No capped deals left - fixed rates until 2011

Hootie19

According to both uSwitch and moneysupermarket, there are only fixed rate deals available now.

npower is coming out the cheapest on both sites for us, saving around £164 a year. We are dual fuel customers.

Is it generally accepted that fuel prices are going to remain high, and aren't likely to drop, in which case it might be worth fixing until 2011, or is it thought that there has to be a drop some time, in which case fixing until 2011 probably wouldn't be the right move.

What's the general consensus? Fix or not. Or try and fix for less time.

Cardew

Loads of threads on this subject.

Obviously a gamble, but most consider it is a gamble worth taking as the odds are favourable.

If you are saying that the fixed tariff is £164 than your present tariff, it is a no contest.

Premier_2

A similar question was asked here, albeit relating to capped rates, but I think the responses are equally applicable

http://forums.moneysavingexpert.com/showthread.html?t=958149

Hootie19

Thank you both. Actually I lied in my OP. The saving is actually higher - £278.40 a year, on the Fixed Priced 2011 tarriff.

From your responses, and the responses on the linked thread above (thank you for that) I think we'll probably go for it.

Just need to look into whether you are tied into the deal for the full term, or if you can switch again if prices DO fall.

Cardew

Hootie19 wrote: »

Thank you both. Actually I lied in my OP. The saving is actually higher - £278.40 a year, on the Fixed Priced 2011 tarriff.

From your responses, and the responses on the linked thread above (thank you for that) I think we'll probably go for it.

Just need to look into whether you are tied into the deal for the full term, or if you can switch again if prices DO fall.

£278.40 from your present tariff?

What tariff do you have now and how much gas and electricity do you use?

There is a valid debate if it is worth taking a fixed price tariff if there is a large premium to pay(i.e. increase in tariff) for taking that tariff.

Most people have indeed to pay extra now for a fixed price tariff; however if it is cheaper for you by £278!!!

Are you sure that you are putting in the correct data to get those figures of savings?
i.e. entering in the number of kWhs you use and not how much you pay by Direct Debit? - the latter method(entering DD) being meaningless!

Premier_2

Hootie19 wrote: »

Thank you both. Actually I lied in my OP. The saving is actually higher - £278.40 a year, on the Fixed Priced 2011 tarriff.

From your responses, and the responses on the linked thread above (thank you for that) I think we'll probably go for it.

Just need to look into whether you are tied into the deal for the full term, or if you can switch again if prices DO fall.

If I were saving £278.40 per year compared to what I would otherwise pay on a non-capped/fixed rate, I think I would switch/fix too!

The point about no tie-ins is valid. You need to check this. I know with npower, they often have a rather unclear term relating to discounts; they say they are paid yearly in arrears which strongly suggests they will not payout any discounts if you leave mid-year (whatever npower define the year as).

Hootie19

Cardew wrote: »

£278.40 from your present tariff?

What tariff do you have now and how much gas and electricity do you use?

There is a valid debate if it is worth taking a fixed price tariff if there is a large premium to pay(i.e. increase in tariff) for taking that tariff.

Most people have indeed to pay extra now for a fixed price tariff; however if it is cheaper for you by £278!!!

Are you sure that you are putting in the correct data to get those figures of savings?
i.e. entering in the number of kWhs you use and not how much you pay by Direct Debit? - the latter method(entering DD) being meaningless!

We are currently with Scottish Power on their Premier Plus package. I spoke to them a couple of weeks ago, and asked them for the split between gas/electricity on our monthly DD. We pay £42.50 a month for electricity, and £39.50 a month for gas. Those are the figures I've been using on moneysupermarket and uswitch.

So it seems I've been using meaningless data

The last statement I have to hand is from January 08, so I don't know if these figures are any use, but on the reverse of the statement are these figures:

Electricity - period 24/10/07 to 18/01/08

Start - 20112A
End - 21590A
Units - 1478
Price (kWh@p) - 1478 @ 7.814
Standing Charge - 87 days @ 10.760


Gas - same period obviously

Start - 5388A
End - 5569A
Units - 181
Price (kWh@p) - 5675 @ 2.251
Standing Charge - 87 days @ 11.630


I can't find the actual package we're on (and I did check the name of it when I spoke to Scottish Power), so I used the closest I could find, which was Premier Plus No Standing Charge.

You're going to upset me, now, aren't you

Cardew

Hootie19 wrote: »

So it seems I've been using meaningless data



You're going to upset me, now, aren't you

Yes!! You will be upset big time!

I guessed that is what had happened.

There is just no point in entering a DD sum on these comparison websites and expect them to give you any meaningful data on savings. Especially when you don't know what tariff you have.

There is absolutely no way that the NPower fixed tariff will be approx 30% cheaper than your current tariff. In fact I would expect it to cost more - as it does for most people.

From your figures your gas consumption is below the UK average and your electricity consumption above average.

If you enter 15,000kWh for gas and 5,500kWh for electricity you will get some accurate comparisons for your postcode.

Using those estimated figures(15,000 & 5,500) your cost will be approx £850 per year and, assuming the prices you gave do not include VAT @ 5%, that will be approx £890 per year.

See what the NPower tariff is as a comparison.

Hootie19

I'm having palpitations now

Are the figures you suggested I put in monthly, quarterly or annual (PLEASE tell me it's annual! :D)

If it *is* annual, then doing a detailed search on moneysupermarket.com, the saving on npower's "Fixed Price 2011" tarriff is £269.13 (That is what the minus symbol means isn't it. I'm getting paranoid now!)

(Actually, thinking about it, if a saving is negative, then that must be the amount that the bill will rise, mustn't it? - Gah - you can see why I'm in debt, can't you :rotfl:)

If it's monthly then it's going to cost me an extra £1,000+ a year!!

toby11

(Actually, thinking about it, if a saving is negative, then that must be the amount that the bill will rise, mustn't it?

Hi Hootie...........Yes you're right about this. The 'minus' sign in front of the £269.13 does indeed mean that this is the additional annual cost of moving to the npower fixed tariff.
So assuming Cardew's estimate of £890 for your current annual energy cost is pretty close to the mark, then your new annual cost to move onto the npower fixed price tariff would be £890+£269.13= £1159.13

Cardew

As said above it is an extra £269 a year you will be paying for the certainty that your prices will not rise untill 2011.

I suspect my estimate of consumption is pretty close, but it doesnt really matter too much as it is the percentage increase now that is important.

The percentage increase is considerable at 30%

The gamble now become much more difficult as it depends on two unknown factors:
how much prices will rise between now and 2011 and on what dates!