New tariffs

Sheepverger

hi I am with EON NEXT and have been offered following new tariffs - Next Flex which is the basic variable and for me says £114 a month but risks increase in units/standing charge prices going up. Unit - 27.09 standing charge 48.91p
or  Next online v13 fixed for 12 months and estimated at about £160 a month unit-39.66. SC 48.91p
which seems most sensible and best out of this situation ! Thanks

Verdigris

It depends what you think is going to happen to prices in October, when the cap is reset.

Nobody knows.

jbuchanangb

You could pay £276 extra for your energy over the next 6 months, on the basis that if you stay on variable at £114pm you expect your monthly DD from October to go up to more than £206pm. (12x160=1920 or 6*(114+206)=1920) That would require more than 80% increase in October! Of course no-one knows what will happen in October. Also you should not do calculations based on the monthly DD amount, but on your expected consumption and the standing charges. But I suppose its a reasonable approximation.

BUFF

Sheepverger said:

. Unit - 27.09 standing charge 48.91p
or  Next online v13 fixed for 12 months and estimated at about £160 a month unit-39.66. SC 48.91p

Same as jbuchanangb really. SC are the same. 39.66 is ~46.5% more than 27.09 so (assuming 27.09p is the unit rate from April 1) Next Flex SVR prices would have to go up at least that much in October to be on a par then - meantime you would have saved on 6 months of energy use at the lower rate.
Nobody has a clue what will happen to SVR come October - it's crystal ball or gambling territory.