Energy price cap update

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We’ll be changing our standard variable prices from 1st October 2020 in line with new price cap levels as set by Ofgem. 

What is the price cap?

Ofgem’s price cap limits what suppliers can charge an average user on a default tariff. It is linked to the wholesale cost of energy – the amount providers pay for gas and electricity on the markets – and a range of other factors including social and environmental obligations, the smart meter rollout and customer service costs.

 How do I know if this affects me?

If you’re on our E.ON EnergyPlan tariff, these changes apply directly to you and we’ll be writing to you in the coming weeks.

What is the level of the cap?

New price levels were announced by Ofgem on 7th August and these come into effect on 1st October 2020. For an average household using both electricity and gas and paying by Direct Debit, the price cap will change from £1,126 to £1,0421.

  • For people that pay by cash or cheque, the cap is slightly higher and will change from £1,209 to £1,1211 for an average household taking both fuels, reflecting the fact that it costs more to service customers who pay in this way. 
  • And for customers with prepayment meters, the price cap will change from £1,164 to £1,0701.

Are my new prices permanent?

Ofgem reviews the level of the price cap every six months in line with wholesale energy price movements, so if you’re affected, your prices may change again then. We’ll update customers who are affected when this happens.

Is there anything else I can do to help cut my energy bills?

There are two key things everyone can do to help ensure you’re not paying too much or using more energy than you need to:

  1. Make sure you regularly check you’re on the best tariff for your needs. Being on a standard tariff is usually not the cheapest option so consider switching to a fixed price tariff instead.
  2. Have a look at the tips on offer which can help you manage (and cut) your energy use. We offer lots of energy-saving tools on our website – from energy efficient boilers, to smart meters, to smart thermostats, to home insulation.

And remember, E.ON customers benefit from electricity backed by 100% renewable sources2, so if you get your electricity from us, this includes you.

1. Based on national average consumption of 2,900 kWh for unrestricted electricity and 12,000 kWh for gas.

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