Eon con

Premier_2

scoobysi wrote: »

Do I still get the cheapest deal/tarrifs if I move onto variable direct debit?

My whole issue is that to get the cheapest deal I'm forced to be on fixed monthly direct debit, if this is not the case then great. I suspect this isn't the case though

Si

So what you want is all the discounts the supplier can offer customers for agreeing to pay by the most cost effective method and that helps the suppliers cash flow position ... but without giving the supplier those abilities to save (and therefore the ability to pass on those savings)?

Have you considered Ebico? They seem to provide just what you want. The same price for energy no matter how you elect to pay for it.

Former_E.ON_Company_Representative:_Malc

DirectDebacle wrote: »

This is an example of energy companies abusing the D.D. system. It was introduced as a means of evening out bills over a year to avoid the shock of a large winter bill, amongst other things.

For it to work correctly the usage has to be averaged out over a year from the time the customer joins the company, i.e. the anniversary date. It also requires that during the customers year there will be times when the account is in credit and times when it is in debit.The aim of achieving a zero balance (or as close as possible) by the end of the customers year is the target.

By arbitarily setting an anniversary date in the spring the energy companies are aiming to be in credit throughout the year. This is against the spirit of the D.D. scheme and can lead to customer detriment.

Joining a company, with such a policy, in September, for example, will mean paying for almost a full years energy in the space of six months if a zero balance is to be achieved by the end of March.

I am not a customer of E.ON. I know my annual usage. Would E.ON inform me if I were to switch to them (in September) that my D.D. would be x% more than with my present supplier even though E.ON prices were cheaper (the only reason I would consider switching).

Would this show up on a comparison site? Or would the site work out the cost of my kWh over a year and divide by 12 to show me the monthly D.D.?

Not surprising there are so many complaints about D.D. when companies move the goalposts to advantage themselves.

Hi DirectDebacle

You are absolutely correct, in that, setting up a Monthly Direct Debit part way through a year will initially result in higher payments leading up to the first spring review.

We will calculate how much we think you will use between the start date and spring. This will then be spread over the number of months leading up to the review. This is generally done between April and June.

As there will probably be no credit on the account the monthly payments will usually be higher.

I agree, this will mean paying for the full amount of energy used over the number of months it is used prior to the first review.

However, after the first review, payments will be re-set to reflect usage but spread over 12 months. Following this, Direct Debits will continue to be averaged out over 12 months.

Any credit remaining on the account at spring will be refunded. Likewise, any debt will be included in payments going forward.

Not sure how this is shown on the various comparison sites; you will need to take this up with the individual companies.

I outlined our Monthly Direct Debit policy in a different thread on 23 July 09 (post 59). Don't know if this is of interest Direct Debacle, but I have put the link below just in case.

http://forums.moneysavingexpert.com/showthread.html?t=1799305&page=3

Hope this answers your question. Give me a shout if I can help further.

Malc

Former_E.ON_Company_Representative:_Malc

Consumerist wrote: »

I entirely agree with you.

I challenge the representative from E.on B]Company Representative: Malc[/B to give us the ratio of the average amount of customer debt to the average amount of customer credit over the year (ignoring those in financial difficulties, so as not to unreasonably skew the figures). One would expect the ratio to be about 50:50 but I've never heard of anyone on direct debit being in debt (except perhaps in their first year).

This is certainly a question that the Regulator should be asking. And we should be asking the Regulator for the figures.
.

Hi Consumerist

Unfortunately, there are very many instances of customers who set up Monthly Direct Debits but whose accounts run into debt.

This is one of the reasons why we are constantly monitoring and reviewing our Direct Debit policy.

We have millions of Direct Debit arrangements in place at any one time. Most subject to a number of variables like different collection dates, start dates, review dates, etc.

Consequently, I'm afraid it's not possible to give you a snapshot for any single point in time as to the ratio between debt and credit.

Regretfully, therefore, I must decline your challenge.

Malc

scoobysi

Premier wrote: »

So what you want is all the discounts the supplier can offer customers for agreeing to pay by the most cost effective method and that helps the suppliers cash flow position ... but without giving the supplier those abilities to save (and therefore the ability to pass on those savings)?

Have you considered Ebico? They seem to provide just what you want. The same price for energy no matter how you elect to pay for it.

What a load of tosh, you do realise this is a forum to help consumers save money, not multi-national companies ! I want to pay for the energy I use, no more no less. I don't want an Energy Supplier earning interest on my money.

Former_E.ON_Company_Representative:_Malc

scoobysi wrote: »

Do I still get the cheapest deal/tarrifs if I move onto variable direct debit?

My whole issue is that to get the cheapest deal I'm forced to be on fixed monthly direct debit, if this is not the case then great. I suspect this isn't the case though

Si

Hello again scoobysi

Discounts for payment by Variable Direct Debits are lower than for payment by Monthly Direct Debit. So, no, I'm afraid a Variable Direct Debit will not qualify for our cheapest tariffs.

As I said earlier, Monthly Direct Debits are our preferred payment option. They give us a more predictable cash flow and a significant decrease in collection costs. This enables us to pass savings on to customers through higher rates of discount.

Currently, our discount rates for Monthly Direct Debits are higher than a lot of bank interest rates. Also, we do not charge interest on debt balances.

As Premier says, there may be tariffs that better suit your requirements available with other suppliers. I would pop your details on to one of the comparison sites and see how we do.

Just a heads up scoobysi; if you decide to switch supplier please be aware, we don't give discount on final bills. Therefore, you may want to time a switch to lessen the impact of this.

Again, give me a shout if you need any more info. Will be happy to help.

Malc

Consumerist

E.ON_Company_Representative:_Malc wrote: »

Regretfully, therefore, I must decline your challenge.

Frankly Malc, this was said rather tongue-in-cheek and I didn't expect any response.

In truth, I suspect such data would be regarded as commercially sensitive and although it is probably generated by the company for its own analysis (contrary to your suggestion), it wouldn't be made public.

As I've said above, at the end of the day the customer must decide whether the savings in energy costs are worth the price of the direct-debit surpluses the energy companies demand. At the moment I think they probably are. As for the future, we'll see.
.

scoobysi

E.ON_Company_Representative:_Malc wrote: »

Hello again scoobysi

Discounts for payment by Variable Direct Debits are lower than for payment by Monthly Direct Debit. So, no, I'm afraid a Variable Direct Debit will not qualify for our cheapest tariffs.

Most utility companies (except Elec & Gas) operate on a variable DD scheme. Why if each month I pay my bill on time and in full should I have to pay more than those on Monthly DD?

E.ON_Company_Representative:_Malc wrote: »

As I said earlier, Monthly Direct Debits are our preferred payment option.

Exactly, EONs preferred payment option, don't worry about the customer. Before you say I have a choice, I don't if I want the cheapest price on offer.

E.ON_Company_Representative:_Malc wrote: »

Also, we do not charge interest on debt balances.

I don't have a debit balance.

E.ON_Company_Representative:_Malc wrote: »

As Premier says, there may be tariffs that better suit your requirements available with other suppliers

I'm happy with my tariff, that's not the issue. Don't worry I check my options regulary and move as and when. As a business what EON (and NPower before) are failing to recognise is that if they were more flexible with payment options I'd be more likely to stay as a customer. It costs a lot more to find a new customer than keep an existing one.

E.ON_Company_Representative:_Malc wrote: »

Just a heads up scoobysi; if you decide to switch supplier please be aware, we don't give discount on final bills.

Well that's fantastic, well done EON, nothing like ensuring that if I leave I'll never come back. Thanks for the heads up though Malc, appreciated :T

Thanks for your time Malc but our conversation is going nowhere, it's the same company line spouted by all Elec & Gas companies.

I'm finished on this subject.

Si
:santa2: