Confused! Is price fixing the same as capping?

[filthymindedvixen]

We are with british gas and having done a price comparison a week ago, decided staying with Brit Gas is still our cheapest option. Got a letter yesterday saying (obviously) prcies going up but offering us fixed price til 2011.
Presumably this means in 2011 our bills will soar to a million pounds a month.
Shall we apply for the fixed price?? Panic. Please advise.

No. Fixed price is as the name implies. Your price is fixed until 2011. Capped price is where they put a limit on the price you pay, but the price can go down as well as up.

With capping, you are accepting that the price may rise up to the level of the cap (often x% over the price you are already paying).

With fixed pricing, you are taking the gamble that rates won't go below the fixed price until 2011.

so what would you all do??

2011 seems such a long way away....to be tied into potentially paying well over the odds. I suck at gambling