E.ON Unlocking Fixed Business Contracts

E.ON will have the difficult task of notifying their commercial customers over the coming weeks that they will need to unlock their current fixed price contracts in order to add an additional charge that wasn’t forecast when the contract was originally signed.

This additional charge will also cover customers that are potentially no longer with E.ON and these will receive a one off backdated costs for this unallocated charge.

National Grid have recovered additional costs to pay for their Black Start charges and E.ON are unable to absorb these additional costs and as such will pass this charge on for any electricity used between April 2016 and March 2017.

Such is the complexity of non-commodity charges and the unpredictable nature of the charging methodology, that we have stated for some time that we expect suppliers to invoke clauses of material change in order to recover such unallocated costs.

More to follow…