[meldrewreborn]

@retrotecchie and @JoeSoap

I think what I've not said properly is that Next Pledge guarantees to every user prices below the price cap with no catches - so why doesn't every customer who hasn't opted for a fix (as you two have) opt for next pledge?

The answer is inertia and or a lack of knowledge.

[JoeSoap]

@meldrewreborn

Beats me. Perhaps some folk have never heard of the likes of Martin Lewis.

[retrotecchie]

Originally Posted by JoeSoap

@meldrewreborn

Beats me. Perhaps some folk have never heard of the likes of Martin Lewis.

Who? 🤔

[meldrewreborn]

@JoeSoap

Financial education in the UK is pitiful.

[JoeSoap]

Originally Posted by retrotecchie

Who? 🤔

Boom boom 😂

[Andy65]

Originally Posted by meldrewreborn

@JoeSoap

the Next pledge tracker guarantees to be cheaper than the price cap by discounting unit prices by £50 for an average consumer. But low users get less and large users get more, which I accept but find puzzling. It would make more sense to me to discount the standing charges to deliver the same reduction for all customers. The devil as always is in the detail and at least now we have some options.

When I looked at my tariff options a few months ago the Next Pledge Tracker was the second most expensive for me, in fact I would have only saved £15.56 a year compared to Next Flex, and that was the total for both fuels.
I see nothing wrong in having a tariff(s) that benefit higher users, as long as there's a tariff(s) that benefit low users etc, but there won't be because it's not really in the interests of the suppliers and then there's OFGEM who seem to act in the interest of suppliers rather than customers.

[meldrewreborn]

@Andy65

whether the pledge tracker is attractive hinges on whether alternative fixed tariffs, possibly with exit fees, are viewed as reasonable in light of predicted quarterly price cap changes.

so one is comparing a fix of a certain duration against a discounted variable contract, where factored future price changes become more uncertain the further out they are. It’s not possible to predict the future prices with any great accuracy so it comes down to one’s own feelings about what the future has in store against a known fix.At the time of making a decision there can be no certainty as to whether the most cost advantageous has been selected, that can only be determined once the contract is over, and then of course it’s too late.

The energy suppliers can hedge their costs and will doubtless be profitable whatever we choose, for consumers the choices are intellectually complex even considering the offers from this supplier. But the Next pledge should be the default first step for those seeking to reduce prices, just as paying by Direct Debit should be.

customers can make up their own minds on this but many don’t even think about it, ever.

[retrotecchie]

@meldrewreborn

I would imagine that if every single customer not on a different fix were to switch from Flex to Pledge then E.On Next wouldn't actually lose too much money. The numbers will always be stacked in their favour. But thanks to ignorance or inertia, they are probably perfectly happy for a goodly number of punters to stay where they are on a less favourable tariff.