E.On wants to double my Direct Debit payments!

Piano64

Well today Inhave just received a bumper increase in my direct debits as part of EON's review of my account. Here is a brief history. Moved into my cottage in March 2010 - direct debit set up for £60pm (gas and electricity combined) and same as large 4 bed home I was in previously. within a year, direct debit was adjusted to £138pm apparently to compensate for inaccurate estimated readings. Latest figure? £225pm - this despite the fact that we use low/average consumption as confirmed by EONs consumption team, and despite low usage in Spring summer of both 2010 and 2011 and despite a recent small reduction in electricity tariff. Oh, and they just replaced the electricity meter (though the new kne does not start at zero?). I am seriously concerned that I am being massively overcharged for fuel due to some sort of EON computer error.

Terrylw1

Piano64 wrote: »

Well today Inhave just received a bumper increase in my direct debits as part of EON's review of my account. Here is a brief history. Moved into my cottage in March 2010 - direct debit set up for £60pm (gas and electricity combined) and same as large 4 bed home I was in previously. within a year, direct debit was adjusted to £138pm apparently to compensate for inaccurate estimated readings. Latest figure? £225pm - this despite the fact that we use low/average consumption as confirmed by EONs consumption team, and despite low usage in Spring summer of both 2010 and 2011 and despite a recent small reduction in electricity tariff. Oh, and they just replaced the electricity meter (though the new kne does not start at zero?). I am seriously concerned that I am being massively overcharged for fuel due to some sort of EON computer error.

Could it be a billing error, perhaps they entered the meter change onto your account in error, maybe with 00000 as the start read?

E.ON_Company_Rep_Chris

Welcome to the forums Piano64

I'm hoping I can help with this. Has anyone explained how we’ve calculated your new payment amount? Is there a balance outstanding after your latest bill?

Your Direct Debit is made up of the energy you’ll use over the year, divided into equal monthly payments so that you have a zero balance next spring. If there’s any debt, we spread that over the same period too.

Your latest statement will have some information on how much gas and electricity you used last year and how much we expect that to cost you this year, which may help with your concerns about incorrect billing.

When we changed your meter, we’ll have left a sticker with the reading from the old meter when it was removed and the new meter when fitted, you can check that this matches what’s on your statement.

I understand energy bills aren’t always the easiest to follow and you need to know why you’re being asked to pay so much, so that we can help you work out how to reduce the amount.

I’m happy to check everything at this side, just pop an email to the address on my profile and I’ll reply with a full breakdown of the new amount and certainly make sure that there’s nothing funny going on.

I hope this helps a little OP, let me know if need any more info.

Amanda

bigtelbmw

I pay £24,50 for electricity only at my tiny coal fueled bungalow. Upon receiving a letter saying my payments will increase from £24.50 to £79 pcm, I replied NO WAY. I suspended the payment at the bank as I believe it to be criminal so they get nothing.
I intend cancelling the account and paying by monthly or quarterly bill thereby eliminating EONs threats. This will only be until I find a new supplier. They did this to me once before and I left them then. They are so greedy that they never learn. Parasites

spiro

bigtelbmw wrote: »

I pay £24,50 for electricity only at my tiny coal fueled bungalow. Upon receiving a letter saying my payments will increase from £24.50 to £79 pcm, I replied NO WAY. I suspended the payment at the bank as I believe it to be criminal so they get nothing.
I intend cancelling the account and paying by monthly or quarterly bill thereby eliminating EONs threats. This will only be until I find a new supplier. They did this to me once before and I left them then. They are so greedy that they never learn. Parasites

An increase like this can be due to estimated bills followed by an actually reading.
When you get your quarterly bill do you check the readings and submit one if they are an estimate?
What was the opening and closing balance on your account on the latest bill?
Answers to the questions above will help you receive better advice.
Remember canceling your DD will increase your fuel costs because of loss of discounts and also you'll have to pay the winter bill on demand.

Former_E.ON_Company_Representative:_Malc

bigtelbmw wrote: »

I pay £24,50 for electricity only at my tiny coal fueled bungalow. Upon receiving a letter saying my payments will increase from £24.50 to £79 pcm, I replied NO WAY. I suspended the payment at the bank as I believe it to be criminal so they get nothing.
I intend cancelling the account and paying by monthly or quarterly bill thereby eliminating EONs threats. This will only be until I find a new supplier. They did this to me once before and I left them then. They are so greedy that they never learn. Parasites

Hi bigtelbmw

I'm sorry you're unhappy with the increase in your payment arrangement.

After each bill, we review payment arrangements to make sure the monthly amount is covering the usage. The aim is to try to make sure accounts don't run into arrears and achieve as near to a zero balance as possible by the time of the annual review.

The calculation is based on past usage and current prices.

As spiro says, sometimes this calculation can be thrown out if we've estimated previous bills. Once we receive actual readings, there may be a catch up bill.

This can put a debit balance on the account. This balance will be spread over a period of time and included in the new monthly amount.

Is there a debit balance on your account? It's possible to spread any balance over a longer period. This will lower the monthly payments.

Have you changed tariffs recently? A change in unit prices may have also had an impact on the monthly payments.

Hope this helps explain our approach to payment arrangements. Let me know if you need any more info as will be happy to explain further.

Malc