Hidden Tariffs?

Cardew

I am now on a tariff that is several hundred pounds cheaper for my heavy consumption than any on the market that show up on any of the comparison networks.(including those who have not announced their price increase) This from a company that have announced their latest round of price increases.

I received details about a tariff from an employee in the company who knew of this ‘loophole’. This tariff had been missed in the round(s?) of rises and indeed was quickly withdrawn after I switched. It was also not available in some regions.

I am not going to reveal the tariff/company for fear of causing trouble for my contact, also any publicity could mean they massively increase the prices on this tariff – sadly it is not fixed. In any case I am fully expecting that it won’t remain undiscovered for long.

Anyway the point of the above is to ponder if there are any other 'hidden' tariffs in the many combinations of gas alone, electricity alone, economy 7, economy 10, pay in advance, discount structure etc etc.

For instance I have an annex that uses very little electricity or gas and it is perfectly possible to get a tariff that pays me for the pleasure of letting them supply gas and electricity. i.e. the discounts outweigh the costs.

I fly quite a lot and there are websites dedicated to finding computer glitches in the on-line booking systems giving stupidly low prices for obscure flights between destinations. The famous example was a full fare flexible first class return ticket with Alitalia between Canada and Cyprus for about US$100. Being a flexible ticket you could break your journey in Rome!

I am pretty sure that there must be similar computer glitches on gas and electricity tariffs the problem is finding them!!!

Airmike23

I work for Eon, and can say there are no hidden tariffs. Occasionally advisors, will in error/lack of knowledge, recommend a tariff that is no longer available for sale, but is more advantageous than the current advertissed range of tariffs. This practice is not sanctioned by management. As I'm sure you're aware alot of power co's have tariffs available only to existing customers, often as a renewal product for end of current capped or fixed deal. Eon at the moment only advertises Fixed Price April 2013, but if existing customer, there is also Fixed Price October 2013, and Fixed Price October 2012. I would imagine your contacvt has probably put you on a tariff that has been withdrawn for sale as a good will gesture, or as you already have some sort of rapport with them.

backfoot

Airmike23 wrote: »

I'm sure you're aware alot of power co's have tariffs available only to existing customers, often as a renewal product for end of current capped or fixed deal. Eon at the moment only advertises Fixed Price April 2013, but if existing customer, there is also Fixed Price October 2013, and Fixed Price October 2012.

That doesn't sound right to me.

Unfortunately,such a policy will lead to a further lack of competition.Tying in customer's through loyalty, in a very limited market of half a dozen Suppliers doesn't sit easily with me.

Would the Eon Rep like to confirm that they have such a policy which discriminates against new customers?

I can feel a new challenge coming on here.

Airmike23

backfoot, the customer is never tied in, and they are not necessarily automatically put on those tariffs stated, as I'm sure you're aware from your frequent posts on here, legal contract with a power company is a rolling 28 day contract which is why the power company's offer tariffs with early termination fees (ETF's), to discourage the customer from exercising their right to switch when they please. A customer has got to own their switches of tariff, whther with the same energy firm, or from one company to the next, it is up to them to make themselves aware of the tariff terms they are accepting. If the change of tariff/supplier is done face to face or over the phone, then the customer should be made explicitly aware of terms such as ETF's before making a firm commitment. The power company should also make them aware that the contract is still 28 day rolling one. The two tariffs I mentioned offered by Eon are not tie in products and have no ETF's. Simply put, a number of customers have had letters, making them the offer of one of the above tariffs, they do not have to go on it, and will not be auto switched to it. All power co's follow thsi practice, generally with the end of a fixed or capped deal, making an offer of a replacement fix/capped deal, but at current market value, rather than a continuation of the terms of capped/fixed deal ending/ended. Eon allow customers to switch tariffs twice in a 90day billinjg cycle, and with the frequent releases of new tariffs, customers should never feel, they have to remain on the current deal, if they feel maybe able to get a better deal from current supplier.

Generally the tariffs available to existing customers only are not the cheapest deals they are comfort products like fixed or capped deals, so unit rates set higher than that company's current standard tariff, and as well all know cheapest deals are variable unit rate intyernet billing only tariffs which are always available to new and existing customers.

backfoot

Airmike,

I am confused by some of the arguments you have included.

To me,the simple question is should a Supplier be able to quote terms which are preferential to an existing group of customers and not offer the same terms to another group (i.e.new customers).

The matter would seem to be in breach of Standard License Condition 25A.

That's why I wanted Eon's response.

Pincher

Customer retention calling you up when you try to leave and offering you a not generally available deal is what MSEs thrive on.

Besides, the usual complaint is that companies give generous introductory discount to new customers, and abuse existing customers. The cry is for rewarding loyalty, and what are you saying now that they do give existing customer a better deal?

What you should be complaining about is insider dealing.
Just because I am not sleeping with a PR manager, I am not given the good deal. THAT is discriminatory treatment. I want to sleep with her, too!

backfoot

Pincher wrote: »

Customer retention calling you up when you try to leave and offering you a not generally available deal is what MSEs thrive on.

Besides, the usual complaint is that companies give generous introductory discount to new customers, and abuse existing customers. The cry is for rewarding loyalty, and what are you saying now that they do give existing customer a better deal?

What you should be complaining about is insider dealing.
Just because I am not sleeping with a PR manager, I am not given the good deal. THAT is discriminatory treatment. I want to sleep with her, too!

Introductory discounts are a different issue.If Supplier's want to pay out goodies over and above the freely available tariff,then that's good news. It makes it cheaper and is available to all.Those payments encourage switching and competiton.

I just don't understand the equity of having a system which discriminates between customers,exiting or potential by resurrecting 'old products' for the chosen few. I actually doubt it happens but Airmike has confirmed it does.I have never ever been offerred such a deal.

Doesn't the License Condition 25A recognise this?

As for insider dealing extras,I will see what I can do for you with EDF. The PR Manager is a very nice chap.

MillicentBystander

Gas and Electric tariff glitches, eh? Could we see threads started on the Quick! Grabbit while you can forum?

MillicentBystander

Cardew wrote: »

I am now on a tariff that is several hundred pounds cheaper for my heavy consumption than any on the market that show up on any of the comparison networks.(including those who have not announced their price increase) This from a company that have announced their latest round of price increases.

I received details about a tariff from an employee in the company who knew of this ‘loophole’. This tariff had been missed in the round(s?) of rises and indeed was quickly withdrawn after I switched. It was also not available in some regions.

I am not going to reveal the tariff/company for fear of causing trouble for my contact, also any publicity could mean they massively increase the prices on this tariff – sadly it is not fixed. In any case I am fully expecting that it won’t remain undiscovered for long.

Anyway the point of the above is to ponder if there are any other 'hidden' tariffs in the many combinations of gas alone, electricity alone, economy 7, economy 10, pay in advance, discount structure etc etc.

For instance I have an annex that uses very little electricity or gas and it is perfectly possible to get a tariff that pays me for the pleasure of letting them supply gas and electricity. i.e. the discounts outweigh the costs.

I fly quite a lot and there are websites dedicated to finding computer glitches in the on-line booking systems giving stupidly low prices for obscure flights between destinations. The famous example was a full fare flexible first class return ticket with Alitalia between Canada and Cyprus for about US$100. Being a flexible ticket you could break your journey in Rome!

I am pretty sure that there must be similar computer glitches on gas and electricity tariffs the problem is finding them!!!

LOL, I like your style, Cardew. So this means you won't be revealing fully how you came to the frankly crazy looking savings that you posted on the UW thread?

PS Can't you at least tell us the tariff rates for this hidden tariff'? From my calculations it must have been from about 2008!

echoecho_2

I believe what airmike is referring to is shown on e.on's website.

E.on offers new and existing customers to fix at their standard rates but gives existing customer a longer fixed rate and no cancellation fee.

New AND existing customers can chooses fixed price until April 2013, but e.on have also made Fixed price until october 2013 available to existing customers only.

Personally, I don't find the tariffs competitive, but I like the idea a company are trying to retain customers and NOT by simply tying them into a tariff with an exit fee.


e.on website - Fixed until Oct 2013 http://www.eonenergy.com/At-Home/Products/Products-Electricity-And-Gas/Electricity-and-Gas/E.ON+Fixed+Price+October+2013.htm?WT.svl=4

MillicentBystander

To get the savings figure over UW Cardew's quoting in my link above on the cheapest tariff available today (Eon save online 9) his consumption would have to be 70,000 gas and 10,000 electric or thereabouts so this 'hidden tariff' must be ridiculously cheap to the point of the energy company losing money on it. Why would an energy company do such a thing? It's all very curious...