@Beki_EONNext
So in advising customers to stay put on their fix, that was because there were plans developing to reduce their tariffs from 1 October. That's fine as far as it goes. It must be obvious that if the company did not do that, there would have been a mass move to the variable rate tariff.
But if the advice induced customers to stay on their fix when the most financially advantageous step was to switch to the net flex, using the ability to exit without penalty, its arguable that E.On Next was deliberately misinforming and misleading its customers, which resulted in additional costs to customers while increasing E.On Next's revenues and dissuading customers from contacting already overwhelmed customers services. While it will come down to what individuals were told and when, I think an impartial assessor (like an ombudsman) wouldn't take too long to rule in favour of the customer.
This all comes back to clear and effective communication - something that was seriously lacking from E.On Next in recent weeks. Have E.On Next learned the lesson - it appears not!
There is also a great disparity in the information available to the two parties. E.On Next had the OFGEM cost limits and could immediately work out its charging structure. The announcement was on 26 August, 5 weeks before the implementation date. E.On Next didn't publish those rates at all but was clearly using them to recalculate customers Direct Debits going forward. Then the government stepped in with the EPG on 8 September. The EPG effectively killed off any fix price tariffs immediately. It would be interesting to know when E.On Next stopped offering them. It must have become clear very soon that there was no financial advantage to customers in staying on most recently entered into fix price contracts well before the operative date of the EPG rates- old price cap rates then new EPG rates represented a better deal than these high fixes. That is information they had but customers didn't - even the best amongst here were uncertain how it would all work. So, advising customers to stay on their fix, even when it would have been clear at corporate level that was the wrong advice, is arguably against the law - its certainly not treating their customers fairly which in itself is a breach of their licence from OFGEM.
So in advising customers to stay put on their fix, that was because there were plans developing to reduce their tariffs from 1 October. That's fine as far as it goes. It must be obvious that if the company did not do that, there would have been a mass move to the variable rate tariff.
But if the advice induced customers to stay on their fix when the most financially advantageous step was to switch to the net flex, using the ability to exit without penalty, its arguable that E.On Next was deliberately misinforming and misleading its customers, which resulted in additional costs to customers while increasing E.On Next's revenues and dissuading customers from contacting already overwhelmed customers services. While it will come down to what individuals were told and when, I think an impartial assessor (like an ombudsman) wouldn't take too long to rule in favour of the customer.
This all comes back to clear and effective communication - something that was seriously lacking from E.On Next in recent weeks. Have E.On Next learned the lesson - it appears not!
There is also a great disparity in the information available to the two parties. E.On Next had the OFGEM cost limits and could immediately work out its charging structure. The announcement was on 26 August, 5 weeks before the implementation date. E.On Next didn't publish those rates at all but was clearly using them to recalculate customers Direct Debits going forward. Then the government stepped in with the EPG on 8 September. The EPG effectively killed off any fix price tariffs immediately. It would be interesting to know when E.On Next stopped offering them. It must have become clear very soon that there was no financial advantage to customers in staying on most recently entered into fix price contracts well before the operative date of the EPG rates- old price cap rates then new EPG rates represented a better deal than these high fixes. That is information they had but customers didn't - even the best amongst here were uncertain how it would all work. So, advising customers to stay on their fix, even when it would have been clear at corporate level that was the wrong advice, is arguably against the law - its certainly not treating their customers fairly which in itself is a breach of their licence from OFGEM.
Last edited by meldrewreborn; 14-10-22 at 16:47. Reason: added last paragraph
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.
