Eon are RIPPING me off!!??

nicsonian

In January of this year (2009) I recieved a letter from Eon warning that I should contact them immediately as I possibly had a very high Gas bill. Having paid £64 per month, every month, for atleast 3 years, I was sceptical.

Upon contact, it transpired that when Eon took over from Powergen who were my original supplier they made a mistake with the meter serial number that had been input on their system. After providing the correct serial number and an up to date reading, I had to wait 4 weeks for "their systems to work out what was owed". I then received a statement detailing that my account was over £300 in CREDIT, 2 days later I recieved another statement detailing that my account was over £400 in DEBIT. I made a complaint and 2 weeks later recieved what they said was a final bill backdated over 2 years and the final balance stated that I owed £356.

On closer examination I noted that in some quarters Eon were estimating that I was using in excess of £600 worth of gas (£150 per month), which when you consider I only have a combi boiler and no gas fire or gas cooker is rather ridiculous.

I made a thorough complaint having taken advice from the ombudsman, and pointed out that if they had the wrong serial number and therefore completely the wrong readings what were they back dating their calculations to. Shorly you need a start point to calculate a definite total. I also pointed out my rights under the billing code and asked for all calculations prior to 12 months before the recognition of their mistake to be removed. I also asked that they monitor my average usage between January and June to ascertain a reasonable estimate with which to backdate. I had no response to these complaints and simply recieved more and more inflated bills and eventually a bailiff visit in July requesting that I pay over £700.

Sticking to my guns I have refused to pay a penny since January. Having provided Eon with my up to date readings, it transpires that I have only used £185 worth gas in 8 months which is obviously no where near their £600 per quarter estimates.
I sent updated complaints correspondence to Eon in September. They have honoured the billing code and knocked off calculations beyond 12 months prior to January which has knocked £370 off my final bill. Meaning that they now want £282 which after 8 months of non payment and further usage is less than what they originally wanted in February. However, they have ignored my requests to review their overly exagerated estimations, stating that they are happy all estimates are accurate. I still feel that they are grossly ripping me off, and are making it up as they go along and will continue the fight with support from the ombudsman. If I hadn't complained and questioned this then by now they would have not only taken the £2304 paid by direct debit in the previous 3 years, but would also have taken a further £1000 plus. Thats more than £3000. If my average usage is anything to go by then my bill is more like £300 per year and £900 in total meaning that Eon have already ripped me off by more than £1400, and if they'd have had their way it'd be over £2000.

This matter isn't settled and will continue (your advice would be appreciated), but more importantly this situation makes me ask how many other households are Eon and the other energy providers doing this sort of thing to? My guess is thousands, if not millions and I'd say that equates to millions of pounds worth of fraud each year! Something needs to be done...

amcluesent

>Sticking to my guns I have refused to pay a penny since January<

IMHO, that weakens you case by withholding payments for what you ARE using.

I'd pay what you do owe, then send a letter (registered post) addressed to the Chief Exec's office, setting out that you want to make 'reasonable' payment in full and final settlement for the disputed period equal to what you used after the metering was sorted. State that you are prepared to make this payment if they accept within 14days this as full and final settlement of the outstanding debt, otherwise you will continue dispute with ombudsmen etc.

Add that as they've admitted a billing error, you are considering opening a Small Claim for all your costs, but as 'goodwill' you will not take this approach if they agree.

Premier_2

Surely this is easy for you to calculate.

If you've received a final bill from Eon, that presumes you have changed supplier.

1) Look at the start reading from your new supplier.

2) Then look at the last reading on the bill prior to the final bill from Eon (and include any outstanding balance at that point.)
If that reading applies to the wrong meter, keep going back until the reading applies to the correct meter - the old powergen bill if necessary.

3) Finally add the cost of the difference in meter readings from the final reading in (2) to the start reading in (1) to the outstanding balance(if any) in (2).

That's what you owe.

The 1 year back billing rule will not apply because of usage discrepancies based on estimated readings.

nicsonian

IMHO, that weakens you case by withholding payments for what you ARE using.

My point is, that by my calculations Eon have grossly over charged me in the previous 3 years and I believe quite strongly that they owe me money to a sum that more than covers what I have used in the last 8 months. So your saying pay them and then hope that they give it me back??

Surely this is easy for you to calculate.

If you've received a final bill from Eon, that presumes you have changed supplier.

1) Look at the start reading from your new supplier.

2) Then look at the last reading on the bill prior to the final bill from Eon (and include any outstanding balance at that point.)
If that reading applies to the wrong meter, keep going back until the reading applies to the correct meter - the old powergen bill if necessary.

3) Finally add the cost of the difference in meter readings from the final reading in (2) to the start reading in (1) to the outstanding balance(if any) in (2).

That's what you owe.

The 1 year back billing rule will not apply because of usage discrepancies based on estimated readings.

My apologies for misleading you with the FINAL bill wording, I should have put my latest statement.

Eon have agreed to the 1 year back ruling already accepting that they were at fault for the cosmetic changes to their system. I have requested the last reading taken during the takeover from Powergen. However, Eon are saying that they don't have this reading. I don't personally have the reading as the change was more than 3 years ago and I don't keep my paperwork that long.

My argument rests on the above. With no original or reliable reading to backdate to, there is no way to calculate usage on current readings and therefore the only fair way is to estimate off current average usage.

You can argue that I should maybe have been more diligent in collecting accurate readings in the previous 3 years, but I felt happy that I was paying more than enough each month and that the only problem that could arise would be Eon owing me money!

Thanks both for taking the time to read...

ConsumerAndy

Powergen customers didn't 'transfer' to Eon. Eon bought Powergen and Powergen rebranded to Eon over a few years & the back end systems are the same.

This could have happened though if you were with one of the companies that Eon/Powergen bought e.g TXU where customer details were moved to Powergen/Eon systems.

Eon will have copies of all the letters, bills etc sent to you whilst you were on their systems. Maybe Malc can help?

But if you had an opening reading which was right and you now have a current bill which is correct, they will work out what you owe. The trouble comes with price changes though. How much of that gas did you use at what price? With estimated readings it is hard to tell.

I recommend that anyone whose supplier tells them of a price change (not a change in your direct debit, but unit price change) sends their meter readings in on the date of the change.

nicsonian

ConsumerAndy wrote: »

Powergen customers didn't 'transfer' to Eon. Eon bought Powergen and Powergen rebranded to Eon over a few years & the back end systems are the same.

This could have happened though if you were with one of the companies that Eon/Powergen bought e.g TXU where customer details were moved to Powergen/Eon systems.

Eon will have copies of all the letters, bills etc sent to you whilst you were on their systems. Maybe Malc can help?

But if you had an opening reading which was right and you now have a current bill which is correct, they will work out what you owe. The trouble comes with price changes though. How much of that gas did you use at what price? With estimated readings it is hard to tell.

I recommend that anyone whose supplier tells them of a price change (not a change in your direct debit, but unit price change) sends their meter readings in on the date of the change.

Thanks, that is really interesting information. I was told by the cutomer services people at Eon that the mistake was made during the "change over". I had been with Powergen for some years before Eon bought them and never questioned what was happening during the takeover (as you wouldn't). I did find it odd that they apparently didn't have record of old physical reading, but will now ask again and push the point further.