E-on - You are a bunch of Liars and I'm reporting you to Ofgem

bluefield

the eon reply is a classic example of how the selling of energy to the public is so over -complicated.I too am puzzled how announced low "average prices" can result in such above average prices in reality.
my supplier ( not eon) recently announced average price increases of gas 8.5% and elec 9%. my increases per kwh on having to change to a new tariff ( old one ended) were gas 13.25 % and elec 26%. that's an average of 19% for both fuels, borne out by the actual cost of £1644 pa now for both fuels against £1349 pa previously, a rise of 20%. I hardly think I was the only person on this company's cheapest tariff. must have been hundreds of thousands of us so I just do not believe the announced low average figures. grateful for any explanation.

Bluebirdman_of_Alcathays

bluefield wrote: »

the eon reply is a classic example of how the selling of energy to the public is so over -complicated.I too am puzzled how announced low "average prices" can result in such above average prices in reality.
my supplier ( not eon) recently announced average price increases of gas 8.5% and elec 9%. my increases per kwh on having to change to a new tariff ( old one ended) were gas 13.25 % and elec 26%. that's an average of 19% for both fuels, borne out by the actual cost of £1644 pa now for both fuels against £1349 pa previously, a rise of 20%. I hardly think I was the only person on this company's cheapest tariff. must have been hundreds of thousands of us so I just do not believe the announced low average figures. grateful for any explanation.

You can not believe them all you like - but you've almost answered your own question.

The price announcement was for standard tariff. You were not on standard tariff.

They are tasked with providing 1 headline number - it is done on average consumption on the most popular tariff (standard). It's the fairest method, given that standard is the default tariff.

If you sit there with a calculator, and multiply old unit rates by 16.5 MWh gas and 3.3MWh elec, do the same with the new unit rates, I'm sure you'll find the difference is exactly what e.on (and everybody else) has quoted.

Bark01

As a most people have stated the announced figure is an average amount. This obviously doesn’t give each customer a personalised view of how it will affect them. To get round this new regulation means that from March this year (2014) all customers affected by a price change will be sent a letter (~40 days before the price change becomes effective) explicitly stating:

An estimated bill using current prices at the customers personalised estimated annual consumption.
An estimated bill using new prices at the customers personalised estimated annual consumption.
It won’t explicitly state the difference between each, but I’m pretty sure everyone can take one number form another???

Customers will also be told if using the customers estimated annual consumption they can save money by swapping to any of their current suppliers products.

They will also be provided with a standardised Tariff information label (TIL) for their new prices that states the prices, discounts and cancellation fees applicable to the customer. TIL’s will be available on all suppliers website and by post by ringing each supplier. As TIL’s are standardised, comparing tariff components between suppliers will be easier than ever. It still won’t replace knowing your consumption and entering it on a comparison site though.

Is this good enough?

bluefield

bluebird and bark01. so the announcements only apply to std tariff. news to me, all the website press and media refer to " energy price rises" with no mention of any tariff so it was reasonable to assume it applied to all tariffs. moneysupermarket.com are currently showing that my supplier's price increase announcement applies to" all their tariffs" so I must not believe this site in future... so the non- std customers ( the majority surely? )are left out of this nationwide information exercise several times a year because it obviously would take up too much time and print? simply illustrates to me the daft and opaque nature of the business. disregarding all that, the result for me is rises of gas 13.25% and elec 26% and it appears ofgem condone them.

Bluebirdman_of_Alcathays

bluefield wrote: »

bluebird and bark01. so the announcements only apply to std tariff. news to me, all the website press and media refer to " energy price rises" with no mention of any tariff so it was reasonable to assume it applied to all tariffs. moneysupermarket.com are currently showing that my supplier's price increase announcement applies to" all their tariffs" so I must not believe this site in future... so the non- std customers ( the majority surely? )are left out of this nationwide information exercise several times a year because it obviously would take up too much time and print? simply illustrates to me the daft and opaque nature of the business. disregarding all that, the result for me is rises of gas 13.25% and elec 26% and it appears ofgem condone them.

Wrong, the minority.

I understand your sentiment, but you can't compare apples with pears - your legacy fixed discounted tariff has finished, and there is a 13 and 26 % increase onto standard. Standard to standard, which is what most people are experiencing will have gone up by the quoted amounts.

Homeagain

Andy_WSM wrote: »

I never offered a consistent way (and said "to me"), but I buy a Merlin annual Pass every year, last year with unlimited soft drinks all season for a little over £40 of clubcard vouchers. Current price is £159.

.. but I don't need or want a pass to Merlin. I'd rather have cheaper gas and electricity. (Not going to happen I know, I know)

scootw1

Bluebirdman_of_Alcathays wrote: »

Wrong, the minority.

I understand your sentiment, but you can't compare apples with pears - your legacy fixed discounted tariff has finished, and there is a 13 and 26 % increase onto standard. Standard to standard, which is what most people are experiencing will have gone up by the quoted amounts.

Can you provide evidence that MOST people are on the standard tariff please? Unless you can it seems you are making things up just as much as some of the energy companies are.

Nada666

bluefield wrote: »

moneysupermarket.com are currently showing that my supplier's price increase announcement applies to" all their tariffs" so I must not believe this site in future... so the non- std customers ( the majority surely? )are left out of this nationwide information exercise several times a year because it obviously would take up too much time and print? simply illustrates to me the daft

Guess what - the number of households with the average number of children is zero. No-one has 1.7 children. That makes the statistic useless and meaningless, according to you, and should not be reported.

Bluebirdman_of_Alcathays

scootw1 wrote: »

Can you provide evidence that MOST people are on the standard tariff please? Unless you can it seems you are making things up just as much as some of the energy companies are.

The suppliers say it all the time - "standard is our most popular tariff"

It took me 5 seconds on google to find this

http://www.edfenergy.com/products-services/for-your-home/documents/product-terms/standard-variable.pdf

In which edf state 66% of their customers are on standard tariff.

I have no evidence, but there is a belief that there is still a majority who have never switched supplier never mind gone to a better tariff

edit: just found this from which - http://www.which.co.uk/switch/energy-advice/guide-to-switching-supplier

66% of their members have never switched suppliers.

With this amount of inertia, are you surprised that it is considered best to announce prices rises on a standard-standard basis?

Bluebirdman_of_Alcathays

Nada666 wrote: »

Guess what - the number of households with the average number of children is zero. No-one has 1.7 children. That makes the statistic useless and meaningless, according to you, and should not be reported.

99% of people have more than the average number of legs