2 year fixed rate -What would you do?

kindlefirebabe

Not sure whether to exercise my right to cancel. I have just switched my Eon deal, due to end Jan 2017 to a 2 year fixed rate deal with the same company. The comparison said I would save £80 over the next 12 months. Of course, silly me, didn't take into account that the calculation is based upon me moving to a standard rate with Eon from end of January. Looking at the figures, I can see that my previous deal is slightly cheaper but, of course only runs until January. My question is this - do I cancel, as is my right, as I am still within the 14 day cooling off period. Or do I stick given the current turmoil in our economy following the Referendum? What would you do?

System

No - you do not have a right to cancel as the 'cooling off' period of 14 days only applies to a change of supplier not a change of tariff with the same supplier.

I raised this with OFGEM some time ago and I received the following response as in my case the supplier had tried to apply a cooling off period on tariff transfer:


I can confirm that the relevant licence condition relating to this issue is standard licence condition (SLC) 23A. This appears to be mutual variation of the supply contract (SLC 23A).

SLC 23A.3 requires the supplier to let the customer know in writing and within 5 days:

- a statement to the effect that the mutual variation has been agreed.

- what the effect of agreeing the mutual variation is.

kindlefirebabe

Okay. Thank you for this. I have been led to believe that I still have that right, which is interesting.

System

kindlefirebabe wrote: »

Okay. Thank you for this. I have been led to believe that I still have that right, which is interesting.

There is a deal of confusion about this amongst CS staff which is why I sought clarification from OFGEM. If you follow this site, you will note than E.oN applies the tariff change as soon as possible after the request is made.

The E.oN rep may wish to comment.

footyguy

So know you've looked at the comparison site in another light, you see where you can really save money.

Fortunately, with Eon, you can transfer to any of their other tariffs and not incur an early exit fee.

So transfer to one of their tariffs that does not have early exit fees (e.g. their variable tariff) and then get the switches underway to start saving yourself a small fortune as per what the comparison site indicates.
(Don't forget to consider seperate fuel suppliers, if appropriate, for maximise those savings)

E.ON_Company_Representative:_Helena

[FONT=&quot]Hi kindlefirebabe,

Hengus is correct here, when you change from one E.ON tariff to another it's done pretty much straight away.

But we do give customers 14 days to change their mind even if moving from one E.ON tariff to another although a specialist team will need to do this.

You'll be able to go back on the tariff they left for the remaining time of the original agreement.

As footyguy has said, you can change between E.ON tariffs without the exit fee being applied, this only comes in when you change supplier.

The cooling off period is the time when you join a new supplier altogether and you cancel the switch within this time.

I hope this has cleared things up for you and I'm sorry if you've been given some incorrect information.

Thank you

Helena[/FONT]

kindlefirebabe

E.ON_Company_Representative:_Helena wrote: »

[FONT=&quot]Hi kindlefirebabe,

Hengus is correct here, when you change from one E.ON tariff to another it's done pretty much straight away.

But we do give customers 14 days to change their mind even if moving from one E.ON tariff to another although a specialist team will need to do this.

You'll be able to go back on the tariff they left for the remaining time of the original agreement.

As footyguy has said, you can change between E.ON tariffs without the exit fee being applied, this only comes in when you change supplier.

The cooling off period is the time when you join a new supplier altogether and you cancel the switch within this time.

I hope this has cleared things up for you and I'm sorry if you've been given some incorrect information.

Thank you

Helena[/FONT]

Thank you Helena. So that leaves me back where I started. So I ask the original question. What would people do in my situation given the current chaos following the result of the recent Referendum? Would you cancel and stay on the cheaper tariff or gamble on being better off in the long term by sticking with the newer slightly more expensive fixed term 2 year tariff?

molerat

Give us the cost per year of each tariff. Energy prices seem to be on the up at the moment but without the benefit of a crystal ball who knows.

fredandwilma

kindlefirebabe wrote: »

Thank you Helena. So that leaves me back where I started. So I ask the original question. What would people do in my situation given the current chaos following the result of the recent Referendum? Would you cancel and stay on the cheaper tariff or gamble on being better off in the long term by sticking with the newer slightly more expensive fixed term 2 year tariff?

Hi kindlefirebabe

It sounds as though you are in the same position as me - here is my existing tariff and the tariff i'm going to switch / you've switched to? My tariff expires in January 2017 too.

The only difference between my existing tariff and the switch is the electricity unit rate per kWh is slightly higher than my current tariff and the gas unit rate per kWh is slightly lower. Everything else is exactly the same. As the largest proportion of my bill is gas usage, i'm going to switch, but in 20 days time (when the offer expires,) as it's the summer and i'm using more electricity than gas at the moment. I will be marginally better off with the new tariff.

I suspect energy prices are likely to rise and the two year fix seems quite prudent whilst the effects of Brexit settle.

In the meantime, if a cheaper EON tariff manifests itself, i can always switch again.

Hope this helps

f & w


TARIFF INFORMATION LABEL



EXISTING DEAL
GAS
Supplier E.ON
Tariff name E.ON - Fixed 1 Year v19 Paperless Billing
Tariff type Fixed

Unit rate 2.752p per kWh
Standing charge 21.90p per day (£79.95 per year)
Tariff ends on 12 months after start of supply



ELECTRICITY
E.ON
E.ON - Fixed 1 Year v19 Paperless Billing
Fixed

10.269p per kWh
16.42p per day (£59.94 per year)
Tariff ends on 12 months after start of supply




THIS DEAL
GAS
E.ON
E.ON - E.ON EHL Fixed 2 Collective June 2016 Paperless
Fixed

2.636p per kWh
21.90p per day (£79.95 per year)
Tariff ends on 24 months after start of supply




ELECTRICITY
E.ON
E.ON - E.ON EHL Fixed 2 Collective June 2016 Paperless
Fixed

11.004p per kWh
16.42p per day (£59.94 per year)
Tariff ends on 24 months after start of supply

kindlefirebabe

Your figures are slightly different to mine. I suspect there are regional differences. Thanks for sharing your prices. As say if a cheaper tariff comes along from Eon, I can always switch again later. I think I'm going to accept the new contract and stop worrying.