Bit annoyed with Eon...can I refuse DD increase?

*onlyme*

I am with Eon and billed quarterly but pay monthly by Direct Debit (dual fuel). My direct debit payments are £57 a month.

My direct debit payments come out the 7th of each month.

Yesterday I had an email from Eon asking to submit meter readings, which I did, even my online account was showing the bill was not due till the 18th May.

I was about £4 in credit when I was last billed in February, which I didn't think was bad, specially with the cold winter we had.

So this morning, Eon have done the new bill based on yesterday's meter readings and I am £72 in debit.

Therefore they now saying my direct debit should be increased to £68 a month. They have obviously not taken my payment for May into account, which is due to come out on Friday, which then leaves a debit balance of £15.

I am sure that £15 will be absorbed over the next few months when we use less gas & electric.

Do I have to agree with Eon increasing my direct debit or can I argue this as I do not feel they have been fair and looked properly at my account.

E.ON_Company_Representative

Hi *onlyme*,

You don’t have to agree with the increase, and you do have the right to ask for explanation behind the calculation, I’d certainly do this before I’d do anything else.

My personal opinion is that the review will be correct in ensuring you don’t end up with a debit balance at the same time next year, which is our aim. The May payment will have been taken into account as part of this. Of course the figure is based on forecasted charges and may change over the course of the next 12 months.

However as you have questions I urge you to contact us and ask for details of how the new amount is calculated.

Brian

KimYeovil

If you were only £4 in credit 7 Feb then that's a whole two months left before the zero balance date (1 Apr). You would have used more than £57 Feb and Mar (indeed, you seem to have used about £91 per month).

The 7 May payment not being included is irrelevant - unless the payment for 7 May 2009 was not included in their calculation.

You could claim you should only have an increase to £63 or £64. But that depends on the price history over the last year - were the prices the same or have they changed? Do you have your annual consumption figures - have you applied current prices to them to check what you should pay?

hellow_2

maybe they got the meter readings the wrong way round

dogshome

Hi *onlyme* - The thing about monthly D/D's is that after 12 payments they should equal the yearly cost of your Utilities.
So if you started the account on 15th August 2009, on August 14th 2010 your account would ideally have a zero debit/credit balance

However the providers have tried to scew the system by pushing customers to achieve a zero debit balance in the Spring, so our customer who started D/D's in August will get pressured to zero his the account some 4 months prior to the annual anniversary.

Look at your joining date to check if your D/D's will clear the years bills on it's anniversary, and if it does, write to your supplier with the fgures and deny them the mandate to increase your D/D's
Good Luck

Premier_2

dogshome wrote: »

... write to your supplier with the fgures and deny them the mandate to increase your D/D's
Good Luck

Be careful!

All DD mandates are variable and so the supplier has the right to vary the amount (increase or decrease) at any time (as long as other rules are adhered to such as providing the correct Advance Notice).

But as the Eon rep says, you can ask for an explanation of the change and/or try to agree a different amount to that proposed.

However, if you cancel the mandate, then that may affect any discount you are entitled to for agreeing to pay by DD or worse still put you in breach of contract for the tariff you are currently on which may result in the supplier billing you at their (more expensive) standard rate.

XXXX

I have the same DD problem with edf, totally unacceptable...

Our latest quarterly electricity bill balance is only about £47 outstanding, but they increased the DD to £28 per month recently. Why should I pay £28X3=£84 in the next 3 months almost double the outstanding balance?

When I called in yesterday, the staff in edf demanded me to pay off the balance in full if I wish to reduce the monthly DD. If I pay off the balance in full, why should I still be paying them DD every month before the next bill in 3 months? DD is not supposed to be prepayment! But, edf insisted on that they are not demanding prepayment.

According to their letter, you will only get a payback when your credit balance is more than £150. They are just far too happy to increase the DD to pool up the prepayment but not so much to reduce DD or refund the excessive amount. :mad:

Looking for switching soon...

KimYeovil

XXXX wrote: »

I have the same DD problem with edf, totally unacceptable...

Our latest quarterly electricity bill balance is only about £47 outstanding, but they increased the DD to £28 per month recently. Why should I pay £28X3=£84 in the next 3 months almost double the outstanding balance?

What is the cost of one-twelfth of your consumption last year at this year's prices? If there is a significant difference, then complain. If not, pay up.

XXXX wrote: »

When I called in yesterday, the staff in edf demanded me to pay off the balance in full if I wish to reduce the monthly DD. If I pay off the balance in full, why should I still be paying them DD every month before the next bill in 3 months?

Why shouldn't you?

XXXX wrote: »

DD is not supposed to be prepayment!

Yes it is. Why else do you think you pay less? If you don't want to prepay via direct debit then change your payment method (and consequently pay higher prices.)

XXXX wrote: »

Looking for switching soon...

Good luck with that. Pay higher prices or end up in the same position with your new supplier.

noapron

Scottish Power tried this with me ages ago - so I dug out the previous year's bills. I called them pointed out my bills were not about to double and that as I paid by dd, I did not think it right to 'take the opportunity' to raise my monthly dd without recourse to simple maths. The reply - it was a mistake, a computer glitch. Felt more like company policy to me.

XXXX

KimYeovil wrote: »

Good luck with that. Pay higher prices or end up in the same position with your new supplier.

Thanks for your 'inspiring' pessimism...

kjsmith7

XXXX wrote: »

Our latest quarterly electricity bill balance is only about £47 outstanding, but they increased the DD to £28 per month recently. Why should I pay £28X3=£84 in the next 3 months almost double the outstanding balance?

Remember that you'll also use electricity over the next 3 months. So whilst it'll put you into credit, that credit will be eaten up by your consumption.