E.ON Next has confirmed a significant reduction in energy bills for many of its customers, set to take effect from April 1, 2026. The energy supplier is passing on savings announced by the government in the autumn Budget, which will lower the typical household's gas and electricity costs by £133 for those eligible.
Budget Changes Drive Bill Reductions
The move comes in response to policy shifts outlined by Chancellor Rachel Reeves last November. Under the Budget plans, the government is removing 75% of the cost of subsidies for older renewables projects, known as the "renewables obligation," from electricity bills and transferring it to general taxation for the remainder of the spending review period. This adjustment was initially forecast to save households an average of £88.
Additionally, the government stated it would not renew the Energy Company Obligation (ECO) scheme, which is funded through levies on bills, resulting in an average saving of £59. A further £7 saving from VAT reductions brings the total expected reduction to £154 for the average household.
E.ON Next's Specific Tariff Adjustments
E.ON Next has announced it will transfer the full value of these government savings directly to its customers. The company has reduced the price of its Next Fixed 15-month tariff, with the updated version, Next Fixed 15m v15, now set at £1,835 for a standard household using both gas and electricity, down from £1,902. This tariff includes a £50 exit charge per fuel.
From April 1, 2026, E.ON Next customers on either fixed or variable tariffs will automatically see their energy bills reduced. The company states that this will set the Next Fixed 15m v15 tariff at £1,702 for a typical household, delivering additional savings of £133 beyond the initial adjustments.
Controversy Over the ECO Scheme Axe
The ECO scheme, which is being discontinued, was used to fund home insulation and boiler upgrades for fuel-poor households. Green campaigners have criticized its removal, arguing that it will cut funding for green homes from £20 billion to £15 billion over the course of this parliament and prevent one million families from insulating their homes in the next four years.
Chancellor Rachel Reeves defended the decision, stating, "It costs households £1.7 billion a year on their bills and for 97% of families in fuel poverty, the scheme has cost them more than it has saved. It is a failed scheme, so I am scrapping that scheme along with taking other legacy costs off bills."
Industry and Environmental Reactions
Ed Matthew, campaigns director at the independent climate change think tank E3G, expressed concerns at the time of the announcement. He said, "Cutting taxes from electricity bills is a crucial step towards helping people to switch to clean energy. But this is overshadowed by the morally indefensible decision to scrap the national home insulation scheme ECO. This is exactly the kind of sticking plaster politics this government promised to end, and fatally undermines the best long-term solution to fuel poverty. It will also cost 10,000 jobs."
Despite the controversy, E.ON Next emphasizes that its customers will benefit from the immediate financial relief. The company has issued new details for customers, noting that they do not have long to wait until the changes come into force. For further information, customers are directed to visit the official E.ON Next website.
