Most people chose the fixed rate for electricity as it avoids the volatility in the market place.
In the last year (new terms) floating elec rates have been between 4c and 15c/kwh with an average of 10.6c/kw
Most people chose floating gas as the market rate for gas is much lower than the current fixed rates
Quote:
Originally Posted by Youzit
Ok, I do not get this. I have to make a decision as to whether to go fixed or variable on Easymax, and the variable electricity rate is 14.86 cents/kwh vs. the fixed rate of 8.9 cents per kwh. It seems like I would be an idiot to go with the variable rate. That doesn't make sense to me, particularly if you think about mortgage rates where generally, the fixed rates are higher than the variable rates - you pay a higher interest on fixed rates to buy some peace of mind and the bank has to put in a cushion to make sure that they don't run the risk of being too low relative to the market sometime in the future.
So am I completely off base here? Confused!
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