Should i take the variable offer

Patrice24

My fixed rate with EON Next runs out this month,I have been offered a variable through EON Next for  which will be just about five pounds on what i pay now, is it worth taking the variable.   Any help would appreciated, its all so confusing.

Verdigris

You won't save money on a fixed rate, at the moment. The SVT you were put on during the SoLR process is the cheapest available from any supplier. They are all making a loss on it. Things may change when the cap is revised in April, so look out for the new cap figure when it is published in February. Also be aware that the government may make some intervention that may affect your decision.

macker6464

I am in the same boat with EON.

Current fixed is £148/month / £1776 annual)
New Variable will be £1977 (£17 more a month = 11% more)
New Fixed will be £3997 (£185 more a month = 125% more)

Think I will do nothing and incur an 11% rise rather than 125% fixed rise (yes 2.25x current fixed!)

I am assuming to expect a 50% rise later when the cap ends which is still better than 125%.

===============

Current deal Fix 1 Year v5 (£1776 annual 2021) ending 20/2/22:

"Do nothing and you'll switch on to our Next Flex tariff. Estimated cost for the next 12 months £1977.46" (11.3% more than fixed 2021)

"If you'd like to fix your prices, our cheapest tariff is Next 2 Year v16. Estimated cost for the next 12 months £3997.69" (125% more than fixed 2021).

Verdigris

If the government make some intervention on energy prices the equations might change. Keep your eye out for further information.

BUFF

Verdigris said:

You won't save money on a fixed rate, at the moment. The SVT you were put on during the SoLR process is the cheapest available from any supplier. They are all making a loss on it. Things may change when the cap is revised in April, so look out for the new cap figure when it is published in February. Also be aware that the government may make some intervention that may affect your decision.

The OP says that they had a fix with EOn Next which suggests that they had nothing to do with an SoLR. It is also possible that the variable rate that they are being offered may not be the SVT either ...

Verdigris

Guilty. I did a copy and paste for the standard question that gets asked 38768998354 times a day, at the moment.