MSE News: Warning for Eon capped rate customers

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wibbler wrote: »

I got an email from MSE the other day saying that Eon have dramatically reduced their capped tariff. I like Eon (sorry Minerva69!) so am interested in this.

Does anyone have any considered view if capped or non-capped is the way forward?!

The usual pattern is that capped tariffs are offered at a higher price than standard so I think eons offering is a sign that price reductions could be on their way.

There has been a lot of negative comment about energy companies not passing on substantial reductions in price in the bulk energy market. Despite this I think it is likely that the energy companies will try to resist the political pressure until the spring so they can make a lot of excess profits over the winter.

If eons capped offering was for 3 years though I would jump at it, as in the long term energy prices will continue upwards particularly if the world economy picks up. As it is only for a year I think some short term decreases could be missed by going for it. I think there is also an exit penalty on eons deal if you leave before dec 2010.

I am currently on npower capped 2011 (no longer available) which is fixed until end of 2010 I think, although I was given a different end date the last time I spoke to npower so it may have been extended. For me it is a few pounds more expensive than eons deal so I am watching for deals particularly as companies are offering golden hellos via quidco. Eons is £62 for dual fuel which for me is a 5% saving in the year assuming I change again after a year. So I still haven't ruled out their deal.

I should point out here that I have no real knowledge of the energy market and these are my opinions based on what I have heard and read recently. I am still looking for another deal like the Scottish power capped rate I accepted in 2002 for £700pa by the time it finished in 2006 the cheapest tariff could find was £1100pa!