Piggybank News

February 11, 2009

Energy prices drop – but what if you are on a fixed price plan?

gasflameConsumers who have been eagerly awaiting a drop in their energy prices will be pleased by the recent announcement that Scottish and Southern Energy will drop prices by an average of 4% for gas and 9% for electricity, effective from 30th March.   (Piggy says  “it’s a shame theycouldn’t manage it BEFORE the recent cold snap!”  😦 )

But how does this affect you if you have subscribed to a fixed price plan?

Should you stick with it?

Are you still getting a good deal?

If you signed up to a fixed price energy plan last summer, then it is likely that your best bet is to stick with it.  Prices would need to drop by around 16% for you to be better off switching.*

However, if you switched to a fixed plan more recently, then it is more than likely you are already paying more than today’s average standard plans and the impending price drops will only make this difference bigger.  Based on an average domestic user it could mean you are paying as much as £300 a year more than you need to. *

Piggy says “Before you make any switching decision, remember to take into account any exit penalties you may be charged for leaving your plan early.  Exit penalties will obviously reduce the total savings you make but don’t be afraid to ask what they are – it may be less than you think. “

If you would like NSP Resources to review your utility provision and see if you could save money by switching then please email us at nikki@nspresources.co.uk or call us direct on 0844 414 2738

(*figures based on those published by USwitch February 10th 2009 for price cuts applied on Online Plans, dated 05/02/09, compared to the average bill size for Fixed and Capped Plans taken out on the 1st January 2009.  This is for a medium user consuming 3,300kWh of electricity and 20,5000kWh of gas, paying by Direct Debit with bill sizes averaged across all regions and all suppliers.)

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