Eon Underquoting?

MaxiTaxiWaxi

I switched energy suppliers last year from Swalec to Eon reducing my monthly costs from £32.00 to £29.00 (hardly seems worth it now for the problems I've encountered). I carried on paying this amount monthly by DD up until last month when I received an additional bill for £192 - it turns out that since I originally switched providers, my electric bill has been coming in at around £45.00 a month not £29.00 - resulting in an increase of £16 per month that Eon didnt bother notifying me about until a year later. I'm not disputing that this was my actual consumption but Im wondering now if this is some sort of technique employed by the companies? Do they get us to switch under the impression that we will get cheaper bills, slowly let our bills build up & then slap us with a lump sum bill? A colleague of mine has had similar experiences with a differrent provider.. has this happened to anyone else?

E.ON_Company_Representative

Hi maxitaxiwaxi,

How did you join E.ON? Was it via a comparison site? Or did you get a quote through a call to E.ON?

Normally when you get a quote the monthly amount is based on either the spend with the original supplier or a year’s consumption figures (kWh)……

If the amount was based on kWh then the likely increase to the Direct Debit is due to a shift in your consumption.

The other thing to bear in mind is that since joining E.ON a year or so ago, prices will have increased, therefore the monthly amount increasing as well.

Bills showing your account balance should have been sent on a quarterly basis rather then yearly, is this the case?

As your account is £192 in debit, you won’t need to pay for this in one go, the amount will be included in the new Direct Debit amount, have E.ON explained the new Direct Debit figure to you?

Also make sure the account is billed to actual readings, if your not sure about the new Direct Debit amount definitely contact E.ON again and ask them to explain so you understand.

Hope this helps.

Brian

Joyful

Sorry but as said above you still get bills which you should be checking. Most companies reassess once or twice a year only. You are right about one thing though. Many times reps under quote a present supplier to make them appear to be cheaper so you need to base a DD on consumption not money after looking at the prospective suppliers prices. As there were so many price changes or all companies last year most peoples DD's should have been increased.

MaxiTaxiWaxi

I joined through a comparison site & I unfortunately my quote was based on monthly spend, and yes I provide actual readings. Also I was told I had to pay the lump sum in one go because my account was in debit & I wasnt allowed to make any sort of agreement to pay it off.
I appreciate that prices went up but an increase of £16 per month seems like a really high increase for a single person living in a one bed flat!!!

Thanks for the advice anyway - at least I will be a little more cautious in future when using the comparison sites!

moonrakerz

MaxiTaxiWaxi wrote: »

I switched energy suppliers last year from Swalec to Eon reducing my monthly costs from £32.00 to £29.00

Did you really think that in a year when energy prices were rocketing, that shifting from one supplier to another would reduce your bills ?

"reducing my monthly costs from £32.00 to £29.00" - the only thing that was reduced was your Direct Debit, your costs were still going UP !

Of course, this is a common ploy used by the companies. Suck someone in with a starting "low" monthly DD, let them run up a sizeable bill, then increase the DD hugely or refuse to let them switch until the large amount owing is paid. Nothing illegal about it.
I'm with Eon too, I can see exactly where I am by reading my meters and checking my bills on line. I did so the other day: I pay £95pm for dual fuel and am about £70 in debt at the moment - just fine !

BruceyBonus

MaxiTaxiWaxi wrote: »

I joined through a comparison site & I unfortunately my quote was based on monthly spend

The comparison site would have estimated your usage - unless you actually tell them your usage in kWh - then the estimate they give will not be accurate. You could have also checked the unit prices/any discounts to see if these were cheaper.

Have you used more energy than last year?

MaxiTaxiWaxi

Actually Moonrakerz I switched at the beginning of the year after taking the adivce of Martin Lewis on GMTV before the price hikes were announced so as Im not clairvoyant I was unaware of the forthcoming "rocketing prices".

Anyway, again thanks for the posts everyone, you've all been very helpful :T

Cardew

The comparison websites exist for one purpose - to make money from commision.

They hardly set up their organisations as a public spirited gesture!

If they tell you you are on the best deal, you don't switch - so no commision.

So they will do anything 'legal' they can do to give you a lower DD to encourage a switch.

The call centre staff at each or the companies and doorstep salesmen are also on commission, so have a financial incentive in getting you to switch.

If you want to try an experiment:

Ring Company A and tell them you are paying, say, £150 monthly to Company X. You most certainly will be offered a lower DD. Say £130.

Ring Company B and tell them your DD with Company A is £130 and you most certainly will be offered a lower DD.

Complete the process with several companies if you wish and go back to Company A and you will get a monthly DD for a fraction of their earlier quote.

ukclarkkent

after being with swalec for about 5 years i switch to eon a year ago(mar 08). it took them until dec 08 to bill me yet i was paying my dd each month. i'm normally good with bills but didn't really get my act in gear and let it slip. turns out the readings they got when i switched were 2 night ones rather than 1 day and 1 night. who knows if this is the case but i really wish i hadn't switched now.

now been given a letter to say that my introductory offer is expiring.

it just leaves me with a bad taste and i'll be looking to switch back to swalec - most likely. not happy. :-(