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Price caps and other policies: how energy is playing a key role in the UK

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15
June

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Energy is playing a major part in Britain’s industrial future. Whether that’s in providing high quality, skilled jobs, driving innovation or creating simpler, smarter, more sustainable and efficient communities.

It’s therefore no surprise that energy is a major talking point for all of us. 

And in particular, you may have seen lots of discussion around the energy price cap that’s been introduced as one of the Conservative Party’s policies in its manifesto. 

The Conservatives pledge to “introduce a safeguard tariff cap that will extend the price protection currently in place for some vulnerable customers to more customers on the poorest value tariffs.” In simple terms, a price cap for more customers.

It is a policy that has split opinion and sparked a number of headlines – with many suggesting that the move closely echoes Labour’s ‘price freeze’ proposal put forward ahead of the 2015 general election. This is a suggestion rejected by the Conservative Party, which argues that a cap is very different from a freeze. 

At E.ON, we don't believe that price regulation should be introduced. We believe that the energy market works well for customers who look for the best deal for them in the same way they do for other products and services they use. 

That’s why today we have  launched E.ON Cap and Track 1 Year, a new dual fuel, fixed monthly Direct Debit tariff, which tracks the average price of energy tariffs on the market.

Competition between suppliers is the best way to deliver affordable energy bills and bring new and innovative products and services to customers. Intervention in the market risks dampening competition and will reduce the incentive for customers to become more engaged with their energy use and the products and services they want to see from their energy supplier. 

It’s why we always aim to be transparent and help customers find our best tariff, providing simple offers based on energy usage. 

How does Cap and Track work?

The price offered is revised daily as the market changes and, once signed up, your prices are reviewed quarterly. If the average market price at your review has fallen below your start price, the price will be lowered accordingly. 

If the average market price at your quarterly review is higher, then the price you pay is guaranteed not to rise above the price you originally signed up to, with no exit fee.

We believe tariffs like this show why E.ON aims to be at the forefront of global change and create a better tomorrow for everyone. We understand that competitive markets provide the best way of being innovative and harnessing the benefits of transformation digitally.

We made these views clear in our own UK energy manifesto – launched ahead of the UK General Election to set out our positions and policy suggestions to a future Government. We want to deliver new solutions, products and services built around customer needs in order to help them save energy and money.

It is clear that to deliver the future of energy in Britain, we need a coherent set of energy policies. The Government and energy industry should work together to meet the challenges that lie ahead. 

All 10,000 of us who work for E.ON are committed to creating a better tomorrow. And that starts with delivering the very best deals for customers.

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