Rip off DDR set up for EON electricity

Electricrose

I am on Eon standard tariff, paying by cheque quarterly. I want to move to saver tariff with a DDR. This gives a 6% reduction on my current charges. OK so far. DDR set up page, the monthly total I will be 'charged' for EON over 2 yrs and my usage is well established and consistent.

Why is this and is it legal. Why should I top up their capital fund (costing me interest) and earning them interest?

I want to use a cheaper on line tariff to "save money" so they tell me, but am being penalised for this.

Hope you can help. :mad:

Cardew

DDR set up page, the monthly total I will be 'charged' for EON over 2 yrs

Not understood I am afraid.

If you have well established and consistent usage,(say £1200 for the sake of argument) then your payments will be £100 a month.

However the companies have a review date normally in Spring when the balance should be zero, So setting up aa DD payment now with the winter ahead will mean a much higher payment than £100. In the Spring it will be reviewed.

By the way you get 6% discount for all your gas and electricity. So on the hypothetical £1200 you get £72 discount. If you pay a little extra for a couple of months it will cost you pennies in lost interest.

Of course you don't have to pay by DD.

Former_E.ON_Company_Representative:_Malc

Hi Electricrose

Like Cardew, I'm afraid I'm also unsure as to your query/complaint/question.

All our current online tariffs are conditional on managing your account online and paying by Direct Debit. The level of discount will depend on the region you are in but will certainly be more than 6 per cent.

Are you looking at the discount for a standard electric only tariff (without online management) but with payment by Direct Debit? This is currently 6 per cent.

Is it the level of the monthly payments you are unhappy with? If so, Cardew has given a very good explanation of our policy in respect of this to which there is very little I can add.

If you let me know a few more details, I'll do my best to provide an explanation. Drop an email to the address in my Profile if you prefer.

Malc

Pincher

E.On is LOSING 6% to encourage you onto DD.
If that's not enough, you don't HAVE TO go on Direct Debit.