Eon Next has introduced new pricing for two of its 24-month fixed energy tariffs, placing them below the current October energy price cap. These offerings are now the most affordable two-year deals available from a major supplier.

The tariffs could provide additional savings in 2027 if current predictions for the January price cap prove accurate. Analysts anticipate that households on standard variable tariffs could see their energy bills rise by approximately 25% compared to the October rates, driven by escalating wholesale costs.

The Office of Gas and Electricity Markets (Ofgem) is scheduled to announce the next price cap at the end of November. If current forecasts are realized, energy prices are expected to remain elevated through at least the end of March 2027. EDF Energy has indicated that bills might remain 'stubbornly high' until the end of the decade.

By fixing a tariff for two years, consumers can secure protection against potential future increases in energy prices. However, if market prices fall, customers may incur exit fees to switch to a more favorable deal. Eon Next charges £100 per fuel type for early termination.

Eon Next Tariff Details

Eon Next has reduced the prices for its standard two-year fixed tariff and its Smart Saver tariff. The Smart Saver tariff is a time-of-use plan that offers lower electricity rates during off-peak periods. This plan requires a smart meter for Eon Next to monitor and accurately price energy consumption at half-hour intervals.

The quoted annual bills for the Smart Saver tariff are calculated based on average usage across peak, off-peak, and super off-peak times. It is important to note that neither the energy price cap nor fixed tariffs limit the total cost of a consumer's bill. Instead, they set the maximum price per unit of energy used. The average annual bill figures are based on Ofgem's classification of an average household, typically defined as having two to three occupants.

Eon Next's two-year fixed tariffs are priced as follows:

  • Eon Next Fixed 24m v72: Average annual bill of £1,689, which is £34 below the current October cap (£1,723) and £463 below the predicted January cap (£2,152). Exit fees are £100 per fuel.
  • Eon Next Smart Saver 24m v7: Average annual bill of £1,662, which is £61 below the current October cap and £490 below the predicted January cap. Exit fees are also £100 per fuel.

Evaluating a Two-Year Fix

For consumers currently on a variable tariff, which is subject to Ofgem's quarterly price cap adjustments, fixing a deal can offer stability. According to comparison site Uswitch, the ten cheapest fixed energy tariffs currently available are all for 18-month or two-year terms. One-year fixed deals are available but are currently priced higher than longer-term options.

The energy market's volatility, influenced by geopolitical events, makes predicting future prices challenging. Even supplier forecasts for January come with a degree of uncertainty, though ongoing Middle East conflict is expected to keep wholesale prices high. For instance, predictions for the January 2027 price cap from major suppliers range from £2,131 (Eon Next) to £2,165 (EDF Energy).

Committing to a two-year fix provides long-term cost certainty, aiding household budgeting and energy usage planning. However, if geopolitical situations improve and energy costs decrease later in 2027, consumers might find cheaper tariffs on the market. The decision to fix should consider exit fees, ensuring they are manageable enough to allow for switching to a better deal if necessary.