EON NEXT pledge V2 ending = what next?

gele

Hi all.
Looking for advice/opinions as my 12 month ends 1st Oct
So my monthly costs were/are til then  £183.98 on the pledge V2
I am being offered a 'special; offer-

Next Secure Fixed 12m v18  at £199.97 

not sure how 'special' that looks/is

or 

Next Pledge Tracker 12m v5 price adjusts every 3months with price cap but guaranteed £50 a year lower

Has anyone else had the email that might be on Pledge V2 now and been given the above options. Basically I'm wondering if the fix would be considered good value or if sticking with a pledge tracker guaranteeing always to be £50 less than the price cap is best.
Your thoughts appreciated.

BarelySentientAI

As will be posted every time this comes up:

Ignore what their guess at your monthly costs are.

That means nothing and does not help you at all.

Look at the unit prices and standing charges, and decide whether you think the prices on the fix are what you want for the next 12 months or whether you want to take whatever the variable rate does.

spot1034

It's special in that it's a tiny bit cheaper than what you'd be offered as a new customer - those deals should also be shown on your 'switch tariff' page.

It depends what you think is going to happen. Cornwall Insight will probably publish their final prediction for the October price cap early next week, and I believe the official announcement from Ofgem will be at the end of the coming week, but there are a couple of other forecasts already available, both updated weekly.

https://www.edfenergy.com/gas-and-electricity/price-cap-predictions

https://www.britishgas.co.uk/energy/price-cap.html

You will see that the previous predictions that the January price cap will not be much different to the October one have been revised in view of rising wholesale prices for Q1 25, but at the moment this is nothing more than a guess - the assessment period for that quarter begins on Monday.

A couple of weeks ago it was possible to fix at the level of the present price cap, but those deals have been pulled, in some cases their successors have also disappeared and the present offers from the major suppliers are somewhere between 6% and 9% more than the present cap. Factors to consider when deciding if a fix is the best choice include continuing (and possible escalation of) conflicts in parts of the world, other factors including accidents causing disruption to gas supplies and the weather in Europe in the coming winter. 

It is possible that the predictions of continuing high prices will be proved totally wrong if world peace breaks out and we have another unusually mild winter. It is up to you to make a judgement as to how likely these things are and act accordingly. 

gele

Thanks for your insight and views. I will look at unit prices and standing charges. I will keep an eye on next week for Cornwall Insight predictions and have a think about influencing factors. Thank you 

Lorian

I've just moved from eon to octopus on their 12 month fix. It works out slightly cheaper than eon fix being offered for me but more importantly there is no exit fee on the octopus one where eon want £50 per fuel.so when costs go down I can change tariff or supplier without being tied in 

RG2015

BarelySentientAI said:

As will be posted every time this comes up:

Ignore what their guess at your monthly costs are.

That means nothing and does not help you at all.

Look at the unit prices and standing charges, and decide whether you think the prices on the fix are what you want for the next 12 months or whether you want to take whatever the variable rate does.

Just had a thought on this old chestnut.

I have looked at my Eon.Next offers for a) Price Cap, b) Pledge, c) 1 Year fix and d) 2 Year fix for electricity only as I do not have a gas supply.

Each gives a monthly cost figure based upon their estimate for my usage. Based on my records, I am happy that the annual usage used is reasonable.

Based on my knowledge of my situation, I believe that using the monthly cost comparison is quite acceptable in my case.

I am also quite happy that the Pledge and variable tariffs are only fixed until the next review date, curently 1st October 2024. But this will always be a guess whatever research is done.

Therefore it is not always correct to ignore their monthly cost estimates.

RG2015

My Eon.Next forecast for 1 year is about 10%* higher than the Next Pledge and the 2 year offer is about 12% higher.

The Next Pledge is about 3% lower than their current standard price cap rate.

Hence I need to consider if the price cap will increase by more or less than their offers over the time period in question.

*edit I also have a special 1 year fixed offer about 8% higher than the current Next Pledge tarrif.

BarelySentientAI

RG2015 said:

BarelySentientAI said:

As will be posted every time this comes up:

Ignore what their guess at your monthly costs are.

That means nothing and does not help you at all.

Look at the unit prices and standing charges, and decide whether you think the prices on the fix are what you want for the next 12 months or whether you want to take whatever the variable rate does.

Just had a thought on this old chestnut.

I have looked at my Eon.Next offers for a) Price Cap, b) Pledge, c) 1 Year fix and d) 2 Year fix for electricity only as I do not have a gas supply.

Each gives a monthly cost figure based upon their estimate for my usage. Based on my records, I am happy that the annual usage used is reasonable.

Based on my knowledge of my situation, I believe that using the monthly cost comparison is quite acceptable in my case.

I am also quite happy that the Pledge and variable tariffs are only fixed until the next review date, curently 1st October 2024. But this will always be a guess whatever research is done.

Therefore it is not always correct to ignore their monthly cost estimates.

You have effectively ignored their guess and used your own, based on an actual understanding of usage - it just happens that your guess agrees with theirs.

That is very different.

RG2015

BarelySentientAI said:

RG2015 said:

BarelySentientAI said:

As will be posted every time this comes up:

Ignore what their guess at your monthly costs are.

That means nothing and does not help you at all.

Look at the unit prices and standing charges, and decide whether you think the prices on the fix are what you want for the next 12 months or whether you want to take whatever the variable rate does.

Just had a thought on this old chestnut.

I have looked at my Eon.Next offers for a) Price Cap, b) Pledge, c) 1 Year fix and d) 2 Year fix for electricity only as I do not have a gas supply.

Each gives a monthly cost figure based upon their estimate for my usage. Based on my records, I am happy that the annual usage used is reasonable.

Based on my knowledge of my situation, I believe that using the monthly cost comparison is quite acceptable in my case.

I am also quite happy that the Pledge and variable tariffs are only fixed until the next review date, curently 1st October 2024. But this will always be a guess whatever research is done.

Therefore it is not always correct to ignore their monthly cost estimates.

You have effectively ignored their guess and used your own, based on an actual understanding of usage - it just happens that your guess agrees with theirs.

That is very different.

Fair point, but their monthly cost takes account of the split between the standing charge and the unit rate, thus saving me the effort of the calculation.

And to be more precise I have used their "guess" and merely checked it was correct.

Hence sometimes the monthly cost provided is a valid comparitor.

Edit: My experience of Eon.Next is that their estimates are very good. Perhaps the OP's offers are also based on decent forecasts.

RG2015

I have just switched from the Eon.Next Pledge to their 2 year fix which is an increase of 11.5%.

My decision follows today's Cornwall Insight prediction which has a 9% increase in the price cap on 1st October. There don't appear to be any signs of price reductions in the coming months so I expect this Eon.Next 2 year fix to be withdrawn shortly.

I did note that in the headline details the fix included an early exit fee of £100 per fuel if I changed supplier before the end of the fixed term. This amount was not included in the terms and conditions saying the exact details would be on my confirmation email.

Upon receipt of the email I see that the early exit fee is indeed £100 per fuel but it now says it applies if I change supplier or product. Previously Eon.Next early exit fees had only applied to changing suppliers not other Eon.Next products.

 I am not unduly concerned but thought it worth letting others know of this. It would have been much better if they had made this completely clear in their wording before I had signed up.