Hidden Tariffs?

backfoot

E.ON_Company_Representative:_Helena wrote: »

Hi guys,

I have had to get a bit of advice on this and have got this response.

We advertise Fixed Price April 2013 for all customers and Fixed Price October 2013 for existing customers only. Both products are fixed at our standard E.ON Energy Plan rates (as at 13 September 2011). We believe that at a time of rising prices it is reasonable to offer a preferential product to our existing customers.

Sorry I don't have anything further.

Helena

Thanks for the explanation of the policy.

I would suggest that you refer the above statement to your Legal Department. Ask them if the policy is a breach of License Condition 25A? If not, why not?

Perhaps I have got it wrong?

I am happy to ask for clarification from Ofgem but will wait to see if Eon respond here.

It looks like a clear discriminatory policy to me.

Not my rules.

Airmike23

backfoot - October 2012 fix is 3% dearer than current Eon tsandard tariff and April 2013 fix, October 2013 is 8% dearer than Eon Standard/April 2013 fix, so I'm not sure how Eon are not passing these deals on to new customers. As I stated uyesterday they have been offered, and agents are able to offer them to exisiting customers only, but if a new customer wants to fix April 2013 is cheaper than the two October ones, draw back is the two october have no ETF's whereas April 2013 is £80ETf if leave Eon and go to competitor company before 1st April 2013. If you can appreciate this is standard p[ractice among big 6, I would imagine the legalities have been covered as you would have heard from ofgem about fines etc.

HalloweenJack

Pincher wrote: »

Fair enough, I'm just going by what I read.
I'm staying put with E.On because they haven't messed up yet,
but I keep an eagle eye on them.

exactly - we really only hear from those who have poor experiences , and not from those who are happy with there suppliers - im happy with edf and your happy with e,on

HalloweenJack

backfoot wrote: »

Thanks for the explanation of the policy.

I would suggest that you refer the above statement to your Legal Department. Ask them if the policy is a breach of License Condition 25A? If not, why not?

Perhaps I have got it wrong?

I am happy to ask for clarification from Ofgem but will wait to see if Eon respond here.

It looks like a clear discriminatory policy to me.

Not my rules.

so , you would prefer the supplier to not have exclusive offers for current customers as an incentive for staying? in that case you had better get in touch with every supplier for every utility then - sky deals for not leaving etc, O2 retention offers.

its a market economy and if a company wants to *heaven forbid* gives special offers to current customers then its a good thing.

backfoot

Airmike23 wrote: »

If you can appreciate this is standard p[ractice among big 6, I would imagine the legalities have been covered as you would have heard from ofgem about fines etc.

I haven't come across it before. Do you have any other examples?

As for legalities, I was told I was wrong by Suppliers and other posters, regarding termination fees and price rises.

I may or may not be wrong, but I wouldn't assume that Eon have checked it out.

As it appears to be a discriminatory policy it is worth asking isn't it?

backfoot

HalloweenJack wrote: »

so , you would prefer the supplier to not have exclusive offers for current customers as an incentive for staying? in that case you had better get in touch with every supplier for every utility then - sky deals for not leaving etc, O2 retention offers.

its a market economy and if a company wants to *heaven forbid* gives special offers to current customers then its a good thing.

I would like to see special offers for all customers.

The trouble is that if those special offers only appear in response to a switch threat, then the market gets lazy.

The License condition is specific to Gas and electricity and is presumably there to stimulate competiton.

Airmike23

Most companies do not have "if the customer is going to leave only deals". What they will do is advise of full range of tariffs available, and customer may well be on a deal with their power co that is not as advantageous in terms of cost as other offers that company has - does not constitute as a don't leave tariff, just means customer unaware of alternate rates from current provider. Ofgem regs require the power co to discuss the tariff T+C's, unit rates and any other details that may be relevant before applying that tariff to the customers bills which is why customers are not automatically on the "cheapest" deal. As I'm sure you're all aware the range of products changes every few weeks so it is almost impossible to constantly be phoning or writing to customers to advise of alternate deals, as if the customer did not respond immediately to the communication, by the time they tariff may have been withdrawn and replaced, also cost ofg this to power co's would negate there being cheaper deals. That is why customers have the facility to switch from one product to another if they ask or find out or are informed of a cheaper deal with current supplier. If there are cheaper deals where, due to 28 day contract can switch away to another provider whenever they wish to.

HalloweenJack

backfoot wrote: »

I would like to see special offers for all customers.

The trouble is that if those special offers only appear in response to a switch threat, then the market gets lazy.

The License condition is specific to Gas and electricity and is presumably there to stimulate competiton.

if theres special offers to all customers it neagtes the point then doesnt it - and it wont really happen in a competitive market where the company wants to retain customers - look at O2 , they offered me a deal as a current customer which is better than one i can get if i was a new customer

E.ON_Company_Representative:_Helena

backfoot wrote: »

Thanks for the explanation of the policy.

I would suggest that you refer the above statement to your Legal Department. Ask them if the policy is a breach of License Condition 25A? If not, why not?

Perhaps I have got it wrong?

I am happy to ask for clarification from Ofgem but will wait to see if Eon respond here.

It looks like a clear discriminatory policy to me.

Not my rules.

Hi backfoot,

I have checked with our legal and regulatory team who point out that SLC25A allows this, with a reason. As I said, we think it is reasonable at a time of rising prices to offer a preferential product to existing customers.

This is not really my area at all, as you know we are here to give general customer service advise on billing etc, not to comment on our policy/business decisions.

Sorry I can't be of any further help.

Helena

MillicentBystander

I sense another backfoot communique to Ofgem.....