E.ON SaveOnline 2 vs 6

hangover

I'm currently on E.ON SaveOnline 2 (expires 31 August 2011).

Their website offers the option to switch to various different tarifs, including SaveOnline 6 which appears to be cheaper (see quoted prices below). The only apparent slight drawbacks seem to be that a contract cancellation fee of £30 may apply if I leave before 1 June 2012, and I would no longer receive Tesco Clubcard points.

However, when I do a price comparison (I've tried both USwitch and MoneySupermarket) they tell me that SaveOnline 6 would cost me £135 more a year (and even the best quote - British Gas WebSaver 11 - would cost me £57 a year more). Can anyone explain why this is - what am I missing?

SaveOnline 2
Electricity
Normal units up to 900 kWhs per year: 24.7695 pence
Normal units: 11.2875 pence per kWh
Gas
Normal units up to 2680 kWhs per year: 7.2597 pence
Normal units: 3.1584 pence per kWh

SaveOnline 6
Electricity
Normal units up to 900 kWhs per year: 21.063 pence
Normal units: 10.4475 pence per kWh
Gas
Normal units up to 2680 kWhs per year: 5.2542 pence
Normal units: 2.9484 pence per kWh

Thanks!

KimYeovil

What are the discounts? With Eon they vary from 25% down to 6%. Chances are SaveOnline 6 has a much smaller discount than the older tariff.

hangover

Ah, right. So the prices quoted do not include the discounts - that's a bit misleading, isn't it?

Both SaveOnline 2 and 6 include a 6% Direct Debit discount and a 2% Dual Fuel Direct Debit discount, but SaveOnline 2 also includes an 18.40% Online Discount so that must account for the difference.

So I guess that I should stay on my current tariff until the end of August then. Many thanks for your help.

st999

SaveOnline 2 also includes an 18.40% Online Discount

Correct!

That is why SaveOnline 6 is dearer.

So the prices quoted do not include the discounts

But the online prices do include the discount, that is why you are being told that SaveOnline 6 would cost you £135 more a year

hangover

st999 wrote: »

But the online prices do include the discount, that is why you are being told that SaveOnline 6 would cost you £135 more a year

I meant the prices on E-ON's website, not on the comparison sites. It seems confusing/misleading to me that they are quoted without the discounts (and do not state whether or not they take account of the discounts). I wonder how many people have mistakenly switched to a more expensive tariff because of this.

In order to properly compare the prices of the different tariffs you would need to apply the discounts yourself (and know how they are applied - i.e. are the 2% and 6% discounts applied simultaneously - e.g. the results of an 8% discount on £100 would be £92.00 - or consecutively and, if so, in what order - e.g. the result of a 2% discount on £100 would be £98 and then a 6% discount on £98 would be £92.12).

I guess that's why Ofgem says they are too confusing and why we need comparison sites.

st999

Direct from the eon website

Of course the discount amount will vary depending on your bill

A contract cancellation fee of £30 may apply if you leave before 1 June 2012.
Product Details
Product Name: E.ON SaveOnline 6
Payment Method: Monthly Direct Debit



Electricity
Normal units up to 900 kWhs per year 21.105 pence
Normal units 10.773 pence per kWh


Gas
Normal units up to 2680 kWhs per year 5.61435 pence
Normal units 2.9316 pence per kWh



Discounts
Electricity
Direct Debit Discount @6.00% £30.51
Dual Fuel Direct Debit Discount @2.00% £10.17
£40.68

Gas
Direct Debit Discount @6.00% £26.84
Dual Fuel Direct Debit Discount @2.00% £8.95
£35.79

---

Total Discount: £76.47

Airmike23

Hangover - In order to properly compare the prices of the different tariffs you would need to apply the discounts yourself (and know how they are applied - i.e. are the 2% and 6% discounts applied simultaneously - e.g. the results of an 8% discount on £100 would be £92.00 - or consecutively and, if so, in what order - e.g. the result of a 2% discount on £100 would be £98 and then a 6% discount on £98 would be £92.12).

You guys often way over think things. Save Online 6 states a minimum 6% discount against current Eon Standard tariff unit rates (will probably be more than 6%) until 1st June 2012. 2% and 6% are charged together as 8%. The Save Online 6 discount is taken off the unit rates whereas Save Online 2 is a discount taken off the cost of gas and electric once unit rate charges applied to reads to convert to cost. Save Online 2 unit rates are the Standard Eon tariff unit rate costs with the additional 18.4% discount on top of the standard 8% meanioning total Save Online 2 discount is 26.4%. Eg if cost of gas and elec based on Save Online 2 rates costs £100, once discount applied cost to customer is £73.60 whereas Save Online 6 if cost based on unit rates is £100 once discount applied £92 is what customer will pay.