Martin Lewis today flagged two different fixed-tariff deals, one for one year and one for two years, made available to a number of E.on customers who pay in direct debit and is above the price limit.
The founder of MoneySavingExpert marked how some E.on households paying by direct debit and by rate cap are being offered two different flat rate arrangements.
These are described by Martin as “sure winners” for those who want price certainty amid the cost of living crisis.
The first tariff flagged as a one-year fix of E.on Next Online V11, which Martin pointed out is the same rate as the April 2022 price cap.
Ofgem has announced that it is raising its energy price ceiling – limits the price your supplier can charge for each unit of gas and electricity you use – is £693 from £1,277 to £1,971.
If you’ve been offered this price as an E.on customer, Martin said you should “bite your hand and accept it” as energy prices are expected to rise again later this year. . Ofgem will review its price cap in October 2022.
Write more articles Twitterhe said: “SHAREING IMPORTANT PLANT: Customers directly debit E.on and E.on Next for the price limit?
“Log in today and see if you offer a fix for 1yr NEXT ONLINE V11. It should have the SAME rate as the April price cap (i.e. 54% more than it is – check it out). If so, since the limit is likely to increase by 24+% in October, that’s a corkscrew. “
This tariff is being offered to some existing E.on customers.
Of course, if prices drop during the year, you could end up paying more than if you kept your interest rates flat – but experts say that’s highly unlikely. Some customers also told Martin that the deal had no exit fees.
E.on customers are also expected to be offered a slightly more expensive two-year repair, which Martin describes as “a little less but still a definite winner.”
The reason why this can be seen as less “deterministic” is that you are subscribed for a longer period of time and it is difficult to predict how energy prices may fluctuate in the long term.
“While 1yr is a sure-fire winner, 2yr is a likely but less certain winner,” he said.
“Because it depends on the limit from April 2023 (which current projections suggest will decrease). However, if the price is certain, it’s not a bad call. ”
Martin also points out that you’ll miss out on about a month of lower rates if you lock in now before the new price cap takes effect from April.
But he predicts it could still save you money in the long run if prices rebound in October.
“Be aware by doing this now you will miss out on the much cheaper current rate for about a month, but there is no guarantee how long it will last. Overall, if the predictions are right, it will win,” he said.
“And check all the terms you are offered before signing up.”
How the energy bill crisis affects you
Some customers said they were offered these flat rates by E.on on the condition that they accept the smartwatch. However, you should still be offered these prices even if you can’t buy a smartwatch.
The broad advice given to most households during an energy crisis is to “do nothing” and impose a price cap.
This alters traditional price comparison advice – as often customers are advised to shop around for a cheaper deal.
But the trouble is, there aren’t any fixed tax rates on the open market that are cheaper than the current ceiling price due to the rising cost of wholesale gas prices.
https://www.mirror.co.uk/money/martin-lewis-issues-important-warning-26350191 Martin Lewis issues critical warning to every E.on customer as energy bills soar