EDF price fixing 31/3 2012 or 30/9/2014 ?

jackywacky

jalexa wrote: »

Err...that statement doesn't make sense.

Sorry it's difficult to write and make sense of something that is all hypothetical. I'll try though........

With no justification I've used the following as just one of many possibilities
Guess/gamble EDF will raise prices shortly by 15% (lets say Sept 2011)
Then in a years time guess/gamble they will rise again by 10%


Current suppliers of gas/electric =£1620 pa

For EDF 2014 scheme
Spend pa is £1620-£150=£1470
Sept 2011 to March 2014 is 2.5 years so total spend in this period is 1470x2.5=£3675



Switch to EDF 2012 scheme and save £300 for the first year meaning this time next year I would have spent £1320 on gas/electric.
This time next year fuel will cost 15% more because of Sept 2011 increase. Then they will announce a further 10% increase.
So in the second year (Sept2012-Sept2013)time I would have spent £1320+15%+10%= £1670. To get to March 2014 add half a year or half of £1670= £835
Total spend between now and March 2014= 1320+1670+835=£3825

More money spent than the Sept2014 scheme but not tied in for as long
Meaning in Sept2012 there's the possibility I can price fix and/or switch supplier.

As I said this is just one of many possible outcomes and can easily be pulled to bits:)

Cooking mama your reasoning is sound and like you say less palaver
On the other hand mine is less sound and is based on plucking numbers from a hat

macman

You cannot know if those projected increases are likely or not.
I think you're rather missing the point of a fix. It's not necessarily going to be cheaper, but it means that you know exactly what you will be paying for 15 months or 36 months. It's an insurance policy, and the longer policy of course charges a higher premium. Only you can decide which level of insurance you want.

MillicentBystander

Surely the main point of fixing is because you think, rightly or wrongly, that over the course of the fix you will pay less than if you hadn't fixed?

victor2

MillicentBystander wrote: »

Surely the main point of fixing is because you think, rightly or wrongly, that over the course of the fix you will pay less than if you hadn't fixed?

Of equal weight IMO is the insurance effect that macman mentions. You get the comfort of knowing what you'll be paying for the duration of the contract and are protected against price increases during it.

macman wrote: »

Remember that the (reputed) deadline is midnight on Sunday. If there's a last minute rush, EDF's Amstrad ZX81 may not be able to cope...

:rotfl:
OP. Look at other EDF related threads on here regarding the "service" they offer. I went for the 2012 fix with the knowledge that I'd have the opportunity to switch without penalty at the end of it. Glad I did in hindsight, even if my prices are fixed for a shorter period.

jackywacky

macman wrote: »

You cannot know if those projected increases are likely or not.
I think you're rather missing the point of a fix. It's not necessarily going to be cheaper, but it means that you know exactly what you will be paying for 15 months or 36 months. It's an insurance policy, and the longer policy of course charges a higher premium. Only you can decide which level of insurance you want.

No one one knows what the increases will be. 15% followed by 10% was just a stab in the dark.

For too many years I've been paying standard rates to BG and EDF for seperate fuels and have been paying far too much.
My first aim was time to do something about that and while I'm at it try to fix the price for a while.

macman

So EDF FSv2 is really a no-brainer, especially if it's less than you are paying now.
You can only lose if the variable rate actually drops. Which it just might next year-but only after it's gone up in the next few weeks first.

jackywacky

Thanks.
Everyones circumstances are different but perhaps in my case FSv2 could be the best gamble.
It's taken me some time to get to this point because I'm new to all this but now it's decision time.
I shall now take a gamble on FSv2, and then not worry about it until Sept2012

macman

If you are not already on EDF, don't forget to go via one of the cashback sites to get your £20.

MillicentBystander

And make sure you are paying the correct DD commensurate with your tariff because EDF aren't too hot on producing bills IME. But as long as you do this and are not expecting any kind of great customer service, price wise it is a no-brainer.

jalexa

macman wrote: »

If you are not already on EDF, don't forget to go via one of the cashback sites to get your £20.

Given that the tariff is due to be pulled tonight I'd be wary about complicating the process.

But then the poster has had ample advice and prior warning.