Thinking of fixing - opinions appreciated

padzster

Hello

I am thinking of fixing my gas and electricity and I'm trying to find my way through a maze, so opinions would be v much appreciated.

I'm currently with Southern Electric for both G & E. Here is my usage comparing with nPower fixed till 2011 dual fuel:


Electricity (current)
24/8/07 to 8/1/08
Units 2696
Rate £ 0.0867
=£ 233.74
Std charge £ 0.1043 Days 138
=£ 14.39
DD Discount £ 14.02
VAT 5%
=£ 11.71
TOTAL £ 245.82

Using the above usage figures as example:
Fixed Price 2011 Dual Fuel from npower
15.17p per kWh
12.24p per kWh above 728 kWh p.a inc 5% VAT
=£ 351.32
Std charge £ 0.1043 Days 138
=£ 14.39
DD Discount £ 21.00
TOTAL = £ 344.71

Gas (current)

28/9/07 to 28/3/08
kWh 30217.76
Rate £ 0.0221
=£ 667.81
Std charge £ 0.1140 Days 183
=£ 20.86
DD Discount £ 40.06
VAT 5%
=£ 32.43
TOTAL = £ 681.05

Fixed Price 2011 Dual Fuel from npower
7.409p per kWh
2.235p per kWh above 4572 kWh p.a inc 5% VAT
=£941.41
Std charge £ 0.1140 Days 183
=£ 20.86
DD & Dual fuel discount£ 63.00
TOTAL = 899.28

1. I am assuming the std charge is the same for all companies.
2. Will I be locked into anything after the fixed period is over (like mortgages) or am I free to do as I wish?
3. What happens if I want to change plan during this period?
4. Do we think that this is the right thing to do????
5. I got the above npower prices from uswitch but the npower website lists other rates for fixed till 2011 - hence getting more confused!

Thanks in advance for your time.

padzster

Anyone willing to help?

Cardew

There are masses of posts in several threads on this subject.

Firstly most tariffs these days do not have a daily standing charge. The more normal method is to have a 2 tier charging system where you pay extra for the first xx kWhs.(tier 1) So your figures above are wrong as you have taken a 2 tier tariff and added a daily charge.

Also using NPower further complicates matters as their tier1 prices are not linear. You have also used 4572 kWh for 6 months which is incorrect. There are also other mistakes.

So I am afraid your figures above are not representative in any way.

Most of the fixed rate deals do not have a 'lock in' clause during the period of the fixed deal - you are free to leave at any time, although some have a fairly small penalty. None tie you in after expiry of the deal.

To move to a fixed rate is a gamble. Again if you read the various posts you will find that the majority of posters think it is a good gamble to take, but there is a valid argument that it is not advisable.

It depends on how much extra you will pay now, and by how much and when prices will rise in the future.

You need to find out your total annual consumtion in kWh and put these figures into several of the comparison websites and that will tell you how much extra it will cost(now) to move to a fixed rate tariff.

You will need to then make your own guess of when and by how much prices will rise during the period of the tariff.