A MAJOR energy firm has launched a new energy tariff that could slash your bills by around £370 a year.
has unveiled the new “Time of Use” tariff offering customers different rates depending on the time of day.
Households signing up to the Next Smart Saver will pay an off-peak, super off-peak and peak rate.
The off-peak rate is paid between 5am to 4pm and 7pm to 2am and is 20.11p per kilowatt hour.
The super off-peak rate is paid between 2am and 5am and is 16.33p per kilowatt hour.
Meanwhile, the peak rate, paid between 4pm and 7pm costs 38.48p per kilowatt hour.
E.On Next claims the new tariff is the first fixed time of use tariff of its kind as it's not aimed at customers with EV chargers or heat pumps.
The energy firm also says those using their electricity during the off-peak hours can save 20% a year on their compared to its standard variable tariff, which changes based on .
The current price cap means the average household is currently paying £1,849 per year for their gas and electric.
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.
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.
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 and agree to E.On Next collecting data from the meter every half hour.
You must also be a pay monthly customer and able to manage your account online.
Is the deal worth it?
Elise Melville, energy expert at Uswitch, said the new tariff from E.On Next could be worth it if you're willing to shift your energy usage to anti-social hours.
However, if not, it won't be worth your time.
She explained: “These tariffs won’t be right for everyone.
“The super off-peak window is between 2am and 5am — a time when most households are asleep and unlikely to use appliances, but it could suit those who can schedule when they run.
“The peak period between 4pm to 7pm, when families typically have higher usage, is priced above (E.On Next's) standard tariff.
“This could make it difficult for the average household to avoid higher costs during the most energy-intensive hours of the day.
“Electric vehicle owners should also be cautious — although the tariff includes lower overnight rates, they’re still not as competitive as the 7p/kWh available on some specialist EV charging deals.”
Elise also pointed out there are a number of fixed deals on the market currently offering some of the biggest savings.
For example, Outfox the Market's fixed 12-month deal is offering customers a £300 yearly saving based on the current price cap.
You can search the best fixed-rate deals via price comparison websites like MoneySavingExpert.com and MoneySuperMarket.
It's also worth shopping around to find the best Economy 7 or 10 tariffs on the market that might compete with E.On Next's.
These tariffs charge you two different rates, a lower and higher rate, for seven or 10 hours a day.
It's worth contacting rival energy firms asking for a quote on what its Economy 7 or 10 rates are.
How else to save money on energy bills
You might be able to get a cash payment or vouchers towards the cost of energy through the Household Support Fund.
The fund is worth £842million and has been shared betweenin.
Each council is offering something slightly different though with eligibility criteria varying too. Speak to your council to see what help is on offer.
You can take active steps towards down your energy bills as well.
Switching appliances off standby, according to the Energy Saving Trust (EST).
Draught-proofing windows and doors is another – it could save you around £80 over 12 months.
Plus, ditching your tumble dryer and drying your clothes on a heated airer will likely save you £100s over the colder months.
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