Energy prices going forward, should we fix?
Discussion
Not sure if this should be here in N,P & E, or Finance or even Homes, DIY etc but reckon it's as much News, Politics and Economics as anything.
Chris "I have 7 houses" Huhne announces that consumers will face higher energy bills due to fighting CC etc etc etc.
Energy revolution could put bills up by a third
OK I'll not even comment on that, except to say that the idiot means it. He and his windymills really are going to screw the low paid and ordinary families on a matter that will be to him pocket change. That's not a statement of envy just fact, and we've done the argument about this many times on the climate change threads.
That isn't the point of this thread, which is should we go for the fixed price deals on offer right now, as logic says they will be pulled soon.
British Gas and npower fix rates to beat £300 a year price rise
Chris "I have 7 houses" Huhne announces that consumers will face higher energy bills due to fighting CC etc etc etc.
Energy revolution could put bills up by a third
OK I'll not even comment on that, except to say that the idiot means it. He and his windymills really are going to screw the low paid and ordinary families on a matter that will be to him pocket change. That's not a statement of envy just fact, and we've done the argument about this many times on the climate change threads.
That isn't the point of this thread, which is should we go for the fixed price deals on offer right now, as logic says they will be pulled soon.
British Gas and npower fix rates to beat £300 a year price rise
Ian Cowie in Daily telegraph said:
Chris Huhne, the Energy Secretary, plans to make Britain go green but some householders may see red instead when average fuel bills rise by £300 a year – unless they lock into fixed price deals available now. British Gas, npower and E.on are among major providers currently offering customers the chance to avoid price rises for up to two years in future.
The risk with these deals is that you lock into a rate which subsequently proves unattractive if prices fall – but that possibility looks less likely following Mr Huhne’s announcement of the Government’s energy strategy. In the Coalition’s first annual energy statement to the Commons, the Energy Secretary, announced 32 separate measures, from the use of smart meters in all homes to a major expansion of renewable energy sources, including a new generation of nuclear power stations and up to 44,000 wind turbines.
However, Mr Huhne’s department admitted that such policies could increase the price of electricity by up to a third and gas by up to a fifth. This would make the average family’s annual energy bill of £1,100, £300 more expensive.
Householders who want to avoid higher bills may need to act quickly. Fixed deals can be – and often are – withdrawn without notice when market prices change.
Tens of thousands of British Gas customers came to the end of a popular fixed price deal last month and have been automatically rolled over into a slightly more expensive fix. If they want to transfer elsewhere without paying a £35 fee per fuel bill – so that’s a total of £70 for homes with gas and electricity dual fuel deals – they must tell the supplier before October 1.
Scott Byrom, utilities manager at moneysupermarket.com, said: “Alarm bells should be ringing for any British Gas customers who have just rolled off the Price Promise June 2010 fixed deal. Those customers have automatically rolled on to Price Promise 2011 to fix for another 12 months – £25 more expensive a year at £1,152.60.
”British Gas is offering customers two alternative options, move onto Price Promise 2012, its 24 month fixed deal at £1,192.49 a year, or revert onto its standard offering at £1,157.27. If bill payers don’t decide before October 1 they’ll incur a £35 termination fee per fuel bill to make the move.”
Energy providers are competing keenly for customers and so it makes sense to shop around before committing yourself to a new deal. For those wanting to shield themselves against the prospect of rising energy bills the cheapest alternative fixed deal on the market is currently npower Go Fix v2 at £902.38 a year – that’s £250 cheaper than British Gas Price Promise 2011, and the fixed deal lasts a month longer.
Nor are customers who fix now being charged much for the certainty of avoiding future price rises. The npower fix is less than £20 more expensive than the cheapest variable price online deal currently available; E.ON’s SaveOnline v2 tariff at £882.71 a year.
Mr Byrom said: “With wholesale energy prices hitting a year-high earlier this month, we fully expect to see more of the best deals for new customers being pulled and, at some stage, prices for existing customers to creep up. Fix now onto the best deal if you want to seek shelter from the utilities storm.”
There’s a natural tendency not to worry about fuel bills in the summer when the sun is shining and keeping cool is more of a problem than staying warm. But failing to fix gas and electricity prices now could prove an expensive mistake when winter arrives.
Less and less do I want to keep a place going in UK. Obviously the advice is to shop around but... The risk with these deals is that you lock into a rate which subsequently proves unattractive if prices fall – but that possibility looks less likely following Mr Huhne’s announcement of the Government’s energy strategy. In the Coalition’s first annual energy statement to the Commons, the Energy Secretary, announced 32 separate measures, from the use of smart meters in all homes to a major expansion of renewable energy sources, including a new generation of nuclear power stations and up to 44,000 wind turbines.
However, Mr Huhne’s department admitted that such policies could increase the price of electricity by up to a third and gas by up to a fifth. This would make the average family’s annual energy bill of £1,100, £300 more expensive.
Householders who want to avoid higher bills may need to act quickly. Fixed deals can be – and often are – withdrawn without notice when market prices change.
Tens of thousands of British Gas customers came to the end of a popular fixed price deal last month and have been automatically rolled over into a slightly more expensive fix. If they want to transfer elsewhere without paying a £35 fee per fuel bill – so that’s a total of £70 for homes with gas and electricity dual fuel deals – they must tell the supplier before October 1.
Scott Byrom, utilities manager at moneysupermarket.com, said: “Alarm bells should be ringing for any British Gas customers who have just rolled off the Price Promise June 2010 fixed deal. Those customers have automatically rolled on to Price Promise 2011 to fix for another 12 months – £25 more expensive a year at £1,152.60.
”British Gas is offering customers two alternative options, move onto Price Promise 2012, its 24 month fixed deal at £1,192.49 a year, or revert onto its standard offering at £1,157.27. If bill payers don’t decide before October 1 they’ll incur a £35 termination fee per fuel bill to make the move.”
Energy providers are competing keenly for customers and so it makes sense to shop around before committing yourself to a new deal. For those wanting to shield themselves against the prospect of rising energy bills the cheapest alternative fixed deal on the market is currently npower Go Fix v2 at £902.38 a year – that’s £250 cheaper than British Gas Price Promise 2011, and the fixed deal lasts a month longer.
Nor are customers who fix now being charged much for the certainty of avoiding future price rises. The npower fix is less than £20 more expensive than the cheapest variable price online deal currently available; E.ON’s SaveOnline v2 tariff at £882.71 a year.
Mr Byrom said: “With wholesale energy prices hitting a year-high earlier this month, we fully expect to see more of the best deals for new customers being pulled and, at some stage, prices for existing customers to creep up. Fix now onto the best deal if you want to seek shelter from the utilities storm.”
There’s a natural tendency not to worry about fuel bills in the summer when the sun is shining and keeping cool is more of a problem than staying warm. But failing to fix gas and electricity prices now could prove an expensive mistake when winter arrives.
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