Eon - To Fix at high rate or roll onto their 'Energy Plan'..

RealBobbyDazzler

Annoyingly my switch date is 29/10/21, my tariff has almost doubled the same as everyone else's and I missed out on Eon's V10 tariff received by email this morning which was quickly withdrawn with the percentage price hike & news reporting today.

I'm really not sure what to do here, below is the estimated annual charges but obviously the EnergyPlan is variable - is there a ceiling height on the rises they can implement for how they've worked out my annual figure, it shows as cheaper currently but I'm not sure what the cap is they're allowed to rise the costs by.  I was going to Fix for a year on the V11 tariff, I can't find cheaper elsewhere other than with Nabuh Energy who I've never heard of but the difference is marginal.  

Below are my 2 options, I've never done a variable tariff so unsure how high price rises they're legally allowed to do as have read about the 'energy price cap' but as much as I can see there is a cap, I can't tell how it'll work for me & my usage.  It's not a cap on the 'rate' but a cap on the yearly price?

E.ON EnergyPlan

Annual charge

Electricity £988.97

Gas £873.77

Monthly charge

Electricity £82.41

Gas £72.81

Paid by

Fixed Direct Debit

Exit fee

No exit fee

Tariff Details:

About your electricity tariff

Supplier	E.ON (E.ON Energy Solutions Limited)
Tariff name	E.ON EnergyPlan
Tariff type	Variable price
Payment method	Fixed Monthly Direct Debit
Unit rate	Normal 20.592p per kWh
Standing charge	25.093p per day
Tariff ends on	No end date
Price guaranteed until	Not applicable
Exit fees (If you cancel the tariff before the end date)	Not applicable

About your gas tariff

Supplier	E.ON (E.ON Energy Solutions Limited)
Tariff name	E.ON EnergyPlan
Tariff type	Variable price
Payment method	Fixed Monthly Direct Debit
Unit rate	Normal 4.047p per kWh
Standing charge	26.123p per day
Tariff ends on	No end date
Price guaranteed until	Not applicable
Exit fees (If you cancel the tariff before the end date)	Not applicable

Fix Again 1 Year v11

Annual charge

Electricity £1,075.31

Gas £963.61

Monthly charge

Electricity £89.61

Gas £80.30

Paid by

Fixed Direct Debit

Exit fee

£60.00

About your electricity tariff

Supplier	E.ON (E.ON Energy Solutions Limited)
Tariff name	Fix Again 1 Year v11
Tariff type	Fixed price
Payment method	Fixed Monthly Direct Debit
Unit rate	Normal 21.781p per kWh
Standing charge	34.544p per day
Tariff ends on	12 months fixed term
Price guaranteed until	12 months fixed term
Exit fees (If you cancel the tariff before the end date)	£30

About your gas tariff

Supplier	E.ON (E.ON Energy Solutions Limited)
Tariff name	Fix Again 1 Year v11
Tariff type	Fixed price
Payment method	Fixed Monthly Direct Debit
Unit rate	Normal 4.334p per kWh
Standing charge	35.574p per day
Tariff ends on	12 months fixed term
Price guaranteed until	12 months fixed term
Exit fees (If you cancel the tariff before the end date)	£30

PeterGr

For OFGEM medium consumption the comparison is between £1279 for the variable deal and £1408 for the 1 year fix.  The variable deal is the current price cap, but the risk is that this could go up again next April, and future fixed deals could also go up so that you pay more over the next 12 months than the 1 year fix.  However you will pay for the winter months at the current lower capped rates if you select the variable deal.   The choice is yours.

wittynamegoeshere

All variable rates are currently fixed for 6 months anyway, as they're all up to the government's cap which won't be changed until April, which gets you through the winter.  Most people don't use anything like as much from April-October.

Having said that, the fixed tariff you've been offered is actually quite reasonable.

It's entirely possible that what we currently have is a spike in prices rather than a step change, it might all be back down by April, in which case you'd need to pay £60 to switch.

Your choice really, there isn't a right or wrong answer - it's pay a premium to avoid risk or take a gamble.

RealBobbyDazzler

PeterGr said:

For OFGEM medium consumption the comparison is between £1279 for the variable deal and £1408 for the 1 year fix.  The variable deal is the current price cap, but the risk is that this could go up again next April, and future fixed deals could also go up so that you pay more over the next 12 months than the 1 year fix.  However you will pay for the winter months at the current lower capped rates if you select the variable deal.   The choice is yours.

Thanks for the advice, my only confusion is understanding the comparison & how it’s worked out.  

I can see they’ve worked out the difference between £1408 (12M fixed) & £1279 on the variable.. but, the part that is confusing me is how do I know the variable calculation they’ve done is at the price cap.  

I’m used to comparing deals with standing rate & usage rate.

QrizB

OK this is a slightly complicated question. I posted an explainer of the cap earlier today:

https://forums.moneysavingexpert.com/discussion/comment/78658822/#Comment_78658822

Now, looking at your quote:

E.ON EnergyPlan

About your electricity tariff

Unit rate	Normal 20.592p per kWh
Standing charge	25.093p per day

About your gas tariff

Unit rate	Normal 4.047p per kWh
Standing charge	26.123p per day

Those prices look pretty close to the cap to me. There isn't really any scope for them to get more expensive until April.

RealBobbyDazzler

QrizB said:

OK this is a slightly complicated question. I posted an explainer of the cap earlier today:

https://forums.moneysavingexpert.com/discussion/comment/78658822/#Comment_78658822

Now, looking at your quote:

E.ON EnergyPlan

About your electricity tariff

Unit rate	Normal 20.592p per kWh
Standing charge	25.093p per day

About your gas tariff

Unit rate	Normal 4.047p per kWh
Standing charge	26.123p per day

Those prices look pretty close to the cap to me. There isn't really any scope for them to get more expensive until April.

Thanks for the update, have had a quick read through.

I think I’ll take the risk and go variable and hope the prices drop throughout summer.  I’ve never liked having to renew each year during winter, always hits me with price rises.

Cardew

I would also stay on the variable tariff which will take you through the winter.

After the new SVT Cap next April, depending on the increase(or reduction ) you can look at what fixes are available or settle for the new SVT.

sam1974_2

I’m also with E.on and just come off a great rate, so have opted for their variable tariff for now as that’s already increased my annual usage by nearly £500, whereas the fixed would have been an additional £800+ 

all we can do now really is sit and wait and hope come April things have calmed down a bit!