Ofgem has announced a 6.4% increase to its price cap from April 1 (Image: Getty)
E.ON has issued an unwelcome message to customers ahead of a from April.
has announced a 6.4% increase to its price cap which will see the in England, Scotland and Wales on standard variable tariffs rise from £1,738 per year to £1,849.
The price hike will equate to an extra £111 annually for the average household – or around £9.25 more per month, over the three-month period of the price cap.
Ofgem said the increase in costs for the period from April to June 2025 is due to a recent spike in wholesale energy prices, which account for around 78% of the total increase.
The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use, which for an average household paying by Direct Debit for dual fuel equates to £1,849 per year from April 1.
But the price cap rate is only paid by households that aren’t currently on a fixed tariff, so if you switch, it’s possible to undercut the price cap significantly.
In response to the latest price cap being confirmed, E.ON issued a message to customers on its website warning that customers on its standard variable tariff, Next Flex, will be affected.
The energy supplier said it will be contacting customers on this tariff with details of changes to their unit prices and standing charges, adding that costs will vary from household to household.
The firm said: “On 25 February 2025, Ofgem announced that the energy price cap, for a typical household who use electricity and gas and pay by Direct Debit, would be £1,849 from 1 April 2025. This figure uses Ofgem’s definition of ‘average energy use’ known as the Typical Domestic Consumption Values (TDCV).
“Ofgem sets the maximum amount that suppliers can charge for each unit of electricity and gas but not the total bill, so if you use more energy, you will pay more.
“Customers on our standard variable tariff, Next Flex, will be sent a letter or email detailing the changes to their unit prices and standing charges for the period of 1 April to 30 June.
“Ofgem’s energy price cap sets a maximum unit price for each kilowatt hour of energy used by customers on a standard variable tariff (SVT). The specific unit rates each customer sees will vary by region and payment type.
“Suppliers may offer a lower standing charge for their default tariffs under the price cap but to raise the unit rate above that assumed in Ofgem’s price cap, they need to demonstrate that the overall amount charged to consumers is at or below the total price cap.”
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E.ON added that it’s possible for customers to beat the April price cap as it currently offers a tariff with prices that will stay lower, so those that make a switch now could save money.
The supplier said: “The energy price cap applies to customers on a SVT. If you’re on a fixed tariff, the price cap won’t affect you. You can log in to your account and see which tariff you’re on.
“Did you know that we have a tariff with prices that stay below the energy price cap? Our Next Pledge tariff costs less per unit than the price cap unit rate, whether it goes up or down.
“With our Next Pledge tariff, you’ll get energy prices guaranteed to stay below the Ofgem price cap – saving you £50 based on average annual consumption.”