Why we’re saying goodbye to our standard variable tariff

Michael Lewis, Chief Executive - E.ON
Posted 21/09/2017 by E.ON

We think standard variable tariffs have had their day. We want to help our customers engage with the market in a different way and with energy tariffs that work for them.

So the time has come to say farewell to our standard variable tariff, and over the next few months we’ll be working behind the scenes with Ofgem and the Department for Business, Energy & Industrial Strategy to make this happen.

Our plan

Starting in early 2018, standard variable tariffs will no longer be the default option for people coming to the end of their existing tariff. Instead, our customers will have the option to ‘roll over’ onto the latest version of a fixed term contract.

Our existing standard tariff customers who have a smart meter, or who have arranged to have one fitted, will move to a new fixed term tariff with the same ‘roll over’ option or, if they really don’t want to, will have the possibility to opt out and remain on an evergreen variable tariff.

Woman reading letter on stairs - E.ON

We believe smart meters are important to achieving this because the technology opens up a world of more accurate billing and choice.

The new fixed tariff will have a price fixed for one year to give our customers security. Like a standard variable tariff, this fixed term tariff will have no exit fee and customers are free to engage with the market as they see fit. In the same way as today, we’ll still prompt our customers to consider all our tariffs to choose one that best meets their needs.

What we’re doing to make it happen

Over the next few months we’ll be making sure our processes are right, so our customers can easily change their meter and switch tariffs. We’ll also be working with Ofgem and the Department for Business, Energy & Industrial Strategy to make sure they’re comfortable with the changes we’re making.

What you can do in the meantime

The power’s still in your hands. Right now you can see if you're eligible for a smart meter, and pick from a range of tariffs to get the benefits of a fixed deal.

And keep an eye out for more to come. Today’s announcement is just one of the many things we’re doing to reenergise the energy market and improve our service to our customers.

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