Eon says I will save money but I will pay more

st999

I just got my bill from Eon and it states that if I changed from fix online v14 to fix online v32 I could save £41.80 on my electricity and £41.80 on my gas.

However if I use the tariffs on my spreadsheet I would actually pay £88.96 more per year.

Where does the savings of £83.60 come from?

Fix online exclusive v14

Electricity

365 @ 15.75 = £57.49

3067 @15.1305 = £464.05

                    total   £521.54

Gas

365 @17.955 = £65.54

13628@ 2.7951 = £380.92

                   total  £446.45

Total electricity and gas £967.99

fix online v38

Electricity

365 @ 23.233 = £84.80

3067 @ 16.344 = £501.27

                    total £586.07

Gas

365 @ 24.053 = £87.79

13628 @ 2.811 = £383.08

                    total £470.88

Total electricity and gas £1,056.95

MWT

When does your current tariff expire?

Often the saving is against the default variable tariff you will be moved to if you don't pick a new fixed rate when the old one ends...

stewie_griffin

As MWT says it will be because your current tariff expires in less than a year.

[Deleted User]

st999 said:

I just got my bill from Eon and it states that if I changed from fix online v14 to fix online v32 I could save £41.80 on my electricity and £41.80 on my gas.

However if I use the tariffs on my spreadsheet I would actually pay £88.96 more per year.

Where does the savings of £83.60 come from?

Fix online exclusive v14

Electricity

365 @ 15.75 = £57.49

3067 @15.1305 = £464.05

                    total   £521.54

Gas

365 @17.955 = £65.54

13628@ 2.7951 = £380.92

                   total  £446.45

Total electricity and gas £967.99

fix online v38

Electricity

365 @ 23.233 = £84.80

3067 @ 16.344 = £501.27

                    total £586.07

Gas

365 @ 24.053 = £87.79

13628 @ 2.811 = £383.08

                    total £470.88

Total electricity and gas £1,056.95

Hi,

this is the way everybody should compare tariffs before switching, don't be lured by the money savings and reduced DD splashed on comparison sites, do you own calculations.

Gerry1

Blame the useless Ofgem, it's the crazy way they say that 'savings' must be calculated.

MWT

frugalmacdugal said:

this is the way everybody should compare tariffs before switching, don't be lured by the money savings and reduced DD splashed on comparison sites, do you on calculations.

... in this case though the saving is probably real as you must also watch out for fixed tariffs expiring and dropping you onto expensive default variable tariffs...

The trick is to make the switch at the right time to get the most out of the current tariff if it is lower than the new one, or switch as soon as possible to take advantage of the new one if there are no exit penalties.

Gerry1

st999 said:

Electricity

365 @ 15.75 = £57.49

3067 @15.1305 = £464.05

                    total   £521.54

Gas

365 @17.955 = £65.54

13628@ 2.7951 = £380.92

                   total  £446.45

Total electricity and gas £967.99

You're being ripped off !  Here's what I'd be paying right now.

Electricity (Neon Reef)

    365 x 13.2825p = £48.48

    3067kWh x 12.11343p per kWh = £371.52

    Total £420.00

Gas (Gulf)

    365 x 17.29p = £63.11

    13628 x 2.370p per kWh = £322.98

    Total £386.09

Total electricity and gas £806.09

Admittedly the Gulf tariff will have changed since i signed up, and your region may vary, but you're definitely on a bad deal.

MWT

The Neon Reef electricity is a variable tariff isn't it?

Agree the OP could do better though even if he does pay a little more for a fixed he should be able to improve on that.

The Gulf gas tariff isn't very impressive though you might need to look around again Gerry.

Actually if you like variable tariffs take a look at the Octopus Tracker v1, it should beat both your electricity and the gas, but again regional variations will affect that...

st999

Neon Reef don't supply gas to my region

MWT

st999 said:

Neon Reef don't supply gas to my region

Not sure if they do gas anywhere, but you'll notice in Gerry's post above he was using Gulf for the gas pricing...

Gerry1

MWT said:

The Neon Reef electricity is a variable tariff isn't it?

The Gulf gas tariff isn't very impressive though you might need to look around again Gerry.

Actually if you like variable tariffs take a look at the Octopus Tracker v1, it should beat both your electricity and the gas, but again regional variations will affect that...

• Yes, Neon Reef is variable, but I thought I'd go for the high stakes ! 
• Gulf remains the cheapest by a mile, but I have high usage, perhaps because of a very old Potterton Kingfisher boiler.  Time for a new condensing one, when I get a Round Tuit...
• Not especially keen on variable tariffs, and I tend to avoid weird and wonderful schemes such as Powershop, but I'll look at Octopus.  Might be interesting, if only for the ride !