Standing charge for fixed rate customers

  • GerryW's Avatar
    Level 3
    I'm on a fixed rate tariff where the standing charge is above the capped rate. If '£150 of this £1,000 a year saving will be delivered by temporarily suspending environmental and social costs (including green levies) from being passed onto consumer bills. These costs will be transferred to the government, while customers still benefit from the low-carbon electricity generation', why hasn't my standing charge been reduced? Presumably £150 of my standing charge will be transferred to the Government i.e. the taxpayer; meaning I pay this twice and EON get paid twice.
  • 18 Replies

  • JoeSoap's Avatar
    Level 91
    @GerryW

    Perhaps it’s me, but I don’t understand the logic of your presumption and I think you are overthinking things.

    We as customers have benefitted from the EPG and EBSS. You are on a fixed tariff and will stay on it if you are getting a better deal than if you were moved to Next Flex.

    If you are disadvantaged by your fixed tariff even after your rates have been reduced by the maximum amount towards the floor then you will be moved to Next Flex.

    I think everything is being done to ensure all customers benefit to the maximum extent since the EPG was introduced on 1st October although some things are taking longer than they should to implement.

    You will find some info on fixed rate standing charges in the following link…
    https://community.eonnext.com/thread...ll=1#post17848
    Last edited by JoeSoap; 11-10-22 at 20:56. Reason: Added link.
    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.
  • meldrewreborn's Avatar
    Level 91
    If you stay on a fixed rate your standing charges are fixed. If you switch to a variable rate then you may benefit from lower standing charges next time OFGEM revises then fin January. It’s your decision.
    Current Eon Next and EDF customer, ex 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.
  • GerryW's Avatar
    Level 3
    @JoeSoap The link you have given does not answer my questions. "Some of you may be on a fixed tariff where the standing charge is lower than those that are on the variable tariff as of 1st October. So that you can benefit from this slightly lower standing charge, you'll remain on the fixed tariff for the duration of your original contract, and your unit rates will be adjusted down to be in-line with the Energy Price Guarantee." This means that if my standing charge is lower than the capped tariff then I can benefit from the lower unit charge but if my unit charge is lower then I do not benefit from the lower capped standing charge. If £150 of the standing charge is being transferred to the Government, then why isn't my standing charge being reduced from £358 to the capped £270. This would appear to be inequitable and a case of profiteering by EON. Perhaps I've been underthinking this up to now.
  • meldrewreborn's Avatar
    Level 91
    @GerryW

    the only customers whose unit charge has been reduced are those who fixed quite recently and they are being transferred to the variable flex tariff. Nobody is having their standing charge lowered as you propose because standing charges were not affected by the government’s EPG, and remain in accordance with the OFGEM announcement of 29 August. OFGEM will revise their standing charge figures later to apply from 1 January and each subsequent quarter thereafter. You are not being singled out.
  • meldrewreborn's Avatar
    Level 91
    Also the Government muddied the water because they announced that the reduction in green levies was incorporated into the EPG - but that only adjusted prices of units not standing charges.
  • JoeSoap's Avatar
    Level 91
    @GerryW

    Sorry that neither the information in the link I provided nor my own post answered your questions.

    Perhaps you should contact Eon Next directly on this matter. Here are some contact details…
    https://community.eonnext.com/thread...ull=1#post7151
  • Han_EONNext's Avatar
    Community Team
    Morning @GerryW🤓,

    I just wanted to jump on and clear a few things up for you, thank you to @JoeSoap & @meldrewreborn for stepping in🤘.

    Leading on from what has been said, only your unit rate falls in line with the EPG, not your standing charge and your standing charges fall in line with the OFGEM cap, not the EPG. So although unit rates have been seen to go down on our Next Flex tariff, the standing charges remain high.
    We have made the decision to move some customers from an existing fix to our Next Flex as overal they will be better off - the unit rate and standing charge is higher than the EPG rates, they will be moved; however some of you may be on a fixed tariff where the standing charge is lower than those that are on the variable tariff as of 1st October. So that you can benefit from this slightly lower standing charge, you'll remain on the fixed tariff for the duration of your original contract, and your unit rates will be adjusted down to be in-line with the Energy Price Guarantee.

    So in this personal instance, you are better off remaining on the fix you currently have. But if you decide this is not for you and you want to be on our Next Flex then please do let us know and we can chat with you about it!

    👉 talk to us
    👉EPG explained
    👉The Government run down of the EPG
    👉Understanding the EPG
    🌍 Striving for a bigger, better and sustainable world!

    There are lots of new ways to contact us! If you do need us please
    👉get in touch👈

    Thinking about replacing your boiler? You can find out more about our boiler solutions 👉 HERE 👈
  • GerryW's Avatar
    Level 3
    The information in your links says "Some of you may be on a fixed tariff where the standing charge is lower than those that are on the variable tariff as of 1st October. So that you can benefit from this slightly lower standing charge, you'll remain on the fixed tariff for the duration of your original contract, and your unit rates will be adjusted down to be in-line with the Energy Price Guarantee.".
    Is your stance that a customer on a fixed tariff can benefit from being on a lower standing charge than the variable tariff but not from a lower unit charge?
  • JoeSoap's Avatar
    Level 91
    The information in your links says "Some of you may be on a fixed tariff where the standing charge is lower than those that are on the variable tariff as of 1st October. So that you can benefit from this slightly lower standing charge, you'll remain on the fixed tariff for the duration of your original contract, and your unit rates will be adjusted down to be in-line with the Energy Price Guarantee.".
    Is your stance that a customer on a fixed tariff can benefit from being on a lower standing charge than the variable tariff but not from a lower unit charge?
    In this announcement here it states...

    ''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.''

    From what I can see Eon Next are trying to ensure that all customers are getting the best deal. I could be wrong of course.