Should I sign a new fix?

Rick87981

Hello all, long time member but first time poster. 👍

I'm after a bit of advice about what to do about my electricity as I find it a bit confusing to say the least. 

I signed a two year fix with EON Next at the end of 2021,which turned out to be one of the best decisions I've made given all that has unfolded since shortly after. So I've been paying 2021 prices for the last two years. They even let me keep the fix when I moved house earlier this year which I was pleasently surprised about. 

Now the fix is ending next month and the cheapest fix E.ON are offering (I'm rural and electric only) me is;
£166.25 per month/£1995.11 annual.
57.87p standing charge
30.24 unit price


Is this a decent price now? I don't really know. 

As a family of 5, our electricity has been around £80 a month since we moved into this house. Would you advise fixing with E. ON (or another supplier) or hold tight and let it expire? 

Any help would be much appreciated 

QrizB

Welcome out into the open

You say your new home is electric-only. How is it heated? That estimate looks a bit low for an electrically-heated household of five, and if you have storage heaters I'd expect a split-rate tariff rather than single-rate.

£80 a month, in the summer, on 2021 prices, would suggest an annual bill closer to £3000 now.

Rick87981

QrizB said:

Welcome out into the open

You say your new home is electric-only. How is it heated? That estimate looks a bit low for an electrically-heated household of five, and if you have storage heaters I'd expect a split-rate tariff rather than single-rate.

£80 a month, in the summer, on 2021 prices, would suggest an annual bill closer to £3000 now.

Thank you 😊 

We are off the gas grid here, we use coal fired heating and hot water. Though we do have an immersion heater that come on over night to give us some hot water to save lighting the stove in the warmer months. 

QrizB

Ok, if you have solid-fuel heating that explains the single-rate tariff!

The fixed tariff you have been offered is similar to the current standard variable cap, but the cap is reviewed every three months (four times a year). Whether you fix or not will depend on whether you want the reassurance of a known tariff for the next year, or whether you want to take a chance on the cap rising or falling over that period.

I don't think you're risking a huge amount of money either way. If wholesale prices soar or slump tomorrow, it will take a while for the changes to filter through to the cap.

Are EON quoting any exit fees for that fix?

Rick87981

QrizB said:

Ok, if you have solid-fuel heating that explains the single-rate tariff!

The fixed tariff you have been offered is similar to the current standard variable cap, but the cap is reviewed every three months (four times a year). Whether you fix or not will depend on whether you want the reassurance of a known tariff for the next year, or whether you want to take a chance on the cap rising or falling over that period.

I don't think you're risking a huge amount of money either way. If wholesale prices soar or slump tomorrow, it will take a while for the changes to filter through to the cap.

Are EON quoting any exit fees for that fix?

Right, That is reassuring to know. I've not yet spoken to them directly, I'm hoping I can barter them down a bit if possible but it's good to know that the price isn't way out of line to begin with. 

The exit fee would be £75.

matt_drummer

Rick87981 said:

Right, That is reassuring to know. I've not yet spoken to them directly, I'm hoping I can barter them down a bit if possible but it's good to know that the price isn't way out of line to begin with. 

I am intrigued, how do you plan to barter them down?

Rick87981

matt_drummer said:

Rick87981 said:

Right, That is reassuring to know. I've not yet spoken to them directly, I'm hoping I can barter them down a bit if possible but it's good to know that the price isn't way out of line to begin with. 

I am intrigued, how do you plan to barter them down?

Is it not possible to negotiate on an energy contact in the same way that you can with phone, TV contracts etc? I don't think I've ever tried before. 

QrizB

Rick87981 said:

matt_drummer said:

Rick87981 said:

Right, That is reassuring to know. I've not yet spoken to them directly, I'm hoping I can barter them down a bit if possible but it's good to know that the price isn't way out of line to begin with. 

I am intrigued, how do you plan to barter them down?

Is it not possible to negotiate on an energy contact in the same way that you can with phone, TV contracts etc? I don't think I've ever tried before. 

The tariff is fixed, so no negotiation.

You might be able to convince them to set a lower monthly DD if you think you will use less energy than they have estimated, but do keep in mind that your DD isn't your bill.

matt_drummer

Rick87981 said:

Is it not possible to negotiate on an energy contact in the same way that you can with phone, TV contracts etc? I don't think I've ever tried before. 

Give it a go and let us know how you get on.

If you don't ask you don't get.

Unlike phone and tv contracts the energy companies make barely any profit from you, some even lose at the moment.

You haven't really got much to bargain with when talking to your energy supplier.

Rick87981

QrizB said:

Rick87981 said:

matt_drummer said:

Rick87981 said:

Right, That is reassuring to know. I've not yet spoken to them directly, I'm hoping I can barter them down a bit if possible but it's good to know that the price isn't way out of line to begin with. 

I am intrigued, how do you plan to barter them down?

Is it not possible to negotiate on an energy contact in the same way that you can with phone, TV contracts etc? I don't think I've ever tried before. 

The tariff is fixed, so no negotiation.

You might be able to convince them to set a lower monthly DD if you think you will use less energy than they have estimated, but do keep in mind that your DD isn't your bill.

I see. Well thank you for all your help. It's much appreciated. 👍

frugalmacdugal

Hi,

your fix at £80, 2 year ago has done you well, though rates have almost doubled sice then so £160 odd seems about right.

Do you have annual usage figures for the last year, and what rates and standing charge have you now been quoted?