E.ON v5 price increase.

Cardew

whowants2brich wrote: »

This is taking into account the Quidco cashback which I've already received...

My thoughts are now, if I move to another supplier, then I'll get more cashback -

If people keep moving away from suppliers as soon as they increase rates (as E-On have just done), then maybe they'll keep prices a bit lower in future.

Whilst not making a criticism of you for taking advantage and cashing in, it just demonstrates the stupidity of a system that allows firms like Quidco and the comparison websites to operate.

These firms cream off £millions in commission, as well as the Utility Companies having to pay for huge numbers of staff the handle people exactly like yourself switching suppliers after being encouraged to do so by these firms.

Who do you think pays for all this expense?

Of course it is us - the consumer - that pays in higher prices

So far from keeping prices lower, it has had, and will have, the opposite effect and raise prices.

I look forward to the day when these parasitic firms like Quidco and the comparison websites are put out of business.

Andy_Hamilton

I can honestly say that I'm completely ****** off. Just a couple of months ago I moved to V5 to miss out on the price rises because they said no price rises until April 2009. I feel completly conned!
Over night my electricy went up 20.11% and 18.81% That's nearly £12 per month extra.

My account details are:
V5 electricity 16.06p then 9.67p
V5 Gas 3.081p then 2.451p

Now my prices are:
V5 electricity 18.532p then 11.1615p
V5 Gas 4.5696p then 2.9121

Price protection for me until 2009:
electricity 19.362p then 11.6655p
Gas 4.88985p then 3.1164p

I'm now starting to look around AGAIN

dellxps

Andyhamilton, who told you the prices were fixed until April 2009. The welcome packs only mention that the online discount is guaranteed until April 09.

Andy_Hamilton

dellxps wrote: »

Andyhamilton, who told you the prices were fixed until April 2009. The welcome packs only mention that the online discount is guaranteed until April 09.

It's more a case of me being daft, I never got a welcome pack when I changed online but breifly seen discount until april 09. I thought (YES I KNOW) this was fixed prices not just discount so never even looked at fixed prices until this evening after stumbling across this thread.

For weeks now I was considering fixing but thought why bother when i'm fine for now.

pfpf

i'm a bit confused

i went to Eon for both G&E and completed the switch end of March.

i'm on the Extra Saver 5 plan.

Electricity:

was: 17.40 for the 1st 225kwh then 9.74
now: 18.239 for the 1st 225kwh then 10.206

so all straight forward to see the increase.

GAS:

was: 3.235 for the 1st 1143kwh then 2.574
now: 4.57 for the 1st 670kwh then 2.913

so although the unit price has increased the point at which the lower price kicks in arrives much sooner!

as its late and i have only ever had one partial bill so far i cant work out what the overall effect is.

any thoughts?

Cardew

pfpf wrote: »

i'm a bit confused

i
GAS:

was: 3.235 for the 1st 1143kwh then 2.574
now: 4.57 for the 1st 670kwh then 2.913

so although the unit price has increased the point at which the lower price kicks in arrives much sooner!

as its late and i have only ever had one partial bill so far i cant work out what the overall effect is.

any thoughts?

Yes it is quite a rise.

Under the old tariff for the first 1143kWh per quarter you simply paid:

1143 x 3.235p = £36.98

Under the new tariff for the first 1143kWh you pay:

670 x 4.57p plus 473 x 2.913p = £44.40

That is a rise of 20%

For the rest of your gas you have an increase of 13.17%

The reduction of tier1(primary) units each quarter will mean those who use very little gas in, say, the summer periods will pay even more because a higher percentage of gas will be charged at the tier 1 rate.

It is impossible to work out exactly what the increase will be for each customer as it depends on the amount of gas they use. However an average consumer using 20,500kWh per year will have a 15% increase.

stockbroke

does standing charge mean you dont pay for the primary rates? you just get charged 1 flat rate and pay the standard charge fee per day?

Cardew

stockbroke wrote: »

does standing charge mean you dont pay for the primary rates? you just get charged 1 flat rate and pay the standard charge fee per day?

Yes, that is correct.

Daily standing charge was the standard method of gas/electricity until about 15 years ago.

Beancounter

Cardew wrote: »

So far from keeping prices lower, it has had, and will have, the opposite effect and raise prices.

I look forward to the day when these parasitic firms like Quidco and the comparison websites are put out of business.

Quidco do not take any of the commision from the companies save a £5 fee every year so could hardly be described as "parasitic".

I do agree however that this sort of switching does cost us all in the long run.

Cardew

Beancounter wrote: »

Quidco do not take any of the commision from the companies save a £5 fee every year so could hardly be described as "parasitic".

I do agree however that this sort of switching does cost us all in the long run.

They exactly fit my defininition of 'parasitic'.

It may be that Quidco are not as culpable as the Comparison networks who pocket all the commission, but the £60 or so for every switch is still paid for by all of us in higher prices.

The incentive that they provide to switch means that some people continually switch.

The Utility companies should simply refuse to pay any commission.