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E'ON increasing my DD by 25%!!
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# 1
shopinitis
Old 21-11-2012, 10:09 PM
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Angry E'ON increasing my DD by 25%!!

Hello, E'ON have emailed me to say they are increasing my DD following an 'annual review' by them to 98 which is an increase of 25% from the current 78 My present balance is 34.12 which will be covered by my next payment of 78 due on 1st Dec, which is less than 2 weeks away. Had they billed me after my December payment (as they did in 2011) I would actually be in credit by 43.88 which is up on the same time last year when I was 26.05 in credit. I was about to change my tariff to E.ON Energy Discount v1 as they were quoting 77.50 DD per month on this new plan compared to 80.93 on my current tariff. The last time they increased my DD they were quite rude when I phoned up saying how I should not be in debt to them at anytime of the year (conveniently forgetting to mention that I am in credit for most of the year and earning them credit interest in some bank account no doubt) and we met halfway with the increase. I live on my own and do not use gas and electricity to excess and appear to pay more than families I know!! Can I refuse the increase? Thanks
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# 2
flashg67
Old 21-11-2012, 10:15 PM
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As I understand it, you can't refuse the change, other than revert to paying on receipt of bill. I've had the same issue with Npower - the DD increase would have meant me paying 200 above what they estimated my next 12 months bill would be. When I pointed this out, we came to a compromise.

Does your Eon bill give you a projected usage for the next 12 months, and do the new payments match this? If not, politely request they look at it, but ultimately, you're in their hands to a large extent.
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# 3
shopinitis
Old 21-11-2012, 10:21 PM
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Thanks. I have asked them for further info on how they have come to the conclusion that I will be using 25% more gas and elec.(cost-wise) in the next year.
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# 4
savemoney
Old 21-11-2012, 10:30 PM
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Wont some of the DD increase due to prices increasing this year, most of the majority utility companies have increased or are going to increase prices in next few weeks for Winter
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# 5
Buzby
Old 21-11-2012, 10:33 PM
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Does it matter? If you trust them to take money from your account when they want to (via a DD) it seems odd to complain about their forward crystal-ball gazing.

Me? I wouldn't trust them to tie their corporate shoelaces correctly. EDF give me an 'annual review' EVERY time they generate a bill (quarterly) and their figures show IF I had a DD, my payments would veer erattically in both directions, so I laugh and ignore, amazed at how it all balances out with only the occasional price rise to notice.

If, like me, you wouldn't trust them, WHY provide an restricted access to your hard-earned money? The customer is supposed to be king - so treat them with they contempt they treat you.
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# 6
Judi
Old 21-11-2012, 10:34 PM
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Quote:
As I understand it, you can't refuse the change
Incorrect. I phoned my energy supplier about a month ago when they sent me an increase in Direct Debit letter. I told them that i was still in credit and i would pay what i owe as soon as i owe it. (I'm pretty hot on reading the meter regularly and submitting meter readings to see how much in credit i am (or how much i owe).

Anyway, Eon was happy to let me continue to pay the original amount.
'Holy crap on a cracker!'
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# 7
jalexa
Old 21-11-2012, 10:37 PM
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Quote:
Originally Posted by shopinitis View Post
Can I refuse the increase?
E.On have stated in this forum that a detailed explanation of the calculation will be provided on request. I suggest you ask for that, then, if you like, we can give more meaningful advice based on the calculation.
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# 8
flashg67
Old 21-11-2012, 10:50 PM
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Quote:
Originally Posted by Judi View Post
Incorrect. I phoned my energy supplier about a month ago when they sent me an increase in Direct Debit letter. I told them that i was still in credit and i would pay what i owe as soon as i owe it. (I'm pretty hot on reading the meter regularly and submitting meter readings to see how much in credit i am (or how much i owe).

Anyway, Eon was happy to let me continue to pay the original amount.
Happy to be corrected - I may have been using old information.

OP - try reading this link on MSE - http://www.moneysavingexpert.com/uti...-direct-debits - gives a good explanation of the latest conditions under the 'know your rights' section
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# 9
woodbine
Old 22-11-2012, 12:33 AM
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Quote:
Originally Posted by Judi View Post
Incorrect. I phoned my energy supplier about a month ago when they sent me an increase in Direct Debit letter. I told them that i was still in credit and i would pay what i owe as soon as i owe it. (I'm pretty hot on reading the meter regularly and submitting meter readings to see how much in credit i am (or how much i owe).

Anyway, Eon was happy to let me continue to pay the original amount.
sse wanted to inc mine from 34 to 58 a month i spoke to them and flatly refused to allow them to do so,especially when they supposably worked it out again while i was speaking to them and came up with 46 a month from nowhere
this is electric only btw for a 480 sq foot property
~~~JOHN~~~



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# 10
E.ON Company Representative: Helena
Old 22-11-2012, 9:29 AM
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Hi shopinitis,

There have been many discussions on here about Direct Debit's and as jalexa say's if you need a full breakdown of the figures just ask us for this.

In general though, it looks like your payments have been increased as your account is in debt, the account should be in credit at this time of year as this will go towards the higher winter bills.

If you need any more help from me, just ask.

Helena
Official Company Representative
I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
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# 11
Wywth
Old 22-11-2012, 12:39 PM
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Quote:
Originally Posted by jalexa View Post
E.On have stated in this forum that a detailed explanation of the calculation will be provided on request. I suggest you ask for that, then, if you like, we can give more meaningful advice based on the calculation.
Yes, I think most suppliers (including E.On I hope!) will, where there is a dispute over the monthly DD to be collected, listen carefully to reasonable and logical based arguments from customers as to how much a monthly DD amount should be.

But, as in any negotiating position, you need to understand their initial, considered position before going in with all guns blazing.

Find out what there story is first, and then compose your own to counter it. We may be able to help you if you post all the details.
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# 12
shopinitis
Old 22-11-2012, 1:21 PM
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Thanks everybody.

I have already requested this info from E'ON by email, but had a reply saying it may take up to 14 days to reply.
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# 13
E.ON Company Representative: Helena
Old 22-11-2012, 1:27 PM
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Quote:
Originally Posted by shopinitis View Post
Thanks everybody.

I have already requested this info from E'ON by email, but had a reply saying it may take up to 14 days to reply.


There is a bit of a delay on emails

You can always send your details to me (email address in my profile page) and I can give you the info you need.

Helena
Official Company Representative
I am an official company representative of E.ON. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"
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# 14
shopinitis
Old 26-11-2012, 2:44 PM
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Helena, I am going to email you, as I have not yet had a reply. Thank you
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# 15
StuC75
Old 26-11-2012, 2:56 PM
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Quote:
Originally Posted by E.ON Company Representative: Helena View Post
In general though, it looks like your payments have been increased as your account is in debt, the account should be in credit at this time of year as this will go towards the higher winter bills.

That explanation really is 1x6 & 2x3's... The OP has already hinted that by next month would be in credit 45 compared to 26 last year... So whilst over winter this may go into a negative balance, by the same time next year (nov \ dec would be back to marginal credit)

Whilst in your scenario a big credit is built up over the summer which is then chipped at over winter to that going into spring it is just in credit (ready for the next build up)..

I know as a consumer and in Money Saving Terms which scenario I would prefer to be in since my credit balance with utility companies doesnt earn me any extra back!..

So Remember the consumer is always right! and in terms of being in credit is just 6 months ahead of where the utilits companies would want them to be!...
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# 16
grahamc2003
Old 26-11-2012, 3:39 PM
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Quote:
Originally Posted by StuC75 View Post
That explanation really is 1x6 & 2x3's... The OP has already hinted that by next month would be in credit 45 compared to 26 last year... So whilst over winter this may go into a negative balance, by the same time next year (nov \ dec would be back to marginal credit)

.
I don't think the op did hint that at all. And even if she did, I expect she would have been incorrect. With a fixed monthly payment and variable usage, it's almost certain that if someone is in debt in November, then they'll be further in debt in a months time (and likelwise for dec, jan and feb).

I think people expect credit (more or less as a right) from suppliers due to the previous practice of customers paying bills 3 months in arrears. But really, not many retail companies extend free credit - try asking Tescos idf you can take your shopping now, and pay for it in a few weeks time, which is what many expect their gas and electricity suppliers to do!

The choice is to pay by DD and get a DD discount, or pay in arrears with no discount. Once the dd discount route has been chosen, you can't really then expected to pick and choose which conditions of the DD scheme you adhere to. I expect that one condition is that they can vary the DD, and yet another is that they will supply you with the calculation of the dd payment. I doubt you can refuse to pay the increased DD (without being booted off the DD scheme), but that isn't to say you can't negotiate a lower DD with them.

In the OP's case, I'd say for someone in debit atm, a 25% increase may be sensible - bills are going up at a rapid rate.
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# 17
StuC75
Old 28-11-2012, 1:34 PM
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Quote:
Originally Posted by shopinitis View Post
My present balance is 34.12 which will be covered by my next payment of 78 due on 1st Dec, which is less than 2 weeks away. Had they billed me after my December payment (as they did in 2011) I would actually be in credit by 43.88 which is up on the same time last year when I was 26.05 in credit.

Err yes they did..

All the DD Scheme is for regular monthly payments to be made as opposed to quarterly in arrears, there is nothing set which says that to receive a small discount for DD you have to pay above and beyond what they expect you to use.

I have always paid monthly DD for simplicity, as & when a larger bill comes through make a lump payment as I see fit (last time was when ex-partner had been on maternity leave so usage rocketed in that time).. Thats no longer the situation so know to question what they perceive my usage is going to be!.
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# 18
shopinitis
Old 28-11-2012, 10:13 PM
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Quote:
Originally Posted by StuC75 View Post
That explanation really is 1x6 & 2x3's... The OP has already hinted that by next month would be in credit 45 compared to 26 last year... So whilst over winter this may go into a negative balance, by the same time next year (nov \ dec would be back to marginal credit)

Whilst in your scenario a big credit is built up over the summer which is then chipped at over winter to that going into spring it is just in credit (ready for the next build up)..

I know as a consumer and in Money Saving Terms which scenario I would prefer to be in since my credit balance with utility companies doesnt earn me any extra back!..

So Remember the consumer is always right! and in terms of being in credit is just 6 months ahead of where the utilits companies would want them to be!...
This is exactly how I see it and I dont actually mind my money sitting with E'ON for the majority of the year while my accounts in credit, so why is it such a problem the other way around for a minimal period of time? There is an obvious benefit to companies who hold the money of customers who are in credit and surely they shouldnt be complaining when customers owe them money for short periods.

Grahamc2003 stated 'try asking Tescos if you can take your shopping now, and pay for it in a few weeks time' fair enough, but how about if you had to go into Tesco and pay for goods a few months before you actually took them and Tesco held your cash for this period? Some times the customer pays before the goods are provided and sometimes the goods are provided before payment is received and this is how the DD scheme should work and did work until recently.
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# 19
folkestonelisa
Old 28-11-2012, 10:52 PM
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I can beat yours. My electricity supplier is going to increase my direct debit to 179 from 79. they have estimated that my electric for the winter will be 800 for the six months. ( works out 1074) a Guess im going back to paying on receipt of a bill then.
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# 20
grahamc2003
Old 28-11-2012, 11:19 PM
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Quote:
Originally Posted by shopinitis View Post
Grahamc2003 stated 'try asking Tescos if you can take your shopping now, and pay for it in a few weeks time' fair enough, but how about if you had to go into Tesco and pay for goods a few months before you actually took them and Tesco held your cash for this period? Some times the customer pays before the goods are provided and sometimes the goods are provided before payment is received and this is how the DD scheme should work and did work until recently.
You say how the system should work. But they haven't implemented the system how you think it should work, and offer a different system. It's up to you whether you can accept all the conditions, and if not, you don't have to sign up for it. You're perfectly free to pay in arrears if you like, but presumably you like the DD discount. You can only accept what is offered, and the offer being made is get a dd discount, but pay the dd as they calculate or agree with you. No use agreeing to that, then expecting to take the good bits and expect the bad bits to be re-written to your requirements.

In any case, most on a DD scheme are much more often in debt to the supplier than the reverse. Say you make a payment which means your balance is 0, then the next day (or rather the next second) you are in debt to the supplier for the energy you have used since that payment. If you use 40 worth the next month, and you have a dd for 45, then you will only be in credit for 3 or 4 days before you're in debt again.
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