Inducements to Stay - One for the Reps

backfoot

It's a shame our Supplier Reps can't help us. They must know the rules, their policies and whether or not they offer inducements and at what stage of the process.

For example, if I leave Eon (others), will their Retention Team give me a ring to check it is a bona fide switch and will they offer me a conditional credit, if I cancel the switch?

Or would such an action be a breach of any internal or external guidelines? If they do make an offer what processes do they undertake with the customer, to ensure that there is no mis-selling and are such offers always confirmed in writing.

All I am trying to do is to protect the unwary and find out what advice the Suppliers would give us in relation to this area, so we in turn can give correct advice.

I would hope that they would all operate in an open and clear manner and not want to be accused of sharp practice.

Former_E.ON_Company_Representative:_Malc

Hi backfoot

Sorry for missing this thread. I've replied on another thread as below.

https://forums.moneysavingexpert.com/discussion/comment/56952929#Comment_56952929

Malc

jenniferfluff29

Originally on BG dual variable and moving to EDF blue promise may 2014.

After the cooling off period from EDF, ally from BG offered me £100 after 3 months and £100 after 12 months to come back to them. This figure was £50 to cover the gas price increase this winter plus an extra £150. Had to move to clear and simple tariff.

Was supposed to get an email within 24 hrs and a letter confirming tariff and £200 cashback. The £200 was mentioned in the call at the end when they go thro their script. Emailed late last Friday with the switch but no mention of the £200. No letter received with offer either.

I weighed up all costs and I would break even this year but the EDF fix is for 2 winters so staying with EDF.

Not everyone is offered as a guy at work switched from BG lately and never got the offer to come back.

Hope this is of interest.

Former_E.ON_Company_Representative:_Malc

Hi Backfoot

As promised, have been speaking to the top brass this morning about your query.

Can categorically state, we aren't offering any sort of inducements to either stop a customer switching supplier or to entice them back.

Whilst we may talk to customers about the tariffs we have available, these deals are the same for all, regardless of whether they're switching or not.

Hope this clears this up backfoot. As always, let me know if you need any more info as will be happy to help.

Malc

Terrylw1

I know I've seen this as a retention tactic where you can still use the cooling off period to cancel. That's been around for many years so is a question of what you can avoid to lose vs the profit you make to keep them, hence a sales management issue.

By crediting, it doesn't touch the unit rates so can be used as a worm to entice individual customers without lowering prices as a whole. Its a concept in other industries that retention teams use.

In terms of regulation, its not covered in SLC25. However, SLC25 is very clear in ifs definitions of supplier conduct in the sales process. This includes clearly explaining & providing documentation to show their calculations using your 12 months of similar period consumption. Adding credits won't affect consumption but they would impact DD calculation, so if there is something that will fail, it will be this since the DD has to be set lower than it should be...

backfoot

E.ON_Company_Representative:_Malc wrote: »

Hi Backfoot

As promised, have been speaking to the top brass this morning about your query.

Can categorically state, we aren't offering any sort of inducements to either stop a customer switching supplier or to entice them back.

Whilst we may talk to customers about the tariffs we have available, these deals are the same for all, regardless of whether they're switching or not.

Hope this clears this up backfoot. As always, let me know if you need any more info as will be happy to help.

Malc

Thank you to Malc and Eon for categorically stating their position.

Will the other Reps now please respond explaining their policies.

backfoot

Still only Eon have responded.:eek:

backfoot

Another BG example.

https://forums.moneysavingexpert.com/discussion/4290781

Legal?

Misselling?

Terrylw1

Personally, I don't understand the timing.

Are they trying to retain customers who haven't actually left yet? Whilst the cooling off period has expired, hence the current supplier is informed of a proposed future dated registration and the supplier applying, they can still block the switch.

The objection process is open to this since the current supplier doesn't state why they are objecting and the SLC only states the customer must be informed.

If so, that's an abuse of the process since it doesn't state they can object because the customer has changed their mind.

jalexa

Terrylw1 wrote: »

The objection process is open to this since the current supplier doesn't state why they are objecting and the SLC only states the customer must be informed.

Respectful as I am of your contributions I'm struggling with this one. I haven't intentionally selectively quoted you but I fear you are confusing objection mechanism with the requirements of the SLC. I can see I may have unintentionally misled the poster that "too late to cancel" meant too late for the current supplier to object. Apologies. But your quote above I believe not to be clear about the SLC either.

The valid objection grounds are clearly stated in SLC14.4 Is there an implication here that the current supplier intends to induce the customer to deny a switch under SLC14.4(c)? I cannot see any other grounds where the supplier requires objection consent by the customer. I would consider that a fraudulent abuse of process but maybe that is what you intended to convey in your final sentence.

IMO we need unequivocal condemnation of the supplier conduct described by the OP. And unequivocal clarification by the Scottish Gas rep, (or failing that Timmy85).