Major energy supplier E.ON has announced significant price cuts on two of its fixed-rate tariffs, offering UK households a potential saving of £185 on their annual bills.
Substantial Savings Against the Price Cap
The move, announced during the Twixtmas period, sees E.ON Next lowering the price of its fixed deals to help customers lock in rates for the coming winters. The company confirmed that its cheapest 18-month tariff now delivers savings of £185 against the current Energy Price Cap, while its 24-month option saves £118.
The Energy Price Cap, set by the regulator Ofgem, is currently £1,758 for a typical dual-fuel household from 1 January to 31 March 2026. E.ON's new pricing undercuts this cap, providing a financial cushion against potential future market volatility.
Tariff Details and Costs
E.ON's Next Fixed 18-month tariff is now priced at £1,573 for a typical household using both gas and electricity, a slight reduction from £1,575. This tariff, branded as Next Fixed 18m v27, now claims to be the cheapest on the market for customers wanting to fix their rates for two winters. It carries a £50 exit fee per fuel.
For those seeking longer-term price security, the Fixed 24-month tariff (Next Fixed 24m v37) is also now at its cheapest-ever rate for E.ON, priced at £1,640, down from £1,658. This option comes with a higher £100 per fuel exit fee but offers savings of £118 against the cap.
Eligibility and Important Considerations
These headline prices and savings are based on a typical household with a standard (non-smart) meter, using average annual consumption of 2,700 kWh of electricity and 11,500 kWh of gas. The figures represent an average across all 14 UK regions for customers paying by Direct Debit.
E.ON has emphasised that the availability of these tariffs is subject to eligibility criteria. Furthermore, the actual savings realised by any individual household are not guaranteed, as they depend entirely on personal usage patterns and meter type.
The price comparison, valid as of 9am on 30 December 2025, is against other publicly available standard and fixed-term tariffs with the same contract lengths, excluding any deals that bundle in additional products or add-ons.
This strategic price cut places E.ON in direct competition with other major suppliers like British Gas, EDF, Scottish Power, OVO, and Octopus, as households continue to seek stability and value in a fluctuating energy market.
