EON sends message to customers with £172 boost 'better than British Gas'

Energy firm E.ON has sent a message to customers today giving them the ‘good news’ that their prices are set to drop by an average of £172 from July 1.

The firm is writing to customers to tell them about the Ofgem price cap, which is dropping by 7 percent from the start of next month, which means an average household will save £122 per year on their gas and electricity bills.

And what’s more, EON customers on its Next Pledge tracker, which guarantees to be £50 cheaper than the price cap, will save even more, averaging a £172 boost which makes its tracker cheaper than British Gas’ standard variable tariff.

EON told customers: “Good news! Ofgem's price cap is going down on 1 July, so your Next Pledge prices are too.

“Remember, with Next Pledge your prices will always be £50* a year less than the price cap, so you'll get lower prices from 1 July and peace of mind knowing you're paying less than the cap.

One customer’s email, seen by the Express, showed how their usage - which is slightly lower than average - would see their electricity costs decrease by £92.37 per year and their gas by £67.09 per year for a total of £159 saved.

The new rates charged by EON for its Next Pledge tracker show unit rates for electricity dropping from 22.4p to 20.3p, while gas is going from 5.7p to 5.2p per unit, although the much hated standing charges - 67p a day for electricity and 31p a day for gas - are remaining the same.

Prices will fall by £122 on average for every household in the UK not currently on a fix on July 1 thanks to the new Ofgem price cap, which limits the maximum amount energy firm can charge based on wholesale rates, while EON’s prices will be £172 down on average because of its pledge to stay £50 cheaper than the price cap.

British Gas is currently offering a fix which would put you 5% lower than the price cap in effect right now, but 2% higher than the July price cap, whereas EON’s Next Pledge promises to stay 3% under the price cap even when it changes in July.

However, if the price cap rise again - as it’s forecast to - British Gas could be good option if you value price certainty, because EON’s tracker will also rise with the price cap as well as fall.