According to Energychoices.co.uk, energy provider E.ON will automatically switch its fixed-price energy users to a new deal with revised tariffs, once their present deal expires.
E.ON has said that all fixed price energy users will be put on a new a tariff, which is 5.8 percent costlier than the current deal, which expires towards the end of the week. The Price Protection tariffs (v13 – v17) and the EnergySaver tariffs (v1 – v4) are expiring on October 1st, 2009.
Besides, current users who do not inform E.ON about switching to a different deal, might find themselves paying about £1,198 on average every year because of revised tariffs, approx. £237 more than the best dual fuel tariff present in the market.
A spokeswoman for E.ON told Energychoices.co.uk: “Both the new price Protection and EnergySaver deals will cost 5.8% more than our 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.”
For customers who have subscribed to the Price Protection deal, the new tariffs will apply automatically on the same deal, once their old deal expires. No cancellation charges will be imposed and customers are assured that prices will be considered again post spring 2011.
Similar to the above deal, customers who are subscribed to the Energy Saver deal will pay the new tariff of the new deal, once their previous deal runs out. Also, no cancellation charges and promise of revised rates post April 2011 are assured by the supplier.
E.ON said: “We are notifying all affected customers of the changes by letter ahead of the renewal date, giving them the opportunity to discuss other options.”
The revised Price Protection and the Energy Saver tariffs are believed to be £237 more than what the cheapest deal by Scottish Power has to offer. The Online Energy Saver 7 tariff however, is provided in only four out of the fourteen energy distribution areas.
As far as the remaining ten areas are concerned, iSave is the cheapest way to go and is provided by First:Utility, an independent energy supplier. E.ON’s revised tariffs are £221 more than the iSave tariff.
Also, the revised deals do not make paperless billing mandatory, thus providing the option of paying according to one’s wish.
Chris Eagle, commercial manager at Energychoices.co.uk said: “This 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.”
“However, unlike Scottish Power’s new tariffs, 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,” he added. “Now is definitely the time to compare energy prices and make sure you’re on the best deal for your household.”
If reports in the previous week are to be believed, Scottish Power has come under the gaze of Ofgem for being unfair in its policy of locking customers to new tariff deals, when customers were moved to higher tariff deals after earlier deals expired.
People who were subscribed to Scottish Power’s fixed energy deals were told upon expiry of their deals that they must inform the supplier in case they wanted to switch. If one fails to do so, switching suppliers will earn a £50 fine.
