MSE News: Warning for Eon capped rate customers

Former_E.ON_Company_Representative:_Malc

lizclassic54 wrote: »

still havent received letter so called just now
Told to wait for my letter but the woman was very helpful and it looks as though the cost of heating my home this winter will rise!
It cost us £800 last year (for gas and electric) and probably £1000 next year but I thought prices had come DOWN?

Also, WHY are these letters being sent out so late, giving customers very little time to decide????????????
I think there should be a quango to complain to?

Hi lizclassic

Sorry you haven't received the letter about the end of your current tariff yet. These have been sent out over a three week period with the last postings scheduled for the next couple of days.

Hopefully you will receive yours shortly.

As you have been on a price protection tariff your prices will not have gone up for quite a while. The exact time depending on the particular tariff and when you signed up.

During this time there have been several price changes, both up and down. Therefore, the prices you are now on will be below current rates and those you might have paid if you hadn't been on a protected tariff.

Coming off this tariff will mean a significant increase in costs. Again, the size of the increase being dependant on the tariff and when you signed up.

An alternative protected tariff will be offered in the letter. However, as with all our price protection plans, this will carry a premium above our standard rates. This is for guaranteeing not to increase your prices until 2011.

You don't have to go on to this tariff when your existing agreement expires on 1 October 2009.

This is not the cheapest tariff and it may be a price protection plan is no longer for you. There are cheaper alternatives available both with us and other suppliers and now might be a good time to pop your details on to one of the comparison sites to see how we stack up.

If you decide to change to another tariff you don't have to wait until the letter arrives. Give us a call and your product can be changed whilst you are on the phone.

Alternatively, you can change yourself through our website.

Just a heads up, we don't give discount on final bills when you change supplier. Therefore, you need to time a switch away to lessen the impact of this.

Hope this helps but give me a shout if you need more info.

Malc

joshm_2

Hello Malc, can you tell me if Price Protection 17 reverts to R3 on 1 Oct 2009?
Thanks!

Former_E.ON_Company_Representative:_Malc

joshm wrote: »

Hello Malc, can you tell me if Price Protection 17 reverts to R3 on 1 Oct 2009?
Thanks!

Hi joshm

Yes, I can confirm Price Protection 17 ends on 1 October 2009. If you are already on this product version R3 kicks in immediately after this unless you tell us otherwise.

Hope this helps. Give me a shout if you need more info. Glad to help.

Malc

wibbler

Just so you know, I found the Eon tariff SaveOnline to be the next best one after Price Protection 17. It seems the cheapest one that doesn't have cancellation fees.

MrsTinks

Hi Malc,

I appreciate you taking the time to answer our questions on here - it's greatly helpful to a lot of users!

I have a question too... If I were to call E-on and consider staying would they offer me a better deal than I might get on the price comparison site? I've had no problems with the service from Eon in the last 2 1/2 years but it's only coming up 4th in the price race for after my Energy Saver Electricity v2 comes to an end... That is based on a usage for June 2008 till June 2009 of 4220 kWh.
At the moment the best option for me looks like BG (the shock and horror!!! never thought I'd be saying that!) on a non-fixed tariff.
Guess the question is if there is any chance of Eon getting closer in the price comparison to BG if you're an existing customer...

Former_E.ON_Company_Representative:_Malc

Hi MrsTine
Nice to hear our comments are generally helpful. :beer:

Unfortunately, with your question, the tariffs available on the comparison sites and our own website tend to be the only ones available.

The only current exceptions are for customers, like yourself, whose capped agreements are coming to an end.

You will be offered a replacement price protection deal but, like all our capped tariffs, prices initially carry a premium above standard prices.

This means it is not the cheapest tariff around and may not be for you.

Also, depending on when you signed up to Energy Saver 2, your prices will not have gone up for the last couple of years. This means you are now paying significantly less than our standard prices, so I do understand the shock to be faced with the sort of increase you are now looking at.

You are doing exactly the right thing in using the comparison sites to make sure you are on the deal which is best for you. It may be protected prices are no longer what you require.

As I posted earlier, just be aware we don't give discount on final bills when you change supplier. Therefore, should you decide to move away from us, it is best to time the switch to minimise the impact of this.

Sorry I can't offer more positive advice in this instance but give me a shout if you need more info. Always happy to help.

Malc

katym79

Hi, just to add my 2 cents, I'm on the price protection V14 that ends 1st Oct (actually it ends Sept 30th as i'm being switched over to Price Protection R2 on the 1st) I was told there would be no exit fees but that i will lose the discounts for my last bill. The girl on the phone said if i switch to R2 and then want to switch that there would be an exit fee.
I've done a comparison and, for me EDF Online 5 is coming out top, but it isn't fixed - anyone have any experience of them and do you think we should fix again? Is it worth it? Thanks.

Former_E.ON_Company_Representative:_Malc

katym79 wrote: »

Hi, just to add my 2 cents, I'm on the price protection V14 that ends 1st Oct (actually it ends Sept 30th as i'm being switched over to Price Protection R2 on the 1st) I was told there would be no exit fees but that i will lose the discounts for my last bill. The girl on the phone said if i switch to R2 and then want to switch that there would be an exit fee.

Hi katym

Sorry but it sounds as though you may have been given some incorrect info when you called us. If I could just clarify a couple of points.

There are no cancellation fees on either your current tariff or the replacement Price Protection R2 now being offered.

However, no discount is given on the final bill when you change supplier. Therefore, as I posted earlier, you need to time the switch to minimise the impact of this.

Exit fees or loss of discount do not apply when switching to another E.ON tariff.

Hope this clears up the matter and, again, sorry if you were given duff info. Just give me a shout if you need any more details. Always happy to help.

Malc

MrsTinks

So if the fixed rate ends on the 1st of Oct that would be the date to go online and start the switch?

Thank you for your answer btw malc

I fixed back when Martin shouted "FIX" lol - so not years... I compare both to the price I'm on now and the price plan I'll be on when my current fixed rate ends and I'd save either £50 or £84 (new rate) by moving to BG - granted theirs isn't a capped rate but £84 is £84 a year still I may cap again if the fuel market looks to do anything worrying

Steaminboot

katym79 wrote: »

Hi, just to add my 2 cents, I'm on the price protection V14 that ends 1st Oct (actually it ends Sept 30th as i'm being switched over to Price Protection R2 on the 1st) I was told there would be no exit fees but that i will lose the discounts for my last bill. The girl on the phone said if i switch to R2 and then want to switch that there would be an exit fee.
I've done a comparison and, for me EDF Online 5 is coming out top, but it isn't fixed - anyone have any experience of them and do you think we should fix again? Is it worth it? Thanks.

Hi , I'm currently on Eon's Price Protection 17 plan and have done a comparison through Energyhelpline.com as suggested by martin as it also shows comparisons for switching from my capped rate to other suppliers. I cant be exactly sure of this though as it doesnt detail specific names for the many Eon tarrifs , just " pre July 2008 " which i'm taking as Price Protection 17 ( is that right Malc ? )

Similarly EDF's Online 5 tariff is shown as my best option ( five stars for service ) , saving me £144 over the year. Though i'm also strongly considering staying with Eon as their service has been good and i do find the Tesco Club Card points useful, but changing to their " Fixonline NSC v3 " ( capped until Dec 2010 ) which would save me £84 a year .I also wonder that the £60 difference could be eaten up if my switch over isn't timed perfectly and the loss of my Club card points ( I dont do Nectar ! )

But i'm also wondering if it really is worth capping again ? Or are prices not forecast to stabilise or even drop ? Though i know there are no cast iron guarantees in this world.