The EPG only affects unit prices on variable tariffs, but recent fixed tariffs might feature high standing charges and high unit prices as originally agreed to. The latter can be, and are being, brought down to the level of the EPG, but what about standing charges?
On the variable tariffs the standing charges must be expected to change in line with OFGEM reviews. These will now be quarterly. In the long run we can expect them to go up because of inflation, but we might also expect the electricity standing charge to drop significantly when “supplier of last resort” elements reduce or drop out of the equation from April next year.
On the assumption that unit prices will be reduced to the EPG, that still leaves customers with a decision to make on whether to stick with the fix, which then will only be a fix for standing charges, or whether to exit to the variable tariffs, which are likely to be cheaper for some time to come.
Customers with E.On Next can exit their fix penalty free at any time, but delaying a decision could incur higher standing charges in the meantime.
On the variable tariffs the standing charges must be expected to change in line with OFGEM reviews. These will now be quarterly. In the long run we can expect them to go up because of inflation, but we might also expect the electricity standing charge to drop significantly when “supplier of last resort” elements reduce or drop out of the equation from April next year.
On the assumption that unit prices will be reduced to the EPG, that still leaves customers with a decision to make on whether to stick with the fix, which then will only be a fix for standing charges, or whether to exit to the variable tariffs, which are likely to be cheaper for some time to come.
Customers with E.On Next can exit their fix penalty free at any time, but delaying a decision could incur higher standing charges in the meantime.
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.
