Should I cap my gas prices up to 2009

[Fish the Mod]

British gas have offered me the chance to cap my prices upto 2009. There is a �50 cancellation fee. Is it worth it ( I have two bed house, north London)

[buildersmate]

There's no way of knowing, because who knows what will happen to the price of energy.

I think that BG are offering to fix the newly increased price so it doesn't go up again for fixed price users until at least 2009? If so, and assuming you spend �400 per year on gas now (my guess - could be wrong), it would have to decrease in price from today's price by more than 6% per annum for you to lose out over the next 3 years. I roughly worked that out by saying if it went down by 6% in Mar07 you would lose out on saving �24 in the year that followed, if it went down again by another 6% you would lose out on a saving worth another �25 on the year Mar08-Mar09 (if you went fixed).

Since energy prices still appear to be rising, if it isn't going to cost you anything to fix (just a fee if you cancel it), there would seem to be plenty of up-side and little chance of down-side??

Any other offers?