Eon customers told to look out for important letters containing £21 warning

Energy giant Eon has said it will be contacting customers about increases to their bills from the new year. UK households will face higher costs after energy regulator Ofgem confirmed it would be raising the Energy Price Cap again.

The cap determines how much energy companies can charge customers on average. Typical households will pay £21 extra a year from January.

It's more bad news for families, many of whom will feel they are already paying too much for their gas and electricity. Eon said it would be contacting customers by letter or email to set out charges between January and March.

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Around 80% of UK households, who are on standard variable tariffs with their suppliers, will be affected. Variable tariffs mean charges move up and down with the price cap, with customers being advised to consider fixed options to keep bills lower.

The company said on its website: "On November 22, 2024, Ofgem announced that the energy price cap, for a typical household who use electricity and gas and pay by direct debit, would be £1,738 from January 1, 2025. This figure uses Ofgem’s definition of ‘average energy use’ known as the Typical Domestic Consumption Values (TDCV).

"Ofgem sets the maximum amount that suppliers can charge for each unit of electricity and gas but not the total bill, so if you use more energy, you will pay more. Customers on our standard variable tariff, Next Flex, will be sent a letter or email detailing the changes to their unit prices and standing charges for the period of January 1 to March 31.

"Ofgem’s energy price cap sets a maximum unit price for each kilowatt hour of energy used by customers on a standard variable tariff (SVT). The specific unit rates each customer sees will vary by region and payment type."