A peak into future energy prices

merchcon55

Unless he cancels will be paying more from 1 March than is necessary + £40 per fuel penalty if decides to switch to cheaper deal later

Yes - that would be true, for 1 month. On 1 April when the new price cap comes into play, he could be better off - there really is no way of knowing.

Look at Nat Gas price today - down around 17% !!  Still incredibly dear at 350p - but was 470p  48 hours ago !! 25% price change

QrizB

merchcon55 said:

Unless he cancels will be paying more from 1 March than is necessary + £40 per fuel penalty if decides to switch to cheaper deal later

Yes - that would be true, for 1 month. On 1 April when the new price cap comes into play, he could be better off - there really is no way of knowing.

We're expecting the April cap to be around 8p/kWh for gas and 30p/kWh for electricity. He'll still be paying more than needed until October.

I don't think anyone is making predictions for the October 2022 cap yet; he might be better off then, or he might not.

merchcon55

It is looking ahead more to winter 2022-23. From April - Sept, gas usage will be relatively low, so the fact his rate may be a bit more than the expected cap I think is acceptable. For electricity, sure he may be paying higher for 6 months, but could be much better off when winter hits and he has locked in a relatively lower gas rate.

and if he is wrong, pay £40 (a tiny amount compared to his annual bill) and go onto a lower deal at the time.

bristolleedsfan

merchcon55 said:

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and if he is wrong, pay £40 (a tiny amount compared to his annual bill) and go onto a lower deal at the time.

Would be £80 exit fee for dual fuel, So Energy are not even offering special rate for existing customers, it is the rate that various energy companies are advising people not to choose/switch to

merchcon55

People are being advised not to switch NOW - he gets to keep his low rate until 4 March - he is simply locking in rate to start 5 March - whether he is right - i really dont know. Today gas dropped 100p to 303 - was 470 2 days ago. Its a case of whether one believes this is a momentary spike OR is this the beginning of a new price regime for energy??