Eon Next has cut the price of two 24-month fixed energy tariffs so that both sit lower than the upcoming October price cap, launching what are currently the cheapest two-year deals available from a major energy supplier in Great Britain.
The price reductions mean both fixed options undercut the new national price cap scheduled to take effect in October, giving households an opportunity to secure their gas and electricity rates for the next two years.
The tariffs arrive as financial forecasts indicate potential cost increases for consumers early next year. Based on current market predictions, households on a standard variable tariff who pay by direct debit could see their annual energy bills surge by 25 per cent compared to October levels.
The next official price cap will be announced by energy regulator Ofgem at the end of November. If current market forecasts are realized, elevated energy bills will remain in place until at least the end of March 2027, with major supplier EDF Energy warning that energy bills could stay "stubbornly high" until the end of the decade.
Choosing to fix an energy tariff for two years protects consumers against future wholesale energy price shocks. However, if wholesale market prices drop in the future, customers will face financial penalties to switch to a cheaper contract, as Eon Next levies exit fees of £100 per fuel for early termination.
Tariff pricing details and smart meter requirements
Eon Next has lowered prices on two distinct 24-month products: a standard fixed tariff and a time-of-use plan known as the Smart Saver. Under the Eon Next Fixed 24m v72 tariff, the average annual bill is set at £1,689 for a standard household. This figure sits £34 below the October price cap of £1,723 and is £463 lower than the predicted January market level of £2,152.
The second product, the Eon Next Smart Saver 24m v7 tariff, brings the average quoted annual bill down to £1,662. That rate represents a £61 reduction compared to the October price cap and sits £490 below the predicted January benchmark. Both tariffs require an exit fee of £100 per fuel if a customer leaves before the 24-month contract period expires.
The Smart Saver tariff functions as a time-of-use plan, offering lower electricity unit costs during off-peak and super off-peak hours. To enroll in this tariff, customers must have a functional smart meter installed in their home, as Eon Next requires energy consumption data transmitted at half-hour intervals to apply the correct time-based pricing.
Because unit costs fluctuate depending on when energy is consumed, Eon Next calculates the quoted annual bill for the Smart Saver tariff using an average household usage pattern spread across peak, off-peak, and super off-peak periods. Smart meters communicate reading data automatically to energy suppliers via a dedicated national wireless communications network, removing the requirement for manual meter readings.
Understanding price caps and average household bills
Neither Ofgem's price cap nor fixed supplier tariffs cap the overall total cost of a household's energy bill. Instead, these caps establish the maximum unit price that suppliers are permitted to charge per kilowatt-hour of gas and electricity used, alongside maximum daily standing charges.
Quoted annual bill totals reflect what an average domestic consumer can expect to pay over a 12-month period based on standardized usage. Ofgem defines an average household as a residential property occupied by two to three people. Homes that consume more gas and electricity than the benchmark average will pay higher overall annual bills, while smaller or lower-usage homes will pay less.
Ofgem, short for the Office of Gas and Electricity Markets, acts as the non-ministerial government department that regulates Great Britain's electricity and natural gas markets. The regulator recalculates and sets the energy price cap every three months to reflect shifts in wholesale energy supply costs, grid management fees, and network maintenance expenses.
Households that have not updated or fixed their energy contract within the past year are usually placed on their supplier's default standard variable tariff. Customers on standard variable tariffs are directly impacted by Ofgem's quarterly price cap changes, experiencing price rises or falls whenever the regulator adjusts the national cap limit.
Supplier forecasts for upcoming price cap changes
Projections compiled by major energy providers indicate substantial bill increases when the January price cap takes effect. British Gas forecasts an average annual bill of £2,160 under the January cap, while EDF Energy projects an average bill of £2,165. Eon Next estimates the January price cap will settle at £2,131 for average usage.
These individual supplier projections form the basis of an estimated average January price cap prediction of £2,152. Wholesale gas prices are expected to remain high due to ongoing conflict in the Middle East, which continues to affect international energy markets and fuel supply chains.
Suppliers note that forecasts for the January price cap are subject to low certainty because international energy markets remain volatile. Geopolitical instability and shifting global supply conditions can cause sudden shifts in wholesale gas and electricity pricing.
British Gas, operated by parent company Centrica, is the largest residential energy provider in the UK market. EDF Energy serves as the British retail branch of French state-owned utility EDF, while Eon Next operates as the digital-led consumer brand of E.ON UK, one of the country's established major energy suppliers.
Comparing market tariffs and exit fee terms
Data provided by price comparison service Uswitch shows that all ten of the cheapest fixed energy tariffs currently available across the market are either 18-month or two-year contracts. Although one-year fixed deals are available from suppliers, their unit costs are currently higher than those offered on longer multi-year fixed tariffs.
Securing a two-year fixed tariff provides long-term price certainty, enabling households to manage household budgets without exposure to unexpected market price spikes. However, if wholesale market conditions stabilize and energy prices drop later in 2027, fixed-rate customers might find lower tariffs available elsewhere.
In that situation, households must weigh the financial impact of exit fees against potential energy savings on a new tariff. Eon Next imposes an exit fee of £100 per fuel, meaning a household with both gas and electricity would pay £200 to terminate the contract early and switch suppliers.
Uswitch is a UK-based price comparison platform that enables consumers to analyze energy deals based on home size and energy consumption. Energy comparison tools also highlight green energy deals, which provide electricity generated from renewable sources like wind and solar, alongside carbon-offsetting options for gas.
