Variable vs fixed rate tariff

realh

I'm currently with Eon Next, on a "NextFlex" variable rate tariff with a projected annual cost of £2,819.06. They've offered me a "Next Loyalty Fixed v4" tariff at £2,740.94. This is presumably in response to the big drop in the Price Cap. The saving doesn't seem significant, and it also has the disadvantage of a year's contract with a £75 exit fee. I don't know what to do, because part of me thinks that with prices so high at the moment, and the reason behind that, they're unlikely to change much either way over the next year. What would you do?

TheMilkmansDad

option 5 - use the opportunity to shop around and move to a supplier with better customer service

debitcardmayhem

TheMilkmansDad said:

option 5 - use the opportunity to shop around and move to a supplier with better customer service

I vote for that 5

QrizB

Switch to Eon's fixed rate tariff

Of the options offered in the poll, I voted for "take the fix". Prices aren't expected to fall much further and they might even rise. The fix gives 12 months peace-of-mind.

If prices collapse, the £75 exit fee is less than 3% of your annual bill and will be offset by the savings you'll get by exiting.

I agree with others that you should check what is on offer elsewhere before committing, but can't make any specific suggestions unless you share a lot more info regarding your house, your household, your uusage and your attitude to risk.

bristolleedsfan

Switch to Eon's fixed rate tariff

No exit fees if subsequently change to another Eon Next tariff, 12 month fix is cheaper than current SVR, No reason not to take the fix if prefer certainty.

Change to another supplier with better CS, if you then prefer a 12 month fix, more expensive than current SVR as well as exit fees if subsequently change tariff.

 

dealyboy

Shop around for a supplier with a better variable rate

SVT with EDF ... you are still protected by the price cap and the EPG.

bristolleedsfan

Switch to Eon's fixed rate tariff

Eon Next Loyalty Fixed v4 with no exit fees if subsequently change to another Eon Next tariff is cheaper than the supplier with cheaper variable SVR tariff, standing charge and unit rate are both less .....................

dealyboy

Shop around for a supplier with a better variable rate

My EDF E7 Eastern SVT rates:

SC 43.76p
DR 44.16p
NR 08.58p

break even point, 58% day 42% night, equivalent to 29.22p single rate.

bristolleedsfan

Switch to Eon's fixed rate tariff

EDF rates easily checked, only Eastern region has single digit night rate. 

Standard meter DD variable rates EDF are = most expensive

https://www.edfenergy.com/sites/default/files/dm1920_standard_variable_deemed_and_welcome_-_standard_e7_and_prepayment_meters.pdf.pdf

dealyboy

Shop around for a supplier with a better variable rate

Thanks @bristolleedsfan ... "Standard meter DD variable rates EDF are = most expensive"

EDF E7 East Midlands SVT rates:

SC 50.40p
DR 36.43p
NR 16.92p

equivalent to 28.24p single rate 58% day 42% night, (standard variable rate 29.48p, single rate meter)

EDF E7 London SVT rates:

SC 38.28p
DR 39.63p
NR 15.80p

equivalent to 29.62p single rate 58% day 42% night, (standard variable rate 31.19p, single rate meter)

All rates are inclusive of VAT and payment is by fixed or variable (whole of bill) monthly direct debit.

Note: I am not advocating economy 7 use, I am just providing examples data. However if off-peak/overnight use is, or could be, greater than 42% and the customer has a SMETS2 smart meter, then E7 may be worth considering; it should be a simple switchover. 

realh

Thanks all, I'll go for the fixed rate. I'll stick with Eon too, because I doubt there are significant savings to be had, and I don't want the hassle of potentially having to have the smart meter changed.