Duped by EON???

MillicentBystander

Fancy not being able to say p.u.s.s.y. LOL. It's like having the Moral Majority in power!

DirectDebacle

backfoot wrote: »

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.

Hi Backfoot. I don't see why you should have to join an energy company (EON) that has T & C's you consider to be unfair, in order to challenge whether or not they are.

In another scenario you may well, for example, witness a police officer acting in a way you consider inappropriate, though not towards you. You would still be able to make a complaint about that officer and the complaint would be investigated.

I would have thought that the same would apply with an energy supplier whether or not you were a customer of theirs.

The normal procedure would not be followed as the complaint would not first be made to the energy company. You have already queried this with Consumer Direct. You could make a formal complaint to them and request it be forwarded to and examined by Ofgem. I can be 90% certain of the result of that course of action.

However a more fruitful avenue may be your local Trading Standards Office and/or the OFT via your MP.

Trading Standards have had their powers and remit beefed up by:

The Consumer Protection From Unfair Trading Regulations, 2008.

http://www.legislation.gov.uk/uksi/2008/1277/contents/made

Consumer Focus/Direct are as far as I know due to be disbanded under the govts. quango cull. It is expected that T.S. and CAB will carry on their work. T.S. should be gearing themselves up in readiness and a complaint such as this should be one that they can get their teeth into.

Equally the title of 'Office of Fair Trading' suggests these terms imposed by Eon are precisely the sort of thing they should be looking at.

TBH I don't have much hope that it will be investigated, but until someone requests that it is we won't know for sure.

In the meantime refusing to accept Eons' pitiful £5 payment as a way round their obligations under the Gas Act should be challenged by customers. I have little doubt that Eon would not try to defend their position and comply with the law. Any decent company would do this as a matter of course and not try to evade their responsibilities.

dogshome

Hi backfoot - In my working career, undertaking a course in contract law was a requirement to do the job, and whatever side steps Eon try to do because they failed to programme these particular Consumer Rights into thier software, still have to be within the law.

What is a grey area, but I'm researching it right now, is the deal between the Gas & Elec Utilities that when a Switch fails the customer is always passed back from the 'New' Supplier to the 'Old'.

The 'New' then returns any payments they have taken from the customer, and the 'Old' sends in a bill for those same supplies.
Apart from the fact that the 'Old' often goes into wolverine collection mode before the customer has recieved payment from the 'New', this arrangement must push the customer into debt - After all the reason for Switching was to obtain better pricing terms, which then just vanish to be replaced by a bill at higher rates.

This arrangement is convenient for the industry and works rather like the Insurance Industries Knock-for-knock deal - Nobody wastes time on protracted arguements and an " I lose one this week but will win one next week" mantra keeps the wheels turning at the lowest cost, whilst pumping up the industries income at the expense of customers who were not at fault.

In my opinion this cosy arrangement isn't legal - My Contract Law course tutor took great pains to drum into his students, that if we failed to deliver to the contract T&C's, that then we would be liable for any extra costs that the other party incurred because of our failure.

So these failed Switch customers were given a contract by the 'New' who have then failed to deliver and placed higher costs on the Customer - Somehow just returning the money doesn't quite fit with the law

backfoot

DD,

I agree and will go back to CF to query/challenge their response with some more detail. Hence interested in posts,such as yours putting meat on the bones and any other ammunition.

Ultimately though, I still believe it would be better for an interested and affected party to challenge the issues. As you will know,it's not that I shirk such things, but it so much powerful to illustrate the issue with a direct experience. (like you famously did). For example someone challenging under the Unfair Contract Conditions Act would have to show a loss which I can't do.

There is also the correct escalation processes to which they must abide from a complaining customer. I doubt Eon would talk directly to me.(except Malc because he's a nice bloke) .

What we ideally could do with is someone with the same passion to take up the challenge and I will gladly support them if they so wish.

backfoot

Dogshome,

Totally agrree with your line on failed switches. I also had felt that was an entirely bogus resolution to a problem caused by the other parties. Good luck with that. :j

Did you have any specifics or examples of the rejection of exit fees where price increases have forced, what I would call a material change in the Contract Terms?

I think most of us here (not all) feel that many of these issues are one sided in favour of the Suppliers, but they don't ever seem intent on self regulation and have to be forced to treat us fairly.

Unfortunately the bodies designed to help or ensure it is fair need to be led as well.

Take CF in this case. Snap answer.....no, 'oh you may have a point there, we will refer that one to OFGEM.'

Former_E.ON_Company_Representative:_Malc

backfoot wrote: »

At the moment, I am not currently in a position to test the issue of Exit Fees, but a time may come .

backfoot wrote: »

Did you have any specifics or examples of the rejection of exit fees where price increases have forced, what I would call a material change in the Contract Terms?

I think most of us here (not all) feel that many of these issues are one sided in favour of the Suppliers, but they don't ever seem intent on self regulation and have to be forced to treat us fairly.

Hi backfoot

Sorry for the late response to your query about contract cancellation fees when changing supplier due to a price increase.

To be honest, I wasn't quite sure about this myself so have been asking questions.

I've been advised, customers leaving because of the price increase will be unaffected by any contract cancellation fees which may be part of the terms and conditions of their tariff.

This refers to the £10/£30 fees currently applicable to certain tariffs. The issue of final bill discounts is a separate matter and remains as described previously in this and other threads.

Hope this makes this a bit clearer backfoot. As always, let me know if I can help further as will be happy to do so.

Malc

DirectDebacle

E.ON_Company_Representative:_Malc wrote: »

Hi backfoot


I've been advised, customers leaving because of the price increase will be unaffected by any contract cancellation fees which may be part of the terms and conditions of their tariff.

This refers to the £10/£30 fees currently applicable to certain tariffs. The issue of final bill discounts is a separate matter and remains as described previously in this and other threads.

Hope this makes this a bit clearer backfoot. As always, let me know if I can help further as will be happy to do so.

Malc

Can you explain the reasoning for this?

I understand from your post that cancellation fees will not be applied when switching through refusing to accept a price increase.

I take this to mean that under the those circumstances the contract is deemed to have run its full course and therefore not have been cancelled in such a way as to attract penalties.

If the final bill discount is applied to accounts that have run their full course then why are the discounts not applied to the final bill on a contract that has been deemed to have run its full (but shortened) course.

The customer is being forced to switch supplier. E.On are cancelling contracts and then penalising customers for not fulfilling a contract term that E.ON are preventing them from fulfilling.

libra10

I'm also really annoyed with Eon. We switched from EBICO to Eon around late November, after being promised that we would save at least £200 a year. In order to keep our custom EBICO promised to keep us on our present tariff, yet we declined due to Eon's promise to save us a considerable amount of money.

We are on E.ON Track and Save 6 and since late Novermber (approximately) we have now paid over £450! I realise this has been a harsh winter, but our monthly bills for both electric and gas are approximating £120 a month (much more than we were paying with EBICO).

Approximately a week ago, at Eon's request, I submitted accurate meter readings and a bill was generated for £116, I paid within one day. A few days later I received another bill for £23.60 and couldn't understand why another bill had been generated for February when I had just paid up to date.

I decided to phone customer services to see what was happening, and was absolutely amazed when the assistant would not discuss the bill with me, only my husband who was not in at the time.

I explained that I had been the person who dealt with all the arrangements for the changeover from previous supplier, had spoken to customer services previously, and I was the person who paid the bills. Yet he still wouldn't speak to me as my name is not on the bill, which it should be.

I am using a price comparison site this week and moving to an energy company who will deal with a mere woman!

backfoot

E.ON_Company_Representative:_Malc wrote: »

Hi backfoot

I've been advised, customers leaving because of the price increase will be unaffected by any contract cancellation fees which may be part of the terms and conditions of their tariff.

This refers to the £10/£30 fees currently applicable to certain tariffs. The issue of final bill discounts is a separate matter and remains as described previously in this and other threads.

Hope this makes this a bit clearer backfoot. As always, let me know if I can help further as will be happy to do so.

Malc

Cheers Malc,

I think, like Direct Debacle, that you are saying no exit fees are payable following a price increase, if a customer gives notice to leave.

That is good news and fair in my opinion. I will be much more inclined to join Eon knowing of such a stance.:T

However, like DD, I would like to know why it is any different,for your Discounts as they are also 'contracted' until such time as you make a material change.

I am currently pursuing this matter with 'relevant parties' but it would be so much better for Eon to accept the position is currently unfair to customers and prevent an escalation.

It's one thing having your 'final bill policy' but quite another for it to be an essentially one sided Contract Condition.

Look forward to your further comments but realise this may have to be referred back.

Former_E.ON_Company_Representative:_Malc

Hi backfoot and DD

The comments I made yesterday concerned only the £10/£30 cancellation fees applicable to certain tariffs.

The T&C's for these tariffs state 'we may charge a cancellation fee as set out in your plan.'

There are some instances when cancellation fees are not charged and one of these is where customers change supplier due to a price increase.

My post referred only to these fees and not final bill discounts. Sorry if I didn't make this clear.

As you say backfoot, the issue of final bill discounts needs referring back to senior management, which I have done on this and previous occasions.

At present, there is nothing more I can add but will, as before, let you know of any developments as I or Helena become aware.

Hope this helps.

Malc