E.ON Next has announced it is handing customers an automatic £132 saving on their energy bills from April 1. The energy supplier has a 15-month tariff that is currently priced at £1,971 for a typical household using gas and electricity, with a £50 per fuel exit fee. But From April 1, this price will drop to £1,839 offering typical customers on this tariff savings of £132. The cash boost comes as E.ON Next confirms it will pass on every penny of savings announced by the government last autumn to its customers.

Labour said in the Autumn Budget that it would scrap the long-running Energy Company Obligation (Eco) scheme, introduced under the Tories, from April, which will see the average household energy bill reduced by £150. The government has confirmed the savings will be applied to bills from April 1 onwards, including to those on fixed tariffs, so households don’t need to do anything to claim the savings.

E.ON said: “From 1 April, E.ON Next customers on a fixed or variable tariff will automatically see their energy bills come down. Next Fixed 15m v12 is currently priced at £1,971 for a typical household using gas and electricity, with a £50 per fuel exit fee.

“From 1 April, Next Fixed 15m v12 will be priced at £1,839 for a typical household using gas and electricity, offering savings of £132.”

The government has said energy bill savings once the Eco scheme is scrapped from April will depend on how much energy households use and the type of tariff they’re on, but it is expected the average home will see their bill reduced by £150.

For households on standard variable tariffs, savings will be applied to unit rates for gas and electricity for any energy used after April 1, and energy suppliers will be in contact to confirm the details of the new rates.

For those on fixed tariffs, your tariff will be amended so that the savings are applied to your unit rates going forward, and energy suppliers will contact you to confirm the new rates.

Major UK energy suppliers, including E.ON, British Gas, Octopus Energy, OVO and EDF, have all confirmed plans to pass on savings to all customers from April.

Additionally, E.ON’s Next Pledge 12-month fixed tariff also offers customers savings of £100 against Ofgem’s energy price cap from April based on average annual consumption, which is double what it previously offered, according to the supplier.

Customers on Next Pledge tariff can switch to any E.ON Next fixed deal without paying internal exit fees, meaning they can save against the price cap now and choose to fix later if they wish.

E.ON Next Pledge 12m v10 is a 12-month fixed-term product, with prices that automatically adjust each quarter to remain below the price cap. From 1 April, the tariff will be priced at £1,541 for average annual consumption – £100 cheaper than the April price cap.

By comparison, Ofgem’s price cap will drop from the current £1,758 per year to £1,641 from April 1, a reduction of £117 or around £10 per month for the average household using both electricity and gas.