Increased DDR on fixed deal

striker44
striker44 Posts: 37 Forumite
Hello,

advice on how to approach supplier. Nov, energy line rec eon saver plus fixed 1 year v4 at 70 a month. Have rec letter stating ddr will go to 108 - thats a 35%% increase!!!

Is this not the same as buying something for 840 over 12 months and the retailer sending a letter saying oops we now want 1040 and will increase to recover for our mistake in telling you the chair, sofa, tv price was 840??

I cant recall receiving any contract and think it was all done by energy line by phone?

should i ask to see the contract i signed with the clause saying they could increase (if it exists) not that i signed anything.

i feel like stopping the ddr and telling them to take me to court for the xtra money - it was there estimate not mine - any suggestions greatly appreciated

Comments

  • [Deleted User]
    [Deleted User] Posts: 1,655 Forumite
    Name Dropper First Post First Anniversary Combo Breaker
    DO NOT STOP THE DIRECT DEBIT. You will just wreck your credit score and end up being chased by debit collectors.
    Okay now I've said that you need to understand what a fixed deal means. It just means that the cost of a single unit of energy measured in kWh and the daily standing charge are fixed for the period of the contract.
    Not the direct debit.
    The direct debit will vary if you use more energy than the estimate you gave when you started the contract. Or less as it can vary down.
    Now get your meter readings and contact E.ON and ask for a new bill using the latest readings which you have just taken.
    E.ON will then generate a bill and look at the direct debit to see if it is sufficient to cover any debit you have built up and pay the bill going forward.
    Also register with E.ON for an online account so that you can see the terms and conditions of the contract you agreed with E.On there too in your online account.
    And ensure going forward you give them monthly readings so that you get accurate bills.
  • Carrot007
    Carrot007 Posts: 4,534 Forumite
    First Anniversary Name Dropper First Post
    You used more you pay more get over it.
  • ColinFishwick
    ColinFishwick Posts: 1,391 Forumite
    A fixed deal is a fixed price of the price of the units NOT usage. if your DDR payments dont reflect the overall usage they can and do go up and down when your account is checked.

    My DDR payments are £24 per month purely because I accrued a large credit and knew about this as I check my usage and balance every month so let it build up, I was going to ask for some of it back but they reduced my payments instead. Now balance has gone down fair bit my DDR are going up to £70 which is fair enough, I was expecting it because I also monitor usage/balance
  • striker44
    striker44 Posts: 37 Forumite
    Many thnaks for your quick and helpful replies appreciated.

    Dave
  • StopIt
    StopIt Posts: 1,470 Forumite
    striker44 wrote: »
    Hello,

    advice on how to approach supplier. Nov, energy line rec eon saver plus fixed 1 year v4 at 70 a month. Have rec letter stating ddr will go to 108 - thats a 35%% increase!!!

    Is this not the same as buying something for 840 over 12 months and the retailer sending a letter saying oops we now want 1040 and will increase to recover for our mistake in telling you the chair, sofa, tv price was 840??

    I cant recall receiving any contract and think it was all done by energy line by phone?

    should i ask to see the contract i signed with the clause saying they could increase (if it exists) not that i signed anything.

    i feel like stopping the ddr and telling them to take me to court for the xtra money - it was there estimate not mine - any suggestions greatly appreciated


    They have not increased the energy price, that's the deal.


    If you use more energy than the estimate given based on the meter reads given by you when you switched, you must pay for it. This is why it is essential to give meter reads every month in my view. That way you'll see monthly usage and avoid bill shock as the DD can be adapted based on usage, rather than whacked up after 6 months of blissful ignorance.


    What is your current debit on your account based on your usage and how long would the extra taken from the DD take to clear that debit?


    You wont win any court case for an increase in DD to cover energy usage.

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
  • E.ON_Company_Representative:_Helena
    E.ON_Company_Representative:_Helena Posts: 2,359 Organisation Representative
    Name Dropper Photogenic First Post First Anniversary
    striker44 wrote: »
    Hello,

    advice on how to approach supplier. Nov, energy line rec eon saver plus fixed 1 year v4 at 70 a month. Have rec letter stating ddr will go to 108 - thats a 35%% increase!!!

    Is this not the same as buying something for 840 over 12 months and the retailer sending a letter saying oops we now want 1040 and will increase to recover for our mistake in telling you the chair, sofa, tv price was 840??

    I cant recall receiving any contract and think it was all done by energy line by phone?

    should i ask to see the contract i signed with the clause saying they could increase (if it exists) not that i signed anything.

    i feel like stopping the ddr and telling them to take me to court for the xtra money - it was there estimate not mine - any suggestions greatly appreciated

    Morning striker44,

    Thanks all for the really good info you've already added to the thread :)

    I can only agree with the others. When you change supplier, it's always best to do a quote in kWh and not £ spend as this gives a much more accurate picture of your usage.

    We would then set up a Direct Debit based on the information we have been provided with, however the payment amount is not fixed and will go up or down if your usage changes, as we need to reflect the amount of energy that is being used.

    The unit rates on the tariff are fixed, as you're on the Fixed 1 year Version 4. But not the amount you pay.

    I would say to keep putting your meter reads on to your online account and producing a real time 'bill' or 'balance' as this will keep the account fully up to date and accurate.

    You can also use the Direct Debit manager tool, also through your online account, this gives you some control over the amount you pay, you can adjust the amount by 20% with accurate reads or 5% without.

    If you get the account billed up to date, you can then calculate how much the payments need to be and if the account has a debit balance this will be included in the payments.

    I really hope that's helped to explain a little, there is also a really good page on the website that answers loads of questions about Direct Debit's.

    But I'm always here to help you, if you need me.

    Thank you.

    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"
  • macman
    macman Posts: 53,088 Forumite
    Name Dropper First Post First Anniversary
    OP, you have built up a debt due to using more energy than estimated, so your DD increases accordingly. Once the debt has been recovered, your DD should reduce again. Not to £70, but to a level that covers your actual consumption. You can avoid this happening in future by submitting regular reads-at least every 3 months.
    No free lunch, and no free laptop ;)
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