E.on Next launches fixed energy tariff beating energy price cap – but should you switch?
The new deal is cheaper than the energy price cap and has a couple of notable features but is it worth switching now?
E.on Next is the first major energy supplier to launch a fixed tariff costing less than the price cap and that’s available to both new and existing customers.
E.on Next’s ‘Next Fixed 12m v2’ is available as dual-fuel, electricity-only, or on Economy 7. It will cost a household with typical use £2,040 a year. Exit fees are £75 per fuel. New and existing customers can sign up online and will need to pay for their energy via direct debit.
According to analysis by MoneySavingExpert.com, the E.on Next deal is currently the cheapest energy tariff available to everyone.
The energy price cap is currently £2,074 a year so the E.on Next fixed tariff is £34 or 2% cheaper. However, the energy price cap will fall to £1,923 from October, meaning the E.on deal will then be more expensive than the price cap.
The price cap is predicted to rise again from January, with analysts at Cornwall Insight predicting it will be increased to £1,979. However, the E.On deal will still work out more expensive than this.
Should you switch to a fixed tariff?
Fixed energy deals disappeared from the market during the energy crisis but suppliers are starting to offer them again.
Other ‘open market’ tariffs are offered by So Energy, British Gas, EDF, Shell Energy, and Utility Warehouse. However, some of these are more expensive than the energy price cap.
Octopus, Ovo and Utility Warehouse (UW) offer fixed deals for existing customers. However, with the UW offer, customers need to take energy and switch one of their existing mobile, broadband or insurance services as well.