Households on E.on's standard variable tariff will see their energy bills rise by an average of £22/year after the big six firm announced a series of changes to the way it charges customers.
E.on isn't increasing the rate it charges for units of gas or electricity, but is instead scrapping a number of discounts it offers to customers, blaming the changes on "rising costs along with other factors in the market". E.on has about two million customers on its standard tariff.
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What is E.on changing?
The changes will come into effect for existing customers on E.on's standard variable tariff from Thursday 19 April, and will apply immediately to all new customers getting a fixed tariff. Existing customers on a fix won't see any change until their fix ends.
Here's what's changing:
- The £20/yr discount offered to customers with both electricity and gas is being scrapped.
- The £5/yr discount per fuel offered to customers who opt for paperless billing is also being scrapped.
- The standing charge for customers who pay quarterly by cash or cheque will be increased by £10/yr per fuel. It's rising from £115/yr to £125/yr for gas and £95/yr to £105/yr for electricity.
A dual-fuel customer on E.on's standard Energy Plan tariff who pays by monthly direct debit is already paying an average £1,123/yr, based on typical use – much more than the market's cheapest. But the changes will see this rise to £1,153/yr from 19 April, while those paying by quarterly cash or cheque could end up paying an extra £50/yr.
I'm an E.on customer – what can I do?
Any customers on E.on's standard tariff are able to leave penalty-free with no exit fees to pay. And while the changes apply from 19 April, if you're on E.on's standard tariff you're likely already overpaying, so check NOW if you can save.
For a quick comparison, here are the average prices of the cheapest tariffs on the market today, based on typical use. But for a full market comparison and to find your cheapest deal, use our free Cheap Energy Club.
How energy deals compare – average annual cost
|Cheapest on the market (variable)||Outfox the Market||£807|
|Cheapest on the market (fixed)||Outfox the Market||£816|
|Cheapest big name (fixed)||Ovo||£900|
|Cheapest big six (fixed)||British Gas||£901|
|E.on's standard variable tariff (now)||E.on||£1,123|
|E.on's standard variable tariff (after changes)||E.on||£1,153|
|Based on typical usage figures from regulator Ofgem, for dual-fuel customers paying by monthly direct debit.|
What does E.on say?
An E.on spokesperson said: "We believe this will make it simpler and easier for customers to understand our tariffs and compare them with other suppliers in the market, the majority of whom do not offer these discounts.
"The impact on our customers' bills will vary depending on payment method, bill choice and fuel selection. While some customers will pay no more as a result of this change, the average impact on standard variable tariff bills will be around £22 a year."