e.on Age UK tariff - not competitive?

easy

I have just done the uswitch & Moneysupermarket comparisons for mother's electricity supply (she doesn't have gas).

I'm ready to switch her to Scottish Power online energy 11, but she has told me that her neighbours have just switched to E.on Age UK, as advised by Age UK. Her friend has done the same, and claims it's cheaper for her.

But my research shows it would save her nothing from her current British Gas standard tariff.
I know e.on/Age UK is a capped tariff, but currently the scottish power tariff would be over £100 per annum cheaper, I'll be checking again in a few months time for her anyway

I smell a rat, is this tariff a con?

Pincher

It's like insurance from Saga, just a branding exercise.
I wouldn't be surprised if Age UK gets a cut.

easy

Pincher wrote: »

It's like insurance from Saga, just a branding exercise.
I wouldn't be surprised if Age UK gets a cut.

I assumed that to be the case ...

Mother's neighbours are very 'careful' with their money, and think they have stolen a march on the market by going for this capped rate. I suspect they are paying so much over the best price now, they may have shot themselves in the foot.

viv0147

I have Stay-warm with Eon I think its brilliant

macman

A capped tariff is always going to be more expensive, you are essentially paying a premium for the peace of mind of knowing that you cannot pay more than the capped rate should prices rise.

spiro

A lot of tariffs aimed at the 'old' are paper billed based tariffs so it is often possible to get a cheaper online tariff.

Airmike23

the core age uk tariff is not capped, but there is now a capped age uk rate until 2012, this is seperate Age Uk tariff. Original Age concern customers, pre 2008 was capped.

Pincher

easy wrote: »

I'm ready to switch her to Scottish Power online energy 11, but she has told me that her neighbours have just switched to E.on Age UK, as advised by Age UK. Her friend has done the same, and claims it's cheaper for her.

E.On is showing FOUR Age UK tariffs for my post code!

The Age UK Higher User has £100 Welcome Bonus, plus £10+ of cold weather payments. £20+ for over 80s.
It looks like standard tariff with no discounts, but with the £100 Welcome Bonus, it seems attractive for the first year. With Cashback, the neighbour can be on a good deal for the first year.

easy

Pincher wrote: »

E.On is showing FOUR Age UK tariffs for my post code!

The Age UK Higher User has £100 Welcome Bonus, plus £10+ of cold weather payments. £20+ for over 80s.
It looks like standard tariff with no discounts, but with the £100 Welcome Bonus, it seems attractive for the first year. With Cashback, the neighbour can be on a good deal for the first year.

Ah, I'll go back and look again, I missed the welcome bonus. Mind you, my mother isn't a higher user. Is there a usage limit for that tariff I wonder?

-- edited to add --
No, only one tariff shown for mother's account, and no mention of a bonus ..

Pincher

FYI, just in case you were curious, I would be.;)

For my post code.
(NB: No DD and DF discounts? The box is blank where the discounts are usually shown,
but it says DD discount below.)


Age UK Higher User

Electricity
First 900kWh per year 23.205p per kWh
Normal units 10.3425p per kWh

Gas
First 2680kWh per year 7.83825p per kWh
Normal units 3.0135p per kWh


The Age UK Group# and E.ON have worked closely together to create this exclusive tailored energy package designed for people over 60 who have an above average* consumption. You’ll benefit from a range of extra features that aren’t available with E.ON’s standard energy packages. What's more, you can now receive £100 reward by switching your electricity and gas to E.ON**

Benefits
• No Standing Charge - You'll only pay for what you use
• Competitive gas and electricity prices
• A free early-warning hypothermia thermometer
• Free energy efficiency advice
• Dedicated customer service helpline
• Choice of ways to pay
• Cold Weather payment***
• A choice of free gifts to welcome you , either an electronic carbon monoxide alarm, a TV PowerDown or twin pack of LED Tear Drop Night Lights
All Age UK dual fuel customers will receive a guaranteed Cold Weather Payment of £10. Customers aged 80 or over will receive £20***.

In addition dual fuel customers aged 60 and over may receive an additional payment beyond this guaranteed amount based on the number of days the temperature is below freezing point between December and February (the temperature is taken from Pickering Weather station in Yorkshire, one of the coldest places in the UK). This payment will give the equivalent of an extra three hours gas fire heating for each qualifying day. This is based on a gas fire usage of 3.9kWh per hour.

You must pay your bill by fixed monthly Direct Debit to get your monthly Direct Debit discount.

Age UK Additional Information

#Age UK Group comprises of the charity and its group of companies, and works with national partners (Age Cymru, Age Scotland and Age Northern Ireland).
*Average consumption is defined as 3,300 kWh of electricity and 20,500 kWh of gas per annum.

**Excludes customers with Prepayment Meters and Restricted Hours Tariff Meters. Excludes existing dual fuel customers. Your reward is a one off payment and is credited to your account separately for each fuel, 12 months after E.ON start to supply each fuel. Age UK Energy Reward or Age UK High User Reward is our normal Age UK or Age UK High User product with a reward. Your welcome pack and bills will refer to Age UK or Age UK High User and will provide details of the reward.

***The £10 guaranteed cold weather payment is only applicable to Single Gas or Dual Fuel customers. Customers aged 80 or over will receive £20. It will be credited as a rebate following the end of March and will be shown on the following bill; customers who pay by prepayment meter will receive a cheque. The cold weather payment is in addition to any winter fuel and cold weather payment you may receive from the Government.

Pincher

I think we need the E.On rep to confirm or deny Age UK Higher User has DD and DF discounts. With 6 + 2 = 8%, and the low Tier 2 rates, plus the £100 welcome bonus everybody will be inviting their grandmother to come and stay.

Why do we keep getting these blank boxes on the tariffs page?
Shoot the IT managers!