Are E.ON cs correct?

BUFF

Hi,

I've been very happy with EonFixOnline 8 but like many people have decided to move when it ends.
Consequently I started the switch & last week (i.e within 20 working days of notification) I sent them a price rise rejection email/letter as advised on this site.

This was their reply received this week:
"The OFGEM regulation you refer to in your email is only applicable in the case of a general price increase affecting all customers. Your change in unit cost is as a result of your current contracted tariff ending, the date of which was stated in your Welcome Pack when you joined us. The regulation you quote does not apply in this case.

You have also received a renewal letter dated 23rd May 2011 which gave you sufficient notice of the contract end date. Once your current tariff expires, you will be charged at the new rate for however long your supply remains with us."

I don't believe that they are correct in their interpretation as energy firms almost never if at all vary all their prices affecting all customers at once (what about fixed tariffs?) which if they are correct would then make this loophole totally useless. Indeed if true the energy companies could make it totally useless simply by deliberately not varying a single tariff whenever they generally increased prices albeit I think that would raise Ofgem's ire.

So, what do people more knowledgeable than I (especially including the E.ON rep) think?

Airmike23

Yes, it is only when the unit rate is being increased by the power co, not when tariff ending. You have been made a standard renewal offer of Energy Online, however there are alternate rates that Eon can offer that are more favourable. OFGEM regs prevent any power co from putting you on their cheapest tariff at current tariff end. You are well within your rights to change supplier, all power co's, no matter what tariff you take with them, can only contract a domestic customer for 28 days (it is a rolling contract), thus you are never tied in, no matter the tariff duration, that is why many company's on their cheapest and capped/fixed tariffs put a canx charge in place, to try and discourage a customer leaving before the tariff ends, but they can't stop you from doing so. If you had wanted to reject Eon's price rise you would have needed to do so in Jan when they announced from 4th Feb prices were going up, this did not affect you at the time tho being on Fix Online 8

Former_E.ON_Company_Representative:_Malc

Hi BUFF

Yes, the information you received from our customer services is correct in this instance.

The Ofgem regulation you mention refers to changes to a contract that the customer was previously unaware of and did not opt in to.

This would include a general increase in our unit rates but does not apply to a fixed contract with a specified end date. These terms are advised in advance and confirmed in the documents sent to customers when they agree the contract.

Fixonline 8 was always going to end on 1 July 2011. As such, we haven't changed the contract.

Hope this explains what happens in these cases BUFF. Give me a shout if you need any more details as will be happy to help.

Malc