Wholesale prices v retail ripoff!

  • JoeSoap's Avatar
    Level 91
    @Joecan you tell me what the fixed price per unit you pay for gas please? Its a fixed price right? It cannot change for the period?

    Here are my tariff rates which are fixed for 12 months…

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    I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit.
  • Mailman's Avatar
    Level 56
    Here are my tariff rates which are fixed for 12 months…

    And here are mine - slightly different due to the regional variations

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    But AFAIK this DD tariff is no longer available should anyone wish to move to it.
  • meldrewreborn's Avatar
    Level 91
    Regional prices per kWh for electricity June-September 2023 ranged from 30.82 p to 32.86p if not paying by DD.

    So i think @MAW is comparing old prices non DD, to current DD prices on the flex tariff, plus some of us are on the tracker tariff and others on the previous fixed tariff so there is ample scope for confusion.

    however paying by non DD methods is still 7% more expensive overall for the OFGEM typical customer (covering both Electricity and Gas) and thus including both standing charges and unit pricing. That doesn't mean that every element of a bill (standing charges for both fuels) is 7% more expensive, so the exact effect will depend on the customers consumption level of each fuel.
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.
  • Beki's Avatar
    @MAW

    Different methods of payment are more expensive for E.ON Next to manage. Not having a Direct Debit (and instead Paying on Receipt of your Bill) costs us more in admin and managing your account. Is it fair to make every customer cover that extra cost? I'm not sure that it would be. So instead, we've got cheaper rates for those customer who choose to pay by Direct Debit (variable or fixed).

    Have you seen the breakdown for the default tariff cap before? It's here and it's quite interesting!
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  • MAW's Avatar
    Level 13
    [QUOTE=Beki_EONNext;40817]@MAW

    "Different methods of payment are more expensive for E.ON Next to manage. Not having a Direct Debit (and instead Paying on Receipt of your Bill) costs us more in admin and managing your account. Is it fair to make every customer cover that extra cost? I'm not sure that it would be. So instead, we've got cheaper rates for those customer who choose to pay by Direct Debit (variable or fixed)."

    Thank you for the reply. But thats really not true to the extent of the premium EON charges non DD paying account holders. I run a business too. Have done for over 20 years. So has most of my social and famliy group. The difference between customer payments running on DD and made by manual online payments is no more than 1% - 3%.Sometimes it is the same, it depends on the card used and the payment system. Very occasionally if payment is made by something like American Express it costs a few % more. But we dont discriminate and give other customers the hard luck story about other customers paying a differnt way and how awful it would be for them if we didnt charge them a bit more etc etc etc.

    To the other excuse used, namely that people who dont pay by DD usually pay late, aurely there is nothing stopping EON putting in place a charging penalty for those who do pay late to cover any additional costs incurred chasing them.

    With EON energy charging me over 38p p KwH for electricity, I am paying nearly 10p more than a 29p per KwH fixed rate, largely for the privilage of paying manually online with a debit card.

    Thats nearly 31% more. So Im currently paying a 26% premium over average costs to process those payments.

    31%. Even taking everything into account, fixed rate versus variable, DD versus manual payments, 31% is far too much.
    Last edited by MAW; 22-10-23 at 20:37.
  • MAW's Avatar
    Level 13
    Regional prices per kWh for electricity June-September 2023 ranged from 30.82 p to 32.86p if not paying by DD.

    So i think @MAW is comparing old prices non DD, to current DD prices on the flex tariff, plus some of us are on the tracker tariff and others on the previous fixed tariff so there is ample scope for confusion.

    however paying by non DD methods is still 7% more expensive overall for the OFGEM typical customer (covering both Electricity and Gas) and thus including both standing charges and unit pricing. That doesn't mean that every element of a bill (standing charges for both fuels) is 7% more expensive, so the exact effect will depend on the customers consumption level of each fuel.

    No. I checked. my current tariff is 38p per KwH. 31% more than the DD tariff.

    I know ho wmuch it costs to process card payments on a website. Its aint 31%. It aint 20%. It aint 10%. It might be 5%. It much more like 1% to 3%.
  • MAW's Avatar
    Level 13
    @Mailman thanks for posting that. Much obliged. Looking at your gas unit rate its the same as mine. But yours is fixed and cannot change for the period off the fixed rate... correct? It cannot change from 7.3p per KwH?
  • Beki's Avatar
    @MAW I haven't done the math so let's say that it's correct... The option to have a reduction on your tariff is there for all customers, however, it's through your own preference and choice, (just as other customers will choose to have a direct debit set up, or have a prepayment meter installed to help them budget) that the tariff you're on doesn't include the direct debit reduction. I think it's important to note, that there are so many ways to pay your bills and some methods are often preferred by all businesses, not just E.ON Next, and especially by companies at this size and scale.

    I feel this thread is getting a little repetitive and I'm not sure what further information we can provide. There's been a lot of explanations, advice and support from community members too, and I would like for it to remain a proactive and constructive space. If I can support you any further MAW, please send me a DM and I'll answer any questions you have. 😊
  • MAW's Avatar
    Level 13
    Thanks Beki.

    My whole point isnt really the "choice", rather that the level of discrimination against those who pay manually online v by DD is too great. Much too great. I realise Im going against the grain and challenging the wants of a multinational operating an oligolpoly in a society that likes to conform.

    With DD I dont feel like I am in control of my payments with a service that in the past has demanded the wrong amounts, insisted it was right, and turned out all along to be wrong. And here I am paying a huge premium for that. I dont feel that is fair.

    I do appreciate your input here, and that of the others.

    Many thanks, and I may take you up on your offer of a DM if I need to know more.
  • Mailman's Avatar
    Level 56
    @Mailman thanks for posting that. Much obliged. Looking at your gas unit rate its the same as mine. But yours is fixed and cannot change for the period off the fixed rate... correct? It cannot change from 7.3p per KwH?

    It is a coincidence that your current price is the same as we almost certainly come from different areas. I believe this tariff was only available for a relatively short time and, as is usually the case, was superceded by other offerings from Eon Next (many of which had exit fees).

    Can these DD tariff rates be changed during the term? - absolutely not otherwise it wouldn't be a fixed DD tariff.

    FYI, I therefore pay fixed tariff costs via the Variable DD option that zeroises my account once a month with payment taken 17 days after the statement is raised (an email reminder is received 7 days before DD is taken). No credit/debit balances exist on my account other than for the period of 17 days between the statement/bill generation and the DD payment is credited hence why my account ATM currently shows a balance of £0.

    Edit: I don't see any region that has an electricity tariff as high as 38p/kWh for PORB either for this current period of for the previous one either so not sure what you are comparing.
    Last edited by Mailman; 22-10-23 at 22:35.