MSE News: E.on to hit customers...

MSE_Andrew

Households on E.on's standard variable tariff will see their energy bills rise by an average of £22/year after the big six firm announced a series of changes to the way it charges customers...

Read the full story:
'E.on to hit customers with backdoor price hike next month'


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Former_E.ON_Company_Representative:_Malc

Afternoon all. I've just posted about this on another thread as below.

https://forums.moneysavingexpert.com/discussion/5803579

Hope it's of interest.

Malc

Michaelw

Unfortunatly we are more likely to see more of this.,rising standing charges,scapping of discounts and more use of smart technology to increase costs and changes to terms and conditions.Like sheep the others will follow.

matelodave

Probably accelerated by the energy price cap - some else has to pay instead.

fredandwilma

Looking on E.on's website, whilst they are scrapping a total of £25 in Duel Fuel Discounts and Paperless Billing - they are replacing with this on their SVT:-

Price Change Pending

These details are effective from 19/04/2018. If your tariff starts before this date you will be billed on our current rates and discounts until then. This means if you pay by fixed monthly Direct Debit you'll get a £35 reduced standing charge per fuel. From 19/04/2018 this will increase to £45 per fuel per year.

If i read this correctly, in actual fact, if you pay by Direct Debit, you will receive a £45 reduction to your standing charge per fuel per year, (£90 per year) which is an increase in £10 per fuel per year, £20 a year in total, leaving a shortfall in savings / discounts of £5 per year. As long as you pay by Direct Debit, that is. Which includes those on SVT's per quote above.

For those on fixed tariffs:

Simpler Discounts

There will be no paperless billing or dual fuel discounts with this tariff, however if you pay by fixed monthly Direct Debit you will receive a £45 reduction to your standing charge per fuel per year

The majority of tariffs will receive the discount as long as they pay by monthly DD.

The current DD discount is a £35 reduction to your standing charge per fuel per year.

It's a simpler discount or an attempt to encourage people to pay by Direct Debit?

System

fredandwilma wrote: »

Looking on E.on's website, whilst they are scrapping a total of £25 in Duel Fuel Discounts and Paperless Billing - they are replacing with this on their SVT:-



If i read this correctly, in actual fact, if you pay by Direct Debit, you will receive a £45 reduction to your standing charge per fuel per year, (£90 per year) which is an increase in £10 per fuel per year, £20 a year in total, leaving a shortfall in savings / discounts of £5 per year. As long as you pay by Direct Debit, that is. Which includes those on SVT's per quote above.

For those on fixed tariffs:



The majority of tariffs will receive the discount as long as they pay by monthly DD.

The current DD discount is a £35 reduction to your standing charge per fuel per year.

It's a simpler discount or an attempt to encourage people to pay by Direct Debit?

Response from the E.oN rep on another thread:

From yesterday, customers switching to our tariffs will no longer receive a discount for having both their electricity and gas with us or a paperless billing discount. Customers on our standard variable tariffs (SVT), Energy Plan and Energy Plan Assist, will stop receiving this discount from 19 April 18.

Also, customers paying by any other means than a Monthly Direct Debit will see daily standing charges go up by about £10 per fuel per year. Again, for customers on our SVTs, this will start from 19 April 18. There are no changes to the daily standing charges for customers paying with a Monthly Direct Debit.

fredandwilma

Hengus wrote: »

Response from the E.oN rep on another thread:

From yesterday, customers switching to our tariffs will no longer receive a discount for having both their electricity and gas with us or a paperless billing discount. Customers on our standard variable tariffs (SVT), Energy Plan and Energy Plan Assist, will stop receiving this discount from 19 April 18.

Which is what i said.

Also, customers paying by any other means than a Monthly Direct Debit will see daily standing charges go up by about £10 per fuel per year. Again, for customers on our SVTs, this will start from 19 April 18. There are no changes to the daily standing charges for customers paying with a Monthly Direct Debit.

Which would mean an increase of 0.0273972603 per fuel, per day, in daily standing charges.

I don't ever remember a variation in E.on's standing charges, or standing charges between tariffs, (or it's longer than i can remember).

Are you sure that £10 isn't mistaken with the extra £10 to be saved by paying by DD from 19/04/18, which is the information provided on the E.on website so far?

There is no mention of a rise in daily standing charges.

After all, it's just a news story with very little information or confirmation at the moment.

System

Discounts are always taken off the Daily Standing charge. Standing charges have never been fixed even on fixed contracts. For example, many suppliers remove a discount if a consumer breaches the contract. The loss of the discount is reflected in a higher standing charge.

This is what an E.oN spokesman is saying to BBC News:

A spokeswoman for E.On emphasised that the firm had "made no changes" to the prices it was charging for electricity and gas units.

It said the increase in customers' bills was due to the removal of some of the discounts currently offered to customers for paperless billing and using both electricity and gas.

"We believe this will make it simpler and easier for customers to understand our tariffs and compare them with other suppliers in the market, the majority of whom do not offer these discounts," the spokeswoman added.

The firm has also increased its standard charge for customers who pay their bills by cash or cheque to £10 per fuel per year.

If E.oN had actually wanted to level the playing field, they could just have removed the discount AND reduced the standing charge to keep billing unchanged. This I am afraid looks like a price increase; it quacks like a price increase, and it is a price increase even if E.oN would like to suggest it is being done for other reasons.

System

matelodave wrote: »

Probably accelerated by the energy price cap - some else has to pay instead.

Or they could have simply have been planning it for a while to reduce their headline prices.

fredandwilma

Hengus wrote: »

Response from the E.oN rep on another thread:

From yesterday, customers switching to our tariffs will no longer receive a discount for having both their electricity and gas with us or a paperless billing discount. Customers on our standard variable tariffs (SVT), Energy Plan and Energy Plan Assist, will stop receiving this discount from 19 April 18.

Also, customers paying by any other means than a Monthly Direct Debit will see daily standing charges go up by about £10 per fuel per year. Again, for customers on our SVTs, this will start from 19 April 18. There are no changes to the daily standing charges for customers paying with a Monthly Direct Debit.

Hengus wrote: »

Discounts are always taken off the Daily Standing charge. Standing charges have never been fixed even on fixed contracts. For example, many suppliers remove a discount if a consumer breaches the contract. The loss of the discount is reflected in a higher standing charge.

This is what an E.oN spokesman is saying to BBC News:

A spokeswoman for E.On emphasised that the firm had "made no changes" to the prices it was charging for electricity and gas units.

It said the increase in customers' bills was due to the removal of some of the discounts currently offered to customers for paperless billing and using both electricity and gas.

"We believe this will make it simpler and easier for customers to understand our tariffs and compare them with other suppliers in the market, the majority of whom do not offer these discounts," the spokeswoman added.

The firm has also increased its standard charge for customers who pay their bills by cash or cheque to £10 per fuel per year.

If E.oN had actually wanted to level the playing field, they could just have removed the discount AND reduced the standing charge to keep billing unchanged. This I am afraid looks like a price increase; it quacks like a price increase, and it is a price increase even if E.oN would like to suggest it is being done for other reasons.

Increase in the Daily Standing Charge versus a £10 Standard Charge for customers who pay their bills by cash or cheque? Which is it to be? Is it a rise in Standing Charges or a loss of discount if you don't pay by Direct Debit? You can't lose something you didn't have already.

You will still get a discount (an extra £10 per fuel) on the daily standing charges if you pay by Direct Debit. It's an initiative to encourage customers to pay by DD as far as i can see. If you pay by DD, you are still going to get almost the same discount as you were previously, but in a alternative price restructuring, IYSWIM.


There are no changes to the daily standing charges for (any) customers paying with a Monthly Direct Debit, going on the information provided by E.on so far, re changes from the 19th April, which is clearly stated with each tariff on their website.

System

fredandwilma wrote: »

There are no changes to the daily standing charges for (any) customers paying with a Monthly Direct Debit, going on the information provided by E.on so far, re changes from the 19th April, which is clearly stated with each tariff on their website.

To avoid any further confusion, the changes relate to customers on E.oN's SVTs. A more comprehensive breakdown of the changes is here:

https://blog.energyhelpline.com/sshock-e-standard-price-rise-50-year-4-2-19-april-causing-average-22-bill-increase-year-approx-2/