e-on offering us R1 deal - any good?

Maybeanotherday

I've switched to the fixed online management deal seems ok

100

E.ON Company Representative: Malc, You said "Price Protection tariffs also don't fix prices. Therefore, any price reductions that come about during the life of the product will be passed on to the customer".

Yet the letter I received with Price Protection Terms and Conditions, states "We will reduce your prices if we reduce our standard prices below the standard prices applicable at the time you signed up for your Price Protection plan. The extent of your price reduction will be determined by us".

Does this mean that if the standard price should drop by 10%, and depending on how e-on feels, they may only reduce our price by 5% ?

Some clarification required here please.

fwor

I would be very surprised if you get any clarification from the E.O.N. Company Representative.

The reason they worded it that way on the letter is to make it easy for themselves to cut their prices by the absolute minimum. They will do ~just enough~ to stop people walking to other suppliers, and if that means dropping the Price Protection tariff by only 5% when the standard tariff drops by 10%, that's what they will do.

The fact is that the management of the energy companies are quite happy with the bonuses that they are getting as a result of their profiteering, and until our toothless "regulator" gets off its rse and regulates, they will continue with token gestures rather than genuine price cuts.

space_rider

Price protection means it doesn`t go up but it may go down. Fix means it is fixed and doesn`t go up or down.

Former_E.ON_Company_Representative:_Malc

100 wrote: »

E.ON Company Representative: Malc, You said "Price Protection tariffs also don't fix prices. Therefore, any price reductions that come about during the life of the product will be passed on to the customer".

Yet the letter I received with Price Protection Terms and Conditions, states "We will reduce your prices if we reduce our standard prices below the standard prices applicable at the time you signed up for your Price Protection plan. The extent of your price reduction will be determined by us".

Does this mean that if the standard price should drop by 10%, and depending on how e-on feels, they may only reduce our price by 5% ?

Some clarification required here please.

Hi 100

Sorry if the letter we sent is not clear.

Price Protection/capped products do not fix prices. During the term of the contract we will not increase prices above those you signed up for.

However, customers may still benefit from price reductions. The extent of the reduction is based on our standard unit prices rather than any of our discounted products.

Unit prices on the products now being offered as replacements for existing capped tariffs are 5.8 per cent higher than current standard prices. This is the premium paid to protect prices against future increases. If prices fall below the standard prices now applicable, yours will go down too.

The extent of the decrease will depend on the level of the overall price reduction. This is impossible to determine at the moment because of the unpredictability of the energy market.

For instance, there may be price increases before any reductions. This will have an impact on future reductions. This is why the letter states price changes will be determined by us as it is impossible to accurately predict future circumstances.

Sorry I can't give you a more exact answer but hope this explains why.

Malc

100

Thanks Malc. Just seen the MSE Warning about E-on and their capped products. I really dislike the way large concerns have to complicate everything. I know it's confusion marketing aimed at the poor blighters who find these things awkward and difficult to understand.

On this occasion I will be doing some futher investigation to see what benefits me the most and not E-on. Power is slowly and surely being taken back by the consumer and news travels fast nowadays.