E.ON to cut standard variable prices for around 1.8 million customers from autumn

E.ON said today it will cut prices for customers on its standard variable tariff from 1st October, following a fall in the market-wide price cap driven by overall decreases in wholesale gas and electricity prices since the start of the year.

Prices1 will fall by £77 for customers who pay by Direct Debit (or 6.1%) or £81 for customers who pay by cash or cheque (or 6%).

As forecast by E.ON last month, the reductions, means around 1.8 million customers will benefit from lower prices ahead of the colder months of the year.

E.ON UK Chief Executive Michael Lewis said: As we predicted, the overall downward trend in the wholesale markets since the start of February means customers on standard variable tariffs will benefit from a fairly significant reduction in bills from 1st October onwards. We’ll be writing to our customers in the coming weeks to make them aware of this change and how it benefits them.

“The price cap, set out as a fair price for energy, still leaves many people paying more than they should – simply because their homes are still using more energy than they should. Across the UK, up to 17 million home2 still have one of the lower energy performance ratings. Whether you’re driven to cut energy bills or to help tackle climate change, we can all do things such as improve insulation, replace old heating systems with modern, more efficient versions, or install solar panels to generate your own power at home.

“We have the opportunity with a new government to focus on bringing the standard of housing up to appropriate levels. We already know every pound spent on energy efficiency pays back more than three times3 – with the additional benefits that comfortable homes bring in terms of helping people to lead healthier lives and even perform better in schools4.

“We’re looking forward to that future energy world and it’s why we’ve taken the decision to provide all of our customers’ homes with a source of electricity backed entirely by 100% renewable sources. That’s the first step for many customers on a path which includes moving to more efficient and smarter homes that have better insulation, smart heating controls, solar and battery technology, heat pumps and electric car chargers to help our customers put themselves in control of their energy needs.”

To find out how E.ON can help customers find an energy solution that is smart, sustainable and personalised for them please visit: eonenergy.com/renewable

Ends

Notes to editors:

1 = From 1st October 2019, E.ON’s standard variable tariff E.ON EnergyPlan will be priced at £1,177 a year based on national average dual fuel consumption of 3,100 kWh for electricity and 12,000 kWh for gas for customers paying by fixed monthly Direct Debit, and £1,263 for customers paying quarterly by cash or cheque.

2 = https://www.gov.uk/government/news/homeowners-could-cut-mortgage-rates-bills-and-emissions-with-new-green-mortgages

3 = https://researchbriefings.files.parliament.uk/documents/POST-PN-0550/POST-PN-0550.pdf

4 = https://www.energysavingtrust.org.uk/sites/default/files/reports/1-424-15_Payne.pdf