Like most energy suppliers in the UK, E.ON's energy prices are subject to Ofgem's energy price cap. The cap sets the maximum price suppliers can charge for average usage on their standard variable or default tariffs. These are typically the most expensive type of energy plan.
Energy wholesale prices increased a great deal from the autumn of 2021 due to a combination of factors, such as supply and generation issues. Energy suppliers were having to pay much more for energy than previously, so Ofgem raised the energy price cap level (which caps the unit rates customers pay) to its highest ever level of £1,971 to help them cover their costs. E.ON therefore increased its standard variable tariff rates from £1,277.38 to £1,970.56 - just below the cap rate.
Ofgem previously announced an increase to its price cap level in August 2021, to come into effect from October 2021. The new maximum rate that supplier can charge for average dual fuel usage changed to £1,277 per year. In reaction to the price cap announcement, E.ON announced a 12% price rise on its standard variable tariff (E.ON Energy Plan), to come into effect from October 2021. This means the average customer on the E.ON Energy Plan will now pay £1,277 per year - an average annual price rise of £139.
The price rise only affects customers on E.ON's standard variable tariff (E.ON Energy Plan). If you have a fixed energy deal from E.ON or any other energy supplier, the price you pay per unit of energy will remain fixed until the plan ends. Once it ends your supplier will automatically place you onto its standard variable tariff if you don't switch to another fixed deal.
In August 2020, E.ON announced it would be reducing the average cost of its standard variable tariffs by 7% in line with Ofgem's revised energy price cap.
The price of the supplier's standard variable tariff dropped by an average of £84, bringing the average customer's bill to £1,042. The price change came into effect in October 2020.In February 2020, E.ON reduced the average price of its standard variable rate tariffs by £16 — about 1% – also due to a cut in the price cap level.E.ON previously tracked the price cap rate by lowering the average price of its standard variable rate tariffs by £77 for around 1.8 million dual fuel customers, effective 1 October 2019.
The big six supplier also lowered its costs in reaction to the energy price cap decrease announced on 7 August 2019.
These price decreases followed months of price rises from E.ON:
In August 2018, E.ON raised its prices by an average of 4.8%, around a £55 increase for dual fuel customers
In April 2018, E.ON removed the discounts it offered some of its customers as well as increasing standing charges for those paying by cheque or cash quarterly.
All customers on a standard variable tariff from E.ON are affected by the April 2022 price rise. Due to the energy market situation, this will be the vast majority of people.If you're on a fixed plan from E.ON, your rates will stay the same for the remainder of the contract. But remember that you'll automatically be rolled onto a standard variable tariff when your fixed deal ends, which will mean an increase to your energy bills.
Following the price cap review in February 2022, many energy suppliers raised their prices in line with the new cap level.You can read about previous price changes from the rest of the big six below:
The energy price cap is reviewed twice per year, in February and August (to come into force in April and October). Prices have already risen by an average of £694 in April and will remain there until the next review in August 2022. Unfortunately, it's likely that prices will rise again - any new rise (or drop) will come into effect from October 2022.
Find out which suppliers have increased or decreased their energy prices this year. Compare latest energy deals and help save you money on energy bills in 2022.Learn more