On Eon 2 yr fix; but is their SVR better for me? Help please with the maths!

Tara100

Hello

I'm on Eon Next's 2 year fix. I took the gamble this April :-(

I'm a low user of elec and a rarely use gas.
Over the last 12 months, my usage was: 

1660 elec kWh 
122.80 gas kWh 

As the screenshots I've added show, their SVR is a lot cheaper than my current fix re the standing charges.

I can't work out if I'll be better off switching to their SVR....
The SVR rates could raise to the maximum 34.0p/kWh for electricity and 10.3p/kWh for gas in future, but then I'm a low user, and the standing charges are much better.

Maths isn't my strong point :-)
Could someone do the sums for me please, on best and worst case scenarios please?

P.S - my tariff has no exit fees, so I could go elsewhere. 

Thanks ever so much

PennineAcute

Editted due to maths error

You will find that Oct SC are around 28p gas and 43p elec.

Using these figures, and your current UR, as these are less than the October rates:-

If you use more than 1672 kWh of Gas in a year, your current tariff will be cheaper, otherwise the October rates will be cheaper.
If you use more than 1457 kWh of elec in a year, your current tariff will be cheaper, otherwise the October rates will be cheaper.

PennineAcute

Editted due to maths error

The maths

elec

0.2841x + 365 * .6532 < 0.34x + 365*0.43
x>1457

gas

.0748x +365*0.4092 < .103x + 365  * 0.28
x>1672

If you give the region you live in, I can use the exact SC rates and can make the maths completely accurate

Tara100

PennineAcute said:

The maths

elec

0.2841x + 365 * .6532 < 0.34x + 365*0.43
x<1457

gas

.0748x +365*0.4092 < .103x + 365  * 0.28
x<1672

If you give the region you live in, I can use the exact SC rates and can make the maths completely accurate

Thank you so much! My brain is bursting trying to fathom what to do in October.

I just used a checker, and it says: The postcode given is in PES Area 22 , this is SWEB
 (I live in Torbay, South Devon)

PennineAcute

Sorry, there was a slight error in my first calculation

Okay.  If you stay on your current tariff, as from 1 Oct your rates will be

Gas: - UR 7.48p  SC 40.92p
Elec:- UR 28.41p SC 65.32p

If you transfer over to the October rates

Gas: - UR 10.3p  SC 28.49p
Elec:-  UR 33.81p SC 52.64p

If you use more than 1608 kWh of gas, then your current tariff will be cheaper, otherwise the new October rates will be cheaper
If you use more than 857 kWH of elec, then your current tariff will be cheaper, otherwise the new October rates will be cheaper

So, using your initial figures of 1660 kWh of elec and 122.8 kWh of gas, does not give you an answer - as your elec usage is more than 1608 and your gas usage is less than 857.

Evaluating Cost.

Elec 1660                                                                                            Gas 123

Current Tariff:- £710.02                                                                       Current Tariff:- £158.56
Oct Tariff:- £753.38                                                                              Oct Tariff:- £ 116.78

Elec Current Tariff Saving £43.36                                                        Elec Oct Tariff Saving:-  -£41.78

Total saving staying on current tariff £ £1.58

So if you use exactly the same as the figures you gave, there is a slight saving to be made staying as you are.
IF your gas use increases, the savings will be higher.
If your elec use drops, there will be no savings and cost you more.

If you can be certain the your electricity use will not drop and especially below 1608, I would stay as you are.

busybee100

There's a couple of other things I would take into consideration both of which add weight to Pennine Acute's conclusion.
If it's a bitterly cold Winter will I be able to put the heating on without kicking myself?
Having a fixed contract means I'm not directly involved in the whole drama every few months.

It's a nice position to be in. 🙂

Coffeekup

Tara100 said:

I'm a low user of elec and a rarely use gas.
Over the last 12 months, my usage was: 

1660 elec kWh 
122.80 gas kWh 

I lcan't work out if I'll be better off switching to their SVR....
The SVR rates could raise to the maximum 34.0p/kWh for electricity and 10.3p/kWh for gas in future, but then I'm a low user, and the standing charges are much better.

122.80 units of gas is extremely low, it's that low it seems pointless paying £150 for the standing charges. 
So I have a feeling that number could be wrong, could you re check it? 
Or is the decimal point in the wrong place and you used 12,280 units?

Do you have a super well insulated home?
Gas hob, cooker?
Combi boiler?

Either way without knowing your gas usage, I'd stay on the fix as the units rates are good, gas will be 25% cheaper come October, yes the units rates are high but only around £10 more once October starts.

Tara100

Coffeekup said:

Tara100 said:

I'm a low user of elec and a rarely use gas.
Over the last 12 months, my usage was: 

1660 elec kWh 
122.80 gas kWh 

I lcan't work out if I'll be better off switching to their SVR....
The SVR rates could raise to the maximum 34.0p/kWh for electricity and 10.3p/kWh for gas in future, but then I'm a low user, and the standing charges are much better.

122.80 units of gas is extremely low, it's that low it seems pointless paying £150 for the standing charges. 
So I have a feeling that number could be wrong, could you re check it? 
Or is the decimal point in the wrong place and you used 12,280 units?

Do you have a super well insulated home?
Gas hob, cooker?
Combi boiler?

Either way without knowing your gas usage, I'd stay on the fix as the units rates are good, gas will be 25% cheaper come October, yes the units rates are high but only around £10 more once October starts.

Coffeekup said:

Tara100 said:

I'm a low user of elec and a rarely use gas.
Over the last 12 months, my usage was: 

1660 elec kWh 
122.80 gas kWh 

I lcan't work out if I'll be better off switching to their SVR....
The SVR rates could raise to the maximum 34.0p/kWh for electricity and 10.3p/kWh for gas in future, but then I'm a low user, and the standing charges are much better.

122.80 units of gas is extremely low, it's that low it seems pointless paying £150 for the standing charges. 
So I have a feeling that number could be wrong, could you re check it? 
Or is the decimal point in the wrong place and you used 12,280 units?

Do you have a super well insulated home?
Gas hob, cooker?
Combi boiler?

Either way without knowing your gas usage, I'd stay on the fix as the units rates are good, gas will be 25% cheaper come October, yes the units rates are high but only around £10 more once October starts.

Hi. Yes the gas usage is correct. Before I fixed this year, I was paying £10 a month for gas, and built a credit :-)
It's been this way for more years than I can remember, and it grieves me to pay the ridiculous standing charge.
I could have the gas capped off, but I will be using gas more next year, so leaving it as it is.

Many thanks in advance.

Tara100

PennineAcute said:

Sorry, there was a slight error in my first calculation

Okay.  If you stay on your current tariff, as from 1 Oct your rates will be

Gas: - UR 7.48p  SC 40.92p
Elec:- UR 28.41p SC 65.32p

If you transfer over to the October rates

Gas: - UR 10.3p  SC 28.49p
Elec:-  UR 33.81p SC 52.64p

If you use more than 1608 kWh of gas, then your current tariff will be cheaper, otherwise the new October rates will be cheaper
If you use more than 857 kWH of elec, then your current tariff will be cheaper, otherwise the new October rates will be cheaper

So, using your initial figures of 1660 kWh of elec and 122.8 kWh of gas, does not give you an answer - as your elec usage is more than 1608 and your gas usage is less than 857.

Evaluating Cost.

Elec 1660                                                                                            Gas 123

Current Tariff:- £710.02                                                                       Current Tariff:- £158.56
Oct Tariff:- £753.38                                                                              Oct Tariff:- £ 116.78

Elec Current Tariff Saving £43.36                                                        Elec Oct Tariff Saving:-  -£41.78

Total saving staying on current tariff £ £1.58

So if you use exactly the same as the figures you gave, there is a slight saving to be made staying as you are.
IF your gas use increases, the savings will be higher.
If your elec use drops, there will be no savings and cost you more.

If you can be certain the your electricity use will not drop and especially below 1608, I would stay as you are.

Thank you so much. I've had a quick read of your post, and I'm going to absorb it this evening when I get home :-)

Mstty

Tara, to add we have an outstanding question Eon Next are taking to Ofgem.

We are on the same tariff as yourself with different regional rates and standing charge but effectively it's only cost us £25 for this past 6 months out of the 2 year fix and the next 28 months will see a circa 6p saving on electricity over the EPG price freeze cap(we only have electricity)

However built into our fixes are the green levies.nif indeed the green levies have been scrapped Eon Next are checking if we are due those back from 1st October.

Just incase the figures are so close you can't decide.

I think it's 50/50 as to whether this will happen but here is the email and I would suggest you consider emailing them yourself along the same lines.

jbuchanangb

Your unit rates seem to be lower than the "floor" rates to be used for the Energy Price Guarantee. On that basis you would stay on your fixed tariff. If you move to the Standard Variable Rate, then from 1 October, your unit rates will move up to the EPG rates which are about 34p/kWh for electricity and 10.3p/kWh for gas.