Duped by EON???

ward1958

E.ON_Company_Representative:_Malc wrote: »

Hi Peter

Yes, this is correct.

The new prices have now been installed on our systems and have been in operation from the date of the price increase. Therefore, it is no longer possible to issue bills for energy used since the price increase but based on the old prices. All bills from 4 February will be based on the new prices.

Consequently, a business decision has been taken to give customers changing supplier as a result of the price increase a flat ex-gratia payment in respect of the difference between the old and new prices.

Payments differ depending on whether the switch involves Dual Fuel, gas only or electricity only.

The amounts are based on Ofgem average consumption and our standard prices, averaged across all regions.

Hope this answers your question Peter. Let me know if I can help further as will be happy to do so.

Malc

Hi Malc,
Thanks for your reply to my original question. I still don't follow how this is in keeping with the customer being able to reject the price rise whilst switching, if the flat payment doesn't cover the full cost of the increase. Surely it's possible to apply the difference as a refund to the bill if the higher charges are charged via the system?
Thanks, Peter.

E.ON_Company_Representative:_Helena

ward1958 wrote: »

Hi Malc,
Thanks for your reply to my original question. I still don't follow how this is in keeping with the customer being able to reject the price rise whilst switching, if the flat payment doesn't cover the full cost of the increase. Surely it's possible to apply the difference as a refund to the bill if the higher charges are charged via the system?
Thanks, Peter.

Hi Peter,

Malc isn't here at the moment, I hope you don't mind if I reply on his behalf.

This would be something that would have to be looked at on an individual basis, as each customer account, usage, tariff etc; is different.

Helena

ward1958

E.ON_Company_Representative:_Helena wrote: »

Hi Peter,

Malc isn't here at the moment, I hope you don't mind if I reply on his behalf.

This would be something that would have to be looked at on an individual basis, as each customer account, usage, tariff etc; is different.

Helena

Hi Helena,
Thanks for replying. So the £5 flat payment is a starting point and if someone demonstrated that the rise had cost them more during the switching period, eon would hopefully compensate them accordingly?
I don't mind at all if you answer on Malc's behalf. I'm sure you are better looking than he is:) (oops - probably get into trouble for that)
I can hear the p.c. police beating a path to my door already!!!
Thanks, Peter.

dogshome

Don't accept Eon's Fiver
Contract law has always been that if it's prices or terms are changed, the other party can refuse to accept the changes and go elswhere.

However as Gas & Elec can't be delivered by the lorry load and are based on uninterrupted supply, when some customers began to use the law to challange their supplier's price hikes, Ofgem & the Industry put in some ground rules.

The day you get notice of Price changes, you have two choices:
1) Do nothing and just accept the new higher price contract being offered
2) Inform your supplier within 10 days that you reject the new contract and are starting the
Switch process

If you opt for 2 your supplier must continue to supply at the old contract's prices, because that is the only one you have ageed to - and by the way they cannot charge exit fee's as it is the supplier who has renaged on the contract, not you.

What E.on are doing with thier offer of £5 is intoducing yet a third contract, which you can opt to accept or refuse.
The industry rule of thumb is that it can take up to 6 weeks to Switch - So a £5 works out to 83pence a week, and this is supposed to be fair recompense for increased Gas & Elec bills for 6 weeks in Winter ! ?

backfoot

dogshome wrote: »

If you opt for 2 your supplier must continue to supply at the old contract's prices, because that is the only one you have ageed to - and by the way they cannot charge exit fee's as it is the supplier who has renaged on the contract, not you.

Do you have evidence of a ruling that this is correct?

Do you think it also applies to the removal of discounts on the final bill?

I would like to think you are right but what is the precedent,please?

MillicentBystander

Why are things allowed to get so complicated?

DirectDebacle

backfoot wrote: »

Do you have evidence of a ruling that this is correct?

Do you think it also applies to the removal of discounts on the final bill?

I would like to think you are right but what is the precedent,please?

Backfoot I am sure you are aware of the SLC (Standard Licence Conditions) which refer to domestic contracts and unilateral changes to contract. That is the 65 day working day notice of changes as discussed in this thread.

Eon or any other supplier can introduce whatever conditions they like but this does not release them from the SLC under the Gas Act.

Unfortuanatley I cannot guide you to a precedent but I am sure there are individuals who have successfully forced suppliers that attempted to sidestep this condition to comply with it.

This was a major part of my claim against npower and they paid up without a fight.

Removal of discounts from the final bill do not seem to be enforced if the contract is allowed to run its full course.

To argue with a supplier that by raising prices has forced the customer to end the contract early, which they would not have done if prices had remained the same, and should therefore receive all discounts as per contract, would be interesting.

It raises a conflict with the SLC that energy suppliers are obliged to observe and a condition in the consumer contract that both the customer and supplier are bound by. That conflict is, Unfair Terms and Conditions in Consumer Contracts.

In any event offering a £5 payment in lieu of the SLC requirements cannot, in my view, be correct but under certain circumstances may be beneficial to a few customers. In this instance they are simply 'trying it on'.

Why are things allowed to get so complicated?

For that we have to be eternally grateful to Ofgem.

backfoot

DD,

Hi from a long term fan.:)

Thanks for your reply,informative as always.You sum up my thinking entirely in terms of the conflict between a written term and condtion and an overriding principle laid down in Regulation.

Both the exit fee (for all suppliers) and the discount withdrawal (an Eon policy) introduce this conflict.

As you may have guessed, I wanted to test this issue. So yesterday, I contacted Consumer Direct to ask their view on the Eon discount issue.They responded promptly in writing that they felt that the T&C's determined the situation.

Of course, that's not to say their initial reaction is correct. Indeed you mention the Unfair Contract Conditions Act and more fundamentally, I believe the overall Regulator Ofgem could and should issue rulings and guidance to preserve Competiton and transparency over and above Unfair and Uncompetitive Terms.

Unfortunately, I am not an Eon customer or I would test the waters further myself. At the moment, I am not currently in a position to test the issue of Exit Fees, but a time may come .

That's why I asked 'dogshome' if there had been any challenges to his knowledge as he seemed quite adamant in his posting.

backfoot

MillicentBystander wrote: »

Why are things allowed to get so complicated?

Because the Regulator doesn't regulate ?

MillicentBystander

backfoot wrote: »

Because the Regulator doesn't regulate ?

I think it's even more depressing than that - successive Governments don't actually want the regulator to regulate! If they did, they would kick this bunch of high earning !!!!! cats out of office, install a 'proper' regulator who wasn't afraid of the energy suppliers (and wasn't interested in a cushy boardroom post on retirement) AND give it real powers to keep these Arthur Daleys in check.