EON direct debit increase

JennyR68

E.ON_Company_Representative:_Helena wrote: »

DirectDebacle wrote: »

Hi DirectDebacle,

E.ON review Direct Debit payments and accounts in the spring, we don't have an annual review 12 months on from the date that the Direct Debit started.

Helena

What a bad set up, is this explained properly to people before they join you? The whole point of DD's I always thought was to make it easy for people to budget their monthly expenses! Not cause them problems they can't afford!

E.ON_Company_Representative:_Helena

QUOTE=JennyR68;29722045]I've just transferred to EDF on 27th of Jan, my first payment doesn't come out until 7th March. If they were to insist on a zero balance in May I'd be in a right pickle. QUOTE]

Hi JennyR68,

With E.ON, this is one of those accounts that would be reviewed the next spring, not two months later.

We do explain how the Direct Debit works, this is sent in a letter.

Also payment amounts can be changed at any time, as peoples usage does change, sometimes the account will be going in to too much credit or falling in to debit.

The customer can contact E.ON at any time to have the payment amount looked in to. We shouldn’t allow customers to fall in to large debts as this can only make this more difficult for the future.

Once there is a record of usage and no debt /credit on the account, the payment amount should be simple to calculate and only small adjustments would be needed for usage.

Helena

spiro

I am guessing that the point at which the company want your account to be at zero is at the end of their financial year to ensure everything they have 'sold' (you have used) has been paid for. Therefore regardless of how often or when they review throughout the year this will always be the target. Anything they have 'sold' that has not been paid for will fall into 'amounts due' which they dont want.

At the end of the day we get lower prices and fairly level payments from DD tariffs so I'm quite happy if they want me to be at zero in May or whatever month any supplier uses.

In my view anyone who expects they can pay for this winters fuel using next summers DD payments does understand the economics behind suppliers offering DD discounts.

I have seen other posts that always advise that if you are on DD and change suppliers at the start of the winter, don't spend the refund cheque because you will need it for the higher payments over the winter with your new supplier.

DirectDebacle

[QUOTE=E.ON Company Representative: Helena;29721903,

E.ON review Direct Debit payments and accounts in the spring, we don't have an annual review 12 months on from the date that the Direct Debit started........

Helena[/QUOTE]

Is this policy clearly explained to customers before entering into a DD scheme?
Is it set out clearly in E.ON terms and conditions?

When did E.ON introduce this policy?

Although the OP has not given their anniverary date, this policy seems to have taken the OP by surprise, having in previous years not encountered this problem. I suspect that the OP anniversary date is not May but later in the year.

In my view such a policy as E.ON have is not within the spirit or purpose that the DD scheme was introduced.

E.ON policy is that the customer from May to April should be in a constant state of credit with E.ON. The DD scheme was not set up to provide energy companies with a constant line of interest free credit.

spiro

The DD scheme was not set up to provide energy companies with a constant line of interest free credit.

How/why do you think they offer better discounts for DD than most other payment methods? Simple - because you have built up a credit in the summer ready for the winters higher consumption not the other way round.

E.ON_Company_Representative:_Helena

Hi DirectDebacle,

When you come over to E.ON and if you decide to have a Direct Debit, the customer would agree an amount to pay monthly.

The details of the Direct Debit and policy would be sent out in a letter.

The spring review started around April last year, this was changed due to feedback from customers requesting not to left in debt after winter bills, as this then left them with much higher payments to pay back the debt.

As others have said, you will also receive a Direct Debit discount.

Helena

plumfin

Helena, EON actually reduced my dd in November to £50 from £61, and before that from £90. If EON are so concerned for my being able to budget, why would they change the dd amounts? It does seem as if I have to pay to clear EON's books down for a review I don't actually want and has only got negative effects on me.

I did explain in great detail that I could not afford the £142 payments and the man was not able to amend them. Tough - nicely, but tough was the message.

E.ON_Company_Representative:_Helena

Hi plumfin,

I will be happy to review it again for you, just use the email address on the left under my name.

It sounds like your consumption has had a bit of a jump with the cold snap and this has left you with a balance.

Helena:)

plumfin

Ok thanks, have emailed my account number over to you

DirectDebacle

spiro wrote: »

How/why do you think they offer better discounts for DD than most other payment methods? Simple - because you have built up a credit in the summer ready for the winters higher consumption not the other way round.

Wrong.

The DD discount reflects the fact that DD is a cheaper way to collect payment than other methods. This saving for energy companies is passed on to customers via the DD discount. The discount remains the same whether the account is in credit or debit.