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Age Concern and Eon

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  • Quentin
    Quentin Posts: 40,405 Forumite
    Connected to this issue, warning also about Age UK Car/home insurance!


    Get a quote and see how expensive they are!
  • System
    System Posts: 178,346 Community Admin
    10,000 Posts Photogenic Name Dropper
    Perhaps this in one for the new Fundraising Regulator to take a view on.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • 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
    Hi All

    Following on from this morning’s article in The Sun newspaper about our relationship with Age UK. Thought it might help if I briefly let you know something about this.

    We linked up with Age UK (previously Age Concern) about 14 years ago (we were called Powergen at the time). The aim was to provide particularly tailored tariffs for our older and more vulnerable customers.

    To this end, we’ve produced a series of tariffs over the years that have been fixed for 2 years. These have been competitively priced when compared with similar products available at the time. They’ve been aimed at giving customers peace of mind that their prices won’t be changing during the length of the contract no matter what happens in the energy market. Any of our customers can switch to these products at any time without any charge being applied. This means they can pick a tariff that best suits their needs.

    Also, customers on Age UK tariffs aren’t tied in. They can switch to any of our other core tariffs or change supplier at any time without having to pay an exit fee.

    We can’t put customers on to a contracted product without their consent. We use many channels to let customers know about the availability of particular products and our relationship with Age UK helps us contact more of our older customers than we might otherwise reach. This is a great way to let them know there are other options and not just standard prices. As well as this, customers can sign up for Price Alerts and we’ll email them when a potentially better deal is available.

    Hope I’ve answered some of the concerns raised in this thread. I’ll try to answer specific points a bit later but thought it best to say something now.

    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"
  • phillw
    phillw Posts: 5,665 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 4 February 2016 at 4:12PM
    the question should be why are Eon only offering more expensive tariff 2 year deals, why not a fixed 1 year deal (the cheapest) to the elderly for those over 60?

    Because most elderly don't want to change every year. My dad has refused to switch since privatisation and he has only recently finally given in and pay by DD because he couldn't pay by cheque when the local branch of his bank closed.

    There may be people over 60 who are prepared to switch every year, but they can just use the standard tariffs. Are you saying that surviving past 60 entitles you to cheaper energy bills?

    What would help most elderly save money would be a way for children to switch their parents to the cheapest tariff without them knowing but pay a surcharge so that any correspondence comes via mail from the Electricity or Gas board & you can pay your bill via cash or cheque at the post office.
  • FOREVER21
    FOREVER21 Posts: 1,729 Forumite
    Energy Saving Champion I've been Money Tipped!
    edited 4 February 2016 at 5:15PM
    phillw wrote: »
    Because most elderly don't want to change every year. My dad has refused to switch since privatisation and he has only recently finally given in and pay by DD because he couldn't pay by cheque when the local branch of his bank closed.

    There may be people over 60 who are prepared to switch every year, but they can just use the standard tariffs. Are you saying that surviving past 60 entitles you to cheaper energy bills?

    What would help most elderly save money would be a way for children to switch their parents to the cheapest tariff without them knowing but pay a surcharge so that any correspondence comes via mail from the Electricity or Gas board & you can pay your bill via cash or cheque at the post office.

    Your suggestion in the last paragraph whilst I am sure is meant to be helpful, would I think not suit most elderly parents (whatever age that is!) I for one would not like it.

    Perhaps you might also want to be able to switch their bank accounts also to one you can manage unknown to them.

    Back to the original story as I understand it the deal arranged by Age UK was competitive at the time but like most offers it was overtaken by a better deal. What I think should have happened was that Age UK should have kept a data base of those signing up to their deal with E on and thenAge UK should have advised them that a better deal was available. After all Age UK did do all right out of this with the money they got from recommending the tariff.
  • phillw wrote: »
    What would help most elderly save money would be a way for children to switch their parents to the cheapest tariff without them knowing but pay a surcharge so that any correspondence comes via mail from the Electricity or Gas board & you can pay your bill via cash or cheque at the post office.

    Why don't we just organise all "their" financial affairs without them knowing? A small surcharge payable to AgeUK perhaps.


    Or just ship them off to Dignitas and be done with it
  • I was due to switch over to Eon on 10th February but after reading this and other customer comments I've cancelled it!
  • Cardew
    Cardew Posts: 29,060 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Rampant Recycler
    We linked up with Age UK (previously Age Concern) about 14 years ago (we were called Powergen at the time). The aim was to provide particularly tailored tariffs for our older and more vulnerable customers.

    To this end, we’ve produced a series of tariffs over the years that have been fixed for 2 years. These have been competitively priced when compared with similar products available at the time.


    Malc,


    All of us regulars appreciate your input to these forums, but you really shouldn't be put in the position of defending Age UK.


    I take it you have read the opening post on this thread? Most certainly in 2005(as Powergen) your tariffs were not competitively priced.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 4 February 2016 at 6:50PM
    Age UK say they got only about £10 per head for this process-which means that, to receive £6.3m in commission, they had to sign up 630,000 customers to this tariff. The Sun article gives a figure of 152,000 customers. They can't both be right.
    Neither Age UK nor E.on have covered themselves in glory here. However, the Sun is guilty of some fairly sloppy journalism in comparing a 2 year fix to a 1 year fix. At the the time most of these deals were done, prices were rising once or twice a year steeply, and many people went for a more expensive 2 or even 3 year fix to protect against further increases. Most of us now are even wondering if a one year fix is too long in a new era of falling prices?
    But of course, that requires some understanding of the market, whereas a headline 'Age UK pockets £6m bung' just sells more papers.
    No free lunch, and no free laptop ;)
  • After many years with BG, paying over the odds, quarterly paper bills paid by cheque/cash at the PO, I finally convinced my mum to switch her energy supplier and to pay by monthly DD and switched her onto the E.on Age UK tariff which was the cheapest 1 year fix for her at the time. I then switched her to the E.on collective which saved her a further few hundred quid a year.

    I don't feel we were ripped off in any way by E.on/Age UK at the time.
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