Should I fix?

b33r

Hi,

I'm currently on a (relatively very) cheap fix with Eon which ends on 05/03/2022 with an annual bill of £1226. When my fix ends I believe I'll move to the current standard variable rates (which will have an annual bill of £1673) however I'm only going to be on that tariff for 26 days I think before the April rise. Using the April standard variable rates which Martin tweeted I've crunched the numbers and believe my annual bill will then be £2657 (yikes!).

I've just logged in to my Eon account and they are offering me a 1yr fix which when I plug the rates for it in to my usage the annual bill will be £2461. The fix has no exit penalties. This seems like a no brainer to me? So much so I'm wondering if I'm missing something? Potentially if they move me quickly on to it I'm going to lose some days of my current (relatively very) cheap fix which ends on 05/03/2022 but this still seems like a no brainer to me? Especially as it sounds likely the rates will move up again in October, even if (somehow) the rate were to go down in October then I could just leave the fix with no penalty.

Any help/pointing out something I've missed will be very helpful!

Thanks

QrizB

That sounds like a tempting offer.

What are the rates they've offered you? We can check that your sums add up

Also, note the cap varies slightly by region. You'll find the regional rates at the links in my signature.

b33r

I can't seem to see your signature, can you post the link?

The rates for my current (very cheap) fix are: 
Gas: SC: £0.20864 UR: £0.02706
Electricity: SC: £0.19079 UR: £0.1554

The rates for the 1yr fix they've offered me are: 
Gas: SC: £0.4231 UR: £0.0647
Electricity: SC: £0.4301 UR: £0.2615

My Annual Usage: Electricity: 3939, Gas: 17314

I'm in Yorkshire by the way

facade

If they move you to the new tariff straight away, you start paying now, so lose whatever days are left of your cheap fix, plus March on the current cap. Feb & March are fairly high consumption months.

With my cynical hat on, it occurs to me that Eon know full well what they will be charging from April, and would hardly undercut themselves significantly on a fixed deal if they can keep you on a high SVT.

Most fixed deals seem to be slightly above the maximum April cap, and are taking advantage of people's fear of another huge rise in October as well as an expectation that prices will exactly equal the cap.

On the face of it, if the numbers work out cheaper for you on the fixed, and there is no exit fee then it does seem a no-brainer

b33r

Hmm yeh good point, so it's 26 days of the current price cap and whatever days I lose of my current tariff, let's assume the worst and they move me straightaway that's 22 days.

Based on my average usage per day if they were to move me straight away I think it will "cost" me £156

QrizB

b33r said:

I can't seem to see your signature, can you post the link?

Here: Ofgem caps explained - October 2021 and April 2022

b33r said:

The rates for the 1yr fix they've offered me are: 
Gas: SC: £0.4231 UR: £0.0647
Electricity: SC: £0.4301 UR: £0.2615

Those look pretty good to me. If EDF offered me that rate for gas I'd be very tempted.

b33r

I'll be sad to see my current rate go (I've been sat on it quite smugly over winter) but I think I have to go for this. It's going to cost me ~£150 in lost days of my current fix and the current cap between it ending and the April rates coming in but as (for me) the annual cost is slightly less than what it will be from April a lot of that £150 is gained back and it gives me stability in October, if somehow rates were to go down in October then I can just ditch the fix with no penalty.

b33r

Ah, it got better, when I went to switch it informed me that the new tariff will take affect from when my current fix ends (05/03/2022) which was even better news as I'm not losing any days of my current fix, so I've gone for it!

I don't know why I'm happy, it still means my DD almost doubling, sadly.

Coffeekup

b33r said:

Ah, it got better, when I went to switch it informed me that the new tariff will take affect from when my current fix ends (05/03/2022) which was even better news as I'm not losing any days of my current fix, so I've gone for it!

I don't know why I'm happy, it still means my DD almost doubling, sadly.

It won't double if you cut back on your usage, turning everything off at the walls when your in bed or out, thinking do I really need the heating on all evening when you can get away with an hour or two instead on the milder day's.
Have a go you'll be surprised how much you'll save, will be easier if you get everyone in the house on board. TV's, PC's, tv boxes, microwave, dishwashers vamp the energy on standby.

b33r

Coffeekup said:

b33r said:

Ah, it got better, when I went to switch it informed me that the new tariff will take affect from when my current fix ends (05/03/2022) which was even better news as I'm not losing any days of my current fix, so I've gone for it!

I don't know why I'm happy, it still means my DD almost doubling, sadly.

It won't double if you cut back on your usage, turning everything off at the walls when your in bed or out, thinking do I really need the heating on all evening when you can get away with an hour or two instead on the milder day's.
Have a go you'll be surprised how much you'll save, will be easier if you get everyone in the house on board. TV's, PC's, tv boxes, microwave, dishwashers vamp the energy on standby.

Thanks for the advice, I already do pretty much everything I can, my family is sick of me following them round the house turning sockets and lights off, I've installed standby savers on the TVs, house is all LED, limited baths, showers and washing and heating dropped by 0.5 degree and I just put up with the moaning. The house could be slightly better insulated but this would mean me clearing the loft and quite frankly for the difference it would make considering all the stuff up there will be acting slightly as an insulator I can't be arsed.

Even if I did cut some more usage my DD would still double when the new tariff takes effects, but then potentially come down slightly when I came up for review.

stokegal

Have you been offered EON next Online v10 fixed for 1 year?

That’s what I have been offered (current deal expires 02/03/22) and similar to yourself it appears to be slightly cheaper for me to fix to