Energy Prices - next 3 Years

[Greenmantle]

Just received an email from my energy supplier (Gas and Electricity) offering to fix my gas and electricity prices for the next 3 years.

I am currently on a 1 year fixed started in August. Previous to that I was on a 1 year fixed with the same supplier. My current prices are lower than last years.

I am aware of the troubles with Glencore and this email would not have been sent if the supplier believes prices would be going up.

Therefore I currently believe that the best thing to do is wait for lower prices next year.

What do people think? Does anyone know what sort of winter we are expecting? (Long shot I know).

John

[KTF]

Three years is too long to fix imo. Every year there seems to be doom and gloom about the weather and every year not a lot happens to the prices.

Put your details into a comparison site and see if there are cheaper options with no exit fees if you are worried about being locked in.

[Simpo Two]

My view is that they know more about what's likely to happen than you are, and that therefore any 'fix' will be in their favour. Which means it won't be in yours.

[gazapc]

Is there any provision for getting out? Some fixes offer this for free anyway. Even if it's 20-50 quid then its probably worth signing up and then if it drops just pay the small exit penalty and go elsewhere.

[jinkster]

I was fixed until November 2015. I've just redone a deal and fixed until November 2016. It was cheaper than the current fix. Its very difficult to predict the prices whether to go up or down. I guess thats why you take a gamble!

[sideways sid]

Slightly O/T but on the basis that energy companies push fixed deals when they expect wholesale prices to fall, and have made reasonable profits and can be reasonably expected to continue to do so, there is a good case for hedging your energy costs by buying shares in energy companies.

Shares worth 20 times your energy bill should provide dividends to cover your energy bills forever, especially if using your ISA.

[Funk]

Looks like I need to shop around - jumping from EDF to E.On could save me a £150/yr...

[Grandad Gaz]

Switch to oil

[jinkster]

According the Money Saving Expert - fixing is the right way.

[madmover]

12- 24 months I believe is the best option.
Anything above that is anybody's guess.