Eon - Customer loyalty??

Cardew · 27 September 2016 at 10:41AM

I have a particular hate of firms - banks, Sky etc - who offer attractive deals that are not available for existing customers. - a kind of 'reverse loyalty'!

I have today received an email from Money Supermarket about their new 'Collective' tariff with Eon( Saver Fixed 1-year v1). Amongst the conditions is this statement:

Availability: Not available to existing Eon customers****

You can’t get this deal directly from Eon

I appreciate this has been mentioned before in the forum, but not specifically about the practice of excluding existing customers from cheap tariffs.

At least with the much maligned British Gas, customers on any of their tariffs - including the MSE Feb 17 Collective - can switch to the MSE Oct 2017 Collective without penalty and still get £30 cashback from MSE.

IMO Eon should be ashamed of introducing this practice of excluding existing customers from the cheaper tariffs - especially in light of Ofgem's declared policy of simplifying tariff structures.

The very helpful Malc and Helena from Eon contribute to this forum. Perhaps they can convey this message to their 'masters'.

Bluebirdman_of_Alcathays · 27 September 2016 at 10:49AM

The masters simply don't care. At the moment, it is so very financially advantageous to lure and then shaft, that they do it. Even with insurance, where customers are generally more switched on and liable to shop around, it is better business sense to hope that 20-30% of people are gullible enough to stick around for the awful increase in tariff.

I totally agree with you that it's an awful practice. Unfortunately, the ethical firms that don't do it (good energy etc.) by and large are also expensive

Former_E.ON_Company_Representative:_Malc · 27 September 2016 at 11:08AM

Cardew wrote: »

I have a particular hate of firms - banks, Sky etc - who offer attractive deals that are not available for existing customers. - a kind of 'reverse loyalty'!

I have today received an email from Money Supermarket about their new 'Collective' tariff with Eon( Saver Fixed 1-year v1). Amongst the conditions is this statement:

I appreciate this has been mentioned before in the forum, but not specifically about the practice of excluding existing customers from cheap tariffs.

At least with the much maligned British Gas, customers on any of their tariffs - including the MSE Feb 17 Collective - can switch to the MSE Oct 2017 Collective without penalty and still get £30 cashback from MSE.

IMO Eon should be ashamed of introducing this practice of excluding existing customers from the cheaper tariffs - especially in light of Ofgem's declared policy of simplifying tariff structures.

The very helpful Malc and Helena from Eon contribute to this forum. Perhaps they can convey this message to their 'masters'.

Morning Cardew and yes, Helena and myself have been sending messages about the new Saver Tariffs back to our bosses since these products were first released. One particular thread on here has a lot of comments similar to yours. It's at the link below (post 67 onwards).

http://forums.moneysavingexpert.com/showthread.php?t=5519605

All these comments have been fed back. I'll do the same with your post Cardew and thanks for posting and your kind words about Helena and me. They're appreciated.

Malc

Cardew · 27 September 2016 at 1:19PM

E.ON_Company_Representative:_Malc wrote: »

One particular thread on here has a lot of comments similar to yours.
Malc

Hi Malc,

I did mention in my opening post that similar comments had been on the forum, but that is a 12 page, 220+ post thread with a title (E-on/ MSE Fixed 1 Year Collective Sept 2015 - Stay or wait?) that is nothing to do with this latest practice of excluding existing customers from tariffs.

The intention of this thread is to 'name and shame' and perhaps deter other companies from following that practice. If widely read it might also make the comparison websites think twice about getting involved with disadvantaging 'loyal' customers.

fredandwilma · 27 September 2016 at 2:36PM

I haven't looked at this tariff before now as it isn't available to me, however, i decided to obtain a quote, given the debate.

The tariff is not too dissimilar to the tariff i'm currently on and would probably work out roughly the same in costs.

Units per kwh more expensive with gas, cheaper with electricity, SC more expensive with gas, cheaper with electricity, so overall the tariff is more expensive with gas, cheaper with electricity. Which is fine by me as i use three times more gas than electricity.

However, what i do find amusing is the fact the tariff summary states " Designed to suit customers who typically consume lower amounts of gas and electricity," (which is myself,) yet i cannot apply for this tariff and it is not advertised or available as such.

Just to reiterate - I'm a customer who typically consumes lower amounts of gas and electricity. When will a tariff like this be available for me?

Tariff summary

Only available through Price Comparison sites, not direct from E.ON. Not available for existing E.ON customers. Designed to suit customers who typically consume lower amounts of gas and electricity. Before the end of the fixed price period E.ON will contact you with details of E.ON EnergyPlan, their variable tariff, which you will automatically move to, unless you choose a different tariff. Prices are fixed for 12 months from your tariff start date. Your standing charge is £35 per fuel lower than other payment methods if you pay by Monthly Direct Debit. Exit fee of £30 per fuel in fixed term.

Blackdog · 27 September 2016 at 2:57PM

I have some sympathy for Cardew and find myself in the same position. I have been with Eon for a few years and don't like being excluded from the best deals. Is there not a way that Eon could offer a similar tariff direct to existing customers and thereby avoiding the fee they have to pay comparison sites?
I understand that private companies have a right to do business with whoever they like but surely they need to start considering looking after existing customers or at some point their push for new customers will back fire. Don't forget an existing customer who is unhappy will tell lots of other people and they are unlikely to ever come back to Eon when they eventually switch away.

[Deleted User] · 27 September 2016 at 5:14PM

Well this site is for money saving and I change suppliers when it is in my financial interests. I'm on a collective E.ON tariff that runs until next summer so I'm not too bothered by this marketing tactic from E.ON. It is a bit shabby though but not unexpected. Several other of the big 6 have done similar in the past few months.
If a cheaper tariff turns up in the meantime, I'll move if I save money (after exits fees). (unless is it with SP or BG who will never see my money again)
I also cheated the system to get the prices for the forbidden tariff and it didn't make any difference to me financially.

Cardew · 27 September 2016 at 5:22PM

gsmlnx wrote: »

It is a bit shabby though but not unexpected. Several other of the big 6 have done similar in the past few months.

Have they? Not saying you are wrong but I haven't noticed any posts giving that information.

If you are correct it is a matter to take up with Ofgem.

Can you give some examples please.

P.S.
Or anyone else who knows of a similar scheme

[Deleted User] · 27 September 2016 at 7:53PM

@Cardew

Actually it was FU (so the next layer) who only wanted customers on standard Big 6 tariffs for a new tariff. My mistake I didn't re check before posting.

Former_E.ON_Company_Representative:_Malc · 28 September 2016 at 10:15AM

fredandwilma wrote: »

I haven't looked at this tariff before now as it isn't available to me, however, i decided to obtain a quote, given the debate.

The tariff is not too dissimilar to the tariff i'm currently on and would probably work out roughly the same in costs.

Units per kwh more expensive with gas, cheaper with electricity, SC more expensive with gas, cheaper with electricity, so overall the tariff is more expensive with gas, cheaper with electricity. Which is fine by me as i use three times more gas than electricity.

However, what i do find amusing is the fact the tariff summary states " Designed to suit customers who typically consume lower amounts of gas and electricity," (which is myself,) yet i cannot apply for this tariff and it is not advertised or available as such.

Just to reiterate - I'm a customer who typically consumes lower amounts of gas and electricity. When will a tariff like this be available for me?

Morning fredandwilma. As you know, I've been actively feeding Forum comment back to those at E.ON responsible for various activities. One of these areas is our Product Development team. This team is continually looking to develop tariffs best suited to both new and existing customers.

You're right, a version of the new Saver Tariffs may be better for low users. I've highlighted your question in my feedback to this team as I understand it's something that's being looked at for all customers.

Malc

Former_E.ON_Company_Representative:_Malc · 28 September 2016 at 10:27AM

Blackdog wrote: »

I have some sympathy for Cardew and find myself in the same position. I have been with Eon for a few years and don't like being excluded from the best deals. Is there not a way that Eon could offer a similar tariff direct to existing customers and thereby avoiding the fee they have to pay comparison sites?
I understand that private companies have a right to do business with whoever they like but surely they need to start considering looking after existing customers or at some point their push for new customers will back fire. Don't forget an existing customer who is unhappy will tell lots of other people and they are unlikely to ever come back to Eon when they eventually switch away.

As above Blackdog. I've sent your suggestion to our Product Development team.

Malc

Eon - Customer loyalty??

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free