E.On wants to double my Direct Debit payments!

Victors_Bruvver

Yes I received a letter from them this morning to say they would increasing my DD to 86 pounds a month from the current monthly payment of 47 pounds. I must admit that it said on the last statement that they would be increasing it but I thought I had called them previously to say no way.

The last bill had from them wasdated 29 September and after three monthly direct debits of that 47 pound I had to pay them a balance of 12.65 which I paid straightaway.

On the phone this morning waiting, 0845 number, for over ten minutes to speak to someone in Bolton who insisted that they were in their rights to increase and he would explain how they arrived at 86 pounds. If I did not allow them to increase my DD thdey would ask me to cancel it and I would 'lose' the lower rate for paying by DD.

Okay they could be correct in their calculations but with a recent increase where incidently they have the audacity to estimate the reading on the day the cost of electricity went up - could they email for a meter reading? - why couldn't they hold back for the first quarter reading to see how much energy I will be using and then calculate it from there?

I don't mind paying for my energy consumption but E.ON and the rest of the utility companies are, in my opinion, just making much too much out of us and I was wondering are they allowed to insist on paying the monthly DD on their estimate?

spiro

If you receive a bill that has the end reading as an estimate you can phone in with an actual reading and ask to be rebilled. I have an online account with Eon and get an email 'saying bill due in x days please submit a meter reading online to ensure accurate billing'.

How you pay (DD) and how they work out the bill (estimate) are not connected and you are still required to pay the DD. If you Pay On Bill and its an estimate, again you can check the estimate and give them a correct reading if necessary.

If there calculation is accurate for the revised DD them you have no option but to accept it if you want to remain paying by DD, with all the discounts it gives.

jalexa

Victors_Bruvver wrote: »

insisted that they were in their rights to increase and he would explain how they arrived at 86 pounds.

Well the Regulations and the Eon description here...

http://www.eonenergy.com/FAQ/Paying-By-Direct-Debit/Direct-Debit-Payment-Calculation.htm

pretty much gives them "carte blanche" to do that - as long as the calculation is correct.

Did they "explain" as they offered to? Were you "convinced"?

It is indeed the case that an accurate calculation requires an accurate "estimate" of consumption between now and the "annual review" mentioned in the procedure. What do *you* think is a resonable estimate for your "annual consumption"? A good basis would be your annual consumption with your previous supplier. Is that similar to the figure used by Eon in their calculation? The Eon calulation can't be correct unless it is.

E.ON_Company_Representative:_Helena

Hi Victors_Bruvver,

Already some good info from others, so thanks.

The Direct Debit is worked out so you pay an amount each month and this should cover your usage.

This means you would build up a credit amount over the summer months and this credit would go towards your larger winter bills.

Have you built up any credit?

We do review accounts and if it appears that the customer is not paying enough or if the account is building up too much credit then we can change the monthly amount, you would be notified off this.

We are always happy to bill your account to your meter readings, if you are online you can enter this yourself and request a bill.

If we have a price change, again you can provide a meter reading for this date and we can use this on your bill.

I hope this helps a bit.

Helena

ihateyes

hi

Over the last 3mths you have run up a debit of £12.65 ( £4.20 a month )

Taking into account these 3 months being the summer mths, you should really be in credit.

I think the fact the last 3 mths have run at an average cost of £51, and with the increased use over the winter, £86 could still see you owing after the winter. imho.

I have never worked in an energy dept, but i feel sometimes they are damned if they do and damned if they dont.
If they increase the ddeb they are damned even though this may prevent a debit balance.
Then when they dont and the customer gets a large bill they are damned again.

jalexa

E.ON_Company_Representative:_Helena wrote: »

Hi
We do review accounts and if it appears that the customer is not paying enough ... then we can change the monthly amount, you would be notified off this.

First of all let me say "well done" to Eon for having a very clear explanation online.

Right, normal service resumes. What is the Eon policy if during the first year a "correct for the annual consumption" payment is being made but a "projected deficit" results solely from the customer starting the supply late in the "review year"?

That would require a higher payment to achieve a zero balance at "annual review" but the payment would then be too high at "annual review" but a "zero balance" would not suggest that. (incidently Edf addresses that possibility by reference to a balancing payment being collected following the "annual review")

Do you have a procedure which answers that question?

Tupperware_Queen

I have always found Eon to be very clear on the calculations for the DD - and I for one would rather be a bit in credit and not be panicking everytime I put the heating on during the winter. At the time when the account was in a large credit I rang up and they refunded it straight away.

E.ON_Company_Representative:_Helena

jalexa wrote: »

First of all let me say "well done" to Eon for having a very clear explanation online.

Right, normal service resumes. What is the policy if during the first year a "correct for the annual consumption" payment is being made but the "projected deficit" results solely from the customer starting the supply late in the "review year"?

That would require a higher payment to achieve a zero balance at "annual review" but the payment would then be too high at "annual review" but the "zero balance" would not suggest that. (incidently Edf addresses that possibility by reference to a balancing payment being collected following the "annual review")

Do you have a procedure which answers that question?

I understand what your saying.

If you started to pay by monthly Direct Debit later in the year, then the payments would be higher as the usage would be higher. (as they won't have built up any credit).

This, as you say, is to try to achieve the zero balance at the review date.

We can then re-calculate the Direct Debit to cover the usage for the coming year.

Helena

backfoot

Isn't this statement and that on their website in direct contradiction of the rules laid out in the Licence Conditions?

They have admitted as a result they will charge more than the normal amount during the period up to April.

I've no idea why someone isn't taking them to task for it.:( It would result in some massively high DD's. People just can't afford to be supporting Eon's cash flow just because they like it.

JimmyTheWig

Victors_Bruvver wrote: »

The last bill had from them wasdated 29 September and after three monthly direct debits of that 47 pound I had to pay them a balance of 12.65 which I paid straightaway.

I agree with ihateyes. If this is your usage over the summer months than eighty something a month sounds reasonable over the course of the year.

Obviously if this September bill was based on an incorrect estimate then get them a proper reading and they can re-do their calculations.

jalexa

backfoot wrote: »

Isn't this statement and that on their website in direct contradiction of the rules laid out in the Licence Conditions?

They have admitted as a result they will charge more than the normal amount during the period up to April.

I'm afraid that I think the suppliers are doing a "guaranteed discount" job on the Regulation, which (in part) can be taken any which way.

I don't embrace interpretation of "direct contradiction" (or "prohibits") rather the regulation is an "enabling regulation" designed to (principally) avoid the build-up of excessive customer debt, drafted and signed-off (no doubt) by lawyers, yet informed laypeople are picking obvious flaws.

That there are 2 or 3 distinct interpretations between NPower, Edf, Eon and Scottish Power is just further proof of inept drafting and pusillanimous Consumer regulation.