Price Cap Q&A

  • TAYLOROY's Avatar
    Level 1
    @PeterT_EONNext
    Hi Peter, my deal is coming to end shortly, I see you have a tariff named Next Online v10, is this slightly cheaper overall than the new price cap, if so it maybe worth a look as there isn't any exit fee. ALSO Can you please share Eon's capped prices, it would make it easier to compare.

    Thanks in advance for your help
  • PeterT_EONNext's Avatar
    Community Team
    Hi @TAYLOROY Welcome to the community forum 😄

    We can't list the capped prices on the Next Flex tariff on our website yet, as this changes on 1st April, so the price of that tariff has to remain as it is until the change comes into effect for anyone getting a quote across all of our available tariffs right now.

    The new price cap is priced at 54% higher than the current rate. Prices do vary slightly by area. It may be worth calculating 54% extra on top of the Next Flex tariff currently to give you an idea and then compare this to the costs quoted to you on the Next Online v10.

    Pete 😊
  • UKDave51's Avatar
    Level 3
    Hi, i`ve just read this little gem on another form, outrageous if it holds any water , more than £20 a month before you even start paying for your fuel.

    Standing charge for electricity is going from 25p to 45p a day.

    Reasons by OfGem include

    - some costs to fund suppliers who have taken on bust firm’s customers
    - increased network maintenance costs
    - increased green gas levy and WHD rebate
  • Beki's Avatar
    @UKDave51 You usually see a reduction in standing charges by choosing a fixed rate tariff 😊
  • Andy65's Avatar
    Level 43
    Hi, i`ve just read this little gem on another form, outrageous if it holds any water , more than £20 a month before you even start paying for your fuel.

    Standing charge for electricity is going from 25p to 45p a day.

    Reasons by OfGem include

    - some costs to fund suppliers who have taken on bust firm’s customers
    - increased network maintenance costs
    - increased green gas levy and WHD rebate

    In my opinion @UKDave51 Ofgem seem to favour the Suppliers rather than the customers. Ofgem restricted the number of tariffs that could be offered, consequently all of the good tariffs disappeared and we ended up with hardly any competition between tariffs.

    As you point out the standing charge is another example. With the SC being so high relative to the price per KwH, there's much less incentive for the consumer to use less electric and/or gas because it has a much lesser effect on their overall bill. The Supplier however gains by increasing its fixed income (SC) and again by a lower effect of any customers using less.

    If Ofgem had the interests of the consumer at heart then it wouldn't allow a Standing Charge anywhere near 25p per day, nor allow it to increase by 80%.
  • Landmark's Avatar
    Level 29
    If Ofgem had the interests of the consumer at heart then it wouldn't allow a Standing Charge anywhere near 25p per day, nor allow it to increase by 80%.
    Too right mate!
    It is extremely unfair to impose such an inflation busting increase on a cost that the consumer has absolutely ***NO*** control over, unless there is a fixed tariff to suit a particular consumer requirement
    Last edited by Landmark; 06-02-22 at 22:56. Reason: Had to add a relevant suffix
  • Pat88's Avatar
    Level 1
    Hello - I'm a pensioner who came over to EON when Symbio went bust and my Next Flex day rate (I have Eco 7 as well and that's another story...) is over 25p per unit, yet the current price cap on the Ofgem web site is 21p I believe - why am I paying more?
  • jack's Avatar
    Level 1
    @PeterT_EONNext so my fixed tariff ends in 2 weeks, and EOn offer me 2 choices , the capped rates or an unaffordable fixed deal. So my questions are - a) do I have to select one or the other or will I automatically be put on the capped tariffs ? and b) are these quoted capped tariff rates going to go up again on 1st April because they already look like they've gone up 50%+ ? What happened to the capped prices still running from October until 31 March, are they not being offered ?
  • PeterT_EONNext's Avatar
    Community Team
    Hi @Pat88 and @jack Welcome to the Community 🙂
    @Pat88 That's correct - the current price cap rate (for October 2021 - March 2022) is 21p (slightly varies based on region) for single rate on the variable tariff. If you're on Economy 7, you will pay a higher unit rate than this on your day rate, and a much lower unit rate on your night rate (around 12p per kWh)

    @jack If you don't choose another tariff, you'll automatically be placed onto the Next Flex, out variable priced tariff. If you're currently on a fixed tariff, the unit rates currently on the variable tariff may be higher than what you're currently paying on your fixed rates. The amounts quoted you can currently see on the Next Flex are due to go up in line with the price cap come April 1st.

    Pete 😊
  • jack's Avatar
    Level 1
    Hi @Pat88 and @jack Welcome to the Community 🙂
    @Pat88 That's correct - the current price cap rate (for October 2021 - March 2022) is 21p (slightly varies based on region) for single rate on the variable tariff. If you're on Economy 7, you will pay a higher unit rate than this on your day rate, and a much lower unit rate on your night rate (around 12p per kWh)

    @jack If you don't choose another tariff, you'll automatically be placed onto the Next Flex, out variable priced tariff. If you're currently on a fixed tariff, the unit rates currently on the variable tariff may be higher than what you're currently paying on your fixed rates. The amounts quoted you can currently see on the Next Flex are due to go up in line with the price cap come April 1st.

    Pete 😊
    hi thanks for that..do we know what the EOn capped prices will be from 1st April yet or do we have to wait ?