A major energy firm has launched a brand new “first” of its kind tariff, which could help customers cut around £370 a year off their energy bills. E.ON Next has this month launched its Time of Use tariff, which offers cheaper electricity rates at certain times of the day.
The cheaper rates will be offered at “off-peak” and “super off-peak” times. Under the tariff, off-peak times are between 5am-4pm and 7pm-2am and will be charged at 20.11p per kilowatt hour (p/kWh).
The super off-peak rate is paid between 2am and 5am and sits at 16.33p p/kWh. In comparison, peak times are between 4pm and 7pm and is charged at 38.48 p/kWh. Meanwhile, the peak rate, paid between 4pm and 7pm costs 38.48p p/kWh.
Usually, these types of tariffs are aimed at customers with electric vehicle (EV) chargers or heat pumps. However, the energy firm says this one is open to customers with a smart meter.
E.ON Next says those using their electricity during the off-peak hours can save 20% on their bills compared to its standard variable tariff. The firm’s standard variable tariff follows Ofgem’s price cap, which currently sits at £1,849 for the average dual fuel household paying by direct debit. This means someone using the E.On Next Next Smart Saver tariff and only using energy at off-peak times would save around £370 a year.
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E.On Next’s tariff is fixed for 12 months and comes with no early exit fees meaning you can cancel before the end of this period without paying a charge.
You’ll need a smart energy meter to sign up, or be willing to have one installed. Smart meters are energy meters which display your gas and electricity usage in real-time so you can see exactly how much you’re spending on energy each day.
They work by calculating energy usage based on automated readings which are sent to your energy provider every 30 minutes. To be eligible to sign up for this tariff, must also be a pay monthly customer and able to manage your account online.
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Ramona Vlasiu, Chief Operating Officer at E.ON Next, said: “With energy prices fluctuating, we know customers are looking for ways to take control of their bills.
“The Next Smart Saver tariff – the UK’s first fixed mass-market Time of Use tariff – is designed to do just that, rewarding customers who can shift their energy use to times when demand is lower, helping them save on their bills.
“However, this isn’t just about individual savings; it’s about smarter energy use for the whole country. As the UK moves towards a greener, cleaner grid, shifting demand away from peak times will play a crucial role in reducing strain on the network.”
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