Eon Next Fix V16 is 60% more than Flex, not 50% as Martin says.....

Northern_Wanderer

For electric

Eon Next Flex unit rate 27.91p/kwh

Eon Next Fix V16 online unit rate 44.79p/kwh

SC is same on both

To get the % increase, using the calculation (current price - old price) / old price x 100

I get 60.48% more expensive, not 50% as Martin says.

Why does Martin say that deal is 50% more than current SVR in his to fix or not advice? Is he using a different formula? Am I missing something here? His advice makes that deal look ok potentially (not that the prices are good), but my calculation says something else - who is right?

https://www.moneysavingexpert.com/utilities/-are-there-any-cheap--fixed-energy-deals-currently-worth-it--/

timjim

The unit rate is 60.48% more but the standing charge is the same therefore the overall cost increase is 50%

Ultrasonic

My guess is that ML has done a calculation using the 'typical' electricity and gas usage and included the standing charges. You I think have just looked at the change in electricity unit rate?

k_man

As above you need to include some usage figures to work out how much influence the SC has on the %.

And consider most 'simple' stated % increases to costs are based on 'typical' usage.
OR

Wrong by some degree for everyone.

Northern_Wanderer

Ultrasonic said:

My guess is that ML has done a calculation using the 'typical' electricity and gas usage and included the standing charges. You I think have just looked at the change in electricity unit rate?

Yes I did just calculate unit rate on electric. I just re-did the calculation for electric based on my actual usage inc SC for a year and now I get 47.5% increase. To fix or not, that is the question......argh!!!

timjim said:

The unit rate is 60.48% more but the standing charge is the same therefore the overall cost increase is 50%

I can see now how accountants can make numbers look different, thank you.

pochase

The percentage differs depending on the usage. As everybody, including Martin and team, seems to assume that there will be no change to the standing charges, low users will see a much lower increase percentage than the 55%, and the higher the use the higher the percentage.

Also the ratio between gas and electricity will change the percentage as the increase for gas is usually at a higher percentage than for electricity.

I assume to keep it simple and comparable that Marin is using the 2900KWh/12000KWh for the comparison. You will need to do the comparison on your own usage figures to decide if an average good deal is also good for you.

So @Northern_Wanderer you are both right. You have the figure for your own numbers, Martin has the figure for one special scenario, the average user. as used by Ofgem.

Northern_Wanderer

Does ML actually state how he works this out? As I assume most people will struggle to do their calculations and know what they're actual increase is going to be, therefore how do they know if a deal is within the advised %?

To calculate % increase:

on your current deal

1) find your annual usage (from a bill) and multiply by the unit rate (dual rate meters there will be 2 figures to calculate here, day rate and night rate, add them together)

2) take the daily standing charge and multiply it by 365

3) Add figure 1 & 2 together (this is old price)

on your new propsed deal

1) find your annual usage (from a bill) and multiply by the unit rate (dual rate meters there will be 2 figures to calculate here, day rate an night rate, add them together)

2) take the daily standing charge and multiply it by 365

3) Add figure 1 & 2 together (this is new price)

Then, use this formula to get % increase

(new price - old price) / old price x 100

Hopefully that helps some people.

EDITED above for dual rate meters. I have only worked out my electric as my gas is with a different supplier.

Ultrasonic

Northern_Wanderer said:

Does ML actually state how he works this out? 

What you're asking about I think is the change in the price cap figure, which is the change in the total cost for a 'typical' dual-fuel household paying by direct debit, and with some sort of regional averaging factored in I guess.

Your calculation is notably different to this if you're using electricity only. Most electricity-only households would be on Economy 7 too, so any calculation for them would also need to factor in both rates.

Northern_Wanderer

Ultrasonic said:

Northern_Wanderer said:

Does ML actually state how he works this out? 

What you're asking about I think is the change in the price cap figure, which is the change in the total cost for a 'typical' dual-fuel household paying by direct debit, and with some sort of regional averaging factored in I guess.

Your calculation is notably different to this if you're using electricity only. Most electricity-only households would be on Economy 7 too, so any calculation for them would also need to factor in both rates.

I was asking how he works out the % increase on the tarrifs he mentions as good deals, but if he's doing that on dual fuel that adds an extra dimension as some of us have different suppliers. I guess it doesn't matter as long as you know how to work out your own % increase.

I edited my post to account for dual rate meters.

PennineAcute

You have just used a calculation based on electricity, where ML would have done a calculation based on both gas an electricity.

If the gas percentage increase is less that the electricty, then this will pull down the overall percentage increase.

It is always best to listen to people in the know, but to double check their figures - as they cannot produce figures for each household.  Only general figures that will work for most people.  Outliers (when using mean) are a total pain.

pochase

The way @Northern_Wanderer has done it is correct as he does not have gas and can therefore ignore it.

Main issue is here that he can no longer base a decision on the percentage that Martin is saying should be considered as the increase for electricity is much lower than for gas. 

While you can calculate the percentage increase for single rate electricity quite easily, E7 brings a new dimension into the game for the cap. We don't know the what the new unit rates for E7 will be as the suppliers can do a free decision how to split the usage (i.e. 70:30, 60:40) to to calculate new day rate and night rate. I am not even sure if they need to use the same ratio they have used for the April cap.

Probably I would calculate the new unit rates by adding the increase by calculating the increase percentage for unit rates and apply the increase to the current day and night rates.