E.ON Next has committed to passing a £150 annual saving on energy bills directly to millions of households beginning April 1, 2026. This promise aligns with the energy savings announced by Labour Party Chancellor Rachel Reeves, aimed at easing the current financial pressure on consumers.
An E.ON Next spokesperson emphasized the straightforward approach: “When these savings begin in April, we will pass them on in full to all our customers—no ifs, no buts, no fine print. People are under pressure and deserve to feel the benefit directly on their bills.”
The government plans to achieve this reduction by removing legacy costs and green levies, which it estimates will reduce the average household energy bill by around £150 annually. This will be supported by government funding to cover 75% of the domestic cost of the Legacy Renewables Obligation from 2026 to 2029 and by ending the Energy Company Obligation (ECO) on March 31, 2026.
READ MORE: State Pension Changes Threaten Adequate Income for 25 Million
READ MORE: Morrisons Delays Net Zero Target to 2050, Expands Commitment Across Entire Supply Chain
Additionally, the government is investing an extra £1.5 billion through the Warm Homes Plan to combat fuel poverty, bringing its total energy support package to £15 billion since the Spring Budget review.
However, some analysts caution that these savings could be offset by new charges related to the Clean Power Plan. Notably, the government has chosen not to extend the Energy Profits Levy (EPL) beyond 2026. This decision has drawn criticism from North Sea operators and energy industry groups who warn of job losses and diminished investment.
David Whitehouse, CEO of Offshore Energies UK (OEUK), remarked, “The government’s approach risks 1,000 jobs lost every month, increased energy imports, and negative ripple effects across industrial supply chains and heartlands. Future investment in North Sea energy hinges on reforming the windfall tax.”
Maurice Cousins, Campaign Director of Net Zero Watch, described the retention of the windfall tax as “catastrophic and deeply cynical,” warning it will deter investment, escalate import dependence, and weaken national energy resilience.
In contrast, Areeba Hamid, Co-Executive Director at Greenpeace UK, praised the government’s stance: “By halting new oil and gas exploration, Britain is leading global climate efforts and marking a historic shift towards net zero.”