Eon Next Fixed or Pledge?

jbbjbb

Our Eon Next tariff is up for renewal (currently on Next Pledge Tracker 12m V1), and they are offering a 12 month fixed tariff (Next Secure Fixed 12m v17) or the newer Pledge v5.

The fixed tariff seems to be around 7% more expensive than our current one. The Pledge tracker would be a continuation of our current price.

It sounds like the cap will go up by around 10% in October until at April. Given that Pledge tracks a few percent below the cap, these rates seem pretty much the same for the immediate future?

Would there be a reason to pick one over the other?

Thanks!

Reed_Richards

You would pick the fixed if you think the cap will go up by around 10% in October, then up again in January and not go down in April.

You might prefer the Next Pledge if you think the cap will go up by around 10% in October but then not get any higher for the rest of your year on that tariff.    

spot1034

This is very short term but wholesale gas prices are moving up again today. Remember that the price cap for October to December will be based on an average of prices for the period over the past three months (the assessment period ends this week) so as the price has risen significantly it will not reflect the level of the wholesale price right now. The new assessment period to determine the January to March price cap will start next week with prices much higher than the average for the last period, and if prices stay roughly where they are now, the January price cap will therefore be higher than the October one.  What do you think is going to happen? Will prices start to come back down so that in three months from now there will have been a decline back to where we were, or will the average over the next three months be higher than the average over the last three? Then of-course you have to wonder what will happen to the April price cap. A lot to think about.

jbbjbb

Thanks both! It sounds like there's no obvious answer, and it's a bit of a dice roll either way.