E.ON Next customers who have signed up to its Pledge tariff are on track to save more than £14million on energy bills over the year, the firm has announced.

This is due to the tariff offering a guarantee that prices will always remain £50 below energy regulator Ofgem's energy price cap.

Almost 300,000 customers have signed up for the tariff since its launch in August 2023.

According to the energy provider, those 300,000 people are collectively expected to save around £14million compared to the industry-wide price cap over the year, having already saved as much as £5million since the tariff was launched.

Julian Lennertz, chief commercial officer at E.ON Next, said: “It’s great news that prices continue to fall following the energy crisis of recent years, and more so that customers on our Pledge tariff have found an easy way to always pay less than the cap.

“Hundreds of thousands of our customers are already seeing the benefits of this deal, which add up to the millions of pounds saved, helping them get more out of their energy.”

Ofgem will announce the latest change to its price cap this week and with analysts predicting a reduction of about £250, customers signing up to the E.ON Next Pledge tariff are expected to see a further reduction of £50 on their average energy bills.

Next Pledge is a 12-month fixed term tariff which tracks the price cap and guarantees to always remain £50 below the cap

Prices change each quarter in line with the price cap, which means if the cap continues to fall, as predicted for April and again in July, so will Pledge.

The tariff is available to both new and existing customers.

Money Saving Expert founder Martin Lewis previously praised E.ON Next’s Pledge as “the only tariff worth looking at”.

He told ITV This Morning’s viewers: “The only tariff that I would suggest people have a look at and see if it’s right for them is the E.ON Next Pledge tariff, which is available not just to E.ON customers, you can switch to it.

“It’s basically the price cap, with a three percent discount. So for the next year, whenever the price cap moves, this one is three percent cheaper. So if you’re going to be sticking to the price cap anyway, you may as well stick to the price cap but pay three percent less for it.”

Ofgem raised the energy price cap in January by five percent to average £1,928 a year for a typical duel-fuel household.

The price cap will next be renewed on April 1, and market analysts forecast annual prices to drop as much as 15 percent.

If this occurs, it would mean annual prices could drop to £1,635. Prices are then forecast to fall further in July before marginally rising again in October.

Commenting on the energy market forecast, Richard Neudegg, director of regulation at Uswitch.com, said: “After a painful two years of sky-high energy bills, suggestions of a 15 percent drop in rates could be some light at the end of the tunnel.

“While the price cap won’t officially be announced until next week, today’s forecast is a clear indication that energy prices are finally moving in the right direction and would be the lowest cap in two years.

“Consumers won’t feel the benefit from a fall in rates until the price cap comes into effect in April, so positive though today’s prediction is, it can’t help households save on heating their homes just yet.

“Prices are forecast to fall again in July, but the market remains unpredictable, and it is hard to know how energy rates will look when usage climbs again in winter.

“With more than just a glimmer of hope on the horizon for wholesale energy costs, all eyes are now on suppliers to see how they will price their other deals. Consumers have waited long enough for better tariff choices, and desperately need the opportunity to take advantage of cheaper rates.”