EON only passing on Govt reductions to Fixed Rate tariffs from January

thrifty46345

I have been emailing EON to ask if I’m eligible for the April 26 reductions on my current fixed tariff, which ends in May 27.  Contrary to their public website commitment to pass all reductions on to all, with no quibbling, my email from Eon stated that these reductions will only be for customers taking out Fixed Tariffs from January 26.

Whilst not surprised if this is the case, I feel that this stance flies in the face of the governments committment to help reduce everyday bills. 

IOWJJBTM2025

Have a look on the MSE site :-

Will your energy fix be reduced by the Budget's '£150 a year off bills' from 1 April 2026?

It states that Eon have committed to existing fixes.


https://www.moneysavingexpert.com/news/2025/12/octopus-energy-autumn-budget-savings-fixes/

Scot_39

Good news for future fix market.

The govt is only taking back a fraction of what they and past govts have been adding to bills in years past and predicted to add in near future - with 2 Ofgem anniuncements of extra network and net zero costs since budget - one £108, and one as yet uncosted.

And their are no net savings for many - just a shift from energy bills to general taxation - they haven't scrapped the costs - only shifted how paid for. 

You entered a fixed contract for a year long before the recent policy changes were announced in budget and in Oct and Jan caps.

Did your rates go up when the govt increases costs since - I suspect not.

Like in Oct when network went up £24 and WHD extension - social policy - added a further £17, or will they go up in Jan when another £21 is being added - nuclear nRAB and WHD ?

And likely more come April like the  extra debt relief scheme addingbto existing £50 DRC as of July.? 

£62 pro rata for fix remaining duration your supplier is being expected to absorb - against an annual operating profit ebit allowance of £42/£44 in Oct/Jan caps.

Forcing them to cut when cut but absorb when rise will only risk the end of fixes as you know them.

squirrelpie

IOWJJBTM2025 said:

Have a look on the MSE site :-

Will your energy fix be reduced by the Budget's '£150 a year off bills' from 1 April 2026?

It states that Eon have committed to existing fixes.

https://www.moneysavingexpert.com/news/2025/12/octopus-energy-autumn-budget-savings-fixes/

I think the point of @thrifty46345 's post is that the email to them contradicts what MSE stated. There thus is some doubt about what the situation really is.
I'd suggest that the OP share the email with MSE and MSE ask Eon to confirm what the situation actually is.

thrifty46345

squirrelpie said:

IOWJJBTM2025 said:

Have a look on the MSE site :-

Will your energy fix be reduced by the Budget's '£150 a year off bills' from 1 April 2026?

It states that Eon have committed to existing fixes.

https://www.moneysavingexpert.com/news/2025/12/octopus-energy-autumn-budget-savings-fixes/

I think the point of @thrifty46345 's post is that the email to them contradicts what MSE stated. There thus is some doubt about what the situation really is.
I'd suggest that the OP share the email with MSE and MSE ask Eon to confirm what the situation actually is.

Hi thanks for your comment, yes that’s the point I was trying to make.

This was my email response from EON regarding my tariff which ends in May 27, just out of interest.

“ I would like to clarify that you are currently on the Next Fixed 18m v23 tariff for both electricity and gas. With fixed tariffs, the standing charges and unit rates are agreed at the start of the contract and remain unchanged for the duration of the tariff. This means that any government reductions to standing charges or unit rates will not be applied to existing fixed tariffs like yours.

The reductions you mentioned will be reflected in new tariffs starting from January 2026 onwards. Customers on new or variable tariffs will benefit from these changes automatically. If you wish, you can choose to switch to one of the new tariffs that include the reductions, but we do not apply these changes retrospectively to existing fixed agreements.

I understand this can be confusing given the information on our website, which refers to the automatic application of savings for new tariffs and variable deals. Please let me know if you would like more information about the new tariffs available or assistance with switching.”

Not sure how I share this with MSE, any advice would be appreciated as a new poster.  Thank you.

EssexHebridean

Perhaps one of the forum team like @MSE_Laura_F or @MSE_James could ensure that this response from EON gets flagged to Martin - as it rather appears that their eager confirmation to him that it will be passed on is not in fact what they are intending to do! 

Scot_39

IOWJJBTM2025 said:

Have a look on the MSE site :-

Will your energy fix be reduced by the Budget's '£150 a year off bills' from 1 April 2026?

It states that Eon have committed to existing fixes.


https://www.moneysavingexpert.com/news/2025/12/octopus-energy-autumn-budget-savings-fixes/

That's really not good news for the fix market.

Its colllapsed once already after crisis. 

Some appear to have short memories.

Suppliers having to absorb extra costs larger than profit margins but pressurised into  passing on savings is not sustainable.

OVO are seeking new financing. SO energy forecast will be next year - others ?

Miliband and Lewis are both making populist demands - without an eye on the bigger picture.

The last thing we want is more failures, more SoLR subsidies.

Here was a chance for suppliers to recoup some of the losses made on fixes in past for SoLR or current losses for the £62 policy and network costs added by Ofgem i.e. govt -  in Oct and Jan caps.

Expect future caps at best to price in predicted Ofgem rises in netork costs etc ahead of time - or even domestic pass through contracts.

If you want the cuts come Apr  - its only reasonable to expect the well publicised rises as they happen.

QrizB

Scot_39 said:

IOWJJBTM2025 said:

Have a look on the MSE site :-

Will your energy fix be reduced by the Budget's '£150 a year off bills' from 1 April 2026?

It states that Eon have committed to existing fixes.


https://www.moneysavingexpert.com/news/2025/12/octopus-energy-autumn-budget-savings-fixes/

That's really not good news for the fix market.

I think you're making some unwarranted assumptions.

Scot_39 said:

Suppliers having to absorb extra costs larger than profit margins but pressurised into  passing on savings is not sustainable.

You seem to be assuming that, when making a fixed tariff offer, suppliers don't only pre-purchase their energy but also pre-pay their other costs.

Including the other costs that now won't be charged, following the Budget changes.

Scot_39 said:

Here was a chance for suppliers to recoup some of the losses made on fixes in past 

What you're actually saying is, "here is a chance for suppliers to trouser the cash that the Government will instead be collecting from general taxation".

If these Budget changes were intended to subsidise energy retailers, they would have been announced as such. But they're not, they're intended to reduce household bills.

If the government had left charges unchanged but instead said "we will be paying households £12.50 a month via their energy accounts" would you be arguing that people on fixed-rate deals shouldn't be receiving the payments, and the suppliers should be keeping it?

Scot_39

How can a supplier add in say the £62 of extras in last 2 caps that weren't announced - at least not publicly - but added by Ofgem in some cases many months after current fixes taken out.

Edit - as to the notion of them fixing

Why would say Octopus prepay all other costs - network / policy etc for say a year - when a customer can leave them for free at any time on most of their fixes.

And iirc SP when fixing for parents - at least used to allow customers to switch internal fixes for free - as long as dont leave SP.

The most recent in a long line of policy and network costs increases - that they have been expected to absorb.

EOn are reacting to the policy announcements - and reflecting it in future deal costs - which seems a perfectly reasonable approach.

IF you want a world of pass through cost based fixed term contracts - or suppliers to hedge by say adding in £80 extra per fix to cover the risk the £62 rises in just the last 3 months of cap increases being repeated - plus the share of forecast £108 by 2030 to come - so be it.

Why should it only be those on SVT who pay govt via Ofgem policy charges as soon as they get introduced under new caps - but those on fixes don't - but then expect to benefit immediately from the far rarer cuts ?

And if a few of those on fixes end up paying twice - which given many of the personal tax changes aren't kicking in for years for most - long after many current fixes will end - well that's just pay back for all such past savings.  

thrifty46345

Scot_39 said:

How can a supplier add in say the £62 of extras in last 2 caps that weren't announced - at least not publicly - but added by Ofgem in some cases many months after current fixes taken out.

The most recent in a long line of policy and network costs increases - that they have been expected to absorb.

Why should it only be those on SVT who pay govt via Ofgem policy charges as soon as they get introduced under new caps - but those on fixes don't - but then expect to benefit immediately from cuts ?

Appreciate the comment, again I think that my main point was the contradictory stance of the energy company concerned as you’ll see from my initial post.  If the organisation stated that ALL customers will receive the rebate, then that should be taken as read.  I wouldn’t be complaining if they just said those who were not fixed, but they said ALL.

Again thank you for your comment.

Scot_39

Was crossing over the MSE table posting that said would - but have EOn modified their website since that email or wherever they said it would be passed on - in T&Cs say ?