Eon Exit Fee ?

Premier_2

Here you go, from Malc, the E.On Rep.:

E.ON_Company_Representative:_Malc wrote: »

Hi freda

It sounds as though the product you're currently on is probably Fixonline 5.

As this is an online product, you will automatically be put on to EnergyOnline when your existing deal ends unless you tell us otherwise.

EnergyOnline is based on our standard prices but with a 10 per cent discount before VAT. There are no cancellation fees on this product leaving you free to switch supplier whenever you wish.

A letter will be sent before Fixonline 5 ends outlining the new prices and asking you to contact us to discuss alternatives.

It usually takes between 4 to 6 weeks to change supplier. Therefore, if you start a switch in the next few days, it should complete after the end of Fixonline 5.

In this situation, you will have completed the Fixonline 5 contract and so not pick up the cancellation fee applicable to this tariff.

Just a quick heads up freda; we don't give discount on final bills when changing supplier. However, if you've completed the term of the contract, you'll be entitled to the full amount of discount relevant to Fixonline 5 even if part of this falls within the final bill.

The only discount you'll miss out on will be for the period between the end of Fixonline 5 and the date your supply changes hands.

Hope this is helpful freda. Give me a shout if you need any more info as will be happy to help.

Malc

http://forums.moneysavingexpert.com/showpost.php?p=40775084&postcount=4

backfoot

Won't this practice fall foul of the newly introduced Confidence Code for accredited Comparison sites? Looks like the highlighted section will stop them including any discounts which depend on consumer behaviour (in this case terminating the contract).

http://www.consumerfocus.org.uk/get-...onfidence-code

7.1 Calculation assumptions
[FONT=Arial,Arial][FONT=Arial,Arial]7.1.1 The factors that a service provider uses to base its calculations on should not include: [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]introductory sign up offers, one-time discounts/special offers or other promotional discounts that last for less than the duration of the tariff [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]discounts that depend on the consumer behaving in a certain way ie those discounts which are not paid automatically [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]discounts that apply to other services (eg telephony) that a supplier may add to a product offering [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]non-price offers [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]discounts that may be offered by the service provider for new applications [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]for a comparison period of 12 months: any discount paid after the first 12 months of a customer’s supply start date or after any subsequent 12 month period [/FONT]
[FONT=Arial,Arial]7.1.2 After taking 7.1.1 into account, the factors that a service provider uses to base its calculations on should include: [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]recurring discounts that are paid automatically: for paying by a certain method (eg monthly Direct Debit); dual fuel discounts; online discount; compulsory paperless billing discounts [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]fixed charges (eg a fixed monthly membership fee) [/FONT]
[/FONT]

KimYeovil

Just goes to show how rubbish the Confidence Code is - it works against consumers and fairer pricing. The honest way to price tariffs is to not give direct debit discounts and replace them with late payment penalties.

backfoot

I'll send a PM to the Uswitch and Energyhelpline Reps to ask for their comments on this thread and whether these discounts are now disallowed in their calculations as they are conditional on the customer not terminating.

Perhaps the Eon Rep would also like to comment.

p.s.Can't send a PM to the reps concerned.

Premier_2

backfoot wrote: »

Won't this practice fall foul of the newly introduced Confidence Code for accredited Comparison sites? Looks like the highlighted section will stop them including any discounts which depend on consumer behaviour (in this case terminating the contract).

http://www.consumerfocus.org.uk/get-...onfidence-code

7.1 Calculation assumptions
[FONT=Arial,Arial][FONT=Arial,Arial]7.1.1 The factors that a service provider uses to base its calculations on should not include: [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]introductory sign up offers, one-time discounts/special offers or other promotional discounts that last for less than the duration of the tariff [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]discounts that depend on the consumer behaving in a certain way ie those discounts which are not paid automatically [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]discounts that apply to other services (eg telephony) that a supplier may add to a product offering [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]non-price offers [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]discounts that may be offered by the service provider for new applications [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]for a comparison period of 12 months: any discount paid after the first 12 months of a customer’s supply start date or after any subsequent 12 month period [/FONT]
[FONT=Arial,Arial]7.1.2 After taking 7.1.1 into account, the factors that a service provider uses to base its calculations on should include: [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]recurring discounts that are paid automatically: for paying by a certain method (eg monthly Direct Debit); dual fuel discounts; online discount; compulsory paperless billing discounts [/FONT]
[/FONT][FONT=Wingdings 2,Wingdings 2][FONT=Wingdings 2,Wingdings 2] [/FONT][/FONT][FONT=Arial,Arial][FONT=Arial,Arial]fixed charges (eg a fixed monthly membership fee) [/FONT]
[/FONT]

Whilst admittedly I've not seen such a term, I think that relates to discounts that would only be paid if, for example, the consumer has to write in to ask for one, perhaps within a certain timeframe (a bit like mobile phone cashback deals)

Otherwise you could argue no discounts could be included.
e.g. you can't include DD discounts because that relies on the consumer not cancelling the DDI, or relies on the consumer agreeing to the DDI
You can't include dual fuel discounts because that implies the consumer maintains both fuels with the supplier
You can't include prompt payment discounts/late payment penalties as that depends on when the consumer pays
etc. etc.

backfoot

Premier wrote: »

Whilst admittedly I've not seen such a term, I think that relates to discounts that would only be paid if, for example, the consumer has to write in to ask for one, perhaps within a certain timeframe (a bit like mobile phone cashback deals)

Otherwise you could argue no discounts could be included.
e.g. you can't include DD discounts because that relies on the consumer not cancelling the DDI, or relies on the consumer agreeing to the DDI
You can't include dual fuel discounts because that implies the consumer maintains both fuels with the supplier
You can't include prompt payment discounts/late payment penalties as that depends on when the consumer pays
etc. etc.

I don't think your examples relate closely at all with the situation here. I think you have stretched them to try and fit the Eon final bill tactic, but they are entirely different.

The idea of the Confidence Code is to allow transparency of charges so that the customer can use the data with confidence.In addition the Code supports the declutterring of overly complex tariff structures,of which this is a prime example.

The Eon tactic falls foul of the highlighted section and therefore all associated discounts also should be excluded from the comparison.
I just wondered,at this early stage, whether the comparison sites have picked this one up.

It would help put an end to what is a dubious practice imho.

p.s.I have set up a thread asking the comparison site Reps to offer some guidance.

https://forums.moneysavingexpert.com/discussion/3045160

MillicentBystander

backfoot wrote: »

I don't think your examples relate closely at all with the situation here. I think you have stretched them to try and fit the Eon final bill tactic, but they are entirely different.

The idea of the Confidence Code is to allow transparency of charges so that the customer can use the data with confidence.In addition the Code supports the declutterring of overly complex tariff structures,of which this is a prime example.

The Eon tactic falls foul of the highlighted section and therefore all associated discounts also should be excluded from the comparison.
I just wondered,at this early stage, whether the comparison sites have picked this one up.

It would help put an end to what is a dubious practice imho.

p.s.I have set up a thread asking the comparison site Reps to offer some guidance.

https://forums.moneysavingexpert.com/discussion/3045160

Maybe they are ignoring it in the (hopefully forlorn) hope that it will just go away...;)

All I know is that they face an uncomfortable few weeks/months now you are on the case. :j

backfoot

MillicentBystander wrote: »

Maybe they are ignoring it in the (hopefully forlorn) hope that it will just go away...;)

All I know is that they face an uncomfortable few weeks/months now you are on the case. :j

I'll take it as a compliment, I think. :T You have made it sound a bit like piles though.:rotfl:

No, I just want things to improve for Customers. Fair,clear pricing and good Customer Service,which is so sadly lacking from my personal experiences.

It will be interesting to see how effectively they operate this code and we have a great example here to test their resolve.

MillicentBystander

backfoot wrote: »

I'll take it as a compliment, I think. :T You have made it sound a bit like piles though.:rotfl:

No, I just want things to improve for Customers. Fair,clear pricing and good Customer Service,which is so sadly lacking from my personal experiences.

It will be interesting to see how effectively they operate this code and we have a great example here to test their resolve.

I assure you it was indeed meant as a compliment. So many of the people on here (me included) are content to complain about stuff but do nothing practical about putting it right. You are a 'doer' and that's why this forum is a better place for your presence on here.

Premier_2

backfoot wrote: »

I don't think your examples relate closely at all with the situation here. I think you have stretched them to try and fit the Eon final bill tactic, but they are entirely different.

The idea of the Confidence Code is to allow transparency of charges so that the customer can use the data with confidence.In addition the Code supports the declutterring of overly complex tariff structures,of which this is a prime example.

The Eon tactic falls foul of the highlighted section and therefore all associated discounts also should be excluded from the comparison.
I just wondered,at this early stage, whether the comparison sites have picked this one up.

It would help put an end to what is a dubious practice imho.

p.s.I have set up a thread asking the comparison site Reps to offer some guidance.

https://forums.moneysavingexpert.com/discussion/3045160

I can confirm that none of the comparison sites (not just the two you mention) allow for the loss of discount on a customer's final bill when leaving E.On.

If you are so certain this contradicts the code, I suggest you make a complaint to Consumer Focus or Ofgem.
How much would you suggest the comparison sites should allow as it would vary with each customer and their specific circumstances? :huh: