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Eon hikes prices on cheapest fixed energy deals

Should existing Eon customers be worried?

Eon has increased the prices of its cheapest fixed energy deals for new customers. Is this a sign that it is about to announce a price rise for existing customers?

Energy giant Eon has hiked the prices of its fixed tariffs: Age UK Fixed 1 Year, Eon Fixed 1 Year and Eon Fixed 2 Year. People already on these tariffs won’t be affected, but new applicants will only be able to sign up to the new more expensive version.

Currently, the cheapest fixed deal on the market available to all is Ovo Energy New Energy Fixed, at £1,139 a year for the average home. It’s only fixed for 12 months from the date you sign up, and has a cancellation charge of £30 for gas and £30 for electricity if you leave before the 12 months are up.

The cheapest variable deal is Spark Advance from Spark Energy, at £1,041 a year for both gas and electricity. That’s £98 less than the cheapest fixed tariff. While you would not be protected from future price rises, you could still switch at any time.

Find out which energy company offers the cheapest gas and electricity for your home using our independent comparison site Which? Switch. 

Eon fixed energy deals

The cheapest fixed tariff on the market used to be Eon Age UK Fixed 1 year, costing £1,138 a year for an average dual-fuel user. This has now gone up by £82 to £1,220. This deal is only available to over 60s and has no cancellation fees.

The new Eon Fixed 1 Year v2 is now £1,230 a year, and has gone up by £82. That’s £91 more than the cheapest fixed deal. It is fixed for a year and has a cancellation charge of £5 for electricity and £10 for dual fuel.

Eon’s Fixed 2 Year v2 is now £1,254 – an increase of £47. Cancellation fees are £10 for electricity and £20 for dual fuel. It’s not bad for a two-year fixed deal, although the latest EDF Blue tariff is slightly cheaper at £1,251 and fixed for slightly longer – until 31 March 2015.

Eon energy price rise

Five of the six main energy suppliers have already announced price rises for this winter, as high as 10.8% for some. Eon has yet to announce but has promised not to raise prices until the end of the year. 

But the withdrawal of good deals is often a sign that a company is about to announce a price rise. If Eon were to raise its prices on 1 January 2013, it would have to announce it at least six weeks before, ie 20 November 2012. 

So could we see Eon announce its price rise in the next few days?

Signing up to a fixed rate energy deal will protect you from future price rises but whether or not you choose to fix is a matter of personal choice and attitude to risk.

Fixed deals offer you peace of mind that prices won’t go up in the period you’ve signed up for, but they’re often more expensive than the current cheapest variable deal on the market. And, if  prices fall, you could lose out.

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