April Price Cap 2023

  • DebF_EONNext's Avatar
    Community Team
    Hey Community 👋

    Ofgem has announced the price cap will decrease to £3,280 for customers on a standard variable tariff from 1 April 2023. This won't affect what customers pay for each unit of electricity or gas as it's limited by the government’s Energy Price Guarantee, however, we thought it was important to keep you all updated as it's likely you will still see an increase in what you pay.

    What's the price cap?

    The price cap is the maximum price per unit an energy supplier can charge you for your energy. It also includes the maximum they can bill you for your standing charge too. The price cap figure is based on an average household usage, however, you may pay more or less depending on your own household's energy consumption.

    The government introduced the price cap in 2019 to protect consumers from paying too much for their energy. It's set by the energy regulator Ofgem and reviewed four times a year.

    What's changing in the April 2023 price cap?

    At the moment the price cap is set at £4,279. This came into effect on 1 January and will end on 31 March. Ofgem announced the price cap is changing on 1 April. Standing charges will increase slightly and unit rates will decrease. This means the price cap will decrease to £3,280 per year for an average household.

    It's really important to point out that even though there are these reductions in the price cap on 1 April, your bills will still be rising due to changes in government support.

    How will this affect my bills?

    The government is making changes to the support you receive towards your energy bills from 1st April.

    On 31 March the government’s £400 Energy Bills Support Scheme (EBSS) will end. This means that from 1 April you will no longer get the £66 or £67 discount off your energy bills each month.

    Where can I find more Information?

    You can find out more about the price cap and how it is calculated on the E.ON Next blog What is the energy price cap?

    Is there any other support available?

    There is lots of support available and we want to help you stay on top of your energy bills. If you find you are struggling please get in touch and we will do what we can to support you.

    You can find out more about the support we offer on our Help with Energy Bills thread. There is also lots of other energy saving advice and helpful information on the E.ON Next blog.


    Wednesday 15th March 2023 update:

    The Government has announced that the Energy Price Guarantee (EPG) will remain at £2500 rather than the £3000 that was originally planned. Although the Price Cap has reduced and EPG is staying the same, the Energy Support Scheme (EBSS) has ended and from the 1st April 2023 you may see changes to your standing charge so many of us will still feel the impacts of our energy bills.

    E.ON Next will be writing to customers in late March or early April 2023 to let them know how the announcements impact them and if your payments are going to change. For example, over the last 6 months, low usage customers have had to make very little to no payments. Now that the EBSS has ended these customers will need to increase or start making payments again and Prepayment/SPAYG customers will now have to pay solely for their usage.

    UPDATE:

    You can find the latest up price cap announcement (1 April 2024 - 30 June 2024) by following this link 👉 Ofgem energy price cap April 2024 - Everything you need to know!


    Last edited by DebF_EONNext; 1 Week Ago at 11:20.
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  • 39 Replies

  • Mailman's Avatar
    Level 54
    Just a heads up that Eon Next also need to trawl through all those customers whose original fixed rate tariffs were replaced with Next Flex because the reductions did not take them down to the Next Flex EPG (October) levels). For certain tariffs it may be that customers are better off reverting to that original fix for one or both tariffs. Personally I will know what to do when the new (April) EPG levels are announced shortly (probably this week all being well).

    Another thing for customers to realise is that the online tariff prices for any fixes that we see in our online account include the fixed tariff EPG (October) reductions so these will probably now change starting April 1st to be replaced with a higher set of unit tariff rates (roughly 20% higher). 👍
    Last edited by Mailman; 27-02-23 at 11:04.
  • DebF_EONNext's Avatar
    Community Team
    Morning @Mailman 👋 @Beki_EONNext is already on it she's asked the question and as soon as we have an update we will let you know 😊
  • DebF_EONNext's Avatar
    Community Team
    Hey @Mailman, we have been advised that customers who were moved from their fixed tariff on to the Next Flex to fit with the EPG will be able to go back on to the fix (up to June 23) as set out in the communications sent out at the time 😊. It is important that customers make an informed choice if this is best for their circumstances or not when the new EPG rates are announced for some they may find the Next Flex is still the best option.
    Last edited by DebF_EONNext; 27-02-23 at 12:05. Reason: more info
  • Mailman's Avatar
    Level 54
    Hey @Mailman, we have been advised that customers who were moved from their fixed tariff on to the Next Flex to fit with the EPG will be able to go back on to the fix (up to June 23) as set out in the communications sent out at the time 😊. It is important that customers make an informed choice if this is best for their circumstances or not when the new EPG rates are announced for some they may find the Next Flex is still the best option.

    By the sounds of it, customers will have to make that decision for themselves.

    So the sooner we get the new April EPG fixed rate reductions (for those originally on fixed tariffs - totalling 4 million in the UK) the sooner we can make this informed choice.

    As an example, using my specific situation (on v18 online fix ending in October 2023), I'm pretty sure that with one of my utilities, I'm better off in April reverting to Next Flex but for the other staying on v18 which is why I'm glued to any announcements re EPG2. But from July will be better off reverting both utilities entirely to Next Flex (if present forecasts hold).

    Just hope that the announcement for the specific EPG2 rates from April is made by HMG before the March budget. I anticipate an uptick prior to April 1st in customers contacting Eon Next not being able to work out the maths for the decisions they will have to take.😬
  • Mailman's Avatar
    Level 54
    At least we now know what the will be set at shortly April 2023 Standing Charges period 10a (these are not covered by EPG) .

    Now we want the EPG2 rates (wakey wakey HMG 😁)
    Last edited by Mailman; 27-02-23 at 16:08.
  • gbhxu's Avatar
    Level 12
    To be honest, the price cap is BS to me.

    All I want to know is the price per Kwh and standing charge per day
  • wizzo227's Avatar
    Level 20
    @DebF_EONNext
    Thank you for the semiinformative piece. I tried skim-reading it for the pence per day and pence per kWh but did not find those in a first pass.
    My location is region = "Southern England" regionid=12, or to the post office "Oxfordshire".
    After 1st April 2023, incl. VAT and anything else, what will be my p/day and p/kWh ?
  • Mailman's Avatar
    Level 54
    After 1st April 2023, incl. VAT and anything else, what will be my p/day and p/kWh ?

    We don't know this yet.

    HMG are yet to announce the next iteration of EPG and their accompanying regional rates or indeed if they have a last-minute change of heart and keep the EPG rates as they currently are.

    We do know what the intended SC rates are set at (see Post above) , at least according to Ofgem, but I'm not going to make any decisions for post-April until they (unit rates and SC) are firmed up in a forthcoming EPG announcement.
    Last edited by Mailman; 28-02-23 at 13:48.
  • DebF_EONNext's Avatar
    Community Team
    Hey @wizzo227, @Mailman is correct we haven't had the EPG announcement yet we are expecting this very soon though once we have this information we will know more about what individual pricing will look like 😊 some of our other members like Mailman & @meldrewreborn are usually on the ball with this too so we will keep you all updated, as soon as we know more you will know more!