chance and go for it but watch to see what the trend is regarding price. Although The media gave this new pipeline alot of airtime we have not heard much lately. If we have a cold winter prices will rise if we don't they may go down.

For a few months you will only lose a few pounds if you decide to switch. Of course it is worth a ring around to see what others charge and what is about.

charlton64

I to have received this letter - I rang Scottish Power today to find out what my monthly payment would go up to

Gas from £19 to £34 a month and Elec from £66.50 to £97 a month

A huge increase of £45.50 a month - have looked on uswitch etc and there doesn't seem to be any savings to be made anywhere

Think I might ring them and say I am thinking of leaving and see what they can offer me to stay!!

dealsearcher

My understanding is that gas prices are supposed to be coming down in the near future. With the new gas pipeline from Norway now on stream. Recently the spot price was so low they were giving it away.

loulou41

Anybody decided what they are going to do? I, too received the letter two days ago and still undeiced whether to go for it or leave it as it is. Thanks

Bagger

I also got a letter. They said I will be paying the price as it was in June 2006 with a premium of £5.50 per month. Not sure what the prices were in June 2006. Anyway, as some said above, the prices are likely to drop within 6 months. I will wait and see.

Bagger

Cardew

Bagger wrote:

I also got a letter. They said I will be paying the price as it was in June 2006 with a premium of £5.50 per month. Not sure what the prices were in June 2006. Anyway, as some said above, the prices are likely to drop within 6 months. I will wait and see.

Bagger

There has been much speculation that prices might fall next year, other speculation that they might rise again.

With the distribution companies having made large losses in recent years, IMO there will only be token cuts accompanied by huge publicity.

However with a deal to 2010 on offer, it is necessary to take a longer term view. Will prices have risen enough in the next 3+ years to recoup the extra outlay?

As said above it is a gamble, but can anyone see gas/electricity prices being around the current price in 2010?