Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Cardew
    • By Cardew 27th Sep 16, 9:41 AM
    • 26,423Posts
    • 12,719Thanks
    Cardew
    Eon - Customer loyalty??
    • #1
    • 27th Sep 16, 9:41 AM
    Eon - Customer loyalty?? 27th Sep 16 at 9:41 AM
    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'.
Page 4
    • gt94sss2
    • By gt94sss2 1st Oct 16, 6:47 PM
    • 3,924 Posts
    • 1,792 Thanks
    gt94sss2
    The only concern is, if I pay £60 penalty to switch now, what happens next year? I will not able to switch to another cheap E.On tariff, so it will be another £60 to switch away. Might as well stay put at Scottish Power.
    Originally posted by Pincher
    Switching between different Eon tariffs doesn't attract any early termination penalties- they only come into play if you switch to a different supplier while in contract.
    • Pincher
    • By Pincher 1st Oct 16, 8:51 PM
    • 6,278 Posts
    • 2,363 Thanks
    Pincher
    Switching between different Eon tariffs doesn't attract any early termination penalties- they only come into play if you switch to a different supplier while in contract.
    Originally posted by gt94sss2
    I thought this thread was about juicy tariffs only available to NEW customers?

    If E.On can get away with it this time, the concern is they will carry on barring existing customers.
    What happens if you push this button?
    • Micron
    • By Micron 1st Oct 16, 10:07 PM
    • 23 Posts
    • 26 Thanks
    Micron
    Eon - Customer loyalty??
    Would anyone have any suggestions how E.on could earn the trust of their existing customers and earn a fair profit ?

    14 March 2012, Dr. Tony Cocker, CEO of E.ON UK, said: "As CEO my main priorities are both to earn the trust of our customers and to earn a fair profit because I recognise that in the long term no company can be sustainable without both. We understand that our customers want to know they are paying a fair price for the energy they buy from us.......”
    • merchcon55
    • By merchcon55 3rd Oct 16, 8:02 PM
    • 43 Posts
    • 54 Thanks
    merchcon55
    What is the minimum amount of time one needs to stay with a given Energy supplier before you can change again?

    Say one leaves E.on for, as example, npower and you go on one of their "no exit fee" rates (to keep this example easy, let us say Standard rate).

    If the minimum time to stay with a company before you could change again were 30 days, on the 13-14th day one could arrange a switch back to E.on (and be eligible for a NEW CUSTOMER rate) - as the switch would take 17 days, you would have stayed with the "new supplier" (Npower in this example) for the minimum 30 days.

    Perhaps the E.on reps could let us know what the minimum time period is to stay with a new supplier.

    While not ideal - might be away around the "new customer only" tariffs that are being introduced.
    • Cardew
    • By Cardew 3rd Oct 16, 9:45 PM
    • 26,423 Posts
    • 12,719 Thanks
    Cardew
    What is the minimum amount of time one needs to stay with a given Energy supplier before you can change again?

    Say one leaves E.on for, as example, npower and you go on one of their "no exit fee" rates (to keep this example easy, let us say Standard rate).

    If the minimum time to stay with a company before you could change again were 30 days, on the 13-14th day one could arrange a switch back to E.on (and be eligible for a NEW CUSTOMER rate) - as the switch would take 17 days, you would have stayed with the "new supplier" (Npower in this example) for the minimum 30 days.

    Perhaps the E.on reps could let us know what the minimum time period is to stay with a new supplier.

    While not ideal - might be away around the "new customer only" tariffs that are being introduced.
    Originally posted by merchcon55
    I don't think there is a minimum time you need to stay with a firm. When rewards for switching were higher people used to post on here about how much money they made switching several times a year.

    Some firms like Sky who offer huge discounts as an inducement for new customers, won't allow ex-customers those terms.(so I am told) It may well be that Eon will apply the same principle
    • Micron
    • By Micron 5th Oct 16, 12:37 PM
    • 23 Posts
    • 26 Thanks
    Micron
    I just cannot understand the benefit for suppliers with the new customer only tariffs, can someone please explain the logic of it all to me, below is my rather simplistic view about it.

    Taking myself as Mr Average if I were to become a new E.on customer on the Saver Fixed 1 Year v2 tariff my bill for the next year would be £830 E.on says they make 4.7% on residential customer bills so their profit would be £39

    According to the Cheap Energy Club energy suppliers pays them £60 for a new dual fuel customer, so in year one E.on would make a potential loss of £21 on every new dual fuel customer.

    Being an existing E.on customer the cheapest tariff available to me next year would give me a bill of £1125 giving E.on a potential profit of £53 but because of the disparity in the tariffs I will leave E.on (along with many others) so their profit from me becomes ZERO

    People might argue that the profit for the power companies will come in year two and onwards from their new customers but all these new customers are very savvy, next year when their tariff will increase nearly all will be off to a new cheaper supplier so ZERO profit for E.on.

    Surely this has got to be a lose lose situation for E.on? or is their 4.7% customer profit margin figure far from the truth?
    • Cardew
    • By Cardew 5th Oct 16, 2:25 PM
    • 26,423 Posts
    • 12,719 Thanks
    Cardew
    I just cannot understand the benefit for suppliers with the new customer only tariffs, can someone please explain the logic of it all to me, below is my rather simplistic view about it.

    Taking myself as Mr Average if I were to become a new E.on customer on the Saver Fixed 1 Year v2 tariff my bill for the next year would be £830 E.on says they make 4.7% on residential customer bills so their profit would be £39

    According to the Cheap Energy Club energy suppliers pays them £60 for a new dual fuel customer, so in year one E.on would make a potential loss of £21 on every new dual fuel customer.

    Being an existing E.on customer the cheapest tariff available to me next year would give me a bill of £1125 giving E.on a potential profit of £53 but because of the disparity in the tariffs I will leave E.on (along with many others) so their profit from me becomes ZERO

    People might argue that the profit for the power companies will come in year two and onwards from their new customers but all these new customers are very savvy, next year when their tariff will increase nearly all will be off to a new cheaper supplier so ZERO profit for E.on.

    Surely this has got to be a lose lose situation for E.on? or is their 4.7% customer profit margin figure far from the truth?
    Originally posted by Micron
    These days no company can lie and get away without being called to task. Albeit they can phrase statements that can be 'misunderstood'.

    Your assumptions are incorrect in the above quote. Eon have not said they make 4.7% profit on every customer's bill. On some bills they will be making a loss and on others way more than 4.7%.(20%??)

    Like all other companies they quote their profit margin as a percentage figure on the revenue raised. i.e. for every £1,000 collected their costs are £953 and profit £47.
    • bumpercars99
    • By bumpercars99 5th Oct 16, 2:51 PM
    • 57 Posts
    • 44 Thanks
    bumpercars99
    I just cannot understand the benefit for suppliers with the new customer only tariffs, can someone please explain the logic of it all to me, below is my rather simplistic view about it.

    Taking myself as Mr Average if I were to become a new E.on customer on the Saver Fixed 1 Year v2 tariff my bill for the next year would be £830 E.on says they make 4.7% on residential customer bills so their profit would be £39

    According to the Cheap Energy Club energy suppliers pays them £60 for a new dual fuel customer, so in year one E.on would make a potential loss of £21 on every new dual fuel customer.

    Being an existing E.on customer the cheapest tariff available to me next year would give me a bill of £1125 giving E.on a potential profit of £53 but because of the disparity in the tariffs I will leave E.on (along with many others) so their profit from me becomes ZERO

    People might argue that the profit for the power companies will come in year two and onwards from their new customers but all these new customers are very savvy, next year when their tariff will increase nearly all will be off to a new cheaper supplier so ZERO profit for E.on.

    Surely this has got to be a lose lose situation for E.on? or is their 4.7% customer profit margin figure far from the truth?
    Originally posted by Micron
    The benefit is in the mix of types of customer they have across tariffs. It means that they keep all those customers who can't be bothered to switch often (ie the profitable ones) and those who are price conscious will leave (mainly unprofitable ones).

    The new customers who join on the exclusive tariff are an unknown and likely a mixture of customers who will bother to leave afterwards and those who won't but overall, the proportion of less frequent switchers will be higher.

    Looking at profit margins for an energy company, customers who switch annually onto cheap tariffs through comparison sites with commissions must be a loss to the company so they're as well to be rid of them from a bottom line point of view. Maybe it's particularly shrewd, if you're a frequent switcher and you're so annoyed by this that you'll never go back to Eon or whatever, that's probably even better for them! The longer term impact of any reputational damage is a separate issue.
    • Micron
    • By Micron 5th Oct 16, 10:41 PM
    • 23 Posts
    • 26 Thanks
    Micron
    The benefit is in the mix of types of customer they have across tariffs. It means that they keep all those customers who can't be bothered to switch often (ie the profitable ones) and those who are price conscious will leave (mainly unprofitable ones).
    Originally posted by bumpercars99
    Overall I would have thought that there would have been a slight shift towards the more unprofitable customers, lose some profitable ones, lose some unprofitable ones, gain more new unprofitable ones.

    The new customers who join on the exclusive tariff are an unknown and likely a mixture of customers who will bother to leave afterwards and those who won't but overall, the proportion of less frequent switchers will be higher.
    Sorry I have to disagree, all of the customers gained on the new customer tariffs have come via a price comparison site (the only way to get the tariff) and as such are savvy and well aware of the energy suppliers tactics so 99% of them will most probably leave when the tariff ends, I still believe that all the suppliers offering the new customer tariffs have shot themselves in the foot profitwise.

    Looking at profit margins for an energy company, customers who switch annually onto cheap tariffs through comparison sites with commissions must be a loss to the company so they're as well to be rid of them from a bottom line point of view. Maybe it's particularly shrewd, if you're a frequent switcher and you're so annoyed by this that you'll never go back to Eon or whatever, that's probably even better for them! The longer term impact of any reputational damage is a separate issue.
    I can't argue with any of that, as for me I have said before that it would have to be an extra special deal from E.on for me to even consider ever going back, as a company I now see E.on as devious, untrustworthy and unfair, will my new supplier be any better, I doubt it but at least they will save me £300 over the next year.
    • brewerdave
    • By brewerdave 6th Oct 16, 8:45 AM
    • 4,182 Posts
    • 1,701 Thanks
    brewerdave
    I can't argue with any of that, as for me I have said before that it would have to be an extra special deal from E.on for me to even consider ever going back, as a company I now see E.on as devious, untrustworthy and unfair, will my new supplier be any better, I doubt it but at least they will save me £300 over the next year.
    Originally posted by Micron
    I suspect that EON were just too successful at picking up the serial switchers -looking back, I "switched" internally with EON 6 TIMES after first signing up via MSE in Dec.'14, each time (bar one) via an external site. Therefore they have probably got a much higher %age of our "group" than other Utility Cos.
    So the EON board have decided to rebalance by getting shot of some of us. My tariff runs til mid March and there was at least one further good switching site offer after that, so I'm not expecting EON to be competitive for me anytime soon.
    • theboylard
    • By theboylard 6th Oct 16, 11:04 AM
    • 1,064 Posts
    • 2,632 Thanks
    theboylard
    Didn't know this thread was here, but just to add my groat...

    Firstly, why do E.on make it so difficult to find a usable phone number on their site?! It's almost as if they don't want to talk to cutsomers?!

    I'd found this eon saver plus plan mentioned on a couple of minor comparison sites (no sign of it on Cheap Energy Club?) and so phoned E.on up.

    After holding to a variety of scratchy music - really - I eventually chat to a a guy who's name I didn't catch but could only offer the 3 tariffs on line, and really didn't care what I did!

    So, another customer lost.

    I also run money saving sessions in the local village hall, usually about once a quarter - guess who's gonna be mentioned in dispatched, rather than dispatches!!

    Any suggestions for East Midlands leccy? Sorted for gas!
    4kWp, SSE, 16 x 250w EcoFuture BoB with retro-fitted SolarEdge P300 optimisers & SE3500 Inverter, in occasionally sunny Corby, Northants.
  • E.ON Company Representative: Helena
    Didn't know this thread was here, but just to add my groat...

    Firstly, why do E.on make it so difficult to find a usable phone number on their site?! It's almost as if they don't want to talk to cutsomers?!

    I'd found this eon saver plus plan mentioned on a couple of minor comparison sites (no sign of it on Cheap Energy Club?) and so phoned E.on up.

    After holding to a variety of scratchy music - really - I eventually chat to a a guy who's name I didn't catch but could only offer the 3 tariffs on line, and really didn't care what I did!

    So, another customer lost.

    I also run money saving sessions in the local village hall, usually about once a quarter - guess who's gonna be mentioned in dispatched, rather than dispatches!!

    Any suggestions for East Midlands leccy? Sorted for gas!
    Originally posted by theboylard
    Afternoon theboylard,

    I'm really sorry that you're so unhappy with us.

    You can see the phone numbers on the website by clicking contact us at the bottom, then clicking on telephone numbers on the right. It'll bring you up a list of the different departments with their number.

    At the moment, the only tariffs we've available for sale to existing customers are those listed on our website.

    The new tariffs are for new customers wanting to join E.ON and you can only sign up to these via the third party comparison sites.

    I'm sorry you had to hold when calling us and that you don't feel you got the customer service we should be providing.

    Malc and I care and it's one of the main reasons we send feedback about our threads and what our customers are saying.

    Thank you
    theboylard

    Helena
    Official Company Representative
    I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • apt
    • By apt 6th Oct 16, 1:50 PM
    • 3,054 Posts
    • 1,715 Thanks
    apt
    Helena there isn't a clear telephone number for customers wanting to discuss their tariff on the website. The telephone number in the terms and conditions of current cheap tariff is also out of date. Like others I will be switching elsewhere rather than paying 20% more for the crime of being an existing customer.
  • E.ON Company Representative: Helena
    Helena there isn't a clear telephone number for customers wanting to discuss their tariff on the website. The telephone number in the terms and conditions of current cheap tariff is also out of date. Like others I will be switching elsewhere rather than paying 20% more for the crime of being an existing customer.
    Originally posted by apt
    I'm sorry that you'll be changing away.

    But I'd like to say thank you for the feedback and it's something I'll be passing back.

    Helena
    Official Company Representative
    I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
    • Micron
    • By Micron 7th Oct 16, 10:43 PM
    • 23 Posts
    • 26 Thanks
    Micron
    Your assumptions are incorrect in the above quote. Eon have not said they make 4.7% profit on every customer's bill. On some bills they will be making a loss and on others way more than 4.7%.(20%??)
    Originally posted by Cardew
    I have only used the figures that E.on quotes in their promotional video, this shows how every £1 is spent from residential bills, at the end only 4.7p remains.

    Perhaps a simpler way to put it would have been, for every customer E.on gains on the new tariff they will make a loss or little profit and for every disgruntled existing customer they lose they will make no profit at all.

    That still sounds like a double whammy loss situation to me.
    Last edited by Micron; 07-10-2016 at 11:01 PM.
    • Cardew
    • By Cardew 8th Oct 16, 11:45 AM
    • 26,423 Posts
    • 12,719 Thanks
    Cardew
    I have only used the figures that E.on quotes in their promotional video, this shows how every £1 is spent from residential bills, at the end only 4.7p remains.

    Perhaps a simpler way to put it would have been, for every customer E.on gains on the new tariff they will make a loss or little profit and for every disgruntled existing customer they lose they will make no profit at all.

    That still sounds like a double whammy loss situation to me.
    Originally posted by Micron
    Every gas/electricity/water/telephone company/supermarket can calculate their profit and express it in terms of a percentage on their revenue. That is all Eon have done.

    If they have, say, 5 million customers they can hardly work out the profit on every individual customer. They are simply saying that if the revenue raised is, say, £100,000,000 their expenses are £95,300,000 and their profit is £4,700,000
    • molerat
    • By molerat 8th Oct 16, 11:59 AM
    • 15,851 Posts
    • 10,065 Thanks
    molerat
    And how a multi level organisation massages those figures with cross company costs and payments to come out with a figure they want the public (and HMRC) to see is another subject altogether.
    www.helpforheroes.org.uk/donations.html
    • Tertiian
    • By Tertiian 8th Oct 16, 6:04 PM
    • 5 Posts
    • 3 Thanks
    Tertiian
    Customer Loyalty?
    I have been with EON for 7.5 years. I have been offered renewal of my current 'fix' (expiring 31 Oct) at an increase of 30%. I cannot access any of the special deals on comparison sites as they are restricted to new customers. I have spoken at length to EON Customer Services and they offer nothing except 'Tesco points' (worth £5 annually against a £219 increase). The economics of this marketing strategy escape me. So I have actioned a switch to SSE which will cost only £747 annually against my current £716 and an EON offer of £935

    Addendum: Loyalty is a two-way relationship. Would have accepted a small increase to stay with EON on basis of past dealings/prices but they have made this impossible. So much for the fine words about 'customer ethos'.. Pure BS!
    Last edited by Tertiian; 08-10-2016 at 7:07 PM. Reason: Accuracy of figures/addendum
    • fredandwilma
    • By fredandwilma 9th Oct 16, 10:04 AM
    • 743 Posts
    • 1,069 Thanks
    fredandwilma
    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'!

    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.
    Originally posted by Cardew

    I think it's naive to think energy companies are any different to other large companies / big industries.

    Business is all about profit / making money / cost cutting and it seems E.on have decided to take the road of attracting new customers, as will other energy companies.

    The days of loyalty to customers (and rewarding loyal customers,) ended decades ago, and as a consumer, I'm only loyal to a company if they are providing me with the best deal. It works both ways.

    There are millions of people who have never switched energy supplier. This reached a low in 2013. There has been a 47% increase in people switching from May last year.

    E.on is just shifting it's target market, and i suspect they won't be alone.

    Conversely, what we see on MSE is a very small proportion of consumerism, and those who are already driven to obtain the best deal.

    Tariffs like the saver tariff (or from collectives,) aren't going to reach the E.on consumers who would benefit the most, for example the elderly who have never changed supplier, who believe in "company" loyalty, who find it all too confusing / don't have the technology / don't wan't the hassle, and are still paying the most expensive rates for their energy, (and other goods or services.)




    http://www.independent.co.uk/money/the-big-six-energy-companies-really-don-t-deserve-your-loyalty-a6863596.html


    http://www.energy-uk.org.uk/press-releases/338-2016/5806-two-million-customers-switch-in-the-past-five-months.html


    https://www.theguardian.com/money/2016/feb/22/more-than-6m-households-switched-energy-supplier-in-2015


    http://www.gocompare.com/press-office/2015/10/switching-energy-supplier/



    NB - I'm in no way affiliated to E.on and I'm just saying it as it is. I'm only loyal to E.on for the duration of my 2 year fix, (at best.)
    Fred - Where's your get up and go?

    Barney - It just got up and went.



    Carpe diem
    • Cardew
    • By Cardew 9th Oct 16, 10:23 AM
    • 26,423 Posts
    • 12,719 Thanks
    Cardew
    I think it's naive to think energy companies are any different to other large companies / big industries.

    Business is all about profit / making money / cost cutting and it seems E.on have decided to take the road of attracting new customers, as will other energy companies.
    Originally posted by fredandwilma
    I am far from naïve about company motives.

    I was pointing out that this practice of excluding existing customers from cheaper tariffs is new in the gas/electricity industry and it should be given as much adverse publicity as possible.

    Because the same disreputable practice is widespread in other industries doesn't make it any more acceptable.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,390Posts Today

5,545Users online

Martin's Twitter