Major energy supplier E.on has just launched a new model of tariff that ensures a fixed monthly bill, regardless energy usage.
The new Secure Bill tariff promises to cost the same amount each month of the year, and is calculated based on the households’ previous year of usage.
This offers consistency and is great for predictability and control but comes at a cost and is not going to suit everyone.
Cheaper deals can no doubt be found elsewhere, and it has been stated that this is in fact E.On’s most expensive tariff to date, for average use. Calculations based on average household consumption show that it would cost around £102 per month (£1244 per year), compared to the cheapest yearly cost on the market, which is currently calculated at £867.
Quotes vary from one household to the next, so in order to gain a quote, E.on requires customers to provide them with their energy usage from the past year (which should be displayed on monthly bills). Customers would then be provided with a monthly fixed price, which takes into account the region in which they live as well as their usage. This tariff is a fixed agreement for the following 12 months and comes with a £75 exit fee if customers want to end their single fuel tariff, or £150 to exit an dual fuel agreement.
This tariff is only offered to customers who have a smart meter, something E.on no doubt hopes will encourage more people to have one installed. E.on, along with most other energy suppliers, has been keen to emphasise the benefits of smart meters, which encourage households to keep on top of their use and spending, and take control of their energy use.
The Secure Bill tariff is offered to direct debit monthly paying residential customers who either hold an electricity only or dual-fuel account. This deal can also be used by customers with economy 7 meters. Customers who are not offered this tariff are those with economy 10 meters, and gas-only and prepayment customers.
Although this is a new tariff, it is not the first time E.On has offered a monthly fixed price tariff (it’s previous Staywarm tariff was offered for several years).
The CEO of E.on UK has stated ““Unlike other fixed term tariffs which are available today, Secure Bill means customers’ payments won’t change during the year, regardless of how much energy they use. This gives customers complete reassurance about how much they’ll pay each month for 12 months and the ability to accurately budget for their energy.
If you’re an existing E.ON customer, it will use your previous consumption information to predict the price you’ll pay. For new customers, it will be based on the billed information you provide. You can find this on your annual energy statement from your previous supplier.”
