Is it better to have capped prices that are slightly higher?

AmyL

I have been with Southern Electric for a long time now and have just decided to change to Scottish Power on their fixed price tariff. I will be paying slightly more on this but it will stay the same for four years. I am on a very tight budget and so am unsure which is best. If i go with N power on their standard tariff i will be saving a lot of money now but it will not be fixed. What is best? Thanks

Cardew

Welcome to the forum.

Your question has been asked many many times over the last few years and the truth is that nobody can give you answer, merely an opinion.

The biggest debate was in 2005 when BG introduced their 'Fixed to April 30th 2010' tariff. This tariff had quite a hefty premium over standard prices and penalty clauses for leaving.

Lots of very strong opinions, that it was an absolute rip-off and madness to consider, were expressed; yet it is now a cheaper tariff than any now available and still has over 2 years to run.

I think I am correct in saying that all of the fixed price/capped price tariffs offered in the last few years have turned out to be a 'good buy'; but obviouly this has been because there has been a relentless upward march of prices. However it was a gamble then, just as it is a gamble now.

So I suppose it depends how much the premium is over standard rates. - you say "slightly more" and then saying sticking with standard tariff will save you a "lot of money now".

Personally I think that energy prices will continue their upward trend over the next few years, so I would take the gamble - but it is a gamble!!

AmyL

Thanks so much for your answer. As it is only 2p higher on the service charge and less than 1p higher on the unit price than my original supplier, which was not fixed, it does look like a good deal. N Power only make me savings in the whole year with them because of discounts. I think it is worth making the gamble that prices will increase. Thanks again.

fairladyzxgirl

I would check the terms too.

Some companies say that if prices do come down, then capped customers will too, although they will not necessarily decrease to the same amount as standard customers.

Another thing to bear in mind if you are going on a capped tariff, see it out for the duration, with prices for ever fluctuating, i have seen accounts where people are paying a hell of a lot less than std prices from joining a capped tariff, say 2 years ago.

The one big factor to consider is when the capping ends!!. i have seen peoples direct debits double once their capping has expired, due to missing out on so many increases!! Its worth budgeting for when the capping ends as some people have been known to instantly see costs go up by 300 quid a year.

arboard

I am on one of Scottish Power's Online tariffs which is fairly competitive price wise. I am debating switching to one of their capped rate tariffs which is 19% more expensive but fixed until 2011. What do you think?

carol_martin

:money: I am currently with Atlantic duel fuel, would it be worth changing over to a capped price charge until 2011 with Southern scottish, who I believe are a subsidiary of Atlantic

carol_martin

Should I change over to Scottish duel fuel capped price, from Atlantic Gas/electric company where I pay duel fuel. I understand Atlantic is a subsidiary of Southern Scottish.

SwanJon

Scottish Power (offering the fixed to 2011) is part of Iberdrola.
Atlantic, Scottish Hydro, Swalec & Southern are all part of Scottish & Southern Energy.

You should look at the prices and decide which way you want to gamble.
For the record, I think fixing is the best long term solution, but may not be in the short term.