MSE News: Eon simplifies its energy tariffs

A supplier reducing the number of tariffs they offer does not make it attractive for customers of other suppliers to switch to Eon.

A lower priced tariff, one that comes up higher in the comparison sites, would make it more attractive for those looking to switch, to choose Eon.

A loyalty reward of up to £20 a year off bills (depending on how long a customer has suffered Eon as a supplier) is a nice gesture, but I would (a) treat that in a similar way MSE suggests treating cashbacks on switching and (b) £20 difference wouldn't be enough to entice me to switch supplier anyway.



Edit: I've just checked what Eon could offer me.

According to energyhelpline, their best tariff is 16% more expensive than the best of the competition.
I had to look an awful long way down the comparison site to get to the first Eon offeriing, having been beaten by every single other big 6 supplier and many of the smaller suppliers too.
Their most expensive offering turned out to be 36% more expensive than the best of the competitors. (in fact there were only 4 more tariffs available that would have been even more expensive)

These do not include the annual loyalty bonues which appear to be £10.50 after 1 year, £15.75 after 2 years and £21 after 3 years. (but small fry compared to the extra annual costs which would be in the £hundreds)

I can't find the unit prices for the new tariffs anywhere on the Eon website.
It tells me which tariff they think is cheapest for me (I'm an existing Eon customer), but I'd like to work it out for myself.

Am I right in thinking each of the Big 6 which has 'simplified' their tariffs have become far more expensive as a result?

Consumerist wrote: »

I think it's more likely that government green taxes and targets have been responsible for the bulk of recent price increases. Also, customers, struggling to pay their bills, are using less energy so the costs have to be spread over less units consumed.

I'd guess that the numerous tariffs and tariff names on offer are getting too complex for even the energy companies to handle effectively so that "simplifications" were a natural progression; I think the price increases would have happened anyway - and will probably continue in the future unless government eases its green energy push.

But didn't the MD of British Gas let the cat out of the bag when he admitted that they were previously able to offer their cheapest online tariffs because they were ripping off their loyal standard customers? I think what is actually happening is the industry is becoming slightly less disreputable (wouldn't be difficult!) and the previous huge (and hugely unjustified) discrepancy between what they charge for a standard tariff compared to what they charge for an online tariff has been modified to more accurately reflect the true costs.