Current fix with Eon. Should I fix again?

davidjpert

Hi everyone.

I'm hoping for a bit of advice. I'm currently on a 1 year fix with Eon (Climate positive V5) which ends on October second. The renewal quote they've given me would increase my bills by 130%. I think that's more than than if I just don't fix, and take the hit of the price rises in 2022, what haven't affected me so far. Does that sound right to you?

Mstty

Eon next do have a fix on MSE worth considering list

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

With zero exit fees it might be worth taking then backing out come 26th August when the price cap for October is announced.

pochase

Welcome to the forum.

If you don't give us any information of what you are paying, what your usage is and what has been offered to you, fixed and SVT we cannot really help you.

And we will need the standing charges and unit rates, not just direct debit amounts.

Coming of a fixed tariff an increase of only 130% sounds to low to me. The increase from October 2021 cap to October 2022 cap will be per last predictions already more than 150%.

davidjpert

That's really useful. Thank you. I'm new to the forum, so just finding my way. I'll post usage and stuff shortly. 

davidjpert

So, I'm currently on Climate positive V5.

Electricity: 17.53p/per day / 19.28p/kWh

Gas: 20.64p/per day / 3.83p/kWh

Usage since October 2nd 2021 (307 days):
Electricity: 8,835kWh, cost of £53.82 standing charge and £1,703.38 usage 
Gas: 1,437kWh, cost of £63.36 standing charge and £55.04 usage.
Total charges over 307 days: £1,875.60.

Renewal quote: Eon Next Online v14.
Electricity: 42.24p/per day / 38.37p/kWh

Gas: 9.84p/per day / 9.84p/kWh.

Cost of that based on usage over last 307 days would be:
£3,744.64 (100% increase).

So the big question is whether taking the fix now makes sense, or do I wait and hope to still get the fix later. Or is the no fix rate going to be better?

Mstty

davidjpert said:

So, I'm currently on Climate positive V5.

Electricity: 17.53p/per day / 19.28p/kWh

Gas: 20.64p/per day / 3.83p/kWh

Usage since October 2nd 2021 (307 days):
Electricity: 8,835kWh, cost of £53.82 standing charge and £1,703.38 usage 
Gas: 1,437kWh, cost of £63.36 standing charge and £55.04 usage.
Total charges over 307 days: £1,875.60.

Renewal quote: Eon Next Online v14.
Electricity: 42.24p/per day / 38.37p/kWh

Gas: 9.84p/per day / 9.84p/kWh.

Cost of that based on usage over last 307 days would be:
£3,744.64 (100% increase).

So the big question is whether taking the fix now makes sense, or do I wait and hope to still get the fix later. Or is the no fix rate going to be better?

Are you sure that fix off of Eon Next Online v14 is still available.

Most are suggesting here they are up to offering v18?

If v14 is still available grab that quickly and screenshot the acknowledgement.

Stingy_Samson

I 1000% agree!! I grabbed that Next online v14 in the 3rd week of June and a few days later was swiftly replaced with much dearer fixed alternatives.

If it is genuinely being offered to you, screenshot and accept because the SVR will be higher than that for at least 12 months from October!! 

pochase

As @Mstty already asked, are you sure they will still give you V14? That one is 4 versions and at least 6 weeks old now.

Your electricity usage is very high, while gas does hardly exist. Are you sure it is 1437KWh, or is it maybe 1437 units (m3)? Are you sure that they offer a standing charge of 9.84p for gas? 

If you really get the V14, it will make sense. The cost for 307 days with the predicted rates for SVT from October would be £4458, increasing further in January and April as per current predictions.

SO check first if the tariff is still available, when was it offered to you?

davidjpert

It was back in may I had that offer. So most likely not available now. But I've asked.

And yes, sorry. Gas must be units, not kWh. Not sure how I convert.

davidjpert

Just googled. 1437m3 units is 15,160kWh.

So total cost on current usage is £2401.19.

V14 (if I got it) would be £5,094.98 (112% increase)

pochase

It seems to me that your calculations are quite a bit off, understandable as your gas use is more than 11 times higher than you thought. One unit m3 is about 11.2KWh.

Here the calculations based on 307 days, ignore the monthly figures.



Now the same recalculated for 365 days (usage / 307 * 365, and yes I know it is especially for gas not completely correct)



You need to check what they are going to offer you today, not what was in May. 

This also answers you question if you should fix now, they have increased their tariff 4 times since may, and it is very likely this will happen again.

As I assumed in my initial post you increase is not 130% but 170% as per above calculations if you stick with the SVT, going up again in January and April if the current predictions are correct.

You should urgently investigate your usage, you are using more than 50% more gas than the average assumed by Ofgem for their calculations, and 260% more electricity.