E.ON Next Pledge - July/Oct Price Cap Viability

jdbuta · 29 May 2024 at 12:47PM

Following the announcement of the July Price Cap, which reduces the price cap by 7%, alongside a prediction that October's Price cap will rise by 12%...is the E.On Next Pledge still a viable deal? I recently moved onto it, but feel a 12 month fixed that's close/less than the July cap will now be the cheaper option, if the 12% October rise comes to fruition. What are your thoughts?

spot1034 · 29 May 2024 at 1:02PM

The prediction for October (and beyond) is still very uncertain. The forecast increase has gone up because in the past couple of weeks (the early part of the assessment period for the October cap) wholesale prices have risen significantly. However they do seem to be showing signs of stalling now (today's have been all over the place, up one hour and down the next) and it's possible that we could now see a fall of five or ten per cent which would lead to a more moderate increase in October. On the other hand they could rise further. It really isn't possible to be certain of anything now. This could prove to be the best time to fix for a year but equally in two or three months from now there could be better deals available. No one knows. This is not very helpful I know!