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E.ON customers braced for price hike

Paloma Kubiak
Written By:
Paloma Kubiak

Customers on E.ON’s standard variable tariff will see bills rise by an average of £22 a year in a move it claims will “simplify bills”.

E.ON confirmed it’s not making any alterations to the unit prices it offers, but following its tariff review, it has taken the decision to make some changes, affecting two million accounts.

The changes include:

  • Removing the dual fuel discount – £20 a year
  • Removing the paperless billing discount – £5 per fuel per year
  • Increasing the standard charge for customers who pay quarterly by cash or cheque – £10 per fuel per year.

The move will impact customers differently, depending on their payment method, bill choice and fuel selection. The average impact on SVT bills will be around £22 a year.

The changes will come into effect for existing SVT customers on 19 April 2018 and on new fixed tariffs sold from 1 March 2018.

Customers on fixed tariffs bought before 1 March 2018 will not see any change until the end of their term.

E.ON confirmed that prepayment customers are protected by an energy cap so are unaffected by the changes.

It added that for new customers signing up to a fixed tariff will save £45 per fuel per year against the standing charge if they pay by fixed monthly Direct Debit. Customers on E.ON EnergyPlan will also see this saving from 19 April 2018, it said.

An E.ON spokesperson said: “In light of rising costs along with other factors in the market, we have reviewed the structure of our tariffs and made the decision to make some changes.

“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.

“Around 72% of our customers now choose to pay by fixed monthly Direct Debit. This payment method not only helps customers even out their payments across the year, but allows them to take control and vary their payment via our online Direct Debit Manager, helping provide peace of mind that they’re paying no more than they need.”

Peter Earl, head of energy at Comparethemarket said it is really disappointing to see E.ON use the simplification of tariffs as an excuse to hike energy prices for some customers. There is little justification for removing discounts and certainly not in the name of making billing simpler.

“However, it is right to highlight the issue of complex energy bills as all too often, bills confuse customers into apathy by not allowing them to gain a clear comparison against other providers. But simplification should not come at a cost to the consumer.”