E'ON increasing my DD by 25%!!

24

Comments

  • 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.
  • E.ON_Company_Representative:_Helena
    E.ON_Company_Representative:_Helena Posts: 2,359
    Name Dropper Photogenic First Post First Anniversary
    Organisation Representative
    shopinitis wrote: »
    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 :o

    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"
  • Helena, I am going to email you, as I have not yet had a reply. Thank you
  • StuC75
    StuC75 Posts: 2,065 Forumite
    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!...
  • grahamc2003
    grahamc2003 Posts: 1,771 Forumite
    StuC75 wrote: »
    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.
  • StuC75
    StuC75 Posts: 2,065 Forumite
    shopinitis wrote: »
    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!.
  • StuC75 wrote: »
    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.
  • 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. :mad:
  • shopinitis wrote: »
    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.
  • 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. :mad:

    Oh no :eek: Its madness isnt it?! Well I may also just pay the bills as they are produced. Basically, E'ON have said the DD payments dont cover the bills when this year I will have paid out 12 payments of £78 which totals £936 and my years bills have totalled £912.17 and I will be in credit of £43.88 once this years final DD is taken. I appreciate there is likely to be a price increase, but 25%??!
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.5K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607.1K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards