EON - Have I switched to the wrong deal

tfspark

I have been with EON on dual fuel Saveonline v3 since it started last year. Because they announced their price increases I decide I better fix. Probably a couple of months too late I know.

Looking on their website I was offered Age UK fixed price October 2013 amongst others.
Putting my yearly usage into a comparison site it said that that tariff would cost me £16 a year more than I am paying now. Sounded reasonable so I switched online and sent them my meter readings.

They very quickly sent me a bill which showed that I am £185 in credit. But they are now putting my DD up from £97 to £117 per month.

Surely this means that they think my usage will cost me £240 a year more than the Saveonline deal? Not quite what the comparison site said.

Have I done the right thing? I am still in the fourteen day cooling off period. Any advice would be appreciated.

Former_E.ON_Company_Representative:_Malc

Hi tfspark

Thought it might help if I gave you a brief outline of our Direct Debit policy.

With Monthly Direct Debits, we aim for accounts to have as near to a zero balance as possible by the time of the annual review in the spring.

To achieve this, we calculate how much energy we think you'll use before the review. This is based on usage over the past 12 months.

This amount is divided into the number of equal monthly amounts before the review. We expect accounts to build up credit during the summer ready for the expected higher winter bills.

Accounts are reviewed after each scheduled bill and adjusted up or down to make sure we remain on track for a zero balance next spring.

As you changed tariff before the latest bill, the Direct Debit will have been re-calculated based on the new product.

I do understand your account is in credit at the moment but it may be this credit plus the previous monthly payments were not covering the ongoing usage. This may have resulted in a debit balance by the time of the annual review. Consequently, payments will have been adjusted to avoid this.

I'm afraid, these calculations are not an exact science and can be influenced by changing lifestyles which affect the amount of energy used.

Therefore, we're always happy to work with customers to make sure their payment arrangements are covering the ongoing usage and will not leave either an excessive credit or debt on the account.

The important thing is that payments reflect the ongoing usage.

Give us a call and we'll be happy to review your arrangement and let you know why we've increased the payments. Drop an email to the address in my Profile if you prefer; I'll be happy to take a look.

Malc

tfspark

Malc, thank you for taking the time to explain the direct debit process.

I'm sure you will understand my concern when I switch to a new tariff looking for a good deal and the first thing that happens is that the cost goes up by £240 a year.
Hardly the result I was looking for.

The only conciliation I have is that it is a fixed deal so will protect me against further rises for two years. Obviously I will be keeping an eye on things and when prices settle down again I'll have a look at switching again if necessary.

I would like to send you an email but can't seem to find it in your profile.

Airmike23

tfspark, I'd go on save online 9, is unaffected by 13-9-11 increases, and variable much discounted rate for 12 months from the date the customer goes on the tariff. Fixing is all very well, but the only thing it does is give the customer peace of mind, that should there be further increases in the coming 2 years you wont suffer them, however, your contract with a UK supplier is 28 days only, and with Eon alone, you can switch the tariff up to 8 times a year, so if the current Eon tariff is not the cheapest then switch yourself to whatever at the time you're looking, is the cheapest tariff. There are variable rates available now that are significantly cheaper than the fixed deal you've opted for, if there are going to be any further increase, once they are announced new cheaper variable deals are announced by the power co's anyway to try and manage customers expectations. Fixing is a scare tactic that makes the power co money.

E.ON_Company_Representative:_Helena

tfspark wrote: »

Malc, thank you for taking the time to explain the direct debit process.

I'm sure you will understand my concern when I switch to a new tariff looking for a good deal and the first thing that happens is that the cost goes up by £240 a year.
Hardly the result I was looking for.

The only conciliation I have is that it is a fixed deal so will protect me against further rises for two years. Obviously I will be keeping an eye on things and when prices settle down again I'll have a look at switching again if necessary.

I would like to send you an email but can't seem to find it in your profile.

Hi tfspark,

Malc is out of the office for a couple of days now, so I hope you don't mind if I reply.

You can email me at [EMAIL="WebForumAdvisors@eonenergy.com"]WebForumAdvisors@eonenergy.com[/EMAIL] and I will be happy to take a look in to your account for you and give you more specific advice.

Hope I can help

Helena

Pincher

I WAS going to switch to SaveOnline 9 on 13th September, enjoying the pre-increase rate on SaveOnline 8 while it lasts. In your case, SaveOnline 3.

Now I realise E.On will withdraw SaveOnline 9 BEFORE the 13th September. This is because there are lots of customers who are waiting to do what I intend to do. If E.On keeps SaveOnline 9 available on the 13th September, we will simply switch to it, and effectively pay PRE-increase price from 13th September.
If enough people did this, it will be as if E.On hadn't raised prices.

So, if I were E.On's CEO, I would wrong foot these smartypants by suddenly withdrawing SaveOnline 9 on, say, 1st September. These customers will be confronted by a rock and a hard place, with SaveOnline 10 at post-increase price level, and Fixed tariffs even higher.

With the wholesale prices falling, the providers will find it very hard to justify another increase, so we should be relatively safe on SaveOnline 9 for a while.

So my revised switching schedule is now:

30th August Switch SaveOnline 8 to 9.
1st October FixOnline 10
1st November FixOnline 11, hopefully even better than FixOnline 10.

Rational optimism, or just wishful thinking? We shall see in November 2011.

Airmike23

They are just projections pincher, but i think for the next 6 months at least we will start to see products with the sort of discounts being given when fixonline 6/7/8 were available and Save Online 2.

Pincher

Airmike23 wrote: »

They are just projections pincher, but i think for the next 6 months at least we will start to see products with the sort of discounts being given when fixonline 6/7/8 were available and Save Online 2.

For one brief shining moment, there once was Camelot. :whistle:

Pray for the return of the Once and Future FixOnline.

hgm

Is it possible to switch form Saveonline8 to Saveonline9? The "Switch Now" on the EON site doesn't show it as an option and you can't switch to the same supplier from comparison sites.

E.ON_Company_Representative:_Helena

hgm wrote: »

Is it possible to switch form Saveonline8 to Saveonline9? The "Switch Now" on the EON site doesn't show it as an option and you can't switch to the same supplier from comparison sites.

Hi hgm,

You can change from SaveOnline 8 to SaveOnline 9, but I know there is an issue on the online account at the moment.

I have had a word with the web guys and they know that SaveOnline 9 isn't showing online for some customers and are working to get this fixed asap.

If you want to change your tariff, give us a ring/email or send an email to the address in my profile page and I will do it for you

Helena

Pincher

Finally switched to SaveOnline 9 today.

SaveOnline 9, on 9th of September: 9-9-9.

Is it a cry for help?
Is it 666 upside down?
Is it going to help?

I suspect they will withdraw SaveOnline 9 on Monday 12th September. People will see the news on the 13th about the price rise, have nowhere to turn, so choose a high Fixed tariff. Two weeks later, they bring out FixOnline 10.