EON NEXT V12

Mari1971

Hi I’d just like a little advice. 

I fixed with eon next V12 starting 1/4. With my bill following my meter reading on 31/3/22 I have this message. 

Could you pay less?

Remember - it might be worth thinking about switching your tariff or supplier.

For your electricity (on meter point 2200011862739)

Good news, you’re already on our cheapest fixed tariff. We’ll let you know if this changes.

You could save £466.71 a year by switching to our Next Flex, a variable tariff. Although as a variable tariff, it is subject to slightly different terms to your current fixed tariff.

My question is should I stick with V12 or switch back to variable? 

I use approximately 700kw per month

V12 = 33.58 per kw and 51.63 standing charge per day

standard variable is 28.41 per kw at the moment 

Thanks 

jbuchanangb

When Online V12 was available (for about a week!) it was known that it was higher than the April SVT. You took the gamble and arranged to switch tho V12 on 1 April. Now your rates won't change until 1 April next year but for people like me who bet the other way, our rates will change in October. Probably upwards. The £466.71 possible saving does not take account of the October increase. You could possibly save £233.35 in next 6 months (or less because consumption is lower in the summer) and then possibly incur extra costs well in excess of that in the following 6 months. Particularly as consumption will then be higher during the winter.

pochase

Your current fix is 18.2% (unit price) more expensive than the SVT.

A rise of 30% on the cap is currently expected in October, but that would be averaged for dual fuel. If it is like the April increase the gas will go up by a higher percentage than electricity again. So a 30% increase for the cap does not mean a 30% increase for electricity.

You state you use 700KWh per month, is this your average over the year or are you using more in winter for heating and less in summer.

The unit rate for electricity would need to increase by 24% to 0.352p if you use use 25% of the 8400KWh in the next 6 months and 75% during the winter months.

If the usage is really the same, you would use 50% in the first 6 months and 50% in the winter months. To get to break even the unit price would need to go up to 0.386p a increase of 36%.

Nobody can tell you what happens, and I have fixed myself at similar unit rate, but that was for 2 years and I am also a gas user.

The bigger increases should be again on gas and I personally think it very unlikely that you will benefit from this fix.

Give me figures what you use during the summer months and during the six winter months and I will give you a customised calculation.

This above did not take standing charges into account as they will make not much of  difference for a high usage.

Mari1971

pochase said:

Your current fix is 18.2% (unit price) more expensive than the SVT.

A rise of 30% on the cap is currently expected in October, but that would be averaged for dual fuel. If it is like the April increase the gas will go up by a higher percentage than electricity again. So a 30% increase for the cap does not mean a 30% increase for electricity.

You state you use 700KWh per month, is this your average over the year or are you using more in winter for heating and less in summer.

if it is the same every month the increase for electricity would need to be more than 36% for you to benefit.

Hi thanks for reading and responding 😊

Yes 700kw pm is an average for the last year - I’m hoping to reduce as I’m much more ‘energy aware’ now! 

We don’t have gas unfortunately, we have oil central heating 😱which is now turned off!! 

Mari1971

jbuchanangb 

Thanks - yes I knew it was a punt, just wasn’t expecting that little message… 

 I shall go and mull it over! 

Thanks again 😊

Sea_Shell

We've made the same "gamble" on V12.

15% higher than SVT

Basically it's, for us, a £200 insurance policy against the October cap.  Especially as the majority of our use will be after then.

Only time will tell if it'll pay off. 🤞🏻

Mstty

8400KwH a year yes stay with the fixed rate you have as it is expected October will see a 30% rise and the next 6 months are the summer months so you will probably only use 30-35% of your whole yearly usage til October.

As a rough estimate price cap for electricity come October in my opinion will be 34.5-37.4p kWh

On electricity only 4 need house two adults here 24/7 projected 7100kWh per year. We went for the V18 2 year fix so 29.24p kWh for the next 2 years and here is our use based on last year Oct-Apr

Oct 650 kWh £15 SC £190 elec

Nov 800 kWh £15 SC £234 elec

Dec 900 kWh £15 SC £263 elec

Jan 1000 kWh £15 SC £292 elec

Feb 850 kWh £15 SC £249 elec

Mar 750 kWh £15 SC £219 elec

Total £1537

Now imagine the above with 30% increase in the price cap so 34.5p kwh

Total With 30 Oct increase £1998.10

So potentially a saving of £461.10 if the October increase is 30%

We too are looking at ways to save energy and have a multi fuel burner in the lounge so getting a little more savvy in that respect and reading up on what's best.

pochase

The expected 30% increase is an increase of the CAP again, but it is very unlikely that it will be an equal 30% for electricity and gas. The April increase was more like a 25% increase for electricity and 75% increase on the unit price for gas.

If this split even stays remotely true you would look at a CAP rise again  of more than 50% to get anywhere near the  34.5 to 37.4p you expect.

Your own fix is a no brainer, as there is hardly any difference in the unit price to the current SVT, and it is for 2 years, but @Mari1971 already pays with 03358p almost what you expect as the new rate and is only fixed for a year.

Mstty

@pochase good job I saw this as you didn't tag me 

Initially the October increase was slated to take us from £1971 to nearly £3000 for the average user but it has now been downcast to £2450-2500 so trying to estimate what that would be average kWh price has bent my noggin a bit this morning lol

Again going on my energy usage and what we use in winter which is close to the OP they will have to do their own calculations as I have suggested on their previous usage Oct-Apr given what we know now.

As far as I am aware the V12 comes with zero exit costs so one option for the OP is to see the summer out at his current fix and if the October rise is not as high as expected switch the the Next flex (svt) capped rate then. Sort of hedging their bets

pochase

Mstty said:

@pochase good job I saw this as you didn't tag me 

Initially the October increase was slated to take us from £1971 to nearly £3000 for the average user but it has now been downcast to £2450-2500 so trying to estimate what that would be average kWh price has bent my noggin a bit this morning lol

Again going on my energy usage and what we use in winter which is close to the OP they will have to do their own calculations as I have suggested on their previous usage Oct-Apr given what we know now.

As far as I am aware the V12 comes with zero exit costs so one option for the OP is to see the summer out at his current fix and if the October rise is not as high as expected switch the the Next flex (svt) capped rate then. Sort of hedging their bets

I am aware of the changing forecasts for the new cap in October. The problem I have with this is that we are again looking at the increase for the average dual fuel user with 2900/3100KWh electricity and 12000KWh gas. Already for the last 54% increase people did not understand why their cost is increasing by a different percentage due to a different proportion between gas and electricity,  or coming of a fixed.

For April the cost increase for the electricity part was more like 25% increase, so as a electricity user only you should have seen an increase well below the 54%. What you are calculating with is the 30% CAP increase as also a 30% electricity increase, which I find very unlikely, so of course I have no idea if you might be correct.

I have nowhere seen anybody discuss what the increase for electricity and gas might be in October, only the overall figure. Not even a hint if there are again will be a huge difference for the two or if they should be more like the same percentage.

Mstty

@pochase have a read on the following link last page and last post by @QrizB

https://forums.moneysavingexpert.com/discussion/6307877/what-should-the-unit-prices-be-to-cover-wholesale-prices#latest

Very informative.