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MSE News: Eon to raise energy prices

edited 30 November -1 at 1:00AM in Energy
20 replies 2.9K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Energy
"The gas and electricity rise on 18 January will come just 18 days after a promise to freeze prices ends..."
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Eon to raise energy prices

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  • edited 10 December 2012 at 12:56PM
    WywthWywth Forumite
    5.1K posts
    edited 10 December 2012 at 12:56PM
    "The gas and electricity rise on 18 January will come just 18 days after a promise to freeze prices ends..."


    We're calling for tougher regulation so firms stop this devious marketing, which lures consumers in, only to be hit by hikes soon after.

    Can I call for an end to the sensationalist, tabloid drivel, the once respected MSE news items increasingly appear to include, please? :money:

    Eon have only ever said they would not increase prices for their variable tariff customers this year. They have never suggested they won't be increasing prices next year, and January is next year!

    In fact this was asked a couple of months ago when Martin asked Eon the question on Radio 5 Live
    http://blog.moneysavingexpert.com/2012/10/08/when-will-eon-raise-prices/

    Eon said then ""No, we’re promising not to raise prices this year." and refused to wager with Martin about any changes next year.

    If customers wanted the security of a fixed tariff, then they should ask for a fixed tariff.
    If customers want to take the rough with the smooth and gamble on a variable tariff, then there are rules that say how much notice a supplier must give to change prices... and E.on are fully complying with those rules.

    I don't see how promising something extra (i.e. not to raise prices this year, a good 3 months ago) is anything that can be described as devious; in fact quite the contrary when all the other big 6 have put their prices up over these months.

    Edit: In fact it appears E.on first made this promise way back in May 2012
    http://www.bbc.co.uk/news/business-18058557
    So that's been 9 months they have held their variable tariffs for! :T
  • ConsumeristConsumerist Forumite
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    Wywth wrote: »
    Can I call for an end to the sensationalist, tabloid drivel, the once respected MSE news items increasingly appear to include, please?
    Couldn't agree more.

    Rational reaction is becoming a scarce commodity from the editorial team on this site these days.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • Wywth wrote: »
    Can I call for an end to the sensationalist, tabloid drivel, the once respected MSE news items increasingly appear to include, please? :money:

    Eon have only ever said they would not increase prices for their variable tariff customers this year. They have never suggested they won't be increasing prices next year, and January is next year!

    In fact this was asked a couple of months ago when Martin asked Eon the question on Radio 5 Live
    http://blog.moneysavingexpert.com/2012/10/08/when-will-eon-raise-prices/

    Eon said then ""No, we’re promising not to raise prices this year." and refused to wager with Martin about any changes next year.

    If customers wanted the security of a fixed tariff, then they should ask for a fixed tariff.
    If customers want to take the rough with the smooth and gamble on a variable tariff, then there are rules that say how much notice a supplier must give to change prices... and E.on are fully complying with those rules.

    I don't see how promising something extra (i.e. not to raise prices this year, a good 3 months ago) is anything that can be described as devious; in fact quite the contrary when all the other big 6 have put their prices up over these months.

    Edit: In fact it appears E.on first made this promise way back in May 2012
    http://www.bbc.co.uk/news/business-18058557
    So that's been 9 months they have held their variable tariffs for! :T

    I very much second this. I love MSE, I love that they will stand for consumer rights, but I don't think e-on is in the wrong here. They promised not to raise prices in 2012 and they haven't - what's the issue?
    If anything, we should be applauding them for making such a promise and sticking to it.
  • SnowManSnowMan Forumite
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    The point that the article is making is that EON have been promoting their price guarantee over the past few months.

    However anyone switching in the past few months won't be switched to EON's tarriff until around January (because of the 6 weekish switch period) and so won't benefit from the guarantee in any way. So is it right to promote the price guarantee to potential new customers who can never benefit from it?

    I haven't been paying attention to know if EON have been promoting the guarantee heavily in the past few months, but if they have, then MSE make a fair point.
    I came, I saw, I melted
  • exPCexPC Forumite
    3 posts
    I worked with E.ON as an energy sales representative (dubbed their "Home Energy Consultant") in 2008.
    I can confirm, and customers should understand, these points:
    1) Customers pay for gas and electricity with E.ON.
    2) Customers also pay for EVERY representative's / manager's company provided new liveried car.
    3) Customers pay for the fuel used for those cars - the rep buys it to refuel, then claims it back through the company as expenses (E.ON don't pay from their own pockets, it comes from YOUR fuel bills)
    4) Contrary to popular belief, the reps don't just get a very nice salary (thank you) each month to go with their FREE, fully expensed, brand new car.
    5) E.ON reps also get a rising commission / bonus rate for sales paid by the company each month based on "number of customers captured" - the normal "expected income level" stated by E.ON is £35,000 - £38,000 in the first year, if you don't hit that target you are "coached" to raise your conversion rate.
    I personally met one established "Home Energy Consultant" (just a sales person, not a manager) in 2008 who showed evidence his annual income from E.ON was almost £98,000 for that year!!
    LITTLE WONDER THEN THAT CUSTOMERS ARE BEING MADE TO PAY MORE AND MORE FOR BASIC SERVICES OF HEAT AND LIGHT. MAYBE THE COMPANY SHOULD GET RID OF THE HUNDREDS OF CARS GIVEN AS FREEBIES TO THEIR SALES STAFF, MANAGERS, ETC., AND LOOK AFTER ITS CUSTOMERS INSTEAD.
  • Bark01Bark01 Forumite
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    exPC wrote: »
    I worked with E.ON as an energy sales representative (dubbed their "Home Energy Consultant") in 2008.
    I can confirm, and customers should understand, these points:
    1) Customers pay for gas and electricity with E.ON.
    2) Customers also pay for EVERY representative's / manager's company provided new liveried car.
    3) Customers pay for the fuel used for those cars - the rep buys it to refuel, then claims it back through the company as expenses (E.ON don't pay from their own pockets, it comes from YOUR fuel bills)
    4) Contrary to popular belief, the reps don't just get a very nice salary (thank you) each month to go with their FREE, fully expensed, brand new car.
    5) E.ON reps also get a rising commission / bonus rate for sales paid by the company each month based on "number of customers captured" - the normal "expected income level" stated by E.ON is £35,000 - £38,000 in the first year, if you don't hit that target you are "coached" to raise your conversion rate.
    I personally met one established "Home Energy Consultant" (just a sales person, not a manager) in 2008 who showed evidence his annual income from E.ON was almost £98,000 for that year!!
    LITTLE WONDER THEN THAT CUSTOMERS ARE BEING MADE TO PAY MORE AND MORE FOR BASIC SERVICES OF HEAT AND LIGHT. MAYBE THE COMPANY SHOULD GET RID OF THE HUNDREDS OF CARS GIVEN AS FREEBIES TO THEIR SALES STAFF, MANAGERS, ETC., AND LOOK AFTER ITS CUSTOMERS INSTEAD.

    So what? most of the other companies don't use filed sales and their costs are rising

    In other news E.on have reduced Operating costs by 5% of total bill

    whilst other costs have risen.

    Network costs up 1% of total bill
    Government Renewable cost up 1% of total bill
    Government Social Schemes up 3% of total bill
  • exPC wrote: »
    I worked with E.ON as an energy sales representative (dubbed their "Home Energy Consultant") in 2008.
    I can confirm, and customers should understand, these points:
    1) Customers pay for gas and electricity with E.ON.
    2) Customers also pay for EVERY representative's / manager's company provided new liveried car.
    3) Customers pay for the fuel used for those cars - the rep buys it to refuel, then claims it back through the company as expenses (E.ON don't pay from their own pockets, it comes from YOUR fuel bills)
    4) Contrary to popular belief, the reps don't just get a very nice salary (thank you) each month to go with their FREE, fully expensed, brand new car.
    5) E.ON reps also get a rising commission / bonus rate for sales paid by the company each month based on "number of customers captured" - the normal "expected income level" stated by E.ON is £35,000 - £38,000 in the first year, if you don't hit that target you are "coached" to raise your conversion rate.
    I personally met one established "Home Energy Consultant" (just a sales person, not a manager) in 2008 who showed evidence his annual income from E.ON was almost £98,000 for that year!!
    LITTLE WONDER THEN THAT CUSTOMERS ARE BEING MADE TO PAY MORE AND MORE FOR BASIC SERVICES OF HEAT AND LIGHT. MAYBE THE COMPANY SHOULD GET RID OF THE HUNDREDS OF CARS GIVEN AS FREEBIES TO THEIR SALES STAFF, MANAGERS, ETC., AND LOOK AFTER ITS CUSTOMERS INSTEAD.



    I'm guessing someone wasn't very good at sales.....

    Not sure what you mean by E.ON not paying for the petrol themselves, and that customers bills pay for it. It is an expense on the balance sheet, profit and loss is determined afterwards. Profit = revenue - expenses.

    Absolutely nothing new about having a rising scale for commission, normal practise in the sales environment to encourage performance. And if you don't hit your target, of course they are going to coach you. I suppose the alternative is they fire you.

    A top performer hitting almost 100k? They must have been doing well and been an asset to the company. Why on earth shouldn't they be rewarded for their hard work?

    You say the customer should understand your points, I am fairly confident that people who sign over the doorstep for their energy know that the salesperson is on commission. And again, customers do not pay for the car, the car is a business expense.

    I don't work in sales, and never have done, although I have worked in an auxiliary role, and there was a lot wrong with door to door energy selling. However I'm not sure the points you've raised have done anything to address that.
  • I would love to know what MSE suggests happen to prices instead
    Are you suggesting all suppliers have only one date per year that they can change prices?
    Are you suggesting that a supplier has to stop selling if another has increased prices?
    Or something else?
  • edited 10 December 2012 at 8:28PM
    SnowManSnowMan Forumite
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    edited 10 December 2012 at 8:28PM
    I would love to know what MSE suggests happen to prices instead
    Are you suggesting all suppliers have only one date per year that they can change prices?
    Are you suggesting that a supplier has to stop selling if another has increased prices?
    Or something else?

    Perhaps if you had taken the time to actually read the article you would have found your answer
    It's time for a crackdown: a simple rule that says when a customer switches company they must be kept on that price for six months. This would add confidence to the switching process.

    I think that's quite a good idea myself.
    I came, I saw, I melted
  • SnowMan wrote: »
    I think that's quite a good idea myself.

    That may well be a good idea, but why is E-on being singled out here? As far as I'm aware, no other energy company does this and really, E-on has come closest with their price promise. Yet they're being made out to be the bad guys in all this?
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