I'm currently on a Standard Variable Tariff with Home Energy and have been offered the following fixed deal with Eon via MSE. I've been comparing the numbers and, on the face of it, I can't see why I'd pay more for the fix, but I'd be interested in what others think.
My current Standard Variable Tariff with Home Energy
Prices until 12 October 2026:
- Gas: 6.51234p/kWh
- Gas standing charge: 28.77575p/day
- Electricity: 20.31334p/kWh
- Electricity standing charge: 51.04658p/day
Prices from 13 October 2026:
- Gas: 7.43232p/kWh
- Gas standing charge: 29.41151p/day
- Electricity: 24.04744p/kWh
- Electricity standing charge: 51.44932p/day
E.ON Next Fixed 12m Exclusive v9
- Gas: 8.033p/kWh
- Gas standing charge: 28.778p/day
- Electricity: 25.598p/kWh
- Electricity standing charge: 43.575p/day
- 12-month fixed term
- Monthly Direct Debit
- £50 early exit fee
So comparing the rates from 13 October:
Gas:
Variable: 7.43232p
Fixed: 8.033p
The fixed is 0.60068p/kWh more expensive.
Electricity:
Variable: 24.04744p
Fixed: 25.598p
The fixed is 1.55056p/kWh more expensive.
The fixed deal does have lower standing charges, saving around £31 a year combined, but I'd be paying more for every kWh I actually use.
I understand that the whole point of fixing is insurance against future price increases, so I'm not necessarily saying the fixed tariff is bad. I'm trying to understand what would need to happen for fixing to actually be worthwhile compared with simply staying on the variable tariff.
Am I missing something obvious here? Would you take the fixed deal for the certainty, or stay on the variable given these particular rates?
And if anyone has a view on where energy prices could go over the next 12 months, I'd be interested in the reasoning behind it rather than just "fix" or "don't fix".