Eon next price increase

kd184

Good morning, I’m with eon next and pay 180 per month, this ends April 15th, their cheapest tariff on offer is 269 per month but it says variable, so does that mean it could go higher than 269 a month. This is also nearly a 67% increase, I’m so confused and do not know what to do

QrizB

Welcome to the forum.

kd184 said:

Good morning, I’m with eon next and pay 180 per month, this ends April 15th, their cheapest tariff on offer is 269 per month but it says variable, so does that mean it could go higher than 269 a month.

Yes it could, but it won't be permitted to go higher until October when the cap is changed.

kd184

So come October, my monthly bill could potentially be £379 if it increases another 40%?

What would happen if I didn’t re new a tariff?

EssexHebridean

kd184 said:

So come October, my monthly bill could potentially be £379 if it increases another 40%?

What would happen if I didn’t re new a tariff?

Your first sentence answers your second. The variable tariff which is price capped will be what you roll onto if you don't fix again - and right now will almost undoubtedly be your cheapest option. 

Have you checked the amount they are quoting for you to need to pay monthly against your actual use figures to make sure it's correct? 

QrizB

kd184 said:

So come October, my monthly bill could potentially be £379 if it increases another 40%?

Yes, it could.

What would happen if I didn’t re new a tariff?

You're currently on a fixed-rate tariff that ends on the 15th of April.

If you do nothing, when the fixed-rate tariff ends you'll be moved onto the capped variable-rate tariff. You suppler predicts that this will cost you £269 a month. That will not increase (it could decrease, but almost certainly won't) until October.

Some time in early August, Ofgem will announce the cap for variable tariffs that will apply from October. When they do, you'll know (or can calculate) what that will cost you from October until March.

If, instead, you choose a fixed-rate tariff, you'll have that fixed rate for the duration of the fix. It's very likely that a fixed-rate tariff will cost you much more between now and October than the capped variable-rate tariff will.

jimexbox

Please forget your DD as an indication of future bills. The capped tariff is the KWh gas and electric unit is capped. You pay for what you use. 

There will be another rise 1st October. Anywhere from 25% to terrifying. Then possibly every 3 months after that, it's yet to be decided. 

matt1983

EssexHebridean said:

kd184 said:

So come October, my monthly bill could potentially be £379 if it increases another 40%?

What would happen if I didn’t re new a tariff?

Your first sentence answers your second. The variable tariff which is price capped will be what you roll onto if you don't fix again - and right now will almost undoubtedly be your cheapest option. 

Have you checked the amount they are quoting for you to need to pay monthly against your actual use figures to make sure it's correct? 

This might be a stupid question but how exactly can you check that the amount they are asking you to pay monthly is correct compared to your actual usage? 

Im with eon next and last week signed up to a one year fix - the next online v12.  

I was paying £77 per month and with the v12 it will be £183 per month.  

Does this sound right? Would be helpful if someone can explain how to work out what i should be paying based on my actual usage against the rates for the v12. 

Aylesbury_Duck

matt1983 said:

EssexHebridean said:

kd184 said:

So come October, my monthly bill could potentially be £379 if it increases another 40%?

What would happen if I didn’t re new a tariff?

Your first sentence answers your second. The variable tariff which is price capped will be what you roll onto if you don't fix again - and right now will almost undoubtedly be your cheapest option. 

Have you checked the amount they are quoting for you to need to pay monthly against your actual use figures to make sure it's correct? 

This might be a stupid question but how exactly can you check that the amount they are asking you to pay monthly is correct compared to your actual usage? 

Im with eon next and last week signed up to a one year fix - the next online v12.  

I was paying £77 per month and with the v12 it will be £183 per month.  

Does this sound right? Would be helpful if someone can explain how to work out what i should be paying based on my actual usage against the rates for the v12. 

You may wish to exercise your right to cancel under the cooling off period - have you checked that you're not going to be better off on the standard variable rate?  I suspect you will be.

You should take a look at your readings for the last year - they will tell you exactly how many units of gas and electricity you have used.  Assuming you'll use a similar amount in the next 12 months, simply multiple the unit rate for each by the number of units you expect to use, and add it to 365x the daily standing charge for gas and electricity.  eon has hopefully used your actual consumption to make their projection, but that relies upon you having supplied accurate readings regularly.

QrizB

matt1983 said:

This might be a stupid question but how exactly can you check that the amount they are asking you to pay monthly is correct compared to your actual usage? 

Im with eon next and last week signed up to a one year fix - the next online v12.  

I was paying £77 per month and with the v12 it will be £183 per month.  

Does this sound right? Would be helpful if someone can explain how to work out what i should be paying based on my actual usage against the rates for the v12. 

It's pretty simple. Every month:

• Standing charge: multiply the daily price by the number of days in the month.
  
• Read your meter.
• Subtract the meter reading from the previous month's reading.
• For electricity, multiply the difference in meter readings by the unit price.
• For gas, with a metric meter, multiply the difference in meter readings by 11.2, and then by the unit price.
• For gas, with an imperial meter, multiply the difference in meter readings by 32, and then by the unit price.

Add up the standing charge(s) and the unit cost(s) and you'll get the total bill for the month.

kd184

Thanks everyone 🥰