Troubles with EON

oldwiring

Well not me, but a relative has trouble with EON too. I also have difficulty in relating their forecasts to actual previous 12 months usage.
In December they excelled themselves by forecasting that their would be a substantial debit by June, demanding a unreasonable increase. That was dealt with by a cash payment, even though I knew it was not needed.
Surprise surprise! Now at the reconciliation date there is a £53 credit they want to repay, but they also want to increase the monthly direct debit from £28 to £41. This is despite 2010/11 consumption adjusted to current prices and that I forecast for 2011/12 needing payments of £33/month.
I have put in 2009/10 usage: It was high as much work was needed on the house recently bought.
May be Eon cannot believe the lower 2010/2011 consumption that is likely to be permanemt, They both work full time and thus their hearing needs are not large.
Why EON make such unfounded calculations is beyond me. Why not accept accept that some customers are capable of running their affairs properly?
For my part, I have never experienced any problem with other suppliers of this nature. What on earth is EON’s problem?

Rdg dates	Days in prd	units	adj	adj units	adj kWh				
11/03/2009
08/06/2009		89	188 	51	  108		1208
15/09/2009		 99	  75	99	    75		  835
10/12/2009		86	327	86	  327		3641
10/03/2010		90	680	90	  680		7572
29/05/2010		80	222	39	  108		1203
days/units			444	1492		            14459
adj 365 days			1227  	365	1298	
		
To KWh			            13663	            14454	or £55/month
£651 est costs at current price and factors

Rdg dates	Days in prd	units		Kwh 	adj days         adj kWh		
29/05/2010		
29/09/2010		123	  66		  735	121		   723
14/12/2010		 76	470		5234	  76		 5234
17/03/2011		93	129		1436	  93		1436			  31/05/2011		75	129		1436	  75		1436
days/units		   367	794		8841	365		8829
adj 365 days			790			@Current costs      £390		
To KWh				8829	               	or £33				

¬¬¬¬_______________________________________________________

31/05/11-31/08/11  		       92	50	            557
31/08/11-30/11/11		      91	109	          1214
30/11/11-29/02/12		      91	482	          5367
29/02/12-30/05/12		      91	240	          2672
Totals		                     365	1481           9810
                         
Ob basis of the above forecast costs using current conversion factors and rates will be £390
Or £33/month,

Airmike23

All the power co's do this if you pay my monthly direct debit, it is to ensure credit by the time autumn bill is in, and no debt once get spring bill.

oldwiring

I think you have very much missed the point!:D Of course I know the companies' aims, and as a sometime retired (aka old style) bank employee understand budget accounts with which power companies' direct debit schemes bear similarities.

However ISTM that the aim is not just to ensure that the user accounts end up in credit at the review date. But also the companies rig instalments to ensure that they never are at risk from a user's failure to pay, whilst paradoxically pay on receipt of bill customers have that risk. Moreover the six monthly reviews cannot make sense, if only six months usage is considered: such reviews do not tackle seasonality.

Here is what Eon's suggested payments' results would be, with a note of what a more reasonable scheme would give.

kWh     net cost		            paid	    balance		
31/05/11-
31/08/11       557              38.01             - 123.00           -84.99
31/08/11-
30/11/11     1214             61.80              - 123.00         -146.19
30/11/11-
29/02/12     5367           185.08              -123.00            -84.11
29/02/12-
30/05/12    2672            105.08              -123.00         -102.03
Credit transactions and balances are minus amounts
Using payments of £33/month reduces end quarter balances to Crs £60.99; £98.19; £12.11; £6.03

Payments of £41.00/month are totally unjustified

E.ON_Company_Representative:_Helena

Hi oldwiring,

I would suggest speaking (or your relative) to E.ON with your figures and have the conversation about the usage dropping as the work on the house is now complete.

To be £53 in credit at the review is not a huge amount and as you say this is going to be refunded, you also say they made an extra cash payment, how much was this?

Without seeing the account it's hard to say exactly, but your calculations look reasonable to me and I would ask for the Direct Debit to be looked at again.

Let me know how you get on and if you need my help just ask.

Helena

oldwiring

@Helena Thank you. I have passed on your reply.

Of course the waters have been muddied by Scottish Power's recent announcement, which many think others will follow. That gives much to think about.