Pay Eon year in advance?

NowRetired

I keep £1500 in my vantage current account to pay Eon their £125 per month and of course get paid interest on this amount, would Eon or any other company be interested in me paying them £1500 in advance and giving me a bigger discount than the interest I get from this £1500 and the DD discount?

I have done this with my Virgin broadband account paying a year in advance on my cashback credit card.

Former_E.ON_Company_Representative:_Malc

Hi NowRetired

Many thanks for your interesting suggestion. At the moment, we don't offer the type of arrangement you're looking for.

The only tariffs/discounts/payment arrangements we've currently available are those listed on our website.

I will, though, happily feed your suggestion back. Thanks again.

Malc

Wywth

NowRetired wrote: »

I keep £1500 in my vantage current account to pay Eon their £125 per month and of course get paid interest on this amount, would Eon or any other company be interested in me paying them £1500 in advance and giving me a bigger discount than the interest I get from this £1500 and the DD discount?

I have done this with my Virgin broadband account paying a year in advance on my cashback credit card.

No.

Energy companies are in the business of supplying energy.
Use a comparison site to find the best energy deal for you.

If you want a return on a sum of money, try a bank, building society, credit union, etc.

Gromitt

Wywth wrote: »

If you want a return on a sum of money, try a bank, building society, credit union, etc.

It's an interesting idea though. Instead of getting 3% interest on the amount in the account and upto 40% tax, pay it to EON (or whoever) for the year to let them use it and get 3% off your bill

Wywth

Gromitt wrote: »

It's an interesting idea though. Instead of getting 3% interest on the amount in the account and upto 40% tax, pay it to EON (or whoever) for the year to let them use it and get 3% off your bill

But no one does

Ovo offer 3% on credit balances, but you can't use it to earn interest as the OP describes.

Why would an energy supplier want to spend their shareholders money giving away large interest payments when it's unlikely they would get this interest when they stick it in a bank?

Cut out the middleman ... and you will also get up to £85,000 protection on your savings

Gromitt

Wywth wrote: »

Why would an energy supplier want to spend their shareholders money giving away large interest payments when it's unlikely they would get this interest when they stick it in a bank?

Nobody wants the energy companies to give 3% interest on anything. What is being stated is an alternative to interest: give a discount for paying a year in advance. Virgin do this, BT do it also (knocking 30% off the line rental for doing so), I don't see any reason why energy companies shouldn't. It guarantees that you will stay with them for at least 12 months, gives them capital to spend on whatever they want, and removes any doubt that the customer will pay the bill on time.

If you pay 40% tax, getting even 2% off your energy bill is better than 3% on your savings.

Wywth

Gromitt wrote: »

Nobody wants the energy companies to give 3% interest on anything. What is being stated is an alternative to interest: give a discount for paying a year in advance. Virgin do this, BT do it also (knocking 30% off the line rental for doing so), I don't see any reason why energy companies shouldn't. It guarantees that you will stay with them for at least 12 months, gives them capital to spend on whatever they want, and removes any doubt that the customer will pay the bill on time.

If you pay 40% tax, getting even 2% off your energy bill is better than 3% on your savings.

You can't compare being locked into a telephone or broadband contract for a year (where they can then try to upsell you other services they offer) to that of the domestic energy supply industry which is controlled by entirely different regulations.

Broadband and telephone line rental is not generally a metered service in today's UK market, unlike energy supply.

Cardew

IIRC there was a similar scheme of advanced payment offered a few years ago.

I can't remember the fine detail, but I do know that it was only available on a Standard tariff - i.e. the most expensive tariff.

Bark01

Cardew wrote: »

IIRC there was a similar scheme of advanced payment offered a few years ago.

I can't remember the fine detail, but I do know that it was only available on a Standard tariff - i.e. the most expensive tariff.

Scottish Power still offer a pay in advance option, it's a 5% discount to their DD unit prices and standing charge but I think as suggested its only available on their Standard tariff.

Scottish_Power

Pay in advance is 5% cheaper than standard monthly Direct Debit prices, which are not the same as standard quarterly prices, they are cheaper. It's a discount that is greater than some of the discounted energy tariffs we have offered.

If you need further help with this, please e-mail us at [EMAIL="social@scottishpower.com"]social@scottishpower.com[/EMAIL] Thanks David