Secure or Tracker from EON??

At8

Hi, I can't get my head around these EON deals. The first one is fixed, with a £75 exit fee and around £100 more expensive a year than the tracker deal.

Is anyone here please able to advise if the tracker deal is likely to go over the secure fixed tariff of £1,657.99? Am I better off paying the £100 extra of the secure deal? I don't think it's likely I will move from EON, so I guess the £75 exit fee is not that much of a worry. 

Thank you!

Next Secure Fixed 12M V2

This tariff comes with 100% renewable electricity and your prices are fixed for 12 months. You'll need to manage your account online - you also agree to have a smart meter installed where eligible. An exit fee of £75 per fuel will be applied if you change product or supplier before your tariff end date. Remember, paying by Direct Debit gives you cheaper prices than if you pay when you receive your bill.

Monthly cost

£138.15

Annual cost £1,657.99

Electricity	Gas
Daily standing charge	38.18p	29.11p
Unit rate	30.15p per kWh	7.31p per kWh
Assumed annual usage	2,578kWh	8,681kWh
Estimated annual cost	£916.78	£741.21

Next Pledge Tracker 12m V2

Our Next Pledge fixed 1 year tracker tariff guarantees that your prices will always be £50 a year lower than the Ofgem price cap*. We'll update your prices automatically every three months. 

£50 saving as reduced unit rates split across both electricity and gas (£25 saving per fuel).

You’ll need to pay by monthly Direct Debit and manage your account online.

You also agree to have a smart meter installed where eligible.

No exit fees.

100% renewable electricity.

Monthly cost

£127.86

Annual cost £1,534.44

Electricity	Gas
Daily standing charge	38.18p	29.11p
Unit rate	27.50p per kWh	6.68p per kWh
Assumed annual usage	2,578kWh	8,681kWh
Estimated annual cost	£848.37	£686.07

la531983

At8 said:

f guarantees that your prices will always be £50 a year lower than the Ofgem price cap*.

Christ, and they wonder why people get confused with the price cap when they make statements like this.

spot1034

Basically you already know that the tracker tariff will be the cheaper option in the early stages. What you don't know is whether this will continue to be the case from January 1st. It seems likely that the price cap will rise then, taking tracker with it (at a small discount to the price cap). Is it going to rise enough to take the price of the tracker tariff above the secure tariff which will stay fixed for twelve months? And what is going to happen beyond that, in the second and third quarters of next year? None of us know, and I'd suggest that the price cap for Q2 and Q3 next year is going to be heavily dependent on the factors at play during the winter months - e.g, will the weather across Europe be particularly cold, will there be plentiful supplies of LNG gas or will (for example) strikes disrupt supplies? Will the world economy recover leading to increased demand for oil and gas or will it go into a further dip? Will there be some international incident that sends energy prices shooting up? You decide and make your choice accordingly. 

At8

Basically you already know that the tracker tariff will be the cheaper option in the early stages. What you don't know is whether this will continue to be the case from January 1st. It seems likely that the price cap will rise then, taking tracker with it (at a small discount to the price cap). Is it going to rise enough to take the price of the tracker tariff above the secure tariff which will stay fixed for twelve months? And what is going to happen beyond that, in the second and third quarters of next year? None of us know, and I'd suggest that the price cap for Q2 and Q3 next year is going to be heavily dependent on the factors at play during the winter months - e.g, will the weather across Europe be particularly cold, will there be plentiful supplies of LNG gas or will (for example) strikes disrupt supplies? Will the world economy recover leading to increased demand for oil and gas or will it go into a further dip? Will there be some international incident that sends energy prices shooting up? You decide and make your choice accordingly. 

Thank you spot1034! You are right, there are many factors that can push prices up. For me the £100 difference is not that great to risk the uncertainty of ending up paying more (or much more) later on. I will go with the fixed rate. Thanks for helping me understand it better.