If you sign a contract with an energy provider, ask yourself whether you should sign for a fixed or a variable contract.

Fixed price is more secured: the price will not increase during the period of contract. In 2008 it would have not been a good idea to sign for this kind of contract, prices have largely fallen after a long period of increase.

Variable price means that each month your provider will adjust the price per kWh for the gas or the electricity depending on the price changes.

Obviously, fixed is better when price is going up and variable when down but you don’t have a crystal ball to determine which directions the price will follow tomorrow.

However you should now that gas and electricity prices are linked to the petrol - whose price increases since a couple of month - and that implies the direction that the prices will take as the prices will only adapt 6 months after for the gas and 3 months for the electricity.

For your information, since 2009 the prices have continuously growing up (More than 10%) and the situation in Japan and the Middle East is not calming down this trend. [1]

Categories : Tip of the week | Tags : Energy | 0 commentaire associé