Advice on the cheapest gas / electric tariff

sghughes42

I've just received a letter from Eon saying my EnergyOnline plan is being changed. I was expecting the increase, what I wasn't expecting is that they are changing from a flat unit rate to a standing charge and a lower unit rate. This now appears to apply to all their plans.

The reason this may cause me issues is that from the middle of next month my house will be standing empty during the week so I'll be using much less gas and electric.

The reason for this is that I'm relocating for a job and will be looking to sell the house. I want to change to a plan that doesn't have a standing charge but I'm worried that by doing so I'll lock whoever buys the house in to a rate they might not want.

Does anyone have any suggestions as to how to go about this and where to look for a good rate? NPower seem to offer good cashback via TopCashBack and their Go Save tariff doesn't seem to have a standing charge buy does say that exit charges may apply.

victor2

It's all part of the standardisation of tariffs.
If you're going to be selling the house anyway, it might be worth going along with the proposed change for the interim, rather than getting into a new contract with an exit penalty. You really don't know what your future usage is likely to be, so will not have meaningful annual kWh usage to plug into comparison sites.

sghughes42

Who would actually pay the exit penalty?

My concern is that if the house takes 6 months to shift I'm paying £95 just as a standing charge. As the usage in that period would be tiny that seems to not be very good moneysaving...

I know that I can't get a sensible comparison, it is more getting rid of the standing charge and finding a good balance of low unit charges to exit fees.

Joyful

Check out other suppliers but be aware that the standing charge is being rolled out by more companies. Any new occupier will get their own tariff. They will not be stuck with yours.

jules24

I have just had a letter from eon stating their price increase from Jan 2013, but my energy is fixed until 1st may, so how can my tarriff increase. if I tried to get out of my contract there would be a penalty charge. Does anyone know if the increase will apply to me?

victor2

jules24 wrote: »

I have just had a letter from eon stating their price increase from Jan 2013, but my energy is fixed until 1st may, so how can my tarriff increase. if I tried to get out of my contract there would be a penalty charge. Does anyone know if the increase will apply to me?

If you're on a fixed rate contract then you won't be affected by the increase. There may well be an exit charge if you cancel the contract early and it is generally towards the end of a fixed price contract that the customer sees the biggest benefit, as they are on a rate that can't be beaten, so probably best to stay put.
You will of course face a price hike in May, but at least you'll be saving now.
It is probably just a general letter from e.on saying that their variable rates are increasing.

victor2

sghughes42 wrote: »

Who would actually pay the exit penalty?

My concern is that if the house takes 6 months to shift I'm paying £95 just as a standing charge. As the usage in that period would be tiny that seems to not be very good moneysaving...

I don't know for sure, probably better to ask e.on directly, but I would think it should be you. The contract is with you, and it is you who will be terminating it. You will already have a supplier contract in place at your new home, so there's little chance of transferring the agreement there.
Would be intersting to hear what e.on say though...

macman

sghughes42 wrote: »

Who would actually pay the exit penalty?

My concern is that if the house takes 6 months to shift I'm paying £95 just as a standing charge. As the usage in that period would be tiny that seems to not be very good moneysaving...

I know that I can't get a sensible comparison, it is more getting rid of the standing charge and finding a good balance of low unit charges to exit fees.

No one-if you move house then your contract is voided without penalty. The incoming occupiers will be in a deemed contract with the existing supplier, but once registered with them can switch without penalty-they do not inherit your contract!

Former_E.ON_Company_Representative:_Malc

sghughes42 wrote: »

I've just received a letter from Eon saying my EnergyOnline plan is being changed. I was expecting the increase, what I wasn't expecting is that they are changing from a flat unit rate to a standing charge and a lower unit rate. This now appears to apply to all their plans.

The reason this may cause me issues is that from the middle of next month my house will be standing empty during the week so I'll be using much less gas and electric.

The reason for this is that I'm relocating for a job and will be looking to sell the house. I want to change to a plan that doesn't have a standing charge but I'm worried that by doing so I'll lock whoever buys the house in to a rate they might not want.

Hi sghughes

Just to confirm, all our current tariffs will move to a standing charge rather than the two tier structure by 18 January 2013.

Your EnergyOnline tariff is no longer available. Therefore, if we're still supplying the property when you sell it, the buyer will need to choose a different tariff.

If they don't opt for a contracted tariff, they'll automatically go on our standard product. This doesn't have any cancellation/exit fees leaving them free to switch supplier without penalty.

sghughes42 wrote: »

Who would actually pay the exit penalty?

There's no cancellation/exit fees with your EnergyOnline tariff. You, too, can switch supplier without penalty.

Hope this helps.

Malc

Former_E.ON_Company_Representative:_Malc

jules24 wrote: »

I have just had a letter from eon stating their price increase from Jan 2013, but my energy is fixed until 1st may, so how can my tarriff increase. if I tried to get out of my contract there would be a penalty charge. Does anyone know if the increase will apply to me?

Hi Jules

If you're on a fixed tariff, you're prices won't change until the contract ends.

I'm aware that a number of letters have gone out incorrectly in the last few days. These have been sent to customers on fixed deals. Sounds as though you may have received one of these.

Don't worry, this is a mistake on our part and customers on fixed deals won't be seeing a price increase until their contract ends.

Sorry for the confusion but hope this helps.

Malc

Former_E.ON_Company_Representative:_Malc

victor2 wrote: »

I don't know for sure, probably better to ask e.on directly, but I would think it should be you. The contract is with you, and it is you who will be terminating it. You will already have a supplier contract in place at your new home, so there's little chance of transferring the agreement there.
Would be intersting to hear what e.on say though...

Hi Victor

Just to confirm, the EnergyOnline tariff the OP is on at present is a non-contracted product that's no longer available. Therefore, they wouldn't be able to transfer this to their new property.

Hope this answers your query.

Malc