How the current energy market is affecting prices and tariffs.
Your energy market update.
You might have noticed some headlines over the last few days about energy prices jumping up again. It’s true, things have turned a little bumpy in the global energy market, but we’re here to be upfront about what’s happening and – most importantly – what it means for your finances.
Why are energy prices rising right now?
Energy prices can change when global wholesale energy markets become more volatile. Factors such as international supply pressures, geopolitical tensions, and change in global demand can all influence the cost of electricity and gas.
With exporters slowing production, these international changes quickly push up wholesale costs. These challenges outside our control directly impact the price of the electricity and gas we all rely on.
How will it affect energy bills?
At the moment, an immediate spike in energy bills is unlikely, but let’s take a look at how energy bills could be impacted:
Fixed tariffs
If you entered into a fixed tariff with us, you locked your rate when you started the contract. This means you won’t see any price changes until the fixed period ends.
Standard variable tariff (SVT).
If you’re on a SVT, you’ll continue to see your rates align with the price cap, so your rates won’t change immediately either.
What’s happening with the April price cap?
In February, Ofgem announced the new price cap for 1 April to 30 June would be £1,641 for a typical household using electricity and gas and paying by Direct Debit.
The good news is, the price cap reduction is still scheduled for 1 April! This means everyone can still benefit from the £150 average saving thanks to the removal of the Energy Company Obligation (ECO) levy and a chunk of the ‘green levies’ (also known as the Renewables Obligation).
Find out more about the changes to the ECO scheme.
What’s on the July forecast?
Though the April price cap reduction is locked in, current forecasts suggest the cap could rise in July if wholesale markets don't settle down.
The market, especially at the moment, is constantly changing. What’s true today could change by tomorrow, so the best way to stay in the know is by checking our price cap predictions. We provide all the latest price cap information as it happens.
How will it impact our energy tariffs?
Due to the current situation and because we believe in supplying energy in the most sustainable way possible, we’ve made some changes to our tariff selection. Here’s a breakdown of the current situation.
Are tariff rates rising?
When wholesale energy prices increase, the cost of fixing energy prices for the following year can also increase. This can affect the rates available on some fixed or time of use tariffs.
Are there any exit fees on our tariffs?
Currently there are no exit fees if you switch between our tariffs. If this changes for new tariffs in the future, we'll make this clear when you sign up.
We can guarantee that there’ll be no exit fees on Next Pledge, our 12-month fixed tracker tariff, if you switch to another E.ON Next tariff. However, there is a £25 exit fee (per fuel) if you switch suppliers. Learn more about Next Pledge.
If you change energy suppliers, some of our tariffs do have exit fees. The best way to find out is by reading the terms and conditions from when your contract began. Don’t have them to hand? You can also check our terms and conditions online.
What tariffs do we currently offer?
At the moment, our tariff selection is in a constant state of change. You can explore all the tariffs we currently offer at any time.
Please note: When wholesale markets are volatile – like they are at the moment – it’s usual for energy suppliers to make changes to their tariffs. We’re closely monitoring the situation and our tariffs remain under review. We hope to share more updates soon, so keep an eye on our website, emails, and social channels for the latest news.
Next steps: What does it mean for you?
Everyone’s situation will look a little different, but the bottom line is, we’re here to lend a helping hand and offer any information we can.
The big question: Should I stay or switch?
If you’re already on a fixed tariff, you’re all set! Your price is locked in until your current deal ends. No immediate action needed, unless your deal is ending soon.
If you’re on a standard variable tariff, your price is confirmed until the July price cap. So it’s up to you whether you stay or switch when that time arrives.
Whether you stay with your current tariff or switch to something else is entirely up to you. If you prefer the certainty of knowing your unit rates in advance, a fixed tariff can offer more predictability over the term of the deal. However, staying on a standard variable tariff will see prices vary with the price cap.
The key takeaways: Do your research before making any decision. Stay up to date on our tariff selection. Plus, always factor in our price cap predictions before making your choice.
Next Pledge: Beat the price cap for 12 months.
Next Pledge could offer you reassurance in uncertain times. Our 12-month fixed term tracker tariff automatically adjusts each quarter to remain below the price cap.
From 1 April this tariff is priced at £1,541 for average annual energy use (£100 on average below the £1,641 April price cap). After this, you’ll see the rate change in line with the new price cap.1
We don’t apply exit fees on Next Pledge unless you’re switching suppliers. Find out more about our Next Pledge offer.
Get extra support from us.
We believe that everyone deserves access to affordable energy. If you're struggling with your bills, we’re here whenever you need us.
We can offer information on payment plans, financial support, debt advice, and more. Contact us and one of our Energy Specialists will help answer your questions.
You can also find answers in our help hub, covering payments, billing, and account management.
Explore other ways of getting support.
There are also some brilliant organisations and charities out there that can give you extra support:
If you’re worried about other payments, contact Citizens Advice for independent advice.
If money worries are impacting your mental health, talk to our charity partner Mind.
If you’re a vulnerable customer and need some extra help managing your energy account, sign up to our Priority Services Register.
Take control of your energy use.
One of the easiest ways to manage your energy use is by staying in the know. Whether you want to see how current rates affect your monthly outgoings or make smarter choices, we’ve got the tools to help. Explore some of our energy guides:
The legal bit.
1 Next Pledge is a 12-month fixed term tracker tariff with variable rates that are always lower in comparison to the Ofgem Price Cap, that applies to standard variable tariffs. £100 saving is applied as a reduction on unit rates split across both electricity and gas (£50 saving per fuel) based on Ofgem average dual fuel customer. Actual savings depend on usage and region. Payment by Direct Debit required. £25 exit fee per fuel if you change supplier.