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Confused about tracker vs fixed options savings
Apologies if I'm being dense here - my fixed SO Energy deal is coming to an end on 1st April and my household has very high gas usage. a couple of weeks ago I was looking for fixed price deals but everything had been withdrawn. i signed up to the Eon Next Pledge tracker (5.24p gas unit price), switching on 1st April
I've just called Eon again to see what their fixed deals are - they have a 2 year fixed deal where the gas unit price is 7.74p (48% higher than the tracker price).
i've also seen the news that the price cap is going to go up by ~15-20% in July. if that is the case, and i stick with the tracker, my gas price will go from 5.24p to 6.3p, which will still be below the 7.74p. if it goes up again by 20% in October, it will go up to 7.54p, still below the fixed 7.74p. even if it goes above the 7.74p after 6 months, I would have been saving for the first 6 months and then paying more for the remaining months of the deal
is this a reasonable way of looking at things or am i missing something in these calculations? i've never been on a variable tracker before - do they only increase or decrease in price once a quarter with the price cap changes? or do they increase in price on a daily basis?
sorry in advance for the silly question!
Comments
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We are now back to the scenario of fixes only giving certainty, not savings. The trackers follow the cap so change every time the cap changes.
Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
0 -
It's Octopus Tracker that changes every day. It's unfortunate that suppliers are using the same term for different types of tariff.
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