E-on want to increase DD, can I refuse?

skintnutta

Hi, had a letter from E-on last week stating they were increasing my monthly DD from £79 to £103, a 30% increase! I think I have the right to refuse this as I have done once before but when I phoned them they said no I don't have the right to refuse and I would have to cancel my DD, change my tariff and lose the discounts of paying by DD. For my latest bill I'm £70 in debit to them, which wil be paid by my next DD on the 1st March. Does anyone have any suggestions as I'd like to keep it as it is, especially with Spring round the corner.

Thanks.

Cardew

Eon are correct.

You sign a variable Direct Debit that allows them to change the amount without your agreement - as long as you are notified in advance.

That said you can discuss your DD with EON and if you can present a reasoned argument why it shouldn't increase, they would probably agree.

However if you are £70 in debit on your last bill(with some cold months to come), it seems that an increase in DD is inevitable.

skintnutta

Thanks for that. I'm an eternal optamist when it comes to the weather!! I'll try phoning them again.

E.ON_Company_Representative:_Helena

Hi skintnutta,

Cardew has given good advice already, but thought I would just add a little.

As your account was in debt at your last bill, it sounds like E.ON have increased your payments so your account has a zero balance for your spring review.

You could pay off the balance and ask for the Direct Debit to be re-calculated to cover your usage only.

It has been an exceptionally cold winter so far and we may have more to come, so the balance may build up further if the payments aren't adjusted.

Let me know if you need any more info.

Helena

allanh114

I too have received a letter wanting my Eon account to be set to zero from spring. Hence I have been given notice of a big hike in the monthly direct debit. BUT I switched to Eon a couple of years ago in September and when it comes to September this year, my account will be at zero!! YET they want accounts to be at zero in spring....this means that depending on when your initial direct debit value is set, its going to go up!!!

Eon have informed me on the phone that my usage meets with my direct debit, BUT as they review and want accounts to be zero in Spring, I have a 30% monthly hike for 12 months to pay the difference between Spring and September!!!! :mad::mad::mad:

This must happen to loads of people, and the comparison sites should be altering the monthly direct debit values (depending on what month it is) to compensate for accounts going to zero in Spring???

AllanH

KimYeovil

allanh114 wrote: »

I too have received a letter wanting my Eon account to be set to zero from spring. Hence I have been given notice of a big hike in the monthly direct debit. BUT I switched to Eon a couple of years ago in September and when it comes to September this year, my account will be at zero!! YET they want accounts to be at zero in spring....this means that depending on when your initial direct debit value is set, its going to go up!!!

Eon have informed me on the phone that my usage meets with my direct debit, BUT as they review and want accounts to be zero in Spring, I have a 30% monthly hike for 12 months to pay the difference between Spring and September!!!! :mad::mad::mad:

This must happen to loads of people, and the comparison sites should be altering the monthly direct debit values (depending on what month it is) to compensate for accounts going to zero in Spring???

AllanH

'So?' to your first two paragraphs and 'nonsense' to the third.

What is important is the cost. The size of the instalment is almost irrelevant. If anything you will have benefited - you did not notice the cost when you joined so will now face lower instalments until they are adjusted accurately.

Of course if you join late summer then you are open to call for a longer period (that is two springs later rather than next spring - but that includes two winter sessions and only one summer.)

The system should not be adjusted to accommodate the fickle.

Former_E.ON_Company_Representative:_Malc

Hi AllanH

Thought it might help if I explained our Direct Debit policy. As Helena says above, we aim for zero balances by the time of the annual Direct Debit review in the spring.

If you joined us in September two years ago, your first payments would have been calculated over the September to spring period. After that, it would go from Spring to Spring.

As your payments are increasing now, it looks as though your usage may have gone up.

I would check your meter readings. Make sure we are billing to accurate readings. If not, let us have the readings and your account will be re-billed accurately and the Direct Debit reviewed to reflect the actual usage.

As well as at the annual review, we also check Direct Debits after each scheduled bill. If the payments are too much/too little, we'll alter the payments accordingly. Therefore, if your usage comes down over the next 12 months, so will your payments.

Another thing to be aware of; if there is a debit balance on the account, this will be included in the monthly payments and spread over a set period. Not saying this is the case with your account; just something to be aware of.

Hope this sheds a bit more light on to our Direct Debit policy AllanH. Give me a shout if I you need any more details as will be happy to help.

Malc