EON customers - 2006 capped prices end March2010 - what are you doing?

saaya2020

Hi

This is a general question to all those who are currently with EON and have had capped prices since 2006. I got a letter from EON the other day that this end March 1st 2010.

I'm just trying to gauge an understanding what people are doing and which provider/plan they are moving to ...

Thanks in advance!

PS - apologies if has been asked elsewhere

Geordee1

I've used most (if not all!)of the comparison sites and finally decided to switch to EDF Online Saver 5. This came out 2nd best in all of the search results for my usage (First Utility came top, but only by a few pounds and I've heard some bad stories about them). Also going through TopCashback gives cashback of £80 for switching to EDF so that reinforced my decision. By the way the cashback tracked within a few hours too - always good to see it tracked!
There is a cancellation fee for cancelling the product before 31st March 2011, but I view a year as being a relatively short tie in period; at that time I can switch again and hopefully earn more cashback!!
Now just have to wait and see how long it takes for the switch to take effect!

Premier_2

Hopefully, all good moneysavers are looking at the comparison sites in the resource bar above and seeking out the best supplier/ tariff for their annual consumption and location.

They may also then like to consider the cashback sites if the results suggest changing supplier.

JennyR68

Geordee1 wrote: »

Now just have to wait and see how long it takes for the switch to take effect!

I recently changed from BG to EDF, took 3 weeks. Was rather surprised by the speed.

saaya2020

Geordee1 wrote: »

I've used most (if not all!)of the comparison sites and finally decided to switch to EDF Online Saver 5.

Thank you for this valuable info. I had a look at the EDF Online Saver 5 just now!

My annual gas & electric consumption is 14333 and 4245 KWh.

When I apply these EDF rates, 2.721p and 7.97p per KWh (norweb region), you will not believe but the total price works out to be approx. £720 on my consumption????

Currently, I pay EON (on the capped 2006 rates) a total of £920.

This would mean that EDF is cheaper by £200 for me! And the cashback you mention means EDF works out even less at £640???? Surely ....

I can not believe this! I must be doing something wrong - I thought the prices have gone up!!

Help me somebody!

Premier_2

saaya2020 wrote: »

...I can not believe this! I must be doing something wrong...

I'm not sure what you've done but when I put those consumption levels into energyhelpline.com, it suggests an annual total of £819 with EDF.

Have you simply attempted to work out the costs based on unit charges? If so you've forgotten the ca. £150 p.a standing charges and the discounts for dual fuel (£8.40 p.a.) & Direct Debit (6%)

saaya2020

Premier wrote: »

Have you simply attempted to work out the costs based on unit charges? If so you've forgotten the ca. £150 p.a standing charges and the discounts for dual fuel (£8.40 p.a.) & Direct Debit (6%)

Thanks for spotting this. As you say, I simply used the unit rates to work it out as I didn't see any standing charges quoted in the plan - tbh, i still can't see this charge on their plan!

But when i put these numbers into uswitch, I see the same quote as you - £820.

So after the cashback, EDF works out at £740 - which is still miles cheaper than my existing EON 2006 capped (£920)!

This is far too good to be true

---

£740 EDF against £920 EON (old rate .. and soon to become even more!)

Premier_2

You shouldn't consider cashback in the total annual cost because (a) it's not guaranteed and (b) it's a one off payment; you don't get it every year

Geordee1

saaya2020 wrote: »

Thanks for spotting this. As you say, I simply used the unit rates to work it out as I didn't see any standing charges quoted in the plan - tbh, i still can't see this charge on their plan!

EDF standing charges on the plan are:
Electric: £ 14.95 per quarter Gas: £ 23.51 per quarter

Must admit I was surprised how much I was paying on the old EON Capped rate when I did the price comparisons this time, bearing in mind I've been paying this nearly 4 years! I knew there was a premium to pay for the peace of mind, but it was obviously a lot more than I thought at the time! I dread to think what the new EON capped offering to April 2012 would cost compared to this.

Wise words not to base the switch choice purely on the cashback, but if the new rate is lower AND there is the possibility of cashback in addition then it's a no-brainer.

saaya2020

Geordee1 wrote: »

Wise words not to base the switch choice purely on the cashback, but if the new rate is lower AND there is the possibility of cashback in addition then it's a no-brainer.

Agreed! If it's cheaper b4 any cashback, then no brainer indeed!

Now, to move to EDF, can i move now (or would i incur EON penalties as the 4 year contract does not expire till March 1st)

... basically, if i buy this through quidco or topcashback today, then when does the cut-over happen from EON to EDF?

... or do i wait because it is likely that unit rates will go down, now that British Gas's have gone down???

Bit unsure ....

Geordee1

My understanding is that by switching now, there are no penalties incurred on the 2006 Capped Plan. In addition I gather the switch will take at least 3-4 weeks to happen which will take us past March 1st anyway. Also with the 14 day cooling off period I am assuming that should prices fall, or EDf offer a new cheaper plan in this time frame then a switch to that would be possible.
Nothing is certain, but I took the view that the plan could disappear tomorrow, and I don't want to be paying much higher rates any longer than I have to, therefore chose to switch now - whether that is the right decision remains to be seen!!