E-on extortionate monthly payment

AllTheKs

I pay by DD because it's a lot cheaper (approx £20 per month compared to ebico).

Nonetheless, I have just had massive arguments with EON over their increase in my DD by 57% when, over the last year I have paid almost exactly what my gas and elec have cost.

Despite talking to the moron, the moronic superviser and finally the moronic manager, it seems that EON are rqeuiring all customers to pay them for approx 2/3 of their energy over a year IN ADVANCE.

I have a CREDIT meter. That means that I should pay for energy AFTER I have received it. Of course I don't mind paying a bit in advance of the winter so that the cost of finance is shared but EON have made my blood boil with their total intransigence and rufusal to accept that their (new) DD policy is totally inequitable.

Unsurprisingly I have today switched to another supplier at a slightly better rate.

Former_E.ON_Company_Representative:_Malc

skiking wrote: »

Thanks Malc for the comments.

Yes, my bill has been in debt for sometime - basically from the first few months of moving over to E.ON which made me think the salesman's promise of cheaper fuel if I moved was bull! I also wasn't aware it was my responsibility to contact E.On to get them to adjust my DD before I got into an almighty mess. Something that your customer services have pointed out to me. I can't believe after all these years that the policy of reviewing monthly DD is only just coming into effect but it has always been in the company's interest rather than the customer.

Most of my readings have been actuals rather than estimates.
The over charging is based on me being on an On-line account but I didn't understand that you needed to register on your Website to gain the 11% discount. It appears you don't remind customers that they are missing out on this saving - however, why would you, you are making the 11%!!

So, you don't review customers accounts - sorry, you've just started doing that - and you don't show customers how they can save money by moving tariffs or at least remind them to register on the web site to save. What do you do for the customer ?

I have contacted customer services and even after speaking to a 'manager' all you were able to offer me was a £20 refund - I politely declined that!
Its a shame there is no body that overseas these power companies.

Hi skiking

Although a Direct Debit review following each bill is a relatively recent initiative, we previously did review accounts. This was generally done on an annual basis.

Also, our bills should have alerted you to the build up of the debt. Any outstanding balance will have been highlighted on the first page. Were you receiving regular bills during the two years in question?

If your payment arrangement wasn't reviewed for two years then something was not right. As I said in my earlier post, in such an instance I would certainly ask for the resulting debt to be spread over a similar period.

The extra discount you mention is given for managing your account online.

When you chose this tariff you should have received a letter confirming the prices/discounts and including the Terms and Conditions. The letter will have explained the need to register with our website. This will also have been in the T&C's.

The amount of discount actually given will have been highlighted on any bills you received.

Although we need to provide accurate bills and information, customers also have a responsibility to ensure they keep a check on their accounts and talk to us when things appear to be wrong or changes are needed. The earlier we are aware of a problem or issue the greater the chance to fix it before it becomes a nightmare.

If you are unhappy with anything we have done/not done please let us know. Ask for a complaint to be raised. If, after 56 days, you feel we have not put things right or given an adequate explanation you can refer the matter to the industry regulator, Ofgem.

Hope this explains things a bit better skiking. Let me know if I can help further.

Malc

Former_E.ON_Company_Representative:_Malc

AllTheKs wrote: »

I pay by DD because it's a lot cheaper (approx £20 per month compared to ebico).

Nonetheless, I have just had massive arguments with EON over their increase in my DD by 57% when, over the last year I have paid almost exactly what my gas and elec have cost.

Despite talking to the moron, the moronic superviser and finally the moronic manager, it seems that EON are rqeuiring all customers to pay them for approx 2/3 of their energy over a year IN ADVANCE.

I have a CREDIT meter. That means that I should pay for energy AFTER I have received it. Of course I don't mind paying a bit in advance of the winter so that the cost of finance is shared but EON have made my blood boil with their total intransigence and rufusal to accept that their (new) DD policy is totally inequitable.

Unsurprisingly I have today switched to another supplier at a slightly better rate.

Sorry you were unhappy with the advice given by my colleagues AlltheKs.

I have outlined our Direct Debit policy in post 59 on this thread. This may be of interest.

There certainly will be periods of the year when accounts are in credit. This is one of the reasons we give discount for paying by this method.

On the other hand, there could be times when accounts are in debit.

We try and base the amount collected on actual usage. This is far from an exact science though, especially given the variables involved with changing patterns of consumption during the year.

An increase of 57% does seem a lot. Has there been any estimated bills leading to a catch up once actual readings were available?

It may have been your Direct Debit was set too low and now needs to be re-adjusted following a revised picture of your usage.

Theoretically, as we are about to go into winter, there should be credit on your account now. This will be to offset higher winter bills. However, you say you have paid almost exactly what you have used. Does this mean there is no or very little credit on your account?

If this is the case, this does suggest your Direct Debit was set too low previously.

I know you are about to leave us AlltheKs, but thought the above might help shed some light on to your particular circumstances.

Malc

mattcanary

All the Ks, you do pay in advance by DD. If you move into an address and set up a DD, your firts payment by DD will normally be before you get a bill (well, statement actually). Even if that is not the case, your next DD payment will be before you get your next statement. You therefore do pay in advance of your knowing what you have used. That is the key thing.

dogshome

ToMalc of EON Throughout this thread you have several times said that Eon gear Direct Debit Payments to a level that will show a zero Credit/Debit balance at the time of your Annual Review in the Spring. This is not the D/D system whereby a customer pays for his annual consumption by 12 monthly D/Debit payments. Skint Gypsy, having joined you at the start of Winter is victim of Eons unique interpretation of monthly D/Debits and is being
forced to pay a sum that Eon have worked out will totally cover his winter fuel costs by the Spring - meanwhile of course new customers who joined you in Spring 09, will have built up a large amount of money with Eon that won't be called upon till late winter. You used the phrase 'Swings & Roundabouts" in one of your posts - To take this literally it is Eon who are enjoying both of these rides and it's the customers who are paying for it whilst standing as spectatators.
To Skint Gypsy You say you kept Meter readings when with Scot. Power and know your annual consumption figures. Please, please, please - don't let Eon get away with it. Work out the annual cost for your consumption on your tariff with Eon and divide it by 12, and if there is a difference of more £5 a month, Write to Eon with your figures and head the letter Complaint

KimYeovil

mattcanary wrote: »

All the Ks, you do pay in advance by DD. If you move into an address and set up a DD, your firts payment by DD will normally be before you get a bill (well, statement actually). Even if that is not the case, your next DD payment will be before you get your next statement. You therefore do pay in advance of your knowing what you have used. That is the key thing.

Nonsense. There are objects with numbers and dials called meters that you can locate in your home. You know from day one how much you use. Most new accounts delay the new direct debits by a month or two - you in fact are more in danger of underpaying because of the delay before the debits start.

But AlltheKs is also talking nonsense. The reason you get a cheaper deal for paying by direct debit is because you pay in advance. 12 monthly direct debit transaction fees are not £100 or £240 cheaper than 4 quarterly post office counter transactions.

Chrysalis

King_Sentinel wrote: »

What I mean is it will leave me with less than is going into the account after other obligations, one way or another I'll be going to court, either with Eon or any number of other companies, or all of them.

Chances of Eon cutting me off with 2 kids in the house....zero.

I think I'd take my chances v Eon than say Barclays or my mortgage company.

I feel for you, it is stressful no doubt.

If you went to court, they would likely allow you to pay off in smaller chunks over a longer period of time but.....

It will almost certianly mean a pre payment meter meaning more expensive electric and a CCJ. Eon can choose to stop supplying you at any point regardless of how many kids you have.

Your usage seems very high I cant imagine you cannot cut down on whatever you using, what type of boiler do you have? if its one of those where it needs to be on for a while before baths etc. then try and use it more sparingly eg. everyone having baths one after the other. My sister used to wash her dishes in cold water, things like that to save money have to be done.

I am not using any heating probably until december, disciplining myself, will wear jumpers etc. but bear the cold as I live within my means.

If you suspect your meter is not accurate then turn things off etc. and watch it, as is possible you have meter accuracy issues as well.

mattcanary

Kim, you've contradicted yourself in your post. You either pay in advance or in arrears. Not both!

Geoffo_M

E.ON_Company_Representative:_Malc wrote: »

Sorry you don't like our current Direct Debit review policy Geoffo.

As I said in response to glossgal, it has been based on customer feedback. However, I do understand it may not be for everyone and am happy to feedback yours and glossgal's views.

Malc

Malc - I've no problem with your current DD review policy, but the calculations your system makes are highly inaccurate. My annual consumption at current prices divided by 12 is never anywhere near Eon's calculation - and there are no arrears. Shouldn't moan, cos it all comes out right in the end, but I just don't like paying far too little one quarter followed by far too high the next.

skiking

Malc of EON.

Your response is of a similar vain to the people I have already spoken to at EON - all clearly singing from the same customer services script.

Yes my bills have shown a build up of debt which surprised me nothing was done at least a year ago. But why is it my responsibility to tell you I am building up debt ? What is it you do apart from send out a bill. You don't supply the gas/electricity and now you are telling me I have to tell you to raise my DD payment. I don't know how your policy of getting to zero at the end of the year works or how you balance the seasonal usage. I thought E.ON managed my account.

As for registering on the website, if I had known about it I would have done it as I am computer literate and manage most of my other transactions over the web and especially as I'm tight as a ducks whatever I don't knowingly waste 11% discounts. So if it was sent out it wasn't obvious and I wouldn't be wanting to wade through pages of small print/T&Cs.

As can be seen through this forum and many others there is some 'sharp' practice within the power utilities. Unfortunately there is no organisation with a spine to regulate them and initiate best practice to protect the customer and as this type of practice provides a revenue stream its not in their interest to reform.