eon regional discounts

mvan

Maybe somebody could provide an answer on my query about eon regional discounts,

1.What criteria are these discounts based on?
2.Do other energy companies operate the same discount system?
3.Why are these discounts not published anywhere?
4.Why do they change when tariffs change?

I find it surprising that the energy watchdogs and/or trading standards have not questioned the use of this system as it appears similar to the "hidden" costs that airline operators add/subtract to the headline cost. Some transparent policies are overdue for these companies, it appears the only option customers have are to move to another company as the regulators do not get tough on energy companies anymore (if they ever did!).

Premier_2

Hidden 'regional' discounts?

Not pubished anywhere?

Perhaps because they are so well hidden is the reason no one else has seen them

The only regional price differences that I am aware of is that relating to the differing prices of electricity depending on supply region. This is common throughout the electricity suppliers.
Ebico give an explanation of why on their website:
http://www.ebico.co.uk/html/c_faq.php#q9

jimexbox

Eon give different online discounts etc etc depending on which region you live. You have to ring them up for your level of discount, though they are apparently working on putting this on their website.

It would seem Eon alter their discount down to match price reductions, a nice devious underhand way of sustaining their profit margin, while maintaining the facade of a price cutting. Disgraceful.

Geoffo_M

Surely there must be regional differences for all the energy companies. And this is Eon's way of being competitive in individual arears. A bit like the price of petrol varies from area to area. What is at fault is that it isn't advertised openly on their website.

And I do agree with jimiebox in that they publicly reduce their unit rates making it appear they are cutting prices, whilst covertly reducing discounts at the same time. This has happened to me - very underhand, and something the Regulator should be clamping down on.

Premier_2

Ah yes, I remember, the discount E.on give their online customers does vary depending on where you live.

The E.on website gives this currently as a monetary figure (depending on postcode and usage entered), but plans are afoot to have this displayed as a percentage.
http://forums.moneysavingexpert.com/showpost.html?p=19860483&postcount=27

1carminestocky

Yes, apparently it will be appearing on an E.on website near you on the 12th of never...

mvan

Geoffo_M wrote: »

And I do agree with jimiebox in that they publicly reduce their unit rates making it appear they are cutting prices, whilst covertly reducing discounts at the same time. This has happened to me - very underhand, and something the Regulator should be clamping down on.

The regulators talk some good stuff but never really get tough, sums up most regulators/watchdogs in this country.

Former_E.ON_Company_Representative:_Malc

Hi again mvan

As per my previous post below, I don't have answers to all your questions yet. :sad: Am finding out though.

http://forums.moneysavingexpert.com/showthread.html?t=1588607

Also, I am afraid I have no knowledge of how the other suppliers structure their prices/discounts. This is a question you will have to put directly to them.

Malc

mvan

E.ON_Company_Representative:_Malc wrote: »

Hi again mvan

As per my previous post below, I don't have answers to all your questions yet. :sad: Am finding out though.


Also, I am afraid I have no knowledge of how the other suppliers structure their prices/discounts. This is a question you will have to put directly to them.

Malc

Thanks for the update, will welcome more info for customers.

mvan

I can now see the discounts being applied by eon on their website, just navigate to the switch option in your account and it shows a break down of discounts for dd, online & region. Good news and a bit more transparent to the customer but now need to understand why my regional discount went from 10.10% on v5 to 5.8% on v13? When the Government and watchdogs claim that energy prices are falling (even slowly) eon are in theory raising prices? I have always assumed that the regional discount was for the companies that transport/maintain the gas/electric, this should be not linked to energy company tariffs so why the increase? It appears unless someone can tell me otherwise to be a straight re-balancing of the profit spreadsheet to maintain the same profits. The 9% electric cut should reduce the increase but still works out more expensive from tomorrow.

1carminestocky

mvan wrote: »

I can now see the discounts being applied by eon on their website, just navigate to the switch option in your account and it shows a break down of discounts for dd, online & region. Good news and a bit more transparent to the customer but now need to understand why my regional discount went from 10.10% on v5 to 5.8% on v13? When the Government and watchdogs claim that energy prices are falling (even slowly) eon are in theory raising prices? I have always assumed that the regional discount was for the companies that transport/maintain the gas/electric, this should be not linked to energy company tariffs so why the increase? It appears unless someone can tell me otherwise to be a straight re-balancing of the profit spreadsheet to maintain the same profits. The 9% electric cut should reduce the increase but still works out more expensive from tomorrow.

Wait a minute, let me get this right. Are you saying you will be paying E.on MORE than previously from tomorrow, i.e. the date of the 'decrease'?