Better Not to Cap at all?

dlyricist

Dear All,

I'm on EON Energy Online Extra Saver 5 and despite it's recent rises - it is still relatively cheap. I like others am concerned about the upcoming 40% price rises, and recognize capped deals are always going to be a gamble.
However currently my charges are:

Electricity
Normal units
10.4265 pence per kWh (40% increase would make it 14.4 approx)
Standing Charge
19.1625 pence per Day
Gas
Normal units
2.9127 pence per kWh (40% increase would make it 4.1 pence)
Standing Charge
12.1695 pence per Day

yet if I go Price protection V15 tariff which offers

Normal units up to 900 kWhs
19.0155 pence
Normal units
10.899 pence per kWh
Gas
Normal units up to 2680 kWhs
4.88985 pence
Normal units
3.1164 pence per kWh

Isn't the price protection still more expensive after the 40% increase for my existing tariff.....or I am another child of forgotten maths of the 80's ?

Any input of whatever sort appreciated...

Premier_2

It depends on how much tier 1 & tier 2 rates you will use. (tier 2 rates will be less than your current rates with 40% premium attached)

It also depends on when you think the price will increase and by how much

I see you haven't increased the standing charge by 40%. Any reason why not? If only the unit cost increases by 40%, then your energy bill will not rise by 40%. Perhaps you don't believe they will? Afterall, the BBC was reporting increases of up to 40% anticipated, which could mean anything from 0% - 40%.

Have you considered switching supplier - you may get better deals that way

dlyricist

Sorry Premier....regarding the standard charge ...even then it would not to the price of the capped one....or would it?

Premier_2

It really depends on how much you use.

Currently you pay a single flat rate plus a standing charge. If you use no electricity/gas, you'd be better off on the V15 tariff as no units means no charge. Under the Extra Saver 5 tariff you would pay even if you consumed no units (i.e. the standing charge)

Use a small amount (i.e. majority within tier 1 band) and you certainly would be best not to change tariffs.

But use a lot and the advantage eventually swings back to V15 as you'll be paying more for each tier 2 unit under the Extra Saver 5 tariff (once you add the 40%) than you would under the capped rate of V15.
i.e. elec 14.4p Vs 10.899p , gas 4.1p Vs 3.1164p