E.ON price hike!

jrawle

gt94sss2 wrote: »

One thing many overlook (especially if the new tariff is higher than an existing one) is that as long as you apply for the switch before your current fixed term contract expires, you remain on your fixed pricing until the transfer completes.. so it can make sense to switch as apply for the switch as late as possible (one or two days before your deal ends say)

I know they say that, but how does it work in practice? If I apply to switch a couple of days before, there is a 14 day cooling off period because my new supplier notifies my old supplier, so I would be on the standard tariff by that time. Will my old supplier (E.ON) then automatically put me back on the old fixed rate tariff, backdated for that period? Or do I need to contact E.ON beforehand and tell them I am leaving and that I want to remain on my old tariff in the meantime?

The reason I'm so happy to switch (and do every year or two) is that I don't have to deal with my old supplier. I hate having to call customer services and face the hard sell (particularly as I extensively research my options beforehand!) I had to do it once with my mobile contact, and it was a nightmare!

MallyGirl

jackieblack wrote: »

Too late for me, my v15 ends this month and v16 was ridiculous so I've already made arrangements to switch to OVO.

Me too - although Sainsbury's was the most reasonable deal for me.

gt94sss2

jrawle wrote: »

I know they say that, but how does it work in practice? If I apply to switch a couple of days before, there is a 14 day cooling off period because my new supplier notifies my old supplier, so I would be on the standard tariff by that time. Will my old supplier (E.ON) then automatically put me back on the old fixed rate tariff, backdated for that period?

There should be no need for you to tell the old/losing supplier - the new supplier informs the old one you are leaving and they should automatically keep you on the old tariff until the transfer completes.

E.ON Company Representative: Malc makes a reference to this in post 28 - the only thing you need to do is check your final bill is correct!

The reason I suggest applying for your transfer a few days before your fixed term deal expires is to ensure that your new supplier has enough time to notify the old one before your deal ends (to avoid any potential problems).

Regards
Sunil

victor2

gt94sss2 wrote: »

The reason I suggest applying for your transfer a few days before your fixed term deal expires is to ensure that your new supplier has enough time to notify the old one before your deal ends (to avoid any potential problems).

But as stated, the problem there is with the cooling off period. Most receiving suppliers will not do anything about the transfer until the cooling off period has passed. Initiate a switch just a few days before the end of your tariff and the supplier you are leaving may not get notified until after they have stuck you on their default standard tariff. They're only obliged to keep you on your current tariff IF they receive notification you are switching away BEFORE the end of the tariff. A "few days" may not be enough time for that to happen.

Wolf3

But as stated, the problem there is with the cooling off period. Most receiving suppliers will not do anything about the transfer until the cooling off period has passed. Initiate a switch just a few days before the end of your tariff and the supplier you are leaving may not get notified until after they have stuck you on their default standard tariff. They're only obliged to keep you on your current tariff IF they receive notification you are switching away BEFORE the end of the tariff. A "few days" may not be enough time for that to happen.

I believe that used to be the case however this changed when the faster switching system was introduced a while back, the transfer notice is sent almost immediately and the 2 week cooling off period runs in parallel with the registration.

As far as i was aware, as long as Eon receive the loss notice within the 20 day period they will bill on the best prices as Malc quoted

We'll work out which prices are cheapest, either the existing ones or the new prices, and charge these from the point the existing tariff ends until a switch is complete

Former_E.ON_Company_Representative:_Malc

jrawle wrote: »

My current fixed tariff ends towards the end of February. I received the "It's time to choose a new tariff" e-mail on Tuesday, but then today received the one telling me about the new one to be released on 12 January. I assumed that had just been announced, but I see here people were told about it in December. So why not just tell me about that originally? Were they hoping I'd sign up to the current, expensive tariffs?

Unless it's significantly better, I won't hesitate to switch suppliers.

E.ON Company Representative: Malc the e-mail said:
yet my current tariff clearly says there is a £5 exit fee. Is the e-mail saying I won't be charged this if I switch supplier? I'm happy to stay with E.ON right up until the fixed price expires, but I don't want to be charged the standard prices. On the other hand, I don't want to be charged £5 for the sake of a few days.

Hi jrawle

The emails have been sent out over a 3 week period to customers on versions 14 and 15 of our Fixed 1 Year tariff. They've been timed to land before these tariffs end to give time to consider if it's of interest or not. Renewal notices automatically go out at a set time determined by the end date of your current tariff. I suspect we hadn't decided about the new tariff when your renewal was sent.

As Sunil says, you can switch between E.ON tariffs at any time without picking up an exit fee. These only kick in when changing supplier and then only if outside the Price Protection window I mentioned above. This window is open from the date on your renewal notice until 20 working days after the contract ends. Provided we're told, we'll make sure you're protected against any price changes that aren't in your favour whilst a change of supplier goes through. As you're in the window, this is why the email said there won't be an exit fee. These definitely don't apply when inside the Price Protection window.

Hope this explains.

Malc

victor2

E.ON_Company_Representative:_Malc wrote: »

...As Sunil says, you can switch between E.ON tariffs at any time without picking up an exit fee. These only kick in when changing supplier and then only if outside the Price Protection window I mentioned above. This window is open from the date on your renewal notice until 20 working days after the contract ends. Provided we're told, we'll make sure you're protected against any price changes that aren't in your favour whilst a change of supplier goes through. As you're in the window, this is why the email said there won't be an exit fee. These definitely don't apply when inside the Price Protection window...

Good info Malc, as usual.
Do you know if the 20 day "extension" of the Price Protection window is industry wide, or just E.On's policy? If it is industy wide, then as previously suggested, it does make sense to initiate a switch in the last few days of a contract, assuming that contract price can't be beaten.

Former_E.ON_Company_Representative:_Malc

gt94sss2 wrote: »

You can change between different Eon tariffs (including collective tariffs) at any time without penalty - so if they release a new tariff while you are on a fixed deal you can change to that free of charge if its better for you.

Eon have announced they will be releasing a new cheaper tariff on 12 January but have not yet released pricing details.

If you are on a fixed price deal, all suppliers have to notify/remind you 42-49 days in advance of that period ending -I presume that is what the Eon "It's time to choose a new tariff" e-mail is. As soon as you receive this email, you can switch between different providers and the existing provider won't/can't charge you any early cancellation/exit fees.

Obviously Eon have realised/noticed that their current tariff is more expensive than the competition and want customers to wait until their new tariff is announced before they consider leaving..

Regards
Sunil

Spot on Sunil. The 'it's time to choose a new tariff' email goes out to all customers on Fixed Term products who are about to enter the Price Protection window. Also, customers on Fixed deals who've registered for Price Alerts receive emails when a new version of their tariff becomes available.

Excellent advice Sunil. Thanks for posting.

Malc

Former_E.ON_Company_Representative:_Malc

gt94sss2 wrote: »

I've only recently switched to EON but from reading these forums I gather their best tariffs over the last year have been those they have offered via collective switching schemes such as MSE/uswitch and UKPower - and not those listed on its own website.

One thing many overlook (especially if the new tariff is higher than an existing one) is that as long as you apply for the switch before your current fixed term contract expires, you remain on your fixed pricing until the transfer completes.. so it can make sense to switch as apply for the switch as late as possible (one or two days before your deal ends say)

Regards
Sunil

Spot on as usual Sunil. Thought I'd add, to make sure customers are protected, we do need to be told of their intention to change supplier before the end of the window. Usually, the new supplier will do this through the transfer process. Customers just need to be aware of this when deciding when to start the switch.

Once we know, our systems automatically apply Price Protection even if the loss date is after the window closes. The important thing is the new supplier applies to takeover before the end of the window.

Hope this is of interest Sunil.

Malc

jrawle

E.ON_Company_Representative:_Malc wrote: »

As Sunil says, you can switch between E.ON tariffs at any time without picking up an exit fee. These only kick in when changing supplier and then only if outside the Price Protection window I mentioned above. This window is open from the date on your renewal notice until 20 working days after the contract ends. Provided we're told, we'll make sure you're protected against any price changes that aren't in your favour whilst a change of supplier goes through. As you're in the window, this is why the email said there won't be an exit fee. These definitely don't apply when inside the Price Protection window.

Thanks for the info. I'm still not quite sure what you mean by the "date on your renewal notice". Does that mean the date my current tariff ends, or the date the e-mail was sent on?

Whether I stay with E.ON or switch supplier, I'd prefer to stay on my current tariff until the end as it's much cheaper than anything available now. If I were to contact a new supplier on the very last day, would I really be kept on my current low E.ON prices for the following few weeks until the switch is complete?