Energy Price Guarantee

  • PeterT_EONNext's Avatar
    Community Team
    Hi @James42

    To sort of mirror @JoeSoap has said in relation to being on a fixed tariff, where your unit rates have been adjusted to match those of the EPG variable tariff rate, should your fixed tariffs standing charges be lower than what they would have been on the variable rate come 1st October, you will be benefiting from a slightly lower standing charge by remaining on your fixed tariff which is the v16.

    Just for clarification, if you were on the Next Flex instead of your current v16 fixed tariff, your standing charges would be (for your area) 49.15p/day for electricity and 28.48p/day for gas. As your unit rates on the v16 have been brought down to match that of the EPG, your standing charges will remain for the duration of your fixed tariffs agreement, which is 48.13/day for electricity and 27.22/day for gas (including VAT)

    Pete 😊
    Last edited by PeterT_EONNext; 05-10-22 at 10:11. Reason: Correction
    Cool 😎 Calm 😌 Collected 🙌 - Here to help, or just for a chat if you like!

    Do you agree with a comment? Give the member a 👍
    Got the right answer to a query? Click 'Best Answer' ✅
    Can't find any help using the Search function or by scrolling through our Community? 🤔 Ask a question by starting a new thread in a sub-forum here!
    Find all the ways to get in touch with E.ON Next here
  • BanningElectric's Avatar
    Level 1
    @PeterT_EONNext Hello Peter - my direct debit came out today for the normal amount without any reduction - why would this be if as you said above we should be getting a reduction to our direct debit from 1 October?
  • PeterT_EONNext's Avatar
    Community Team
    Hi @BanningElectric

    I can see what's happened here. I'll send you a separate message to explain this in full and hopefully provide some clarification.

    Pete 😊
  • Tommysgirl's Avatar
    Guest
    Hi @BanningElectric

    I can see what's happened here. I'll send you a separate message to explain this in full and hopefully provide some clarification.

    Pete 😊
    This is the same for me, My variable DD came off on Monday for the full amount with no deduction, and no credit to my account. Can you also explain this to me. Thanks.
  • PeterT_EONNext's Avatar
    Community Team
    Hi @Tommysgirl

    As you pay by a Variable Direct Debit, you will be credited the amount to your account. This will be on the 1st of each month (except for this month, as some issues mean there are some delays getting this credited to each account)

    You should see this appear as a credit on your account within the next week or 2.

    Pete 😊
  • Mailman's Avatar
    Level 57
    This is the same for me, My variable DD came off on Monday for the full amount with no deduction, and no credit to my account. Can you also explain this to me. Thanks.

    I wonder if Eon Next will only reduce the DD for (customers like ourselves) if the bill period ends before October 1st. So effectively we might get the first reduction applied for the October bill (that is actually paid) in November and the last one a month later than most i.e. applied in April 2023. If it is then Eon Next will be getting another deluge of customers ringing up. As stated in another thread my last bill covers the period from 1st-30th September. Should I still be expecting the first DD reduction to be applied in October (17th is my DD date collection) or a month later as the next bill will cover the October usage?

    Just seen PeterT_EONNext's reply so from what you state it is the actual collection date of the DD that is paramount - not the statement end date. If you could confirm.
    Last edited by Mailman; 06-10-22 at 14:49.
  • PeterT_EONNext's Avatar
    Community Team
    Hi @Mailman

    Are you also on a Variable Direct Debit, or do you pay by a Fixed Monthly Direct Debit?

    Pete 😊
  • Rozlynmac's Avatar
    Level 1
    For the most up to date information on the Energy Price Guarantee, how this works, and what this looks like on your bills. Please follow this link here



    What is the Energy Price Guarantee?


    On the 8th September, PM Liz Truss announced a support package to mitigate the impact of wholesale gas prices causing huge spikes in the cost of energy across the UK, impacting everyone that is either not on a fixed tariff, or is soon to have their fixed tariff, come to an end.

    The Energy Price Guarantee introduced by the government, effective as of 1st October 2022, will freeze energy costs for all UK households for the next 2 years, at a cost of £2,500 for an average household (based on average consumption using Ofgem figures of 12,000kWh for gas and 2,900kWh for electricity, for dual-fuel customers who pay by direct debit. You will pay less if using less, you will pay more if using more)

    Does this mean that prices will be lower than what I'm paying now?

    Not exactly, and I'll explain why.

    It's important to remember that the current price cap level for 1st April 2022 to 30th September 2022 was set at £1,971 per year. This figure was created using the same figures above.

    The Ofgem price cap, which has now been cancelled after government intervention, for 1st October was set to be £3,549. According to analyst Cornwall Insight’s predictions, this was expected to rise to as much as £5,386 by January 2023.

    All UK households will still receive £400, spread over 6 monthly instalments, to help with the impact of rising costs of energy. The Energy Price Guarantee now means that this will be less of an impact should Ofgem's Price Cap have gone ahead for October, January and April, as this is now frozen at £2,500.

    What support is available for me?

    As mentioned briefly above, all UK households will receive £400 in total towards the costs of energy throughout the months of October to March, as part of the Energy Bills Support Scheme.

    This will work differently depending on how you pay for your energy.

    If you pay by Fixed Direct Debit, you'll receive the money automatically as a deduction to your monthly Direct Debit.

    If you pay on receipt of the bill or by a regular cash payment, you'll see the money automatically applied as a credit to your energy account in the first week of each month. This will show as a credit in the payments section of your monthly bill.

    If you have a Smart prepayment meter, you'll see the money credited directly to your meters as a top up in the first week of each month.


    If you have a traditional prepayment meter, you'll be provided with vouchers in the first week of each month. For E.ON Next customers these will only be redeemable at the Post Office, not at all top-up locations.


    These are still unprecedented times and the energy market is volatile. I understand that it can be difficult to manage costs both with energy, as well as the general costs of living increasing in all aspects of everyone's lives currently.

    If you're having trouble paying your bills, or keeping up with the cost of your energy, please do speak to your supplier (whether that is us here at E.ON Next, or if you're with another supplier) extra support is available, and it's always best to speak about options that may be available to you.

    Thanks everyone,

    Pete 😊

    Hi Pete,

    I've been trying to understand this - I'm on a fixed DD. You've sent me an email saying my DD is being reduced by £66 this month & for the next 5 thereafter. But I don't see how reducing my DD, whilst my bill is still at the same amount is 'giving' me the £400 over the 6 months. If I don't pay that additional £66 back onto my account, I'll just be £400 in arrears at the end of the 6 months. Surely to credit me with the £400 my actual bill needs to be reduced by the £66, not just how much I pay?

    Roslyn
  • Mailman's Avatar
    Level 57
    Hi @Mailman

    Are you also on a Variable Direct Debit, or do you pay by a Fixed Monthly Direct Debit?

    Pete 😊

    Variable Direct Debit - bill raised 2nd October DD taken 15 days later 17th october to zeroise the account.