Energy supplier Eon has become the first gas and electricity company to offer all customers cash rewards for loyalty, as part of a complete overhaul of its tariffs.
It has announced five new deals and scrapped almost all of its existing ones.
The new tariff line up includes both variable and fixed price deals, a tariff for people who have a prepayment meter and an ‘Age UK’ deal for the over 60s promising a one-year fixed price and no exit fee. Although the new Age UK gas and electricity deal is cheaper than Eon’s previous equivalent options, its other new tariffs are generally more expensive than those it is scrapping.
With new energy tariffs hitting the market, now is a good time to check whether you are getting the best energy deal. Compare gas and electricity prices with Which? Switch. You can also phone to switch on 01992 822 867.
Eon’s new energy tariffs
Existing Eon customers will not be forced to switch to the new tariffs, though Eon says it will get in touch urging them to check whether they are on the best deal, using a price comparison tool on its website.
Which? executive director Richard Lloyd says: ‘Many consumers are struggling with rising energy bills and people tell us it is one of their biggest financial worries. We want to see simpler tariffs so it’s much easier for people to compare prices at a glance and spot the best deal. Reducing the number of tariffs and encouraging people to switch is a good start, but we want the regulator Ofgem to make the energy suppliers go further and demand that all of their tariffs are easily compared.’
Which? is campaigning for simpler energy tariffs and a fairer energy market – find out how you can support our Affordable Energy Campaign.
How Eon’s tariffs compare
Eon has introduced cash rewards for loyal customers on its new deals, which will be paid as discounts on energy bills. Customers of over one year will receive £10 per year, those loyal for two years will get £15 and £20 will be paid to customers of three years or more. The rewards can also be paid as Tesco Clubcard points.
The cheapest variable deal from the energy giant is now Eon Energy Discount, which will cost £1,123.71 per year for the average user (including dual fuel discount). The current cheapest variable deal on the market is First Utility’s iSave v12, which will cost £1,054 per year for an average user. But Eon’s plan has a cancellation fee of £10 (for dual fuel) while First Utility charges £60.
Eon’s cheapest fixed deal is Age UK Fixed 1 year but this is only available to those over 60. This is expected to cost £1,148.24 per year for the average customer. It includes a winter payment of £10 (£20 for those over 80) and there is no cancellation fee.
Meanwhile Eon Energy Fixed 1 year (which anyone can sign up to) will cost £1,158.74. This is significantly more expensive than the cheapest fixed plan on the market, First Utility’s iSave Fixed v4 March 2014, which is expected to cost £1,087.
Eon says it has introduced the new deals in response to customer feedback and says it has simplified the tariffs and made costs and benefits clearer.
The new deals are made up of a standing charge (the basic rate you pay regardless of how much energy you use) and a unit fee (price per kW) rather than working on a tiered rates system.
Customers on Eon deals that have been scrapped will be able to continue with their current plan. Those on fixed deals will only have to switch once their fixed period comes to an end.
In our energy company satisfaction survey, Eon earned a customer score of 47% – significantly lower than top-scorer Good Energy (which scored 84%) but similar to other energy giants SSE and British Gas, which scored 51% and 47%.
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