Eon charging more than the price cap

sjwomersley

My Eon electricity tariff is due to end in a few weeks so I will be moving to their "Next Flex" tariff as it's my cheapest option at the moment.

When reviewing the rates they charge for this tariff I noticed their daily standing charge is advertised as 48.53p / day, but according to Ofgem's website the price cap for the daily standing charge is 45p.

I have queried this with Eon as I want to understand why they are charging more than the price cap and the response I have received is: "I understand you are comparing it to the price cap, but that is just an estimated guideline that has been put in place, but the prices can vary."

I understand how a variable rate tariff works but the point of a price cap is to limit how much energy providers can charge so I don't agree with their response about it being an estimated guideline that is variable.

Please can anyone shed any light on this?

Ultrasonic

The price cap varies according to where you live.

https://www.edfenergy.com/sites/default/files/r505_deemed_rate_card.pdf

MattMattMattUK

sjwomersley said:

My Eon electricity tariff is due to end in a few weeks so I will be moving to their "Next Flex" tariff as it's my cheapest option at the moment.

When reviewing the rates they charge for this tariff I noticed their daily standing charge is advertised as 48.53p / day, but according to Ofgem's website the price cap for the daily standing charge is 45p.

I have queried this with Eon as I want to understand why they are charging more than the price cap and the response I have received is: "I understand you are comparing it to the price cap, but that is just an estimated guideline that has been put in place, but the prices can vary."

I understand how a variable rate tariff works but the point of a price cap is to limit how much energy providers can charge so I don't agree with their response about it being an estimated guideline that is variable.

Please can anyone shed any light on this?

They are correct, although what they have given you would be regarded as a simplified explanation. In addition to the regional variation that Ultrasonic mentions there is also some variation as to how individual suppliers reach the price cap. The SVR rates charged by each supplier are signed off by Ofgem.