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MSE News: Eon promises no energy price rises in 2012

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MSE News: Eon promises no energy price rises in 2012

edited 30 November -1 at 1:00AM in Energy
12 replies 1.8K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Energy
This is the discussion thread for the following MSE News Story:

"Eon says just under five million existing domestic customers will have the peace of mind that prices won't rise in 2012 ..."
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Replies

  • edited 14 May 2012 at 11:33AM
    MillicentBystanderMillicentBystander Forumite
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    edited 14 May 2012 at 11:33AM
    Hmmm...judging by their prices in my region (Yorkshire) it's not much of a promise - they are much more expensive than the best deals (which, ironically, tend to be fixed deals extending beyond the end of 2012!).
  • Premier_2Premier_2 Forumite
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    Energy giant Eon has today promised to freeze gas and electricity prices for all of its domestic customers between now and the end of the year. ...


    With BG's recent warning of forthcoming price rises should we expect a price rise from e.On beginning of January 2013?

    Cynical? Moi?
    "Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 2010
  • ConsumeristConsumerist Forumite
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    premier wrote: »
    With BG's recent warning of forthcoming price rises should we expect a price rise from e.On beginning of January 2013?
    Yes, I think the E.on statement is a euphemism for "expect rises in January". Sounded rather like political spin-doctoring.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • VT82VT82 Forumite
    1.1K posts
    As an EOn customer, I'm glad to hear it. But like the above, as I was reading it, I was also thinking 'expect a letter at the end of October informing me of the higher prices taking effect from 2nd January 2013...'
  • jamesdjamesd Forumite
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    "We're going to raise prices just at the time your usage is highest for next winter."

    Centrica has even less excuse: it's in the business of producing gas and could be getting heavily involved in fracking to obtain new supplies of gas and potentially reduce prices. it's roughly halved the price of gas in the US. But since it is a gas producer is it really in Centrica's interests to have lower gas prices? :) No.

    At least one remedy is to switch supplier away from Centrica and other gas producers who have an incentive to keep prices high.
  • Candy53Candy53 Forumite
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    I'm an Eon customer and I read inbetween the lines of that statement too.

    I knew that when they decreased the price of electricity, in February, they would recoup it, so I agree that January could be the time.

    Candy
    What goes around, comes around.
  • edited 14 May 2012 at 11:29PM
    Terrylw1Terrylw1 Forumite
    7K posts
    edited 14 May 2012 at 11:29PM
    Hmm...have to agree with all of the above.

    We've all heard this price rise thing before and its always meant a price hike on promise end + 1 day.

    I wonder if wholesale prices are due to drop at any point?
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • jamesdjamesd Forumite
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    There are some interesting factors in wholesale pricing:

    1. Fracking. The US is converting a terminal formerly intended or importing liquified natural gas into one to export it because of the surplus it now has due to fracking. The UK has new terminals to receive LNG. So even without UK domestic fracking there will be some outside influence that may lower gas prices. And much electricity is now generated by burning gas.

    2. Demand, notably from those countries stopping the use of nuclear power. Some may be temporary, perhaps much of Japan, others more permanent like early ending in Germany. Also the emerging markets are likely to systematically increase usage.

    3. Efficiency measures may help to reduce demand a little domestically but I doubt that they will make much difference to global demand increases.

    4. Subsidy of domestic low carbon measures by adding taxes to wholesale production and distribution. This is not yet a huge factor but is likely to become very significant.

    Don't believe any politician in power who says they are doing all they can to control energy prices unless they are explaining whether they plan to continue to encourage them to increase due to subsidies for low carbon power sources.
  • PincherPincher
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    No, no, no. Wrong announcement.

    When I come out of SaveOnline 9 in September,
    I want to see a sky high standard tariff for the mugs who don't check the latest tariffs, and a 26.6% total discount FixOnline 10 ready for me to switch to.
  • frugalfranfrugalfran Forumite
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    Do we all think that means that we will still pay the same as the 'old'tarrif (e.g. Save online 9) for the rest of the year although that has been withdrawn? It's so sad that no-one can believe a concept (i.e. freeze prices) wiklthout questionning the precise words used!
This discussion has been closed.

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