SAVINGS expert Martin Lewis has urged E.On customers to take advantage of a price fixing offer in order to save money on their bills.
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 can take advantage of.
The deal allows them to fix the price of their energy for a year, potentially avoiding future 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?
Martin told E.On customers to log into their online account and see if they were offered a “Next Online v11” deal, which includes a one-year fixed-rate period.
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This fixed period is priced around the same as the April price cap, around 50% more than their current bill, he said.
As a result, it 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 potentially forfeit one month of cheaper prices, between now and the new price cap starting, but in the long run you could save money if prices go up again.
Martin added: “Do be aware by doing this now, you’ll miss out on the much cheaper current rate by about a month, yet there’s no guarantee how long it’ll be on for.”
We have asked E.On how long the deal might run for, and will update this article if the company gives us any more information.
Should I fix?
Of course, if prices fell within the year, you could end up paying more if you remained on the fixed rate, but experts think this is very unlikely.
Martin also pointed out that some customers were being offered a two year fixed option, which was more expensive than the one year plan, but which might also be good in the long run.
“While the one year is a definite winner, the two year is a likely but less definite winner. As it depends on the cap from April 2023 (which current predictions say will drop),” he said.
“Yet if [you’re doing it] for price certainty it’s not a bad call.”
He did warn 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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This post first appeared on thesun.co.uk
