Anybody going for a fixed price to 2013-2014?

NotSoWise

says it all really - what do you think - should i go for it?


(Did it once before early 2000s and won hands down - but not so sure this time around- would be £60 odd over a standard rate at the moment with dual fuel with BG)

Cardew

A few years ago just about every fixed/capped deal was a 'winner'. This was because there was little or no premium over the Standard tariff(and there weren't many internet tariffs) e.g in 2005 the BG fixed to April 2010 was at the same price overall as their Standard tariff and by mid 2006 you were 'in profit'!

Now the 'premium' makes them considerably higher than standard tariff and it is far more of a gamble. Take a tariff where the premiun is, say, 20% on a 2 year deal. If prices rise 20% in the first year, they will need to rise a further 20% over the next year just to break even.

Mmm I wonder who will win the 2:30 at Epsom!

grizzly1911

Cardew wrote: »

Now the 'premium' makes them considerably higher than standard tariff and it is far more of a gamble. Take a tariff where the premiun is, say, 20% on a 2 year deal. If prices rise 20% in the first year, they will need to rise a further 20% over the next year just to break even.

Mmm I wonder who will win the 2:30 at Epsom!

I am with Cardew on this one. Not only that back thenthe price did seem to move up and down during the year so if you fixed at the bottom that helped.

The big benefit is, if you do take the risk, at least you know that your bill should be"fixed" for the period of the deal

We seem to be constantly in price increase these days so, even if you do win in, at the end you will probably have a big uplift to catch up.

I am mystified why suppliers seem to keep increasing prices twice a year and in quite lumpy increases, when they buy their supplies forward years in advance or at least options on them.

brewerdave

When my existing EON fixed deal ends, the best currently available variable deal increases my annual costs by~ £200 (22%)........ but the best fixed deal increases it by ~ £400(44%) and would ONLY be fixed for 22 months so I can't see any financial justification for fixing at the moment.