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Eon removing warm assist tariff.

st999
st999 Posts: 1,574 Forumite
Part of the Furniture 1,000 Posts Name Dropper
I have just had a letter from Eon telling me that my warm assist tariff will be ending on 29th June and will be replaced with Eon's Energy Plan on 30th June and my costs will be increasing by £399 per year, an increase from £1200 to £1599 an increase of almost 34%. :eek:
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Comments

  • Nada666
    Nada666 Posts: 5,004 Forumite
    That is good news - it is exactly what Ofgem and politicians have been calling for. Less choice and smaller differentials. Why should one customer pay £400 less than another for the exact same service? Of course prices are going to be rounded up, not down.

    There are other central subsidies available from the government. They are awarded to all qualifying persons regardless of tariff.
  • Former_E.ON_Company_Representative:_Malc
    Former_E.ON_Company_Representative:_Malc Posts: 6,558 Organisation Representative
    Part of the Furniture 1,000 Posts Name Dropper
    edited 20 May 2014 at 11:47AM
    Hi st999

    That's right, our Warm Assist Variable tariff is ending. We're writing to all customers affected to let them know what's happening.

    To lessen the impact of this change, we're giving those customers affected a one off payment of £140. This will be credited to accounts this month.

    Unless you tell us otherwise, customers on Warm Assist will automatically be put on to our standard tariff, Energy Plan, to cover usage after the change.

    There aren't any restrictions or tie-ins with Energy Plan and this leaves you free to switch tariff/supplier at any time without penalty.

    We do have other tariffs available but these are contracted products with certain conditions that may not be suitable. I'd pop your usage in kWh on to one of the comparison sites. This will list all the options open to you both with us and with the other suppliers.

    Hope this is of interest st999. Let me know if you need any more information as happy to help.

    Malc
    Official Company Representative
    I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
  • st999
    st999 Posts: 1,574 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    That is good news


    Of course it is.

    Why should there be a difference in the price of anything?

    Why doesn't the government force all shops and companies to sell everything at the same price and we just shop anywhere and pay the same price.

    Why should I be forced to go to Tesco to buy milk at £1 when the corner shop sells it at £1.45.

    Make the corner shop sell at the same price as Tesco or make Tesco put up their price.

    Same with petrol, Tesco sell petrol at £1.28 (rounded up) BP garage is £1.31, make Tesco put up their prices to the same as BP.

    Everyone should pay the same price and make shopping around illegal.
  • beverley123
    beverley123 Posts: 10 Forumite
    Eighth Anniversary First Post Combo Breaker
    Nada666 wrote: »
    That is good news - it is exactly what Ofgem and politicians have been calling for. Less choice and smaller differentials. Why should one customer pay £400 less than another for the exact same service? Of course prices are going to be rounded up, not down.

    There are other central subsidies available from the government. They are awarded to all qualifying persons regardless of tariff.
    I've just received the same letter stating that my annual costs will increase by around 28%. I fail to see why this is good news.
  • Nada666
    Nada666 Posts: 5,004 Forumite
    Uhm, did either of you even bother to read the second clause in that opening sentence?
  • st999
    st999 Posts: 1,574 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Uhm, did either of you even bother to read the second clause in that opening sentence?
    Yes.
    There are other central subsidies available from the government.
    So the government is going to increase my pension by £400 a year to pay for my increased electricity bill?

    I don't think so.

    Because my pensions were increased by £10 a year I now pay tax on £5 a year and my savings have increased to just over £16,000 so now I don't get any state benefits at all.

    I used to get pension credit and council tax benefit but now I get nothing at all because I had an endownment mature, paid off my mortgage and had a little left over.

    Don't worry though, I have booked a holiday and am replacing my windows and when my savings are below £16,000 I shall once again be getting state aid.

    It will be nowhere near the £400 increase in my fuel bill but it will help.
  • 2013yearofthehouse
    2013yearofthehouse Posts: 3,094 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 17 May 2014 at 2:26PM
    st999 wrote: »
    Yes.

    So the government is going to increase my pension by £400 a year to pay for my increased electricity bill?

    I don't think so.

    Because my pensions were increased by £10 a year I now pay tax on £5 a year and my savings have increased to just over £16,000 so now I don't get any state benefits at all.

    I used to get pension credit and council tax benefit but now I get nothing at all because I had an endownment mature, paid off my mortgage and had a little left over.

    Don't worry though, I have booked a holiday and am replacing my windows and when my savings are below £16,000 I shall once again be getting state aid.

    It will be nowhere near the £400 increase in my fuel bill but it will help.

    The £399 increase isn't a reality, it's an estimate. Changing to a more competitively priced tariff will make this increase less, as will reducing how many kwh you use. Your new windows if a big improvement on your current ones will help reduce your usage. How many kwh per year do you use? Unless you have a large property and/or there are more than 2 people living there, then a £1599 bill is quite unlikely if you switch to a competitive tariff. Plus if you qualify, you'll still get the £140 discount.

    A couple whose tariff I switched for them, live in a detached house and are home all day, keep nice and warm and use as much electricity as they like/need, but only pay around £1000 a year. They have not been on the warm assist tariff and they have very little savings and have not been able to afford a holiday for many many years. If their prices went up, then they would just have to reduce their usage.

    Try to be happy that you have received a "discount" through warm assist for as long as you have and to have built up enough savings for a holiday - many people haven't had this opportunity. You will now join the majority of people who pay for what they use and shop around regularly for a good price. This doesn't have to be a bad thing - there is really no need for you to pay any more, than you have been, if you shop around, reduce your usage and receive the £140 discount. Who knows you may even find your bills decrease from £1200 - the national average usage on the currently best available tariffs now come in at a spend of £950-1000 per year.
  • beverley123
    beverley123 Posts: 10 Forumite
    Eighth Anniversary First Post Combo Breaker
    I've just received the same letter stating that my annual costs will increase by around 28%. I fail to see why this is good news.
    Apologies, the letter I received does not refer to "Warm Assist" - I think I jumped in too quick.
  • st999
    st999 Posts: 1,574 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 17 May 2014 at 10:51PM
    The £399 increase isn't a reality, it's an estimate.
    No it's not. That is what is on the letter I received.
    a £1599 bill is quite unlikely
    Where do you live, cloud cuckoo land?
    A couple whose tariff I switched for them, live in a detached house and are home all day, keep nice and warm and use as much electricity as they like/need, but only pay around £1000 a year.
    see above.

    It won't be in sunny Scotland for sure. Probably sunny Cornwall.


    Present Tariff
    Electricity 4529 Gas 18254

    SC 0.20013 365 £73.05
    Unit Rate 0.10238 4529 £463.68
    £536.73

    SC 0.20013 365 £73.05
    Unit Rate 0.03167 18254 £578.10
    £651.15
    Total £1,187.88


    eon energy plan from 30/06/14
    Electricity 4529 Gas 18254

    SC 0.16422 365 £59.94
    Unit Rate 0.14952 4529 £677.18
    £737.12

    SC 0.21903 365 £79.95
    Unit Rate 0.04358 18254 £795.51
    £875.46
    Total £1,612.57

    currently best available tariffs now come in at a spend of £950-1000 per year.


    £1385 is the lowest from First Utility so I'd love to see you get my cost down below £1,000

  • 2013yearofthehouse
    2013yearofthehouse Posts: 3,094 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 18 May 2014 at 12:01AM
    st999 wrote: »
    No it's not. That is what is on the letter I received.

    Where do you live, cloud cuckoo land?

    see above.

    It won't be in sunny Scotland for sure. Probably sunny Cornwall.


    Present Tariff
    Electricity 4529 Gas 18254

    SC 0.20013 365 £73.05
    Unit Rate 0.10238 4529 £463.68
    £536.73

    SC 0.20013 365 £73.05
    Unit Rate 0.03167 18254 £578.10
    £651.15
    Total £1,187.88


    eon energy plan from 30/06/14
    Electricity 4529 Gas 18254

    SC 0.16422 365 £59.94
    Unit Rate 0.14952 4529 £677.18
    £737.12

    SC 0.21903 365 £79.95
    Unit Rate 0.04358 18254 £795.51
    £875.46
    Total £1,612.57

    £1385 is the lowest from First Utility so I'd love to see you get my cost down below £1,000

    Well there you go, for starters £1385 is a lot less than £1612. If you are able to get the warm home discount of £140 then your cost would be down to £1245 so not much higher than £1187.

    To get down to £950-1000 you would have to use what is considered the national average for usage - currently 13500kwh for gas and 3200kwh for electric - gas is difficult to reduce (new windows will help) as keeping warm is important and depends more on the size of your property (and how cold it is outside) than on how many of you live there, but electricity is easier to save. For instance, in our house with 2 people home all day, computer used all day, TV for many hours per day, cooking, cleaning, washing etc. we only use between 2000-2500kwh a year. Perhaps you could identify what uses the most in your house and reduce this a little. Even if you could reduce your usage by just a few hundred kwh you could save at least the £58 difference you'd be left with if you switched to First Utility and got the Warm Home discount.

    Our total bill for gas and electric comes to around £940 a year and we use as much as we need, but we cannot afford any more than this, so if prices continue to rise, we will have to use less - this is the same for many families.
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