Do it do it do it do it do it now?

The energy world is on fire. Prices are rising here there and everywhere and it’s hard to keep up with the ever spouting predictions and advice. Fear is in the air and the headlines are becoming more and more terrifying:

• “Energy customers face 60% price hike” (Energy Choices)

• “People ‘pushed’ into fuel poverty” (The Press Association)

• “Lives at risk fears as gas bills rocket 35%” (The Press and Journal)

• “Child poverty charity deplores British Gas fuel price hike” (Easier Finance)

• “Energy powder designed to look like COCAINE could be sold in Britain” (The Daily Mail)

OK, so the last one won’t affect our gas bills, but energy news at the moment is SCARY. According to the Mirror, Lib Dem leader Nick Clegg has claimed that soon “Thousands will be forced to choose between heating and cooking!”

Reading these headlines it seems the UK is headed straight for an energy apocalypse, and the advice tagged on the end of each article is…

GET A FIXED RATE TARIFF NOW. OR ELSE.

But really, is this sound advice or classic scaremongering? Well actually, it depends at which rate you fix it. There are only two fixed rate tariffs on the market right now which are set at pre-hike prices and they are the Energy Saver 4 and the Price Protection October 2009 from E.ON.

If you can snatch one of these then you are onto a winner, but as the dashing Martin Lewis so eloquently puts it, these existing fixed rate tariffs are “disappearing quicker than a rabbit near Paul Daniels” and it’s predicted they will be pulled by midnight tonight.

Yesterday, as well as hiking gas prices up by a massive 35% and electricity prices by 9%, British Gas announced the launch of their new Fixed Price 2011 tariff, the only other capped tariff available. If we follow the “cap now” mentality, then surely we should dash to grab this now? Well actually, maybe not.

As my good friend Chris Eagle, Commercial Manager at Energy Choices says: ‘Fixing your energy tariff now will protect you from round two of the predicted price hikes, which are expected to hit consumers in December or January. However, it is quite likely that the other big energy suppliers will follow British Gas’ lead and announce their own fixed rate tariffs for newly increased rates. Obviously some will be cheaper than others and while it’s a gamble, it may be better to wait for the launch of these.’

So, if you miss the E.ON boat, don’t jump straight for British Gas. If you can hold out for alternative tariffs, you might be able to cap at a lower rate.