EON increasing direct debit

jmcdyre

Hi everyone

There seems to be a few having similar problems with Eon increasing direct debits, and I cannot still understand why they are adamant that they are increasing ours.

We signed up in August last year and our agreement ends August this year. We are currently under our originally supplied kwh usages for gas and electricity, yet they want to increase our direct debit from £60 to £69 per month (not a massive difference I know but it's the principle).

I'm told this is to reduce our debit balance of ~£110 so that we will be in credit before the winter. Firstly, we don't plan on staying after August as we change regularly. Secondly, why do we need to build up a credit balance, surely as long as our direct debit covers our annual usage by the end of the agreed term that must be sufficient.

I was under the impression that paying by direct debit is to even out the payments over the year, regardless if at some point the account goes into debit. Given that we're on track to be (just) in credit by August, I can see absolutley no reason to increase the payments. Eon themselves are forecasting that for the year from May we will use less than we originally said when we signed up and the DD was calculated.

It's frustrating that they won't even listen to a reasoned and backed up argument - they said I could pay the debit balance off now and they'd reduce the DD, but isn't that massively missing the point of DD's? They should make it clear from the start that you need to build up a credit balance, in which case they'd have took a massive payment off us in August last year to cover the winter!!

Confused!

spiro

In 9 months summer/winter you have paid £110 less than you have used therefore they are increasing it by £9 to cover this debit and ongoing consumption over the next 3 months to bring your balance to £0. Doesn't sound too wrong to me.

jmcdyre

yes but that's the point, it will be zero/credit without them increasing it by August (12 months after we signed up), and I was working on the direct debit covering 12 months not 9 months. I'd have expected the balance to be in debit after winter if supply started in August, and recovered by the following few DD's at their current level and well under originally supplied usage figures...

Former_E.ON_Company_Representative:_Malc

Hi jmcdyre

Accounts are now reaching their annual reviews and are being adjusted for the next 12 months. Thought it might help if I gave you a brief outline of our Direct Debit policy.

Our aim is to achieve as near to a zero balance as possible by the time of the next annual review in 2012.

To do this, we look at the past usage and calculate how much we expect you to use over the next 12 months. Additionally, any debit balance on the account will be included in the calculation and similarly spread over the next 12 months.

Given the figures posted, I suspect this is the case with your account. The difference of £9 per month will clear the balance on your account by the time of the 2012 review; whilst the £60 will cover the ongoing usage.

The alternative to this, as the agent you spoke to mentioned, is to clear the debit balance and set the monthly payments to cover the usage only.

Our Direct Debits are all based over 12 months and we do expect a credit balance to be built up over the summer ready for the more expensive winter months.

I'm afraid it's not possible to build in any changes, like switching supplier or moving house, you may be thinking about over the coming months.

Hope this makes things a little clearer jmcdyre. Give me a shout if you need any more info as will be happy to help.

Malc

jmcdyre

wouldn't it make more sense to base an annual review on the contract date rather than May - we're paying more now to build up a credit we won't need if based on August. So we sign up for 12 months in August and make payments based on a May review. pfft.

jmcdyre

spiro wrote: »

In 9 months summer/winter you have paid £110 less than you have used therefore they are increasing it by £9 to cover this debit and ongoing consumption over the next 3 months to bring your balance to £0. Doesn't sound too wrong to me.

we don't use £60 every month, we use less in summer more in winter, the payments should balance it out over the year, which it has without the increase, but they work from may...

grizzly1911

jmcdyre wrote: »

we don't use £60 every month, we use less in summer more in winter, the payments should balance it out over the year, which it has without the increase, but they work from may...

I agree with you on this one.

It should balance out over the contact period.

Eon really are looking for it both ways. Fix the tariff period and lock you in with penalties if you want to leave and on the other hand they want to bill you on the presumption that you may stay with them.

If they do this across the board it helps their cashflow - either by getting cash in advance of consumption (or paying their suppliers) or at least using your money to subsidise those who are in debt to them.

Whilst this is a benefit to many as it does even out budgeting, in this day an age, when a lot more people switch regularly, it doesn't quite fit.

Or am I just been cynical.

jem16

jmcdyre wrote: »

We signed up in August last year and our agreement ends August this year.

What tariff did you sign up for? Is there a specific 12 months agreement?

grizzly1911

jem16 wrote: »

What tariff did you sign up for? Is there a specific 12 months agreement?

I read it that it is a fixed price tariff for 12 months.

jem16

grizzly1911 wrote: »

I read it that it is a fixed price tariff for 12 months.

Which is why I asked as Eon don't have a fixed price tariff ending in August that I'm aware of.

kayl

I started a similar post yesterday, and also got nowhere with eon. I was paying £133 for both, which they decreased to £91, then £89, and then to £59 in February. They then told me that I am still in credit of £19 which they want to pay back to me, and then increase my payments to £90. I reckon that the correct amount which I should be paying is about £75, and that this will simply build up an excessive credit again, but they won't agree.
Accoring to my online energy tracker, the amount I am using is an average of 46% less than in the previous year, but from the reply posted on here yesterday by an eon rep, the tracker seems just to be a gimmick, and is not accurate!
I am on a capped contract which ends in October, and think that it is now time for a move after being with eon for 5 years, as I find that the widely fluctuating direct debits very frustrating, as it makes it very difficult for me to budget. When I discuss the figures on the phone with them, there is absolutely no flexibility - they will take want they eant to take