Price shock for fixed E.ON customers
Friday, October 9th, 2009One of the energy giant called E.ON is planning put clients on fixed price energy tariffs which ends later this week, straight on to new capped tariffs which are 5.8% more expensive than its standard tariff prices. The finishing date for the tariffs like the Price Protection tariffs (v13 - v17) and EnergySaver tariffs (v1 – v4) is 1 October 2009. It ws stated that the clients who do not inform the E.ON about switching to another deal are required to pay an average of £1,198 a year for their gas and electricity, after being put on new Price Protection and EnergySaver deals - over £237 more than the cheapest dual fuel deal on the market. According to the sources of E.ON, it was stated that both the new price Protection and EnergySaver deals will cost 5.8% more than the current standard prices, however customers will not see any rises above those that they sign up to for the duration of the deal, as well as benefiting if prices fall. It was also stated that customers who are on the price protection tariff ending this week will automatically be put on the new price protection deal. To add to your knowledge, it is only available to households whose deals have just ended. The tariff promises to fix gas and electricity prices until spring 2011 and does not come with any early cancellation charges.
It has been pointed that households on the energy saver tariffs also ending this Thursday will also be put onto a new exclusive EnergySaver deal, which will fix energy prices until 1 April 2011, and also has no early cancellation charges. To avoid any hassles, the firm is notifying all affected customers of the changes by letter ahead of the renewal date, giving them the opportunity to discuss other options. It is the new price protection and energysaver tariffs that are over £237 more expensive than the cheapest deal available - Scottish Power’s online energy saver tariff. The tariff which was launched recently is available in 4 areas out of 14 areas and iSave is available in other 10 areas as the cheapest which is owned by energy supplier known as First Utility which makes E.ON, on average, £221 more expensive than the iSave deal. It is applicable for customers renewing. In this plan, paperless billing is not mandatory, however customers can choose to pay this way if they want. It has been pointed that the revelation comes hot-on-the-heels of the news that customers on Scottish Power’s fixed energy tariffs are also being put straight onto a new, more expensive, fixed price deal. The interesting point to be noted here is that E.ON customers are lucky that they are not being put onto a deal with early cancellation fees and can switch suppliers and tariffs whenever they wish. According to the sources, it has been pointed that Ofgem is considering whether ScottishPower is unfairly locking customers into a new energy deal, after its fixed-rate deal ended last month and customers were put on a more expensive capped tariff.




























































