Gas and elec coming down?

kevin52

My variable fixed term contract for gas and electricity with Npower has just come to an end. I have just searched the market and noticed that the best deals seem to be a fix to 2013. Does this suggest that energy providers think that prices will come down as I thought you would pay more for a fix.

HappyMJ

They will be loss leading tariffs. They'll get you on a cheap tariff. You think it's cheap which it is and are happy then at the end of the term it will switch to a very expensive variable rate tariff. Normally people can't be bothered switching and thinking that it was cheap last year so must still be cheap without actually comparing they stay and pay over the odds and the company makes profit.

You sound like you will switch and ditch so take advantage whilst you can.

Possetjohn

Hi,

From what I have seem most of the fixed tariffs have rates similar to or slightly higher that the standard rates.

The main reason they are coming out cheap is a lot of the discounted deals have disappeared so its a choice between a fix and the standard (or a standard dressed in bells and whistles:rotfl:)

If it looks cheaper for you and only lasts a year or so then take it and be prepared to switch in a year or so when the penalty expires

Pincher

If you start the switch now, you will be paying standard rate for at least six weeks. By the time the new provider starts at the new rate, winter will be nearly over.

No best strategy, so Go-Fix 10 is probably the least worst option.