E.ON Fixed Price 5 Tariff

A new fixed price tariff has been launched by E.ON called Fixed Price 5 which enables you to fix the prices of your gas and electricity for over two years.

The new E.ON Fixed Price 5 tariff could provide peace of mind to those who want to insure against price rises which may occur over the coming years. This is one of the longest Fixed Price tariffs available on the market but comes at a premium. The rates are currently 9% higher than their standard tariff which is not the cheapest in the market in any case.

However, for those people who want the assurance that they can budget their bills for the next two winter periods, then this may be something to consider. The best way to see if this is the tariff for your home is to compare prices online and see how this tariff compares with other fixed-rate options on the market today.

E.ON Fixed Price 5 Tariff Features at a Glance

Here’s our quick guide to this tariff and the features that it provides

• fixed prices for gas and electricity until 1st July 2013
• 9% premium on prices against the current E.ON standard tariff
• no cancellation penalties if you move before the end of the contract
• an additional 8% discount if you pay by monthly direct debit
• customers can earn Tesco Clubcard points on this tariff
• available for most customers but check the terms
• can be used for dual fuel contracts or single fuel
• average dual fuel price on this tariff is £1,126

If you decide this tariff is for you then you can either get quotes from one of the many price comparison websites or go direct to E.ON and sign up online.

Should You Choose a Fixed or Variable Tariff?

All the major energy companies are preparing UK homes and businesses for potential price rises over the coming years. If you are happy to stay on a variable contract, then E.ON’s cheapest tariff is with their ‘Sign Online’ tariff rates. Last time gas prices increased they rose by 9%. The sign online tariff has a 6% discount from the standard tariff so in effect the fixed priced rates are 15% higher than the cheapest option.

The good part about this fixed tariff is the length of the contract which is over 2 years and if you see that energy prices fall then you can opt out without paying any penalty and switch to a variable tariff at any time during your contract. This added flexibility may sway some people in choosing this tariff right now whilst energy consumption is at its lowest during the summer months and to see how price changes occur before the onset of the next winter period.

Although there are many things to consider the best way to see what options are available to you is to use a price comparison service. This way you’ll see all the prices for your home and postcode (as they vary from region to region around the UK) and then choose the tariff for you and then switch online if required. We like the concept of the E.ON Fixed Price 5 tariff for the length of the contract period and that there are no exit penalties.