EOn Next fixed tariff. What next??

mrsmitch01

Just had the email from Eon to say my fixed tariff will end next month and will go from £63 a month for gas and electric to £130 cheapest fixed tariff that they’re offering. So my bill will double. Does anyone have any advice on what to do please? I am new to this so unsure what to do for the best. Also had warm home discount but don’t see where I’m benefiting from it as my bill has stayed the same since it was credited to my energy account!!

booshya

mrsmitch01 said:

Just had the email from Eon to say my fixed tariff will end next month and will go from £63 a month for gas and electric to £130 cheapest fixed tariff that they’re offering. So my bill will double. Does anyone have any advice on what to do please? I am new to this so unsure what to do for the best. Also had warm home discount but don’t see where I’m benefiting from it as my bill has stayed the same since it was credited to my energy account!!

My advice would be to read and follow the advice given on this forum, on the MSE site in general, in the weekly MSE email, and by the moneysavingexpert himself.

There is also an MSE article that explains what the WHD is and how it works
https://www.moneysavingexpert.com/news/2021/08/energy-firms-accepting-applications-for-the-warm-home-discount-t/

How you can claim a bill has remained the same when you have acknowledged that a credit has been applied beats me.

Rodders53

booshya said:

How you can claim a bill has remained the same when you have acknowledged that a credit has been applied beats me.

Bill = Monthly DD amount of course.

(Which will have been calculated on total annual energy consumption, converted to ££s and standing charge less the Warm Home Discount divided by 12)

booshya

Rodders53 said:

booshya said:

How you can claim a bill has remained the same when you have acknowledged that a credit has been applied beats me.

Bill = Monthly DD amount of course.

(Which will have been calculated on total annual energy consumption, converted to ££s and standing charge less the Warm Home Discount divided by 12)

Bill = amount calculated as due for goods and services provided
Monthly DD amount = an amount that is collected every month by the supplier to be credited to the customer's account

jbuchanangb

As with so many others, @mrsmitch01 has apparently mistaken the monthly DD amount for her energy bill. The monthly DD is a payment into her account, whereas the actual energy bill calculated based on amount of energy consumed and number of days in the billing period is a debit from her account. She may also have made the classic mistake of thinking that the term "fixed" when used in connection with energy bills means that for a certain agreed monthly DD payment, you can use as much energy as you like. In fact it means that when calculating the energy bill the unit charge and the daily charge will remain the same ("fixed") for a certain ("fixed") length of time.

The best course of action for @mrsmitch01 is NOT to accept the proposed new "fixed" contract but to allow her charges to default to the supplier's Standard Variable Rate which has nothing fixed about it, i.e. the unit rates and daily rates can change at any time. Even this will result in an increase in the energy bills, which will probably lead to an upward change to the monthly DD amount needed to ensure that no arrears build up.

mrsmitch01

Thanks for the comments. My direct debit amount is based on what I use day to day on previous bills and I have always been in credit. Even as much as I reduced my DD amount last year as I was paying too much and was constantly in credit. As per recent news the amount has gone up and I will move to the variable bill. However, I’m not sure why the seemingly negative comments about the warm home discount. I had it applied to my account in December and is showing as credit. Was told that my payment would be reduced every month but it hasn’t. So this is why I asked about it. 

Captainkirk54

I share the same concern as mrsmitch01.  Saw Martins programme on energy costs but still a bit confused about his 40% rule advice.

My wife and I are pensioners and use gas for heating and cooking and electricity. Our dual fuel fixed tariff contract with Octopus expires 31st Jan. We are currently paying £80/month on direct debit - Octopus is offering a fixed deal loyalty contract at £133/month going forward or £156/month non-loyalty.

Contrary to other replies to this post the monthly payment is based on the energy usage of last 12 months and is therefore is the direct comparison at this time!!. The fixed rate is based upon increase electric and gas KWHr rates which are substantially increased and you will not get any credit on that no matter how little energy is used. Once the high rate is paid it cannot be recovered for credit - only reduction in consumption can attract credit

Getting customers to sign up to a new fixed higher rate contract is how energy companies are recouping their losses.

I assume if we do not take the new contract now - we will pay up to the current rate cap for the next two months then it will  be sky high after that, with the new cap, but will the Octopus fixed rate still be available then - I don't think so.

There are no other better deals available for switching, but both of these are more than 40% increase - do we sign up with Octopus just now or wait until end of Feb to see what happens?

The only way of resolving this crisis is a new state controlled "not for profit" State Energy supplier supplying at rates well below the private companies to put them out of business, recovering losses from an operating surplus and not profit. This will require building coal and Hydro generating stations as we will never be self sufficient in renewable power as nuclear power stations take 20 years to build

  

dbks

Captainkirk54 said:

I share the same concern as mrsmitch01.  Saw Martins programme on energy costs but still a bit confused about his 40% rule advice.

...

I'm pretty sure Martin said, after trying to explain his 40% rule, that if you were still confused, then you should stay on the suppliers default tariff at this time.

spot1034

Captainkirk54 said:

I share the same concern as mrsmitch01.  Saw Martins programme on energy costs but still a bit confused about his 40% rule advice.

My wife and I are pensioners and use gas for heating and cooking and electricity. Our dual fuel fixed tariff contract with Octopus expires 31st Jan. We are currently paying £80/month on direct debit - Octopus is offering a fixed deal loyalty contract at £133/month going forward or £156/month non-loyalty.

Contrary to other replies to this post the monthly payment is based on the energy usage of last 12 months and is therefore is the direct comparison at this time!!. The fixed rate is based upon increase electric and gas KWHr rates which are substantially increased and you will not get any credit on that no matter how little energy is used. Once the high rate is paid it cannot be recovered for credit - only reduction in consumption can attract credit

Getting customers to sign up to a new fixed higher rate contract is how energy companies are recouping their losses.

I assume if we do not take the new contract now - we will pay up to the current rate cap for the next two months then it will  be sky high after that, with the new cap, but will the Octopus fixed rate still be available then - I don't think so.

There are no other better deals available for switching, but both of these are more than 40% increase - do we sign up with Octopus just now or wait until end of Feb to see what happens?

The only way of resolving this crisis is a new state controlled "not for profit" State Energy supplier supplying at rates well below the private companies to put them out of business, recovering losses from an operating surplus and not profit. This will require building coal and Hydro generating stations as we will never be self sufficient in renewable power as nuclear power stations take 20 years to build

  

It's entirely possible that a better fixed rate might be available then as wholesale prices are now falling, albeit slowly. Do not make the mistake of thinking that prices can only go up.

And whilst we know that the standard variable rate will go up in April (as that takes account of historic prices whilst fixed deals will be looking forward) we do not know by how much, as there could be government intervention which keeps the price rise more reasonable than would otherwise have been the case.

Brie

if you are taking readings regularly and advising the supplier of those then of course your payments should be based on those as that's what you are using.  Unfortunately some companies are greedy and want you to pay well above the odds or will claim your usage should be based on the coldest month of the last millennium. 

See if you can do your own calculation of what you might use in a year and see how far that is off what the supplier projects.   Tell them what you figure you should pay and likely you will be able to meet somewhere in the middle.  Eon have told me they like me to have at least 1, preferably 2 months credit in my account.  Happy to do that now but will expect a credit in the spring time!!

The cost per unit may go up or down but usage should be pretty consistent unless you've had any major renovations or life changes.  (like when our hot tub broke and my OH learned how to close the door closest to the thermostat)

Captainkirk54

mrsmitch01

The guys on this post are right

I have found this on the main Octopus webpage under "Get Quote" - not account page 

"Octopus

You need to know this 👇

Right now, energy prices are at record highs, and most homes will be better off staying with their current energy supplier for the winter.

If your fixed term is coming to an end, don't choose a new tariff or switch supplier.

Instead, let your supplier automatically move you to their default tariff, so your prices are protected by the Government's Energy Price Cap.

Would you like an email when prices fall?

Yes, please email me"

This appears to be the advice Martin issued on TV as prices may fall eventually if the Goverment intervenes. I'll stay on the Octopus default rate until March then see whats on offer.

Captainkirk54