MSE News: Warning for Eon capped rate customers

This is the discussion thread for the following MSE news story:

"Eon will automatically move hundreds of thousands of customers on its popular capped tariff that ends in October onto an expensive alternative capped deal.

Households that lapse onto this new plan could end up paying £300 a year too muc ..."
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Comments

  • wibbler
    wibbler Posts: 173 Forumite
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    I've found Eon to have very good customer service - and they have Tesco Points - but Energyhelpline has told me I can switch to NPower and save £100 a year! Thanks for this article, it's good to know you're on top of things...
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
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    edited 29 August 2009 at 10:07AM
    wibbler wrote: »
    I've found Eon to have very good customer service - and they have Tesco Points - but Energyhelpline has told me I can switch to NPower and save £100 a year! Thanks for this article, it's good to know you're on top of things...

    You do realise that that £100 saving will only be credited after 12 months (if you are lucky - you could be waiting 18 months) and until then you will be paying more than £8 extra per month and you will lose that saving if you do not stay with Npower for a whole year?

    (Plus, of course, E-on will charge you a penalty of 13.5% to 19.5% extra on your final bill when you ditch them as a supplier.)
  • wibbler
    wibbler Posts: 173 Forumite
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    Holy mother, I didn't know that... Luckily I've got a 7 day cooling off period to reject the transfer!
  • Lu_T
    Lu_T Posts: 906 Forumite
    I can't find the Price Protection R3 tariff on Moneysupermarket so am struggling to compare. Does it have another name? There are lots of 'price protection' versions, but not one called R3.

    What's the penalty you mention KimYeovil? I've not heard of that and will need to factor it in. How can they charge a penalty? They can surely only charge for the energy you use unless you're on a tariff with an exit penalty?
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  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
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    The annual price (and savings) quoted for nPower dual fuel tariffs includes a £100-odd annual discount. This is a discount from the quoted unit prices - so month by month you do pay the unit prices but this is greater than a twelfth of the suggested annual price. You only receive the discount after each complete twelve months - if you change tariff mid-year you lose the extra £8.33 per month you have paid.

    And with E-on when you switch suppliers you do not receive any discount on your final bill. Their cheapest tariffs include discounts of between 13% and 20% (varies between regions and tariffs) so they are not insignificant. The discount is not forfeit if you switch from one E-on tariff to another E-on tariff.
  • space_rider
    space_rider Posts: 1,741 Forumite
    If I were to think of changing from Eon to another supplier, I would try and do it as close to a normal quarterly billing time as possible. I would get that bill based on an actual reading, then change supplier. That way the final bill won`t be a full quarter.
  • Browntoa
    Browntoa Posts: 49,298 Forumite
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    edited 30 August 2009 at 1:38PM
    Lu_T wrote: »
    I can't find the Price Protection R3 tariff on Moneysupermarket so am struggling to compare. Does it have another name? There are lots of 'price protection' versions, but not one called R3.

    What's the penalty you mention KimYeovil? I've not heard of that and will need to factor it in. How can they charge a penalty? They can surely only charge for the energy you use unless you're on a tariff with an exit penalty?

    apparently R3 is a retention only tariff and not on the main site

    I'm thinking of dropping to the standard online tariff as the comaprison sites still tell me Eon is cheapest for my usage

    edit:- I meant this standard tariff that is not capped

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  • space_rider
    space_rider Posts: 1,741 Forumite
    Browntoa wrote: »
    apparently R3 is a retention only tariff and not on the main site

    I'm thinking of dropping to the standard online tariff as the comaprison sites still tell me Eon is cheapest for my usage

    Rather than changing to the standart tariff, wouldn`t it be cheaper to go for one of the online tariffs, they normally offer better discounts.
  • Browntoa
    Browntoa Posts: 49,298 Forumite
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    sorry meant "online tariff with no standing charge"...whoops
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  • jeanmd
    jeanmd Posts: 2,361 Forumite
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    Just a quick question.
    Does anyone know when we need to do the move. I think I will move to eons online tariff too. I'm presently on the capped one that ends Oct. Not sure if I need to put it in place now or the end of Sept. :confused:
    I must admit I was one of the - ok. this doesn't sound right but can't be bothered to look into it until I saw Mse Martins news clip. So thank you once again Martin and the Mse gang. :A
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