USwitch - Eon Energy Fit

backfoot

This tariff is already very confusing.

USwitch show discounts for gas and electricity of 8.33%. Under features it also shows the so called 2 months of 'free 'energy.

It therefore appears that both of these features are present,when in reality they are one of the same thing.

There are no DD discounts on this tariff.

E.ON_Company_Representative:_Helena

Hi backfoot,



The customers will get 2 months’ worth of free energy over 2 years, one for each year of the plan. At the end of each year of the plan we calculate the customers energy charges for the previous 12 months.

The DD payment in month 12 is not collected from our customers bank.

We calculate their free month’s worth of energy as 1 / 12th [= which is 1 month or 8.33%] of their usage. This amount is then credited back to the customers account at the end of each year. This way means the customer will get back 1/12th worth of actual usage back regardless of the DD amount.

We do the same calculations for the second year of the tariff and the DD payment is not taken in month 24.

As you have rightly pointed out, there is no DD discount with this plan.

To align Direct Debit payments and the free month of energy as accurately as possible customers must give us a minimum of 1 meter reads every 3 months.


The E.ON Energy Fit Plan is designed to meet the needs of customers who prefer to receive an ‘payment’ free element, instead of the discounts off each bill.


If customers need any more info, they can always ask I am happy to try and help.


Thanks



Helena

backfoot

Thanks for your response Helena. My post was aimed at USwitch who have summarised the Plan inaccurately in my view, but also for readers to appreciate that the lost DD discount broadly equates to the year end concession. Nevertheless you have raised some interesting points.

E.ON_Company_Representative:_Helena wrote: »

'to align Direct Debit payments and the free month of energy as accurately as possible customers must give us a minimum of 1 meter reads every 3 months.

So DD payments are reviewed quarterly under this Plan? (to acheive a zero spring balance?) I presume you also pay need to pay 1/11th rather than 1/12th DD amount from the outset? So the free payment month in effect becomes an advance payment?


The E.ON Energy Fit Plan is designed to meet the needs of customers who prefer to receive an ‘payment’ free element, instead of the discounts off each bill.

Why would anyone who understood the effect properly want that option? It only has downsides.:o Peter Mandleson would be impressed.

backfoot

Would Uswitch care to comment, please.

uSwitch_company_representative

Hi backfoot,

I'm chasing this up with my colleagues - will get back to you with answer as soon as I can. Sorry to keep you waiting!

Lauren

backfoot

Lauren,

Anything to report?

backfoot

I see there has been an amendment on USwitch for this product. It is slightly for the better imho, in that it equates the 'free' month as 8.33%. It now also states the 'free' month is included in the quote.I would still liked to have seen a more explicit message that there are no Direct Debit Discounts on this product (usually 8%).

Perhaps Uswitch will consider including this, please.

However ,it is all much more fundamental.

Turning back to the product, is it just me or do other posters, feel that Eon are indulging in misleading advertising?

To me, the use of the word 'free' means without cost or payment or something for nothing.

Take for example, a total annual cost of £1100 for a dual fuel contract for Energy Fit. Where is the one month free? Was the original price £1200? It isn't, because the rates are explicitly shown and amount to £1100. They are implying because you make payment for 11 months and the 12th month is clear then something is free. (it is actually a cost because of the need to advance payments).

If they said, you only had to pay the £1100 over six months of the year then would you be getting six months free energy?

As it is the product comes out £435 more expensive for me and £36 more than Eon's Save Online.

So can someone tell me where the free bit is?

jalexa

backfoot wrote: »

Turning back to the product, is it just me or do other posters, feel that Eon are indulging in misleading advertising?

Yes, but the Eon "panel of turkeys" voted for "free" energy.

Its a "deferred discount":eek: tariff by another name but Eon have a long way to go before they can milk "deferred discount" even half as well as the NPower masters of the "deferred discount".

Doing a comparison this morning (using TheEnergyShop) reveals the Eon Energy Fit tariff on page 4 at a 0.4% premium to the SSE masters of uncompetitive tariffs Standard tariff, or is it about about to experience an 8.33% promotion?

NPower with their clearly superior "deferred discount":eek: tariff are 2nd with a 10% discount to Eon Energy Fit and Edf ever better with a fixed price tariff offering a 12% discount to Eon Energy Fit. I wonder if Eon Energy Fit (thanks to your intervention) has just suffered an 8.33% demotion on Confidence Code compliant calculations.

IMO, the tariff in its current uncompetitive incarnation will quietly disappear. It's not worth wasting time over, though I have a have a different view of other supplier's clearly superior "deferred discount":eek: tariffs continuing to be placed at the top of a Confidence Code calculation by virture of a £100 deferred discount. I wouldn't normally advocate such a tariff but low users who understand the circumstances they could forfeit the "deferred discount" can benefit from a fixed £100 discount over a 8.33% discount.

The "turkeys" were poor quality and the Eon Energy Fit product designer was a dope. (note the "was":D)

backfoot

Jalexa,

Thanks for your input and I stand firmly alongside you in criticising 'deferred discount' tactics.

Both of our analyses show how actually uncompetitive the 'Energy Fit product is, but there lies the rub,in that many won't do the analysis.

In my view,this is a 'deferred discount plus' manouevre, because actually no discounts are on offer. In fact, is is purely an advanced payment scheme of 11 month Direct Debits. i.e. total plan cost paid in the first 11 months and if you don't stay you don't get the payment free month. A wholly different and unscrupulous can of worms.

The other chilling aspect is how all this is dressed up as a gift. i.e. a freebie. (a free months energy).

So on paper,the pitch is free energy. NOT.

Payment free month . NOT, you have paid in advance and they keep it if you switch.

The turkeys may have voted for free energy and they have been well and truly stuffed, as may many innocent customers, thinking that free energy meant what it said on the tin. Then again, the same turkeys voted for Zero Spring balance.(apparently). It's coming up to that time of year.

ASA anyone?

backfoot

Eon Reps,

Is this product included in the product withdrawal under the reset?

Providing clearer choices by cutting the number of tariffs by almost a quarter in February and scrapping certain products that have been criticised as confusing;

E.ON_Company_Representative:_Helena

backfoot wrote: »

Eon Reps,

Is this product included in the product withdrawal under the reset?

Providing clearer choices by cutting the number of tariffs by almost a quarter in February and scrapping certain products that have been criticised as confusing;

Hiya backfoot,

The E.ON Energy Fit tariff has been withdrawn, so it isn't available to change on to anymore.

If you are already on it you can stay on it for the length of the tariff, or look to see if you would like to change on to something else. There aren't any cancellation fees for the Energy Fit tariff.

Thanks

Helena