Energy Price Guarantee

  • PeterT_EONNext's Avatar
    Community Team
    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 😊
    Last edited by PeterT_EONNext; 06-10-22 at 14:04.
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  • 75 Replies

  • Andy65's Avatar
    Level 45
    Hi @PeterT_EONNext

    When the £400 was first announced on here I asked the question whether it would be possible for the monthly payments of £67/£66 to be in addition to my DD rather than reducing it. The reply I received was that it would be looked into but I don't think anyone came back with an answer.

    I want the £400 to be an additional payment to my account (over 6 months), can this be looked into please?
    I also don't want to have to make manual payments for 6 months when it could easily be done at source.
  • meldrewreborn's Avatar
    Level 91

    I think most customers would rather have the dosh in their bank rather than Eon Next's. Quite why you'd want to give them an interest free loan is just a little beyond me!
    Current Eon Next customer, ex EDF, Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.
  • Andy65's Avatar
    Level 45

    I think most customers would rather have the dosh in their bank rather than Eon Next's. Quite why you'd want to give them an interest free loan is just a little beyond me!

    Because I'm all heart!

    As I'm on the variable, my understanding is that my gas for example, is about to go from 7.281p per kWh to 10.3p per kWh. So in my mind I'm just anticipating the inevitable by wanting to keep my DD as it is. Yes I'd be building up a bit of bunce but I don't have a problem with that.
  • PeterT_EONNext's Avatar
    Community Team
    Hi @Andy65 !

    I completely understand what you’re asking, and why you want it to work in the way you’ve asked.

    We’ve had some clarification on this and I’m afraid, this is the way we have to do this for all of our customers that pay by Direct Debit.

    The reason it works in this way is so that those that pay by a fixed monthly direct debit, can essentially hold onto that extra £66/£67 that would be coming out over those months, whilst still paying for their energy as it has been credited to their account.

    We’re unable to change this I’m afraid, as this is the way it will be implemented for all of our customers, however, if you feel like you’d prefer to keep paying the amount you pay currently, you can ‘up’ your direct debit amount on your online account to what it would be, if you weren’t receiving the £400. I hope that makes sense.

    Pete 😊
  • meldrewreborn's Avatar
    Level 91

    I remain perplexed by the average consumption amount used in the price caps for Electricity. In their press releases OFGEM refer to "the current Typical Domestic Consumption Values (TDCV) of 2,900kWh of electricity". So far so good. But then in their price cap tables they use 3,100kWh - see this:

    Default tariff cap level - 1 October 2022 - 31 December 2022 (2).pdf

    Since the price cap rates have to be worked backwards from these tables, and thus use 3,100kWh in those calculation, I fail to understand how they use a different figure in their press releases. And its only electricity that is different, for gas the same figure is used (12,000kWh).

    I don't expect an answer, I've raised it with OFGEM but of course got no reply. Its bit academic now as the OFGEM price cap unit rates are in abeyance for 2 years at least.
  • Felix123's Avatar
    Level 1
    I recently renewed my tariff to a v20 fixed, which is / was due to start 01/10/22
    I renewed late August prior to the latest price cap announcement, although our current contract doesn't end until the end of September.

    My statement page says that my new Electric tariff will be 67.66 p/kwh and Gas 16.96 p/kwh.
    Which means my monthly bill will increase 5 - 6 times!!! Surely this is wrong?
    The new tariffs should be approx. 34 p/kwh for Electric and 10.30 p/kwh?

    Is anyone seeing anything like this?
    Haven't Eon updated their tariffs yet?
    If not when is this going to happen?
    Why isn't any of this being communicated to their customers?

    Apparently they will be taking over 300 pounds from our account next month, so we obviously getting quite stressed about this.
  • meldrewreborn's Avatar
    Level 91

    your contract has been overtaken by events! Panic not your direct debit along with nearly every customer will be reappraised soon. But even those rates you quoted from the EPG are much higher than your previous fix.
  • SteveJD's Avatar
    Level 1
    I also fixed for 12 months.Eon still say they are going to take £311 out of my account on the 1st October.This is way above the price guarantee
  • Mailman's Avatar
    Level 57
    I also fixed for 12 months.Eon still say they are going to take £311 out of my account on the 1st October.This is way above the price guarantee

    The price guarantee only fixes the unit rates and the standing charges and not the total amount. If you are an above average user, expect to pay more than £2500 p.a (this equates to approx £208 pcm) for a dual user. So you really need to look at what your actual energy consumption has been over the last year. what it is likely to be over the next year (esp if you have started to use less energy) and what your current balance is. Only then can you work out if £311 is an appropriate amount. I assume you pay by monthly DD.