A TOP energy tariff has now been pulled after Martin Lewis urged E.On customers to sign up.
Households are being hit by soaring price increases after a new energy price cap was confirmed earlier this month, which will take the average household bill to £1,971 a year.
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That’s an increase of £693 for the average household.
But Martin pointed out an offer which E.On and E.On Next direct debit customers could take advantage of.
The deal let them fix the price of their energy for a year at the same level as the forthcoming price cap, potentially avoiding future price rises.
The new price cap comes in on April 1, but the government hasn’t ruled out future rises in the autumn.
How does the deal work?
The deal was launched in February and only available to existing E.On customers.
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Martin told E.On customers to log into their online account and see if they were offered a “Next Online v11” deal, which included a one-year fixed-rate period.
It was priced around the same as the April price cap – around 50% more than their current bill, he said.
That meant it was is worth signing up for because if prices rise again, you wouldn’t be affected as you’ve committed to a year at the same rate.
You would potentially forfeit one month of cheaper prices before the new price cap starting, but in the long run you could save money if prices go up again.
But the deal sold out within hours of the money guru’s tweet.
Martin said in its place are the Next Online V12 and Fix 1 Year v12 fixed tariffs, which are 15% more expensive than both the V11 deal and the new price cap.
E.On said the V12 tariffs would cost an average of £2,270 with typical usage, and have no exit fees.
Martin tweeted: “If you got the V11 tariff yesterday, you got it. Well done to all who got in in-time.”
However, he did add that those who had received a letter in the post offering the deal might still be able to get it by calling E.On.
So if you’ve received any correspondence from the firm, it’s worth phoning to check if you can still take advantage of the offer.
An E.ON spokesperson said: ”In these challenging times, we’re doing our best to offer competitive tariffs for our customers and to have them available for as long as we can.
“Our tariffs have to reflect the costs we pay on the global wholesale market and we offer a number of ways we can help customers through these difficult times.”
Should I fix?
While the V12 deal is significantly more expensive, some customers might still be tempted amid fears that energy bills will shoot up even further this year.
Some experts have forecast that average bills could reach £3,000 by October.
Martin has previously advised that households should avoid signing up to deals that were more than 59% above the current price cap of £1,277.
And those who don’t believe the price cap will increase again this year, should be even more conservative.
He also warned people to check all the terms they’re offered before signing up.
Generally E.On’s fixed tariffs don’t have an exit fee, meaning you could leave at any time, for example if prices drop.
But make sure you read the small print to ensure you know what you’re signing up to.
And ultimately, the right call depends on your personal circumstances and how much certainty you want to have over the coming months.
Could energy prices rise even further?
It has now been confirmed that the energy price cap will go up to £1,971 in April.
The increase had been widely expected amid soaring wholesale costs and a string of energy supplier collapses.
But it means households are now paying more than double what they were a year ago for energy thanks to a number of consecutive rises.
A further rise could come in October 2022 when the price cap is reviewed again, unless there’s a change in wholesale gas prices between now and then.
What should I do if I’m struggling to pay my energy bill?
The government has said it will intervene to help those struggling with rocketing bills – but what that help will be has not been announced yet.
In the meantime you should check you’re taking advantage of all the help already available through government, local, and energy company schemes.
There are also tips and tricks for making your home more energy efficient which can help reduce your heating bill.
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