As we all peer further into the abyss, some are closer than others. Those heading south with locked in prices are closer than others. They will shortly be paying double what their competition is for energy. Did they make the right decision?
No and Yes.
No, because anyone should have seen that prices for oil, gas and electricity were completely unsustainable and had been entirely divorced from reality for some time. But for those who buy fear instead of energy, it's always easy to see some scary disaster story out there which means they take out the insurance policy of fixed energy prices. But the definition of scary, risky surprises is that they are unknowable. Who would have predicted 2% interest rates in June, nationalised banks, and a renewed interest in joining the Euro? It comes down to what premium you attach to security.
Lots of fixed price guys will be paying nothing for energy by next spring at this rate. They'll be in administration and the lights will have been turned out.
But a high energy price still provides an incentive to invest long term. Sure some people were mad enough to sign up three year fixed prices. But spend that money now, on efficiency or renewables and there won't be any money spent, or wasted, on energy in the future. Assuming you have any money left, this is the time to spend, spend, spend.
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