Gas Prices, to freeze or not to freeze? That is the question
Discussion
Gas prices on the wholesale market have quintrupled in recent days. British Gas have offered a frozen price at +2.8% on top of their existing price until 2010. There are many companies out there offering 'better' deals but in the face of a fivefold hike in raw meterial cost, they'll all end up rising I would guess. What does the PH massive think - is it a fair gamble to go for the fixed price for four or five years on the assumption that prices will rise steeply? 
Well I have just told P*****en where to stick their gas, electricity and 'wonderful' customer service and swapped over to N****r, they gave me the rates for January (which is when the price increases come in) and it all seems very reasonable to me, and cheaper than some others I have looked at.
Not sure I would want my prices fixed for too long, as if prices continue to rise it could possibly be a heartstopping moment when you get the bill that is inline with the current prices (If you get my drift)
Not sure I would want my prices fixed for too long, as if prices continue to rise it could possibly be a heartstopping moment when you get the bill that is inline with the current prices (If you get my drift)
look at sites like www.ukpower.co.uk/default.asp www.theenergyshop.com/getHomePage.do?agentID=110_102 www.energylinx.co.uk/ or www.uswitch.com/ and you can compare the prices of all the energy companies that will supply to your area. Then make a decision which will save you the most long-term
pies said:
Market forces mean BG will like everybody else have to stay competitive,so i decided if there prices go up i'll go elsewhere
Unfortunately many people don't bother to change suppliers...
www.uswitch.com is great for those that want to change
According to today's newspaper business section (Independent) British gas have said that there is likely to be another rise in prices next year of similar size to this year's - 14%. If you look at the BG website today, reference to the 'fix your gas unit price until 2010' is much harder to find. I suspect this means that the offer is being slowly withdrawn.
This is a good place to look if you're interested in gas prices.
At the moment you're suppliers are paying about 80p (2.7p/KWh)per thermal unit, compared to about 15p (.5p/KWh) in the height of summer, on an exeptionally cold day you might see prices of around 150p (5p/KWH) but it all depends on supply and demand, Supply is whatever the North Sea supplies, backed up by storage and an exceptionally well run sub-sea gas pipeline.
Us lot(Motivated by the weather) and industrial users (normally off at weekends) create the demand. Current demand is about 350 million cubic metres, peak demand in a 1 in 50 year, brass monkey's winter could reach 500mcm.
Luckily you can't really panic buy gas in the same way you can petrol so the press can't stick their oar in and muck up the market dynamics with their doom and gloom soothsaying about 'The Day After Tomorrow' type scenarios.
At the moment you're suppliers are paying about 80p (2.7p/KWh)per thermal unit, compared to about 15p (.5p/KWh) in the height of summer, on an exeptionally cold day you might see prices of around 150p (5p/KWH) but it all depends on supply and demand, Supply is whatever the North Sea supplies, backed up by storage and an exceptionally well run sub-sea gas pipeline.
Us lot(Motivated by the weather) and industrial users (normally off at weekends) create the demand. Current demand is about 350 million cubic metres, peak demand in a 1 in 50 year, brass monkey's winter could reach 500mcm.
Luckily you can't really panic buy gas in the same way you can petrol so the press can't stick their oar in and muck up the market dynamics with their doom and gloom soothsaying about 'The Day After Tomorrow' type scenarios.
Update: Yesterday the gas suppliers Centrica/British Gas withdrew the offer to freeze domestic gas prices at 2.8% over current prices until 2010. I applied for this offer in mid-December and again in January as I hadn't had a confirmation. What a surprise, then, that when I rang tonight to ask when it was coming online, they said "we have no record on our system of your application". 
They have caught a cold on this one and it seems that non-persisting applicants might be being quietly dumped.
They have caught a cold on this one and it seems that non-persisting applicants might be being quietly dumped.
andytk said:
Can't insulate the property as its a rental property and our central heating is pretty crap.
There are lots of people in my situation.
Andy
Your landlord can now get a grant from the council for insulation, and other energy saving measures.
With a letter of permission from your landlord, you can apply yourself. People on certain benefits can even get it done free of charge.
Where there's a will....
google: 'Energy Savings Trust'.
>> Edited by grahamw48 on Thursday 19th January 21:08
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