Savings on energy bills: E.ON response to Ofgem price cap announcement
This is also the time to consider improving the energy efficiency of millions of homes around the country – saving people money now and in the future. There’s no doubt upgrading millions of UK homes, such as through the Government’s Green Homes Grant, is the best possible option for a green economic recovery; it delivers jobs and economic stimulus as well as other benefits including better health and wellbeing and lower energy bills.
The energy regulator, Ofgem, today announced the market-wide price cap will fall by an average £84 from 1st October – with lower prices driven by overall falls in the wholesale prices of gas and electricity since the start of the year1.
Commenting on today’s announcement, E.ON UK Chief Executive Michael Lewis said: “As we predicted just last week, the impact of COVID-19 on the global economy has provoked a downward trend in wholesale energy prices since February, which has been reflected in the level of the price cap.
“I know people will have used more energy at home while in lockdown, which is why this announcement will be welcomed by customers, especially as it will come into force just ahead of the winter months. This is also the time to consider improving the energy efficiency of millions of homes around the country – saving people money now and in the future.
“There’s no doubt upgrading millions of UK homes, such as through the Government’s Green Homes Grant, is the best possible option for a green economic recovery; it delivers jobs and economic stimulus as well as other benefits including better health and wellbeing and lower energy bills.”
The reduction in the level of the price cap means almost 1.7 million customers on E.ON’s standard tariff, E.ON EnergyPlan, will benefit from lower prices from 1st October.
More than three million E.ON customers - on all tariffs - already benefit from electricity backed by 100% renewable sources2 including wind, biomass and solar.
To find out how E.ON can help customers find an energy solution that is smart, sustainable and personalised for them visit: eonenergy.com/renewable.
As part of today’s announcement, Ofgem also recommended the price cap be extended beyond 31st December 2020 for at least another year.
Michael Lewis added: “We have repeatedly said a price cap is not the right mechanism for reforming the domestic energy retail market, but we do want to see a level playing field for all suppliers as well as effective competition that benefits all customers, especially the vulnerable.
"There are still acknowledged distortions in this market, for example allowing smaller suppliers to avoid paying their share of the social and environmental schemes that benefit the whole country. Alongside that, the poor behaviour and unsustainable pricing policies that have been allowed to exist have caused many suppliers to exit the market in recent years, leaving behind debts to be picked up by the remaining suppliers and their customers.”
Notes to editors:
2 = Electricity sourced from E.ON’s renewable generation assets, supply agreements with independent UK wind generators and the purchase of renewable electricity certificates. The electricity supplied to your homes comes from the National Grid. Find out more at eonenergy.com/renewable.
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