What's the catch with Next Pledge Tracker compared to Next Flex ?

Mandami

As the title says, why EON offers both tariffs ? and one is a little cheaper than the other.
Is it because it one can go up or down every day and the other one is updated only every 3 months ? It doesn't seem so.

Netexporter

The Octopus Tracker tariff changes price every day, based on the day-ahead wholesale auctions. I presume the Eon version is similar. Of course, wholesale price trackers can go above the SVT (Flex) level in adverse conditions, although there is usually a cap, so people don't go bankrupt overnight, if a major event, like the war in Ukraine breaking out, disrupts the market.

Rodders53

Catch with the tracker* is you have to agree to a Smart Meter Install and pay by monthly DD according to EoN's uniquely over-estimate method of calculation for that DD amount?

For that they give you a £25 per annum per fuel discount.

* It tracks the SVR and applies the discount accordingly

bristolleedsfan

Netexporter said:

The Octopus Tracker tariff changes price every day, based on the day-ahead wholesale auctions. I presume the Eon version is similar. Of course, wholesale price trackers can go above the SVT (Flex) level in adverse conditions, although there is usually a cap, so people don't go bankrupt overnight, if a major event, like the war in Ukraine breaking out, disrupts the market.

Eon Next Pledge Tracker is not similar to Octopus Tracker in anyway shape or form

Next Pledge Tracker 12m v5

Our Next Pledge 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.

O/P it would cost Eon Next more to offer this tariff reduction on Next Flex + 

Next Pledge Tracker You also agree to book a smart meter installation within 90 days of your tariff starting, where eligible.***

Netexporter

Getting a smart meter is an advantage as it makes all manner of TOU tariffs available, which can save a considerable amount. I've used over 40kWh of electricity, today, and have been paid to do so.

Reed_Richards

Rodders53 said:

Catch with the tracker* is you have to agree to a Smart Meter Install and pay by monthly DD according to EoN's uniquely over-estimate method of calculation for that DD amount?

For that they give you a £25 per annum per fuel discount.

* It tracks the SVR and applies the discount accordingly

I think this is basically correct; it's a small financial incentive that gets customers without smart meters to agree to have one.  Unless they have changed the terms, then the discount if £50 per annum for either one or two fuels.