EON EnergyPlus Standing Charge.

pinky1978

We have just come off a fixed rate tariff with E.ON Energy and been transfered onto their E.ON EnergyPlan. On checking the unit prices and standing charges I noticed that the standing charge for the electricity is increasing to 49.646p per day.

I thought the energy companies were not allowed to charge more than the Price Cap of 45.34p set by Ofgem for the electricity standing charge.

Are E.ON allowed to charge an extra 4.306p above Ofgems Price Cap ?

They also say that they offer a Direct Debit discount "If you pay by Direct Debit, you'll see a reduction in your standing charges and unit rates." Are they allowed to say that when there is no discount on either of these charges ?

Thank You for your help.

GingerTim

Do you live in southern Scotland? There's some geographical variation in the standing charge rate: https://forums.moneysavingexpert.com/discussion/comment/78957887/#Comment_78957887

Northern_Wanderer

This is the EON Energy Plan tariff table on the price cap. It vaires by regoin, meter type and payment method.

https://www.eonenergy.com/content/dam/eon-energy-com/Files/price-cap/E.ON%20EnergyPlan%20Credit.pdf 

https://www.eonenergy.com/content/dam/eon-energy-com/Files/price-cap/E.ON%20EnergyPlan%20with%20Prepayment.pdf

Which region are you in?

What meter type do you have?

How do you pay?

Astria

The standing charge varies by region, which region are you in?

Here's a graphical illustration that might be easier to read than Ofgem's tables: https://www.thisismoney.co.uk/money/bills/article-10667939/Energy-standing-charges-regions-pay-60-others.html

pinky1978

Thank You So Much for the links you have posted, I didn't realise the standing charges varied by region.   We live in Central Scotland, have standard meters and pay by direct debit Northern_Wanderer.  I'm still a bit confused thought.  What is the point of Ofgem setting a "PriceCap" if the energy companies can still charge more than that depending on what region you live in.  Doesn't that mean there isn't really a "Price Cap" on electricity standing charges at all ?

Northern_Wanderer

OFGEM make it very confusing. I think Central Scotland is Region 18 Scottish Power??? If so:

Eon Energy Plan Region 18

Direct Debit standard meter exc VAT

Standing Charge 47.282p/ day

Unit Rate 26.512p / KWH

Eon Energy Plan Region 18

Direct Debit standard meter inc VAT

Standing Charge 49.646p/ day

Unit Rate  27.838/ KWH

Where does the 49.646p per day standing charge you quoted come from?

EDIT: I do apologise, my original post was exc VAT by mistake!

TheMilkmansDad

47.282 + vat = 49.646

Vegastare

There was an article on the difference is standing charge, the areas mentioned were Merseyside North Wales parts Scotland and South West England, which are higher than other areas, London saw the lowest. The standing charge has always varied depending on where you live, due to different costs to supply homes with power in rural or more remote areas.  Guess the folks in Merseyside are rural and remote!!! Tell my OH family that
Another weird fact in this crazy UK energy set up

Price per day for Single Rate Electricity Meter from April 2022 by British region in order of percentage charge.

• London: up 8p a day to 31p - a 38% increase
• Eastern: up 13p a day to 36p - a 58% increase
• South East: up 17p a day to 40p - a 73% increase
• North West: up 17p a day to 40p - 73% increase
• Southern: up 18p a day to 41p - an 80% increase
• Yorkshire: up 21p a day to 46p - an 81% increase
• North Scotland: up 22p a day to 48p - a 83% increase
• Northern: up 21p a day to 46p - an 85% increase
• East Midlands: up 20p a day to 43p - an 88% increase
• Midlands: up 22p a day to 46p - a 92% increase
• South Wales: up 22p a day to 46p - a 94% increase
• Southern Scotland: up 24p a day to 47p - a 100% increase
• South Western: up 25p a day to 49p - a 101% increase
• North Wales & Merseyside: up 23p a day to 45p - 102% increase

Source: Ofgem

pinky1978

The prices are the ones quoted on our EON account now Northern_Wanderer and as TheMilkmansDad said it's your figures plus the 5% VAT.  £280.56 in standing charges alone for the year if the Price Cap remains the same in the October review.  Thank goodness we're all getting that £200 loan from the Government in October !!

jimjames

pinky1978 said:

 What is the point of Ofgem setting a "PriceCap" if the energy companies can still charge more than that depending on what region you live in.  Doesn't that mean there isn't really a "Price Cap" on electricity standing charges at all ?

There isn't a single "price cap", it's capped by region so the supplier for that region cannot charge more than the cap which means it is still effective. Regions tend to match the old regional gas and electric company boundaries that existed in 1985 when they were privatised.

pinky1978

Thank you Vegastare. We are in the Southern Scotland Region, but I didn't realise Edinburgh was classed as Rural or Remote !!