Ofgem energy price cap 1 July 2024 - How will this affect my E.ON Next tariff?

  • DebF_EONNext's Avatar
    Community Team
    Good morning E.ON Next Community 👋

    Ofgem has announced the latest price cap information this morning and it's good news...the cap is going down again! Please keep in mind that although the announcement was made by Ofgem this morning, the new rates will be from 1 July 2024 to 30 September 2024, so hang tight as these prices won't be on your bills just yet 🤓

    You might have already seen it on TV or read about it in the news but if not don't panic - here's everything you need to know about the Ofgem 1 July energy price cap 2024.

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    What is the price cap?

    The price cap sets the maximum price per unit an energy supplier can charge for your energy, the limit also applies to standing charges. The level of the cap is based on a typical household's annual usage however, you may pay more or less depending on your own 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 & it's reviewed four times a year.

    The current price cap (1 April 2024 - 30 June 2024) sits at £1,690 however from 1 April 2024 it will change to £1,568.

    How does this compare to the previous price cap?

    As mentioned above the price cap (1 April 2024 - 30 June 2024) currently sits at £1,690 however from 1 July 2024 it will change to £1,568.

    This is good news as the price cap has fallen once again which will be welcome news for many of us 🙌 When we look at the comparison from the current price cap (1 April 2024) this means is for the average household the annual cost of energy will decrease by around £122 per year (unless of course the account is in debt). Here's a breakdown:

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    Will I be affected by the price cap?

    If you've got a fixed tariff with us, then it won't affect you (unless your tariff ends within the price cap period) however the price cap will change things for customers on Next Flex - our standard variable tariff and those of you on Next Pledge - our E.ON Next tracker tariff (Next Pledge prices are guaranteed to stay £50 below the price cap!).

    Where can I find more information?

    Ofgem announced the new price cap today (24 May 2024) however we will be keeping this thread updated if there are any changes. Alongside this thread, you can also check out our blog & website too for further updates.

    🌟 What's happening in the energy market?
    🌟 Energy prices are falling, should I fix my tariff?
    🌟 What's happening with your bills?
    🌟 What is the energy price cap?

    Is there any other support available?

    There's lots of support available and we want to help you stay on top of your energy bills. Check out A helping hand - Extra support with the cost of living 🤗 which outlines all the support we offer.

    If you find you're struggling you can get in touch with one of our Energy Specialists who can support you. You can find all of our contact information by visiting this thread 👉 How to contact E.ON Next

    Last edited by DebF_EONNext; 24-05-24 at 08:14. Reason: adding visuals
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  • 4 Replies

  • meldrewreborn's Avatar
    Level 91
    @DebF_EONNext

    Here is the data for Direct debit customers - inclusive of VAT. It appears that standing charges are only fractionally changed while unit prices are significantly reduced.

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    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.
  • meldrewreborn's Avatar
    Level 91
    I started with Direct debit customers as these account for the greatest number of customers according to OFGEM, even after discount those on fixed tariffs.

    Updated number of customers on different tariff types as of April* 2024

    New number of customers on Standard Variable Tariffs (SVT) – ‘around 28 million’ of which: 

    • new number of SVT Direct Debit customers – ‘around 18 million’ 
    • new number of SVT Standard Credit customers – ‘around 5 million’
    • new number of SVT PPM customers – ‘around 4 million’

    Total number of customers on fixed tariffs ‘around 4 million’ (with the vast majority being non-PPM) 
    *Latest Financial Responsibility RFI data is for April-24. Tariff and customer Account RFI data is as of April-24 (used to calculate the SVT payment splits).
  • meldrewreborn's Avatar
    Level 91
    Here are the figures for Standard Credit, again inclusive of VAT.

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  • meldrewreborn's Avatar
    Level 91
    And these are for Pre Payment, again inclusive of VAT.

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