eon misleading price rise

lincs123

On August 21st EON issued a press release stating "Prices will rise by 16% for electricity and 26% for gas."

I have just had my bill and the actual increase for electricity was 28% for primary (first 202kwh) and 30% on the rest! (In fairness Night went up by only 7% but would probably need to use 80% of my electricity at night to get close to the 16%). Even the standing charge went up by 23% and I cannot see how high wholesale prices could effect the standing charge!

Does anyone know if I can take any action (other than changing supplier) against a blatantly wrong press release? Were the other utility companies as economical with the truth on their real changes in August?

notbritishgas

lincs123 wrote: »

On August 21st EON issued a press release stating "Prices will rise by 16% for electricity and 26% for gas."

I have just had my bill and the actual increase for electricity was 28% for primary (first 202kwh) and 30% on the rest! (In fairness Night went up by only 7% but would probably need to use 80% of my electricity at night to get close to the 16%). Even the standing charge went up by 23% and I cannot see how high wholesale prices could effect the standing charge!

Does anyone know if I can take any action (other than changing supplier) against a blatantly wrong press release? Were the other utility companies as economical with the truth on their real changes in August?

Are you sure the press release did not say "Prices will rise by an average of 16% electricity and 26% gas"? The important word being "average".

lincs123

No this was the start (the release was still on their website over the weekend):
E.ON UK Press Releases
21 August 2008 10:06
E.ON announces price rise for residential customers
Electricity prices to rise by 16%, gas prices by 26%
Over a quarter of customers unaffected
Spend to assist most vulnerable customers doubled
Prepayment meter customers to pay same price as E.ON standard prices
E.ON has today (THURSDAY) become the latest energy supplier to respond to rising wholesale energy costs by increasing electricity and gas prices for the majority of its residential customers, effective from 22 August 2008.

Prices will rise by 16% for electricity and 26% for gas. The move comes as a direct result of rising wholesale costs which have increased by over 51% since February1. This will equate to 62p per day (22%) for the average dual fuel customer, who could still save £58 a year compared to being supplied by British Gas2.

notbritishgas

Yes I have just found the press release http://pressreleases.eon-uk.com/blogs/eonukpressreleases/archive/2008/08/21/1276.aspx. It is misleading, but look at the note 2 at the bottom and that explains the averaging. Perhaps the editors should have made that clear.

KimYeovil

Do you use exactly the average consumption? Are you using the same meters and tariffs? Pretty much all press releases are going to include a typical price for one particular circumstance. If yours don't match the example that's not misleading. Tariffs are altered and sculpted differently on a regular basis. This MSE forum wouldn't exist otherwise.

lincs123

The notes at the bottom apply to specific points in the press release (note 2 refers to their comparison with BG) there is no note attached to the clear statement round the increases. I know that usually they will put in average but clearly this one slipped out without it and as a result it is misleading. As it is a press statement don't think there is anything that can be done (had this appeared in an advertisement the situation would be different)