MSE News: Eon to raise energy prices

This is the discussion thread for the following MSE News Story:

"The power giant will become the fifth of the Big Six to raise costs this winter, adding £58 to typical annual bills... "
Read the full story:
Eon to raise energy prices




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Comments

  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    Combo Breaker First Post
    ...Ann Robinson, from price comparison site uSwitch.com, says there could be a silver lining for consumers: "There is hope wholesale prices, which are the main driver behind price increases, will fall again in spring...

    Raises a few interesting points that I guess should be mentioned.

    1. I'll accept it when I see it. It's not happened in the past. Usually the suppliers play the other card when wholesale prices fall, the one about buying contracts up to a year ahead (at the current high price) to ensure we have enough energy for next years winter.

    2. Most price rises this time were resticted to gas only (although Eon have put their electricity up too). Gas prices are directly linked to oil prices, and electricity is partly linked due to many power stations being gas fired. So if gas is going to fall, then that means oil prices are going to fall.
    Cheap petrol is on the way :T
    (unless Cameron suddenly gets his fuel duty stabiliser off the ground to keep petrol prices high)

    3. Sadly oil prices, according to the experts, may well continue to rise during the first half of this year.
    This is currently being diven by speculators, but underlying demand is also growing as the world slowly pulls out of recession. So demand in the US is growing, as is demand in emerging markets such as China & India, hence prices are rising.
    This coupled with the closure of an oil pipeline on Saturday which accounts for 17% of US crude output has also increased prices of oil
    One way, of course, that would lower prices would be if Opec announced they were increassing output. However they are not due to meet until at least June, and have ruled out an emergency meeting beforehand, even if oil prices bust the $100/barrel.
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    http://www.eonenergy.com/Price-changes-2011.htm?WT.mc_id=Price_Increase&WT.svl=7

    From the E.On website:

    "In addition E.ON is launching two new products which protect prices and offer customers peace of mind in an uncertain market:

    Price Protection April 2014 – a capped price product for existing customers only which protects prices from further rises until 1 April 2014;

    Price Protection April 2013 – which protects prices against further rises until 1 April 2013 and which will be available from Thursday 13 January for both new and existing customers."

    Strange thing is, on the products page, my post code only shows up THREE tariffs now: SaveOnline 5, Age UK Onlne, and Energy Plan. FixOnline 9 has disappeared!

    I expect they will show up on 13th January. Price Protection April 2014 cannot be futures contract hedged beyond 18 months, so it won't be cheap, but it's "for existing customers only". What are they playing at? Is 2014 cheaper than 2013? If 2014 is more expensive than 2013, there is no point in restricting it to existing customers only.

    My fantasy is that April 2014 is cheaper than April 2013 AND FixOnline 9, so 9 is withdrawn because it becomes pointless. Dream On.

    The purpose of bringing out long term fixes with a price increase announcement should be to capture panicked customers who will grab the fix mindlessly.

    Show me the rates for Price Protection April 2014!
  • Sorry Pincher! Just logged in and seen that Price Protection 2014 has a 7% premium on the new standard plans. Prices in my area (Manchester)

    Normal units up to 900 kWhs per year
    23.3625 pence
    Normal units
    13.377 pence per kWh
    Gas
    Normal units up to 2680 kWhs per year
    7.7679 pence
    Normal units
    3.37995 pence per kWh
  • Pincher
    Pincher Posts: 6,552 Forumite
    Combo Breaker First Post
    Thanks. That's a quick bursting of a good fantasy.:(

    So it's supposed to sweep up on the panic market.

    Still not showing for my post code. Funny way of updating their web site. I'm sure the tariffs will show up eventually.
  • Btw, the prices and discounts page doesn't show this tariff yet. It only showed up when I logged into my online account and clicked on "switch your tariff".
  • Zedzilla
    Zedzilla Posts: 12 Forumite
    Cameron and Osborne are set to artificially keep petrol prices ky high by use of their 'fair' stabiliser plan. The Tories said they were considering a new 'Fair fuel' tax (don't laugh yet). They now say they will do it.

    What it means is - instead of the crippling Tory Fuel Escaltor tax which makes us pay upwards of

    70% in tax on every litre of fuel, what the nice people in Westminster will do for us is this....

    The new 'fair' taxation system will allow fuel tax to drop when oil prices go up, and fuel taxes to

    raise when oil prices drop. (anyone seen the obvious yet?) It means that fuel will NEVER, ever come down in price again,

    not even if oil was given away free. The Government will just raise the fuel-escalator tax to compensate. It's a see-saw

    effect that basically says, 'Heads we win - Tails you lose'. At least at present we see the price of petrol come down on

    those rare days when the retailers remember oil prices dropped. If this new system comes in - forget it - the price will

    always be high. Judging by the total lack of interest in this from the voting motoring public I guess I'm the only one who

    feels this way.
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    Combo Breaker First Post
    Pincher wrote: »
    http://www.eonenergy.com/Price-changes-2011.htm?WT.mc_id=Price_Increase&WT.svl=7

    From the E.On website:

    "In addition E.ON is launching two new products which protect prices and offer customers peace of mind in an uncertain market:

    Price Protection April 2014 – a capped price product for existing customers only which protects prices from further rises until 1 April 2014;

    Price Protection April 2013 – which protects prices against further rises until 1 April 2013 and which will be available from Thursday 13 January for both new and existing customers."

    Strange thing is, on the products page, my post code only shows up THREE tariffs now: SaveOnline 5, Age UK Onlne, and Energy Plan. FixOnline 9 has disappeared!

    I expect they will show up on 13th January. Price Protection April 2014 cannot be futures contract hedged beyond 18 months, so it won't be cheap, but it's "for existing customers only". What are they playing at? Is 2014 cheaper than 2013? If 2014 is more expensive than 2013, there is no point in restricting it to existing customers only.

    My fantasy is that April 2014 is cheaper than April 2013 AND FixOnline 9, so 9 is withdrawn because it becomes pointless. Dream On.

    The purpose of bringing out long term fixes with a price increase announcement should be to capture panicked customers who will grab the fix mindlessly.

    Show me the rates for Price Protection April 2014!

    Whoops, I forgot number 4.

    4. With prices expected to fall (well according to uSwitch), surely the MSE advise would be to steer well away from switching to fixed priced tariffs now, wouldn't it?
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • ninky_2
    ninky_2 Posts: 5,872 Forumite
    Zedzilla wrote: »
    It means that fuel will NEVER, ever come down in price again,

    not even if oil was given away free. .

    how likely was it to come down significantly anyway?
    Those who will not reason, are bigots, those who cannot, are fools, and those who dare not, are slaves. - Lord Byron
  • Premier_2
    Premier_2 Posts: 15,141 Forumite
    Combo Breaker First Post
    Zedzilla wrote: »
    Cameron and Osborne are set to artificially keep petrol prices ky high by use of their 'fair' stabiliser plan. The Tories said they were considering a new 'Fair fuel' tax (don't laugh yet). They now say they will do it....

    Have I missed something since last weekend?

    Only last weekend was Cameron playing down the possibility of a "fair fuel stabiliser" to limit fuel duty rises

    ""I don't want to raise people's hopes too far because it is a difficult issue." he said
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • Jezzamk
    Jezzamk Posts: 287 Forumite
    First Anniversary Combo Breaker
    I have just moved away from EON for a cheaper deal. They called me 2 days ago trying to persuade me not to move. I was told that my new supplier had just increased their prices so I would be better staying with EON as they had not increased their prices.

    So, I moved to a cheaper deal and £100 cashback. Not tied in, I can cancel subject to 30 days notice.

    I suspect I was not supposed to think about EONs pitch. New suppliers prices have just gone up. OK, but it is cheaper than my current EON deal. EON have not increased their prices. In other words there is still an increase to come.

    The salesperson couldn't understand why I decided to stay with the new supplier.

    I also pointed out that I didn't understand the EON bills and the I had got several other people to look at it and they couldn't work out how much I was paying for my gas. I worked out I was saving by moving by looking at how much gas I had used over the last 12 months and the amount I had paid and looked at the rates I would be paying. EON didn't think their bills were confusing but were not prepared to go through it with me on the phone :-)
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