Fixed Tariff and Energy Price Guarantee

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  • Letty's Avatar
    Level 1
    Hi,

    Beginning of Sep, before the Government announce, I moved to a fixed tariff.

    After the Government announce, I contacted EON to cancel the fixed tariff to go onto a standard variable.

    EON told me to wait because "if your fixed tariff is more expensive than the new Energy Price Guarantee, it will be changed automatically to match it".

    But EON website says the opposite: " If you're on a fixed-term energy tariff, your prices will stay the same until your tariff-term ends". For me it will be next year.

    Where is the truth?

    Shall I wait and my tariffs will be changed automatically?
    or
    Shall I request them again to cancel my fixed tariff contract and ask for a variable?

    Thanks.
    Last edited by Letty; 03-10-22 at 09:04.
  • 4 Replies

  • JoeSoap's Avatar
    Level 91
    @Letty

    First, let's make sure we are talking Eon Next and not Eon.

    See here where it says...

    Fixed tariff customers.

    For those customers on fixed rate tariffs paying by Direct Debit, a ‘floor’ unit price will come into effect on 1 October. For gas, it will average at 10.3p/kWh and for electricity at 34p/kWh. We're introducing a floor unit price because some people will have fixed at much lower prices some time ago, meaning their annual payments will already be below the £2,500 average set by the government’s Energy Price Guarantee (EPG).
    Unit price reductions of up to 17p/kWh for electricity and 4.2p/kWh for gas will apply to fixed tariff customers to bring their unit prices down to, but not below, the floor unit price. Customers on fixed rate tariffs that are already below the floor unit prices will continue to enjoy those low prices, but won't receive a further discount for the duration of their fixed term.
    For the small number of customers who fixed at a high rate exceeding the October Ofgem price cap of £3,549 (£3,674 paying on receipt of bill), they will receive the full discount of 16.998p for electricity and 4.2p for gas. To make sure that those customers also benefit from the EPG we will bring their fixed price down to be in line with the government's £2,500 average threshold.
    We will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme. We're contacting customers directly over the coming days to confirm what the Energy Price Guarantee (EPG) means for them and how, together with the Energy Bills Support Scheme (EBSS), it will affect their bills.
    I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit.
  • Letty's Avatar
    Level 1
    Thanks for your reply.

    This is not what I have been told by EON when I contacted them. I have been to wait for my fixed tariff to be matched.
    This is not a match!?

    So I have been told something untrue, I also lost 10 days for nothing in the process and I still have no answer as to how cancel my fixed tariff contract and how to re-apply for a variable one.
  • Letty's Avatar
    Level 1
    Checked again my account online, my tariffs have changed twice since this morning.
    I will have to look at this better.
  • JoeSoap's Avatar
    Level 91
    @Letty

    I think we have to maintain our patience for a bit as things seem to be getting sorted now, albeit slowly and in stages.

    As the saying goes... It will be alright in the end. And if it's not yet alright then it's not yet the end.