Eon Next has reduced the prices on two of its 24-month fixed energy tariffs, making them the most affordable two-year deals offered by a major supplier. These new tariffs are priced below the expected October energy price cap and could provide further savings in 2027, contingent on accurate forecasts for the January price cap.
Predictions suggest that households on standard variable tariffs, paying by direct debit, could face a 25% increase in their energy bills compared to October levels. Ofgem, the energy regulator, is scheduled to announce the next price cap at the end of November. Current projections indicate that higher energy costs may persist until at least the end of March 2027, with EDF Energy anticipating bills to remain elevated until the close of the decade.
Opting for a two-year fixed tariff provides a hedge against future energy price volatility. However, customers may incur exit fees, set at £100 per fuel by Eon Next, if they choose to switch to a potentially cheaper deal should energy prices fall. Consumers can compare fixed energy tariffs through comparison websites like Uswitch.
Eon Next Tariff Details
Eon Next has adjusted pricing for both its standard two-year fixed tariff and its Smart Saver tariff, a time-of-use plan offering lower electricity rates during off-peak hours. Eligibility for the Smart Saver tariff requires a smart meter, enabling Eon Next to monitor energy consumption at half-hour intervals for accurate billing. The annual bill estimates for this tariff are calculated based on average usage across peak, off-peak, and super off-peak periods.
It is important to note that neither the energy price cap nor fixed tariffs limit the total amount a household will pay. Instead, they establish the maximum price suppliers can charge per unit of energy consumed. The quoted annual bill typically reflects the expected cost for an average household, defined by Ofgem as containing two to three individuals. Actual bills will vary based on individual energy consumption.
Eon Next's Fixed 24m v72 tariff is listed at an average annual bill of £1,689, which is £34 below the current October cap of £1,723 and £463 below the predicted January price cap of £2,152. The Eon Next Smart Saver 24m v7 tariff is slightly lower at £1,662, £61 below the October cap and £490 below the January prediction, with both tariffs carrying £100 per fuel exit fees.
Considerations for Fixing Energy Tariffs
For consumers not having fixed their energy prices in the past year, they are likely on a variable tariff subject to Ofgem's quarterly price cap adjustments. According to Uswitch, the ten cheapest fixed energy tariffs currently available are all 18-month or two-year deals. While one-year fixes are available, they are generally priced higher than longer-term agreements.
The energy market's volatility, influenced by unpredictable geopolitical events, makes future price predictions uncertain. Even supplier forecasts for January are subject to a degree of uncertainty, though the ongoing conflict in the Middle East suggests energy prices are likely to remain elevated. British Gas predicts an average annual bill of £2,160, EDF Energy forecasts £2,165, and Eon Next estimates £2,131 for the January 2027 price cap.
Securing a two-year fix offers long-term cost certainty for budgeting purposes. However, if geopolitical conditions stabilize and energy costs decrease later in 2027, consumers might find more economical tariffs. The decision to fix should therefore take into account exit fees, with the aim of keeping them low enough to allow for a move to a better deal if circumstances change.