E.ON launches flat rate standing charge for small businesses

Power supplier E.ON is introducing a flat rate electricity and gas standing charge in a bid to make pricing easier for small businesses. The new move will benefit businesses joining […]

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By Priyanka Shrestha

Power supplier E.ON is introducing a flat rate electricity and gas standing charge in a bid to make pricing easier for small businesses.

The new move will benefit businesses joining the energy company or existing customers renewing onto a fixed-term contract from tomorrow.

It follows Ofgem’s launch of the new standards of conduct for energy suppliers to treat small businesses fairly.

Standing charges are associated with supplying and serving customers such as metering, distribution and customer service costs. Suppliers have different approaches in recovering these costs which is said to cause confusion among energy customers.

E.ON claims its new flat rate will make product and price comparisons “quicker and easier” across similar meter types as the standing charge will be the same regardless of a customer’s product, geographical region or contract length.

It made the announcement following the company’s survey which showed less than half (46%) of small businesses “completely understood” their bills and 89% said “clear and open information” on what makes up a bill was crucial to maintaining good relationships with their energy provider.

Earlier this year the supplier committed to a maximum one-year period for backdated bills and last month announced an end to auto-rollover contracts for small businesses.

Anthony Ainsworth, Sales and Marketing Director of E.ON UK said: “We’re now taking a further step to support SMEs by simplifying our charges. This charge has been set in the fairest way possible and is based on the fixed costs we incur in order to supply and serve our customers.”