Bit of help with these gas payment options please. Lower, higher, variable, fixed?

Nine_Lives

I live with the folks & as such i've never had to deal with gas bills. I don't know the history of gas prices or the rate they've increased.

My mother is asking my help, so i said i'd get on & ask you guys.

She's been given 3 payment options. Basically:

#1 Pay an increase of 19% fixed for 1 year
#2 Pay an increase of 25% fixed for 2 years
#3 Pay a decrease of 6% through paying online, but this will be variable. If the prices rise, her payments will rise.

She appears to be looking at a 2 year plan & is asking my advice on what to do as she's not tip top with figures. The only thing is as i've already said, i can't really advise about gas can i when i've never experienced it.


what would you guys do?

Gerrard_8_lfc

Tell her to look at EDF Fix 2014 which might even be cheaper than they offers from BG for the 2 year and she would have 3 years security if thats what she is after.BG Fixed are quite expensive EDF offer a 1 year Fix at comptetitve rates.

Nine_Lives

I'll let her know. Thanks.

However, if she's adamant she wants to stick with what she knows, what would be the better option out of the above 3?

Gerrard_8_lfc

I would take a chance and go for the online deal however some people like security in there payments but the Online tariff is advertised atleast 6% less than standard however you may find it is actually cheaper than standard by say 10% or 15% which the compared to the fix's you talk about is 29 - 34 % more expensive based on the one year fix. So prices would have to rise higher than the premium for it to be worth it for your mum.

Hope that helps.