[bmfield]

Hi. Now that the tariffs including the new price cap have been released, I'm comparing them and trying to work out what the best option for me is - stay on the variable rate, 1 year fix or 2 year fix. But I'm confused over the tariff comparison rates. I'm being told that the overall cost and unit cost/standing charge for the variable rate and 1 year fix tariff are identical, but the TCRs are different - how can this be? Are the Next Flex TCRs wrong or are there some hidden discounts not listed?

To explain I'm comparing Next Online v11 and Next Flex (both have identical unit rates and standing charges as follows):

Electricity Unit rate = 27.86p per kWh
Electricity Standing Charge = 48.13p per day
Next Online v11 TCR = 33.92p per kWh
Next Flex TCR = 23.75p per kWh

Gas Unit rate = 7.37p per kWh
Gas Standing Charge = 27.22p per day
Next Online v11 TCR = 8.16pm per kWh
Next Flex TCR = 4.81p per kWh

[Rosietoes03]

This is the same with me, and worried whilst waiting a reply they will pull the deal.

[meldrewreborn]

the variable rate, which looks like price capped rates is variable and could go up or down . The fixed price is just that for the fix period. There is an anomaly in the TCR rates quoted as they are lower than both the fixed and variable unit rates and in reality a bit impossible. The TCR is supposed to be a guide to assist customers, but in this case its clearly not and my advice is to ignore it (them). TCR rates are never used in computing a bill. The way the TCR is calculated is probably regulated by OFGEM to ensure consistency between suppliers but in this case its producing absurd results. However its equally possible there's a bit of finger trouble in the website office.

The NextonlineV11 offers the same prices as the new variable price capped rates from April 2022 but you start paying them now - 5 weeks earlier. On the other hand you are protected from even higher rates from October 2022 if ,as seems likely, OFGEM announces even higher price caps then. If prices do fall later (but within the 12 month fix period) you have the option to leave with no exit fee. This seems to be a very good option to me.

The next2yearV18 tariff is similar but about 5% dearer than the 1 year fix. This provides more certainty (24 months compared to 12) but comes at a cost -you pay more compared to the 1 year fix. On the other hand if prices continue to move up you are protected longer. This too is a good option as you are protected from rising prices for longer, but have the ability to switch to a cheaper tariff if these become available with no exit fee.

[bmfield]

@meldrewreborn Thanks - I went for the 2 year fix in the end.

[meldrewreborn]

Glad to have been of assistance.

[GregS]

Yes I also noticed that the TCRs differed (which given the identical pricing in the two tariffs is imposiible...) the TCR on Next Online v11 was the correct one by my calculation and the TCR given on Next Flex was completely wrong.

I hesitated for a while until I had checked the numbers but luckily still managed to renew with v11. That tariff has gone now unfortunately and I could easily have missed out or mistakenly opted for the variable tariff if I had just used the TCR for comparison.