EON Price Protection May 2012

Pincher

Eon is finally showing a fix longer than
one year for my area.

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FixOnline 8 fixed to 1st July 2011
Electricity 22.1865/10.71p/kWh
Gas 6.5247/3.1584p/kWh

After 26.7% Total Discount:
Electricity Tier 2 = 7.85043p/kWh
Gas Tier 2 = 2.3151072p/kWh

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Price Protection 1st May 2012
11% Total Discount
Electricity 23.499/11.34p/kWh
Gas 6.91005/3.34425p/kWh

After 11% Total Discount:
Electricity Tier 2 = 10.0926p/kWh
Gas Tier 2 = 2.9763825p/kWh

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Tier 2 Premium over FixOnline 8:
Electricity 10.0926/7.85043=1.2856
Gas 2.9763825/2.3151072=1.2856

So Price Protection is 28.56% higher than FixOnline 8.

Assuming an annual bill of £1,000 on FixOnline 8,
I would be paying £1,285 on Price Protection in the first
and second year, so £2,570 over two years.
This is the same as paying £1,000 in year one on FixOnlne 8,
and £1,570 in the second year.
So if I think prices will increase by more than
57% for year two, I should switch to Price Protection.

No, no, no,no, no,no.
I think prices will increase by 50% in five years, that's why I want to fix at £1,000 for five years.

Go back and do it again.

tedster123

yeah edf now doing fixed till 2015 but 33% more quite a hike

Pincher

They are just preying on the fear of prices rises.
There is no point in fixing at prices that high for two years.

If EON had made it a five year fix, at 28% hike,
I might consider it.

If EON makes it a ten year fix, at 28% hike,
I would grab it without hesitation.

brewerdave

FixOnline 8 runs to July 2011 - so this "wonderful" EON price protection 2012 only gives a further ~10 months! Only worth taking up if you believe that there will either be a) an Ice Age Winter 2010/11 or b) a major war in the Middle East in the next 24 months!!!