E On price capping

michelle67

Im with E On for gas and electric and i saw in a national newws paper last week about the price capping and im not sure how it works.

I sent E On an email asking about capping and what do i have to do to cap until 2014 and theyve just phoneed me saying that if i cap until 2014 they r going to charge me £75 to cap

i still dont no how it works but just wondered y it costs £75 to cap all i wanted to do was save abit of money

KimYeovil

A three year cap for only a flat £25 per year (£2 per month) premium on what you are paying now seems a pretty cheap deal to me.* Most caps are pro rata your actual useage - say 6%. On a £50 monthly bill that would be £108 but if your monthly bill is £80 it would be £175.

To compare with other capped deals with other suppliers have a look on a comparison site.

*Course, that also depends on what you are paying now compared to other tariffs.

michelle67

thank you for ur reply i understand abit better now, if i did cap would i have to pay the £75 upfront or can i pay with my fortnightly payments?

KimYeovil

Actually, ignore my previous reply - I have no idea - I am not familiar with the £75. Did they say it was a joining fee - it could be they are talking about how much extra it would cost you over the first year or all three years or anything in between. You need to dig out clarification about what the actual tariff prices will be capped at and where the £75 comes from.

Former_E.ON_Company_Representative:_Malc

Hi michelle

There seems to be a bit of confusion about this tariff which I thought I would try and clear up.

There is no charge to go on to a capped tariff.

However, unit rates on Price Protection April 2014 are initially priced at 7 per cent above our standard rates. I think this is what our agent was referring to.

If I'm correct, the agent will have looked at how much more this would cost based on your past usage. I suspect this is where the figure of £75 comes from.

Customers on Price Protection April 2014 will not see their unit prices increase before 1 April 2014 regardless of what happens to standard rates in that time.

Prices, though, are capped not fixed. Therefore, should standard prices fall below the level when signing up, customers on this tariff will also see a reduction.

As such, our capped products carry this initial premium. They are aimed more at customers who want the security of knowing their prices will remain the same in the longer term rather than those wanting immediate savings.

I would do as Kim says and pop your details on to one of the comparison sites. This will list out all the tariffs available, both with us and the other suppliers.

Hope this makes things a little clearer michelle. Give me a shout if you need any more info as will be happy to help.

Malc

michelle67

thank you for your reply malc i will take a look at price compariosn sites but dont really understand them as i am rubbish where numbers are concerned lol

Airmike23

I think £75 to cap refers to the amount per month to pay by DD by going on to PP2014, you do not have to pay up front to cap as Malc the Eon rep states, you'd be better off on an online tariff tho about 20% cheaper, so you'd need there to be a massive price rise to make not capping now a bad idea

shopndrop

My dad is currently on a price protection until 2012 but has been offered the price protection until 2014. I am not quite sure what the new rates are - 7% above standard rate is mentioned but can't seem to find what their standard rate is - can anyone help please.
Also I am on the same tariff as dad but have not had the same offer. Are all customers being given this opportunity or not?

Airmike23

PP April 2014 open to all existing Eon customers, but rates on 2014 are about 11%/12% dearer than PP May 2012, and when May 2012 cap expires Eon at renewal will automatically offer to cap you again (You do not have to cap again May 2012, but that will be the standard renewal offer, you'll need to call Eon at the time to discuss other price plans if you don't want to cap May 2012). For now only 2 Eon products that will reduce cost are Track and Save 8 (savings will not be that much) and Save Online 5

shopndrop

Airmike23 wrote: »

PP April 2014 open to all existing Eon customers, but rates on 2014 are about 11%/12% dearer than PP May 2012,

Do you know what the actual cost per unit is please for the PP 2014 or where I can find it. Struggling to find it on EON website.

Airmike23

Use PP2013 on Eon website and Comparison websites. PP2013 only for new customers and has £100 canx charge if leave before 2013, whereas 2014 for existing customers only and no canx charge - unit rates the same for the two tariffs