E.On has promised to replace its standard variable tariff (SVT) with a fixed term tariff, initially for smart meter customers. People having a smart meter installed will be offered a one-year fixed tariff. Existing smart meters customers will also be offered a move to a replacement one-year fixed tariff.

The fixed term tariff will have no exit fee. Customers will have the option of automatically rolling on to the current version of the fixed term product when the deal ends, instead of defaulting to SVT.

And starting in early 2018 standard variable tariffs will no longer be the default option for people coming to the end of their existing tariff. Instead, they will also have the option to ‘roll over’ on to the latest version of a fixed term contract.

Michael Lewis, chief executive of E.On UK, said: “We believe standard variable tariffs have had their day.

“For us, smart meters are a key means to achieve this move because they represent a natural opportunity for engagement with our customers and the new technology opens up a world of more accurate billing and greater choice. We’ll be ramping up our activity next year so we’re able to start taking thousands of people off standard variable tariff each week – added to which, their smart future will begin with a price drop.

“However, this isn’t only about smart metering customers. We’ll also be working on options for classic meter customers joining us or coming to the end of fixed term tariffs.”