EON raising monthly DD

gocat

Just got a letter saying EON plan to raise my DD from £75per month to £90 from the end of this month.
Just had my last quartely bill last week and balance at last bill is £140 credit. So why the DD price rise?
Anyone else experienced this?

amersall

gocat wrote: »

Just got a letter saying EON plan to raise my DD from £75per month to £90 from the end of this month.
Just had my last quartely bill last week and balance at last bill is £140 credit. So why the DD price rise?
Anyone else experienced this?

Hi there, give them a ring and ask. If you are in credit then i see no reason for hiking your dd.

macman

Because your bills will start to soar with the onset of winter, and they judge that your DD and current credit is not high enough to see you through the winter without building debt.

gocat

macman wrote: »

Because your bills will start to soar with the onset of winter, and they judge that your DD and current credit is not high enough to see you through the winter without building debt.

So they do this to everyone? Even when they are in credit?

macman

Depends on the level of credit. £140 credit (if this is on a supply used for heating-you didn't say) is hardly going to be sufficient to take you through the winter-about 80% of your annual CH gas consumption (if that's what you have) will be during the 4 coldest months.

DirectDebacle

gocat wrote: »

Just got a letter saying EON plan to raise my DD from £75per month to £90 from the end of this month.
Just had my last quartely bill last week and balance at last bill is £140 credit. So why the DD price rise?
Anyone else experienced this?

So they are wanting to increase your DD by 20%. If they have reviewed your DD by comparing your anticipated usage over the coming winter to be the same as your usage last year, then they may feel justified. As last winter was the coldest for around 30 years many customers consumption may have 'spiked' around 20% compared to a more usual year.

Just because you do not appear to some posters to have much credit as winter approaches does not necessarily mean your DD is too low.

A DD is an agreement to smooth out bills over the year and as such both the supplier and the customer accept that there will be periods when the account is in credit and others when the account is in debit.

Without knowing your annual usage, its cost and the anniversary date of your DD it is impossible to know whether your DD is correct or not. You need to know this information before you argue the correct level of the DD with your supplier.

gocat

Yes Im with EON for gas and electric and yes does include heating with gas.
Thought fuel prices now are cheaper than they were a year ago. Also was in credit after each of the quartely bills for the past year. My EON bill for the same quarter last year (aug09/nov09 was £80 more expensive than this years same quarter, as it was the previous year (2008 but we didnt have wall and loft cavity insulation that year)
Have emailed them to explain why they want to increase the charges.

Just wondered if they did this to everyone at this time of year as maybe EON know prices are going to rise steeply :eek:

macman

Steep price rises are likely to be announced for the remaining four of the 'big six' any day now.

KimYeovil

DirectDebacle wrote: »

A DD is an agreement to smooth out bills over the year and as such both the supplier and the customer accept that there will be periods when the account is in credit and others when the account is in debit.

That is no longer true. Most suppliers now expect customers to always be in credit.

£200 extra is not very much to cover winter for most people.

DirectDebacle

KimYeovil wrote: »

That is no longer true. Most suppliers now expect customers to always be in credit.

£200 extra is not very much to cover winter for most people.

Well it is true of my supplier and should I switch to a supplier that insists on abusing the DD scheme I will strongly argue against it. The OP has £365 to cover the next qtr.

Cardew

If you talk to EON it is quite possible that they will agree to your DD staying at £75 as long as you appreciate that you might emerge from the winter in debt. For the sake of £15 a month it is not worth them arguing.

These increases are simply worked out by a computer program which calculates that is the correct level of a DD. The letters are then dispatched without any human intervention.