eon price hike

chrisalis1947

just found your answer to me. as i understand you my Kwh rate has still gone up by 8.8% but my standing charge has gone down 1p a day.
still looks like a rise of 8.8% to me.
what individual circumstances are you on about, or do you mean that the people who can least afford the cost pay the biggest increase from an already higher rate

Former_E.ON_Company_Representative:_Malc

Hi awizzbang

Totally agree, you'll be paying more over the next 12 months for similar usage than you did over the previous year.

Also agree, as a high user, this may well be compounded by changes in the Monthly Direct Debit arrangement. Industry changes mean we've had to move from percentage discounts to a monetary adjustment.

Whilst this may benefit certain low or even medium users, high users will more than likely be worse off.

We held off for as long as we could and have tried to keep the increase as low as possible. The headline rate of 3.7 per cent for electricity is, though, only an average based on our standard variable tariff.

On your tariff, we've included the changes announced by the Government. This means we've reduced the overall level of the increase but we still need to cover extra costs in other areas such as network and wholesale energy costs.

Many factors are taken into consideration when deciding prices. These include things like the region, metering set up, electricity demand, etc.

With multi-rate meters like yours, we look at the overall demand and costs for all Heatwise customers within the region. We also look at the anticipated demand during each time period.

Our increase reflects the cost of buying and providing the electricity to meet overall customer demand within the region during each time band.

The 17.8 per cent increase is for off peak usage for storage heaters/hot water only. This is also restricted to the afternoon, evening and night slots, a total of 10 hours.

To an extent, this is offset by lower increases in the day and night periods for all usage.

For the total impact, it's best to look at the overall tariff and the usage within each period. The amount extra you'll be paying during the 10 hours in the afternoon/evening/night will depend on what you use at these times.

I'd suggest comparing this with the rest of your usage. This will give you a fuller picture of your overall increase.

I do understand the frustration only having the one tariff option can cause. I believe certain other suppliers do support the Heatwise meter. I'm not sure which ones they are, though. I'm afraid, you'll need to contact them individually to see if they'll take over the supply.

Another option may be to swap the meter for the more conventional Economy 7 meter. These meters are often used in properties with storage heaters.

However, with Economy 7 meters, there's only 7 hours of off peak electricity. This is all during the night period with no option to top up in the afternoon and evening. All electricity used during the 7 night hours is, though, charged at the off peak price.

Economy 7 will give you access to a range of tariffs both with us and the other suppliers.

Before going down this road, I always recommend customers ask a qualified electrician to check over the set up first. This is because, to take advantage of the separate switching times, Heatwise meters are wired directly into the heating/water heating circuits at properties.

Changing the meter can sometimes have implications for the heating/water heating and some remedial work may be necessary. Customers are responsible for the costs of this work. There's also a charge (currently £51.06) to change the meter.

Hope this is of interest.

Malc

chrisalis1947

E.ON_Company_Representative:_Malc wrote: »

Hi chrisalis1947

The percentage increase depends on the tariff in question.

The headline rate is an average only and is based on our standard variable tariff. The actual amount will depend on the individual circumstances.

I'm afraid, though, the letter you've received was printed before the Government announced changes in the social and environmental programmes.

These changes have enabled us to keep the price increase lower than originally intended.

Unfortunately, the price increase advised in the letters doesn't include these reductions. As a result, the actual increase you'll see will be lower than the one advised.

We've passed on these changes via a lower standing charge on all our variable tariffs. For the prices quoted above, your unit rate has increased to 15.23p per kWh but your standing charge has gone down to 26.02 per day.

Sorry for the confusion the letters have caused chrisalis1947 but hope this explains.

Malc

so to paraphrase your answer, my unit price rise has still gone up by 8.8% but this is offset by a reduction of 1 pence a day on my standing charge. please explain how the cost increase is 3.7% and not 8.8%
as my increase cannot be unique this means that a large proportion of your customers must be paying less than the headline 3.7% on prepayment meters.
another thing, you could not offset the increase by lowering the standing charge, this is nonesense

awizzbang

Thanks for you response, but I think there are some errors in it, which for an EON rep is slightly surprising . As a heatwise customer we get 10 hours of off peak electricity, 2 in the afternoon, 3 in the evening and 5 overnight and all are charged at the same rate, the one which has increased by 17.8%, we do not have the facility to boost at other times which would be very expensive anyway.
We would also possibly struggle to change meters as as well as being on heatwise we also have 3 phase electricity and I think changing over would be incredibly complicated.
One other thing you didn't explain is that in justifying the increase you suggested it was to do with the different costs of supplying the electricity, but you didn't explain why supplying electricity to a heatwise customer costs more than to a normal customer, especially given that we have a normal electricity meter as well as our heatwise one.
I think a truer explanation is that you would desperately like to get rid of the heatwise tariff and so you are trying to force customers to leave it. Unfortunately most of the customers, not us, live in council or rented accomodation and are unable to change.
A further response would be appreciated

Candy53

We had the letters yesterday telling us of the price rises.

We're on standard tariff.

Electricity standing charge: 30.135p.

Gas: A whopping 35.616p.

Does it mean then that we won't be paying that amount, but less? It states on the letter: 'If the Goverment confirms modifications to the green levies, we will ensure any savings are passed on to you as soon as possible'.

So they have been confirmed?


Thanks,
Candy.

Nada666

chrisalis1947 wrote: »

so to paraphrase your answer, my unit price rise has still gone up by 8.8% but this is offset by a reduction of 1 pence a day on my standing charge. please explain how the cost increase is 3.7% and not 8.8%
as my increase cannot be unique this means that a large proportion of your customers must be paying less than the headline 3.7% on prepayment meters.
another thing, you could not offset the increase by lowering the standing charge, this is nonesense

If you are not happy with the new prices get rid of the prepayment meter and/or find a better priced tariff.

Ofgem has forced you and quarterly cash payers to solely pay for those who run up debts. The costs for cash payers and prepayment meter customers have increased out of proportion. Write to Ofgem about it, not your supplier.

chrisalis1947

so according to you anybody with a prepayment meter - by definition the poorest - pay for all bad debts, and this is ofgems fault.
please supply evidence for this idiotic response.
we pay in advance, nowhere does ofgem say that we pay for bad debts - which by definition has nothing to do with us as we pay in advance - this is just your arrogance talking

Nada666

chrisalis1947 wrote: »

so according to you anybody with a prepayment meter - by definition the poorest - pay for all bad debts, and this is ofgems fault.
please supply evidence for this idiotic response.
we pay in advance, nowhere does ofgem say that we pay for bad debts - which by definition has nothing to do with us as we pay in advance - this is just your arrogance talking

Don't shoot the messenger.

Yes, the burden of paying for bad debts and the costs of only being able to collect 'good' debts very slowly are shared by those who pay with prepayment meters and those who pay by cash. It used to be possible for cash payers to avoid some of these nasty costs - but Ofgem have banned suppliers from doing this.

Google "ofgem prompt payment discount" for evidence not written by me.

(In what way am I being 'arrogant'?)

I disagree with your offensive assertion that the 'poorest' have prepayment meters. That is not true and there is no reason why they should use them or be expected to use them.

awizzbang

Whether it is those on pre payment meters or those on tariffs such as heatwise, it seems to me that the customers who get the biggest price rises are those who can't easily transfer to another customer

Nada666

Those on prepayment can switch - it is easier to switch with a prepayment meter than with a credit meter. On a normal meter a debt of one penny can block the switch. With prepayment meters you are free by right to switch with a debt of £500.