Variable to fixed Direct Debit

danrv

Hi
I've changed from paying my electricity bill quarterly on receipt of bill to variable DD.
The bill from Eon Next says I could save £116 or £153 a year by switching tariffs. 
The latter is a fixed type and wondering if it's a good idea to swap.
Is fixed DD always better?
My property's electric only so do need the best or cheapest option.
Any help appreciated.

QrizB

Hi danrv! How's the heat pump going?

danrv said:

I've changed from paying my electricity bill quarterly on receipt of bill to variable DD.

Good move. DD tariffs are almost always cheaper than pay-on-receipt ones.

danrv said:

The bill from Eon Next says I could save £116 or £153 a year by switching tariffs. 
The latter is a fixed type and wondering if it's a good idea to swap.

Fixing doesn't always save you money, but it does avoid unexpected tariff increases if eg. Russia invades someone. The devil is always in the detail. What are the tariffs they've offered you? Are there any exit fees?

danrv said:

Is fixed DD always better?

Fixed DD is handy if you need help budgeting. Variable DD (where your DD changes each month, to pay that month's bill) means you don't carry a credit balance with your supplier. some people prefer one, others the other.

Netexporter

Have you got a smart meter? That is the key to getting the lowest cost by finding a tariff that fits your consumption pattern.

Scot_39

Fixed tariff and fixed direct debit are not the same thing.

If one of those prices is the pledge tariff - then it tracks bleow the Ofgem cap - so you will benefit if as currently forecast by likes of CI the cap drops.  But if CI et al get it wrong - it can rise.

ML / MSE aritcle on it here - as it states  - if it's down to fix or SVT - then pledge is a guaranteed saving.

https://www.moneysavingexpert.com/news/2023/09/e-on-next-launches-tracker-tariff-for-existing-customers-costing/

Whearas with a traditional fix you'd be paying the same prices for a year. 

Some fixes have more conditions on them on smart metering and payment method than others.

Are you sure they want you on a fixed direct debit if fix - the MSE article justs says DD - not fixed DD ?

And if not pledge Ofgem tracker etc - are you sure you want to fix.

You might want to scan e.g. CI forecasts

https://www.cornwall-insight.com/predictions-and-insights-into-the-default-tariff-cap/

And other threads on fix or not here.

As with a more typical fix - will be locking in at nearer current rates - the cap currently over £1900 - cf those £16-1700 forecasts to Dec - until next Jan as well if just a 1 yr fix.

But remember many of those will be lower consumption months too - and predictions are only predictions - so it's not a simple decision. 

Ultimately do some reading - but you'll find views are pretty mixed.  

danrv

Netexporter said:

Have you got a smart meter? That is the key to getting the lowest cost by finding a tariff that fits your consumption pattern.

No smart meter although I could probably use one. I get prompts from Eon Next to have one fitted.
I still have the old E10 timer system which actually gives cheap rate most of the day until 5.00pm.

danrv

@QrizB
Heatpump going well.

Kicking out good heat even in these sub zero temperatures.

Tariffs offered are NextPledge Tracker 12M V3. Could save £116.57 a year. Would need a smart meter. That's the cheapest similar tariff.
Also NextFixed 12M V6. Could save £153.25 a year. Cheapest overall tariff.
Will need to read up on exit fees.

QrizB

The pledge tracker is effectively a discount on the standard variable rate (which we're expecting the SVT to fall in April). If you want to stay with EON Next but don't want a fix, it's an obvious choice.

The 12m fix looks good compared to the current SVT but it might not look so good after the SVT is cut!

Scot_39

danrv said:

Netexporter said:

Have you got a smart meter? That is the key to getting the lowest cost by finding a tariff that fits your consumption pattern.

No smart meter although I could probably use one. I get prompts from Eon Next to have one fitted.
I still have the old E10 timer system which actually gives cheap rate most of the day until 5.00pm.

Are you actually on their E10 tariff ?  (Next flex E10 of whatever it's called these days)

Haven't asked for a while - but just about every other time I've been quoted a fix on bills and enquired etc - its been an E7 or single rate deal they have been enticing me with.  There were no E10 fixes only a variable rate last time I checked - so gave up asking few years back.

E7 is normally cheaper - last few times I checked - not Jan rates - there E7 off peak was c4p cheaper than E10 off peak.  Fine if your heaters etc up to it - not so good if not.

Have you actually checked the quoted tariffs in detail ?

And when they offer you a smart meter - have you asked -  if it will still be E10 ?

dealyboy

danrv said:

Hi
I've changed from paying my electricity bill quarterly on receipt of bill to variable DD.
The bill from Eon Next says I could save £116 or £153 a year by switching tariffs. 
The latter is a fixed type and wondering if it's a good idea to swap.
Is fixed DD always better?
My property's electric only so do need the best or cheapest option.
Any help appreciated.

Hi OP ...
I'm a bit confused as to what you're asking ... the title suggests it's payment method but the post suggests tariff type.

Tariff: I am with E.ON Next on Next Fixed 12M v6 E7 which I preferred to Next Pledge Tracker 12M v3 E7.
Payment: I pay by variable monthly DD according to each statement.

danrv

Scot_39 said:

danrv said:

Netexporter said:

Have you got a smart meter? That is the key to getting the lowest cost by finding a tariff that fits your consumption pattern.

No smart meter although I could probably use one. I get prompts from Eon Next to have one fitted.
I still have the old E10 timer system which actually gives cheap rate most of the day until 5.00pm.

Are you actually on their E10 tariff ?  (Next flex E10 of whatever it's called these days)

Have you actually checked the quoted tariffs in detail ?

And when they offer you a smart meter - have you asked -  if it will still be E10 ?

Yes. I'm on their Next Flex 10 tariff. It's from when the property had warm air heating but now I have aircon.
17.635p/kWh cheap rate from 7am to 5pm.
Then it's 34.830p/kWh for the rest of the time.
Haven't checked the tariffs in detail yet. I think a fixed payment type 12M plan has exit fees unlike variable.
Not sure if a smart meter would be E10. Will ask.

danrv

dealyboy said:

danrv said:

Hi
I've changed from paying my electricity bill quarterly on receipt of bill to variable DD.
The bill from Eon Next says I could save £116 or £153 a year by switching tariffs. 
The latter is a fixed type and wondering if it's a good idea to swap.
Is fixed DD always better?
My property's electric only so do need the best or cheapest option.
Any help appreciated.

Hi OP ...
I'm a bit confused as to what you're asking ... the title suggests it's payment method but the post suggests tariff type.

Yes, it's both really. Started out as payment method as per title. I guess the tariff type is relevant too as that would have a part in possibly bringing the bills down.

January bill is £199.73 which is partly why I'm asking about fixed DD so I pay an even amount throughout the year.
Bills in the warmer months are around a third of that so it all balances out.