E.ON acts to begin replacing standard variable tariffs for its customers

fredandwilma

https://www.eonenergy.com/About-eon/media-centre/eon-acts-to-begin-replacing-standard-variable-tariffs-for-its-customers/


Some may call it a smart meter bribe, but as I've posted before, the ultimate objective is Smart Meter tariffing.

“However, this isn’t only about smart metering customers. We’ll also be working on options for classic meter customers joining us or coming to the end of fixed term tariffs. This is about increasing engagement with customers and having better conversations about what they need from their energy supplier, making sure they have the tools and the knowledge to choose a tariff that best suits their needs.”

Starting in early 2018 standard variable tariffs will no longer be the default option for people coming to the end of their existing tariff. Instead, customers will have the option to ‘roll over’ on to the latest version of a fixed term contract. Existing standard tariff customers who have a smart meter, or who have arranged to have one fitted, will move to a new fixed term tariff with the same ‘roll over’ option or, if they really don’t want to, they will have the possibility to opt out and remain on an evergreen variable tariff.

fredandwilma

Hiya Malc,

How are you doing?

Long time no see :rotfl:

House_Martin

fredandwilma wrote: »

https://www.eonenergy.com/About-eon/media-centre/eon-acts-to-begin-replacing-standard-variable-tariffs-for-its-customers/


Some may call it a smart meter bribe, but as I've posted before, the ultimate objective is Smart Meter tariffing.

We have had Time Of Use tariffs for decades now (Eco 7 and 10 ) and also BG has had one for two years with the free weekend 8 hrs (only for electric smart meter ) .Whats the problem anyway with cheaper times for using electricity . I would go for it.
There will be winners and losers, just like most of us on here are winners with our cheap fixed deals over SV. They are subsidising us paying over the odds.

molerat

Surely you cannot opt in to an unknown priced tariff if it has a penalty exit fee ?

Why can they not have cheaper off peak energy as the default without an increased peak price to incentivise off peak use ?

The first paragraph is most certainly corporate !!!!!!!! !

IMO this has nothing to do with "understanding customers", more like confusing the customer and keep the money rolling in.

NineDeuce

The ultimate objective is to find new ways of charging the same amount of money overall and maintaining the same profit levels.

fredandwilma

molerat wrote: »

Surely you cannot opt in to an unknown priced tariff if it has a penalty exit fee?

As i read it, there will be no exit fee (as stipulated by Ofgem).

In this statutory consulation, we propose to allow suppliers to roll customers onto another fixed-term tariff at the end of their existing deals as long as those tariffs do not have any termination fees, are no more expensive at the point of comparison than the standard variable tariff that the customer would otherwise have been rolled onto and otherwise meet the customer’s characteristics and preferences. This change will help to reduce the number of customers on poor value standard variable tariffs.

Worryingly, they must be no more expensive than the SVT, which means they could still be the same cost as a SVT.

Rebranding?

Only time will tell.

System

E.oN’s conversation seems to be going down well with the Press and industry watchers:

http://www.telegraph.co.uk/bills-and-utilities/gas-electric/eon-ploy-persuade-customers-get-smart-meters-cheaper-deals/

Former_E.ON_Company_Representative:_Malc

fredandwilma wrote: »

https://www.eonenergy.com/About-eon/media-centre/eon-acts-to-begin-replacing-standard-variable-tariffs-for-its-customers/


Some may call it a smart meter bribe, but as I've posted before, the ultimate objective is Smart Meter tariffing.

fredandwilma wrote: »

Hiya Malc,

How are you doing?

Long time no see :rotfl:

Morning fredandwilma :wave: and I'm fine thanks. Hope you are too? I've been away recently but have been knocking around for most of this week.

As per the link and quote you posted above, yesterday we announced we'll be replacing our current residential standard variable tariff (SVT) with a fixed term tariff for our smart meter customers. The SVT will no longer be the default option for these customers. Instead, they'll have the option to 'roll over' on to the current version of a fixed term tariff. This is due to start in early 2018.

Additionally, any of our SVT customers who already have a smart meter will be offered a move to a replacement one year fixed tariff.

Existing customers with a smart meter or who have arranged to have one fitted, will be able to choose a new fixed term tariff. They can opt to 'roll over' to the latest version when that deal expires. If they really don't want the fixed term tariff, they can opt out and go on our SVT. We're proposing that this fixed term tariff will be cheaper than our SVT and will have no exit fees leaving customers free to change supplier whenever they like without penalty.

As per the quote posted above, we're also working on options for customers with classic/traditional meters that are joining us or coming to the end of fixed term tariffs.

Hope this puts a bit more flesh on the bones fredandwilma. This is very much a work in progress at the moment and more details will emerge as we move towards the launch date early next year. Let me know if you need any more information as happy to help.

Malc

System

To be clear, there is a lot of Corporate spin going on here giving the impression that E.oN has come up with a unique offer. In truth, this was an Ofgem initiative to deflect some of the criticism that it is getting from politicians about the end of fixed term contracts, and the default SVT position.

http://www.yourmoney.com/household-bills/energy-regulator-proposes-new-fixed-tariff-rollover-rules/

My guess is that we will see similar offers from most of the suppliers.

Former_E.ON_Company_Representative:_Malc

molerat wrote: »

Surely you cannot opt in to an unknown priced tariff if it has a penalty exit fee ?

Why can they not have cheaper off peak energy as the default without an increased peak price to incentivise off peak use ?

The first paragraph is most certainly corporate !!!!!!!! !

IMO this has nothing to do with "understanding customers", more like confusing the customer and keep the money rolling in.

Hello molerat and just to clarify. As fredandwilma say, there are no exit fees with the fixed term tariffs we're looking to replace the SVTs with for our smart meter customers. This leaves customers going on this tariff free to change supplier at any time without penalty.

Also, we don't know the prices yet. These will become available as we move towards the launch date early next year.

Hope this is a bit clearer molerat.

Malc

Former_E.ON_Company_Representative:_Malc

fredandwilma wrote: »

As i read it, there will be no exit fee (as stipulated by Ofgem).

Spot on fredandwilma. As above, there are no exit fees with these tariffs.

Worryingly, they must be no more expensive than the SVT, which means they could still be the same cost as a SVT.

Rebranding?

Only time will tell.

As you know, Helena and I only find out about new tariffs and prices round about the same time as they're made public. Our CEO did say in his press release yesterday that, when the fixed price tariff replaces the SVTs next year, it will be lower than our current SVT. I don't know how competitive this will actually be and, as always, customers should pop their details on the independent Price Comparison sites to see the overall picture.

At the moment, it's a matter of watch this space or our website. As you say, time will tell and we'll now more as the project unfolds.

Malc