E.On Next issues update as certain customers could save £288 on energy bills from Monday

With the energy price cap set to fall by 12 per cent from Monday April 1, one supplier has promised to take the savings one step further.

E.On Next has issued a message to customers explaining what it means.

Ofgem’s energy price cap is currently £1,928 per year for typical households on dual fuel tariffs paying by direct debit, however this is set to drop to £1,690 per year from Monday.

Customers who use more energy will pay more than this and the price cap is updated quarterly.

From Monday, the average home paying their energy bills by direct debit will save around £20 per month, or £238 per year.

From Monday, customers will pay an average of 19 per cent less for gas and 14 per cent less for electricity after a cut to unit rates.

E.On has told its customers that anyone on the Next Pledge tracker will save an average of £288 per year on electricity and gas bills.

This is because they promised to offer customers a tariff which is £50 cheaper than the price cap in total.

This means the total saving will be £288, not £238, on average, for E.On Next Pledge customers.

EOn said in a message to customers: "On 23 February 2024, Ofgem announced that the energy price cap, for a typical household who use electricity and gas and pay by Direct Debit, would be £1,690 from April 1, 2024." From April 1, 2024, Ofgem says that the average unit price per kilowatt hour (KWh) for customers on the default tariff (SVT) will be 24.50p for electricity and 6.04p for gas.

"Ofgem has changed the daily standing charge to 60.10p for electricity and 31.43p for gas. Standing charges vary by supplier, where you live, how you pay and what meter you have.

"With our Next Pledge tariff, you’ll get energy prices guaranteed to stay £50 below the Ofgem price cap. T&Cs apply. Unlike other fixed tariffs, you’ll also benefit if energy prices drop.

"Note: Your energy rates will change whenever there’s a price cap review and your bills will vary depending on your usage." Octopus Energy is also passing on even greater savings than expected from Monday.

They have recently issued a message to customers informing them households battling big gas and electricity bills will be offered a lifeline.

Although the overall price cap has fallen, standing charges - a fixed daily amount which covers the costs of connecting to a supply - have increased.

From Monday, standing charges will be 60p a day for electricity and 31p a day for gas, although they vary by region.

Octopus Energy is charging an average of 58p for the electricity standing charge and 29.36p for gas standing charge, which is lower than the 60.10p and 31.43p standing charges set by Ofgem.

It means that on top of the average saving of £238 per year from the cap, each household will save another roughly £1.20 per month on standing charges against the price cap despite a rise overall.

They said: “Most customers on Flexible Octopus will see decreased unit rates and an increase to their standing charge, prepayment customers will see a decrease to their standing charges.

"If you're already in debt on your account or your payments don't look like they will cover your usage based on our forecast, this could mean that our recommendation for your monthly payment goes up."