Energylinx News

September 21, 2017

E.ON is Saying Goodbye to their Standard Variable Tariff

E.ON has committed to replacing its standard variable tariff (SVT) with a fixed term tariff for any customers that have a smart meter installed. In addition, any SVT customer who already has a smart meter with E.ON will be offered a move to a replacement one-year fixed tariff.

Starting in early 2018 standard variable tariffs will no longer be the default option for people coming to the end of their existing tariff. Instead, customers will have the option to 'roll over' on to the latest version of a fixed term contract. Existing standard tariff customers who have a smart meter, or who have arranged to have one fitted, will move to a new fixed term tariff with the same 'roll over' option or, if they really don't want to, they will have the possibility to opt out and remain on an evergreen variable tariff.

The new one-year fixed tariff will have a price fixed for one year to give customers security. Like a standard variable tariff, this fixed term tariff will have no exit fee and customers are free to engage with the market as they see fit. In the same way as today, customers will be prompted to consider all E.ON's tariffs to choose a new tariff that best meets their needs.

Michael Lewis, CEO of E.ON UK:

"Standard variable tariffs have had their day. Tomorrow is about customers feeling free to engage with the market with tariffs that work for them."

"We believe standard variable tariffs have had their day. Tomorrow is about helping customers engage with the market with tariffs that work for them. We want to take action now to make that happen for our customers and we'll work with Ofgem and BEIS over the coming months to make this a reality.

"For us, smart meters are a key means to achieve this move because they represent a natural opportunity for engagement with our customers and the new technology opens up a world of more accurate billing and greater choice. We'll be ramping up our activity next year so we're able to start taking thousands of people off standard variable tariff each week - added to which, their smart future will begin with a price drop.

"However, this isn't only about smart metering customers. We'll also be working on options for classic meter customers joining us or coming to the end of fixed term tariffs. This is about increasing engagement with customers and having better conversations about what they need from their energy supplier, making sure they have the tools and the knowledge to choose a tariff that best suits their needs."

Interested in switching your energy supply to E.ON? Energylinx offer a free and impartial energy comparison and switching service. You can arrange a switch online or by calling one of our energy advisors on 01259 220000.

All current E.ON customers can register for a smart meter to be installed. They can also select from a range of tariffs such as a fixed term contract or the new Cap and Track tariff so they can see the benefits of a fixed product whilst waiting for a smart meter to be installed.

Posted on September 21, 2017 at 03:07 PM