Confused at which rate to get

AnneGR

I am on the Eon Fix Again 1 Year v8 and historically my direct debit was £55.

This is due to expire soon and they are offering the below as the 'best deals'.  I don't know whether to select the variable or fixed - I am conscious of the October rise so clearly the variable will increase but I am also easily confused by the rates, usage, etc so I'm hoping someone can help advise me please.

NextFlex VARIABLE - monthly £94.90 / annual £1,138.78

Electricity: Daily standing charge 43.39 / Unit rate 28.46 / annual usage 1,756
Gas:  Daily standing charge 27.22 / Unite rate / 7.48 / annual usage 5,098

or

Next Online v14 FIXED - monthly £120.68 / annual £1,448.71

Electricity: Daily standing charge 43.39 / Unit rate 38.81 / annual usage 1,756
Gas:  Daily standing charge 27.22 / Unite rate / 9.98 / annual usage 5,098

Thank you

victor2

AnneGR said:

I am on the Eon Fix Again 1 Year v8 and historically my direct debit was £55.

This is due to expire soon and they are offering the below as the 'best deals'.  I don't know whether to select the variable or fixed - I am conscious of the October rise so clearly the variable will increase but I am also easily confused by the rates, usage, etc so I'm hoping someone can help advise me please.

NextFlex VARIABLE - monthly £94.90 / annual £1,138.78

Electricity: Daily standing charge 43.39 / Unit rate 28.46 / annual usage 1,756
Gas:  Daily standing charge 27.22 / Unite rate / 7.48 / annual usage 5,098

or

Next Online v14 FIXED - monthly £120.68 / annual £1,448.71

Electricity: Daily standing charge 43.39 / Unit rate 38.81 / annual usage 1,756
Gas:  Daily standing charge 27.22 / Unite rate / 9.98 / annual usage 5,098

Thank you

Bit of guesswork required, but for the annual cost on the variable rate to equal the cost on the fixed rate of £1448.71, the variable rate would have to increase by 41% in October, and that is ignoring any possible change the following April.

The arithmetic is £94.90 for 4 months (June to Sept), then £133.55 for 8 months (Oct to May '23), versus £120.68 for 12 months.

Obviously a colder winter than the last one could throw those numbers out. Are those figures for annual usage something you have worked out from your actual bills and readings, or the number Eon have shown as your annual usage, which doesn't always match your history?

AnneGR

Thank you Victor.  I have checked and the annual usage I originally quoted were estimated figures from Eon.  I've gone through my bills/reading and my actual for the last 12 months is very close.  Actual for electricity is 1,685 and gas is 5,078.  Estimated was 1,756 and 5,098

victor2

AnneGR said:

Thank you Victor.  I have checked and the annual usage I originally quoted were estimated figures from Eon.  I've gone through my bills/reading and my actual for the last 12 months is very close.  Actual for electricity is 1,685 and gas is 5,078.  Estimated was 1,756 and 5,098

That's near enough not to make much difference. Still a 41% overall increase required in October.

Costs would be £93.09, then £130.76 on the variable tariff, or £118.20 on the fixed to give an annual cost of £1418.46.

Bear in mind as well that you'll use much more gas in winter (assuming you have gas heating) at the higher rate on the variable tariff, so that can make the fix slightly more attractive. Consider the exit fee on the fix as well. They have increased a lot lately, making it more expensive to leave a tariff should prices not increase as much as anticipated.

AnneGR

Yes, I do have gas heating and I've checked the fixed rate and it states no exit fees so I'll go ahead with the fixed.  Thanks so much for clarifying things for me - I really appreciate it.