Winners and Losers

  • JoeSoap's Avatar
    Level 91
    Well 1st October is almost upon us and we will see the introduction of new Standard Variable Tariff Rates (SVRs) falling in line with the Government Energy Price Guarantee (EPG). As evidenced in this forum, there is still a lot of confusion around and some of us still don't know how we will do in the long run as a result of decisions we did or didn't make. It would be nice if we all ended up about the same but I think there will inevitably be winners and losers.

    Many were probably blissfully unaware of the impending changes and how the forecast of the new Price Cap increase kept rising to ever higher levels. In the event, they will probably do as well as they could have done by not knowing that they could have made some moves to lessen the blow.

    Others are on old Fixed Tariffs which are less than the existing SVRs and will simply move to the new EPG-based SVR when their fix ends. They too will have done comparatively well.

    Those who were are currently on the SVR will just move automatically to the new EPG rates.

    Then there are those whose current fixes came to an end in the last month or two and had to make a decision on whether to fix again or revert to the SVR and see what happens. This was a difficult choice given they did not know what the new price cap was going to be and could only watch the increase forecasts with increasing worry and anxiety.

    I chose to fix again at v17 when I saw the forecasts reach a level where I would be better off over the course of a year than I would be if I reverted to the SVR. When the forecasts kept increasing I was convinced I had made the right choice. Then they reached levels where we had to wonder whether the government could really let it happen. We now know that they didn't let it happen so that threw us into another quandary. Do we jump ship now or do we wait until October and see how we do?

    Some jumped to the SVR as soon as they could. I chose to follow the advice I was reading on the MSE site, the Gov site and on this forum and stick with my fix. I'm gambling with about £50, so considerable. If I've read things right then I might be a bit better off, but to be honest, with the introduction of 'the floor' and some things I'm reading now, I'm not so sure. I could well end up a loser.

    Here are the bits of advice I made my decision on. They all seemed to tell me to stay on my fix and do nothing.

    From MSE... Particularly the bold bit...

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    From Gov... third paragraph down...

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    From an email reply from Eon Next to a member of this forum asking to revert back... Told that the re-price will be back-dated...

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    Did I get it right? Who knows!

    How do you think you did?

    Joe Soap ... The loser???
    Last edited by JoeSoap; 25-09-22 at 10:25. Reason: Typo
    I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit.
  • 35 Replies

  • meldrewreborn's Avatar
    Level 91
    @JoeSoap

    Those who fixed more recently may well end up with a reduced price compared to the fix they entered into, but still above the EPG. Personally, if that had been me (it wasn't) I'd have cancelled like a shot, once the situation became clear, which took too long to emerge in my view, many of here with great experience and wisdom, were confused about what the EPG actually meant for those on fixed price deals of recent origin.

    As customers were advised to do nothing, if it turns out that that advice was wrong and has cost them money, I'd make a formal complaint at the earliest opportunity, and write to my MP. This government wants a quiet life and is throwing money around with *** abandon.
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.
  • JoeSoap's Avatar
    Level 91
    @meldrewreborn

    The real bit that has made me wait is in the last screen shot where an eon next advisor has said, ‘’There is no need to switch back to the Standard Variable… will be re-priced in line with announced cap… re-price will be back-dated to the date you selected your new tariff.’’

    It reads to me that I will be better off if I wait but I’m interested in other folks take on it.
  • meldrewreborn's Avatar
    Level 91
    @JoeSoap

    The proof of the pudding is in the eating - or so they say. I've already worked out my bills under my fixes, under fixes amended by the EPG and on the EPG rates instead. I've had nothing at all from either EDF or Eon next on rates from October 1. I think its proving more complicated in implementation than they might have thought, and the need to get it absolutely right is paramount. In the back of my mind is the thought that 10 days' notice of price changes (increases) needed to be given and there are not now 10 days until 1 October. I could well be wrong on that.
  • meldrewreborn's Avatar
    Level 91
    And I don't think many will be losers from the EPG - only those on an expensive fix with high exit fees - but Martin Lewis is set to expose companies that don't meet his expectation.

    But winners - there will be millions of those with amounts ranging from little or almost nothing to quite substantial amounts in the case of really heavy gas users.
  • Andy65's Avatar
    Level 44
    @meldrewreborn

    The real bit that has made me wait is in the last screen shot where an eon next advisor has said, ‘’There is no need to switch back to the Standard Variable… will be re-priced in line with announced cap… re-price will be back-dated to the date you selected your new tariff.’’

    It reads to me that I will be better off if I wait but I’m interested in other folks take on it.

    Looking at that last paragraph @JoeSoap I would say that's a policy decision that eon-next have made and the Advisor has copied and pasted it rather than writing their own reply/interpretation of what might happen.

    My fixed tariff ended at the end of July and I went on to the variable. My main thinking was that because of the amount of households on the standard variable, the Government was always going to have to do something else, and therefore the variable was worth the gamble.

    Presumably when they back date the tariff prices to when you fixed, they won't return the extra £'s that you've paid each month on the new fixed tariff? I guess that just stays in your account.
  • JoeSoap's Avatar
    Level 91
    @Andy65

    I remember thinking at the time that you were taking a gamble that I wasn't willing to take by choosing Next Flex. You definitely made the right call.

    You read that response from Eon Next as I do then. I'd be very happy if any refund stays in my account... as long as I get it. Time will tell.
  • meldrewreborn's Avatar
    Level 91
    will they return the extra £'s? There is so much that is unclear, and because our visibly of the various old tariffs is so limited we'll struggle to make sense of new postings where customers are unhappy.
  • Mailman's Avatar
    Level 57
    Fortunately I've not needed to make the decisions all you folk have had to make in the recent months as my good fix from October 1st last year proved to be a very wise move (I moved from Bulb to Eon Next setting the switch wheels in motion only 2-3 weeks after moving into my present home (Bulb was the incumbent supplier). There were distinct rumblings in early September last year as I recall and I didn't want to get caught up with a supplier on the wane. I did grab a v18 fix to commence on the expiration of the v7 fix (actually 1st October in 6 days time). The calculations I have done for this new fix would make this circa £50 more expensive over the next 12 months compared to reverting to the new EPG Flex cap so not a great deal of difference (circa 3/4 of a petrol tank these days). Will be ditching my move to v18 in the next few days assuming I can make contact easily with Eon Next before October 1st.

    The biggest change in the last year (especially since late December 2021) has been a relentless drive to cut my energy consumption and that has made a significant difference. I anticipate paying out circa (£1800 less £400) £1400 actual for the y/e 1st October 2023 compared to £880 that I will have paid for the y/e 1st October 2022. Considering the nightmare numbers I was geared up for just 1 month ago, the next year will prove easier on my household.

    I sincerely hope all the customers who have paid over the odds in the last few months through being on a 'new' fix compared to reverting to the April SVT rates and almost certainly paying more because of this get the recompense that Eon Next appears to be suggesting will happen.