6 November 2012

Eon raises Fixed Tariff prices

Eon have promised not to increase their standard rates until next year, but in a sign of what's to come, they have increased rates on their fixed deals by 7%

In a move seen as a pre-cursor to a January price increase on it's standard tariff products, Eon replaced it's fixed price tariffs with more expensive versions today.

The unit rates E.on Energy Fixed 1 Year tariff were increased by around 7% and just under 4% for the 2 Year tariff. Some small adjustments to the discount and reward structure keep the headline rate for "standard” usage of 3300kWh electricity and 16500kWh gas down to around the 6% mark.

It is interesting to see the increase on the 2 year rate being lower than the corresponding 1 year increases. There's still a premium on the 2 year deal but it's now down to about 2%. Given that the energy companies buy their energy on the futures market, it indicates that prices for next year's fuel are little more expensive than this year. This is potentially good news for variable rates late spring 2013. It could also mean that, after E.On increase their variable rate in January, we may not see such large increases next winter.

First:Utility have removed their fixed tariff rate and have yet to announce price increases for their variable rates. Until then, their iSave v12 is one of the most competitive tariffs available and has a 3 month guarantee on prices.

If you are still sitting on a Standard Tariff or your existing fix or discount deal is about to end, you should still shop around to get the best energy deal. To get the best deal it really helps to know your actual annual usage, you should be able to find that on your latest bill.