Anyone not fixing?

backfoot

deutsch wrote: »

to fix or not to fix?
does anyone take into consideration inflation? (CPI/RPI)

The relevance being?

Inflation in this respect is the price rise over the term of the variable option.

CPI/RPI across the basket of measures has no bearing on the decision in this case.

deutsch

backfoot wrote: »

The relevance being?

Inflation in this respect is the price rise over the term of the variable option.

CPI/RPI across the basket of measures has no bearing on the decision in this case.

not even the value/power of your own money?
£1 in your pocket is worth £0.95 next year (5% inflation)
thus fixing a price (e.g a direct debit of say £20/month and it's worth is only £19 next year but you're still paying £20 because you fixed?) and then say on average inflation is at 5% per year.

£20 - 2011 -
£19 - 2012
£18.05 - 2013
£17.15 - 2014
£16.29 - 2015

but your're still paying approx £20 (assuming usage hasn't changed?)

i thought it would have been some kind of factor when thinking long term and fixing? i could be wrong.

deutsch

actually forget what i said before. i'm confusing myself.

backfoot

deutsch wrote: »

not even the value/power of your own money?
£1 in your pocket is worth £0.95 next year (5% inflation)
thus fixing a price (e.g a direct debit of say £20/month and it's worth is only £19 next year but you're still paying £20 because you fixed?) and then say on average inflation is at 5% per year.

£20 - 2011 -
£19 - 2012
£18.05 - 2013
£17.15 - 2014
£16.29 - 2015

but your're still paying approx £20 (assuming usage hasn't changed?)

i thought it would have been some kind of factor when thinking long term and fixing? i could be wrong.

No on reflection,I think you have a point.

Although discounting the relatively small values involved would make only a minor difference to the sums. Offsetting it would be the opportunity to invest the saving from not fixing.

I think, in what is already an assumption based decision, it is worth ignoring,especially to avoid further complications.

kar999

I haven't done all the comparisons yet but my S Power electricity (no gas) increase online Saver 10 is nearer 29% and 49% for the split units (c 3000KWH p.a). S Power have put up prices twice in 12 months so I can't see them not doing it again in the winter.

If I can lock in to break even and cover just this one increase until later in 2012 I might go a fix.

Ken68

Surely more money available at any one time is worth something.
And fixing destroys your options.
Say I spend the money on extra insulation instead of on fixing the price.
Or spend the fixing money on some unrelated saving to help cross subsidize.
At the very least it is ME that is making the decision, rather than a wasteful big organisation, aka another post where Scottish Power are spending money changing their name to ScottishPower.

backfoot

Ken68 wrote: »

At the very least it is ME that is making the decision, rather than a wasteful big organisation, aka another post where Scottish Power are spending money changing their name to ScottishPower.

Oh you cynic.

Regular rebranding especially removing unwanted spaces is vital.

Look at it's effect on fuel poverty for example :eek:

Colin the rep ,will explain further if you still doubt it.

kar999

kar999 wrote: »

I haven't done all the comparisons yet but my S Power electricity (no gas) increase online Saver 10 is nearer 29% and 49% for the split units (c 3000KWH p.a). S Power have put up prices twice in 12 months so I can't see them not doing it again in the winter. If I can lock in to break even and cover just this one increase until later in 2012 I might go a fix.

On reflection, if I am locking in for only 12 months and only breaking even (and facing an early exit penalty), I might just wait for all the others to show their hands. As someone else has posted earlier, there may be some competition and decent cashback deals from companies fighting to hoover up all the pished off Scottish Power companies.

jingleberry

deutsch wrote: »

not even the value/power of your own money?
£1 in your pocket is worth £0.95 next year (5% inflation)
thus fixing a price (e.g a direct debit of say £20/month and it's worth is only £19 next year but you're still paying £20 because you fixed?) and then say on average inflation is at 5% per year.

£20 - 2011 -
£19 - 2012
£18.05 - 2013
£17.15 - 2014
£16.29 - 2015

but your're still paying approx £20 (assuming usage hasn't changed?)

i thought it would have been some kind of factor when thinking long term and fixing? i could be wrong.

Inflation is a factor, but it has the opposite effect from what I think you are suggesting ie it is a good thing from the perspective of anyone who has fixed. You pay £20pm, but the 'value' of this is eroding as time goes on - in real terms your £20 is only 'costing you' £16.29 by 2015. Anyone who hasn't fixed will see their £20 go up with inflation (or possibly much more in the case of energy prices) every year.