EON's rubbish computer ....

DirectDebacle

The problems reported on this and other threads are not caused by comparison sites or Consumer Focus.

Eon are causing the problem by failing to explain in clear and precise terms how their DD payment scheme differs to the 'default' 12 even monthly DD payments.

Once Eon begin to give the necessary information which enables customers to decide if Eons payment scheme is suitable for them, then there will be much less confusion.

In the meantime if a customer has not understood Eons DD payment scheme because Eon have not not made it clear to them, they should bring this to the attention of Eon and Consumer Focus.

Tomo85

DirectDebacle wrote: »

The problems reported on this and other threads are not caused by comparison sites or Consumer Focus.

Eon are causing the problem by failing to explain in clear and precise terms how their DD payment scheme differs to the 'default' 12 even monthly DD payments.

Once Eon begin to give the necessary information which enables customers to decide if Eons payment scheme is suitable for them, then there will be much less confusion.

In the meantime if a customer has not understood Eons DD payment scheme because Eon have not not made it clear to them, they should bring this to the attention of Eon and Consumer Focus.

I've been a customer of Eon for quite a while and never had a issue with my DD however I do provide a reading every month which not everyone else does so maybe that helps the accuracy?

Although I have had big issues with my Nan's direct debit last year with Eon, DD got reduce from £100 to £30 due to the amount of credit the account was in but never increased it back so ended up owing over £500 it just seems so inconsistant.

Back of this months Eon bill had this, but is this explained in detail upfront?
Why are my payments different to what you estimate I will spend?
When we work out your Direct Debit
amount, we look at lots of factors:
• First, we work out how much your
charges are likely to be before your
next annual review date, which is
normally in Spring. (No where does it say when my review is!)
• Then, we look at your balance and the
payments you're due to make at your
current amount, and make sure we've
taken those into account.
• Finally, we divide the amount you need
to pay into the number of months left
before your next annual review (which
might not be exactly 12 months away).
Normally, we try to get you back to a
zero balance by your annual review.
This means that you shouldn't build up
a large debt or a large credit

DirectDebacle

Thank you very much for providing that information.

Back of this months Eon bill had this, but is this explained in detail upfront.

It appears not.

My opinion is that the information on the bill is as vague as that given on their website (see my post #90). Hence some customer confusion.

A much more detailed explanation is required to avoid customers committing to a DD payment scheme which they may have difficulty in keeping.

backfoot

Tomo85 wrote: »

Why are my payments different to what you estimate I will spend?
When we work out your Direct Debit
amount, we look at lots of factors:
• First, we work out how much your
charges are likely to be before your
next annual review date, which is
normally in Spring. (No where does it say when my review is!)
• Then, we look at your balance and the
payments you're due to make at your
current amount, and make sure we've
taken those into account.
• Finally, we divide the amount you need
to pay into the number of months left
before your next annual review (which
might not be exactly 12 months away).
Normally, we try to get you back to a
zero balance by your annual review.
This means that you shouldn't build up
a large debt or a large credit

It's only a very partial explanation and well after a customer has committed to joining. Eon's own table shows a complex matrix which even then takes some interpretation. One of key factors is that the number of months may be as few as 6 !

If this is not fully explained up front, including its inclusion in the contract Terms and Conditions,then it is unenforceable.

The SLC makes it totally clear.

27.15 Save where a clear and express Principal Term of the relevant Domestic Supply Contract provides otherwise, the licensee must take all reasonable steps to ensure that the fixed amount of the regular direct debit payment is based on the best and most current information available (or which reasonably ought to be available) to the licensee, including information as to the quantity of electricity which the licensee reasonably estimates has been or will be supplied under the relevant Domestic Supply Contract.'

I personally have now been given two non compliant quotes. the first involved no warning whatsoever of the 'zero spring balance' policy and a second (for my mother) which involved a two rate quote (up to April and a lower amount thereafter).

sky111

E.ON_Company_Representative:_Helena wrote: »

Hi jalexa,

I don't know about the lending free money to E.ON thing, that is best left to the finance guys.

But as we all know, paying by Direct Debit does have an impact on cash-flow and this is why we offer higher discounts for paying this way.

It's not just our industry, loads of others do this and give more discount for DD's.

Helena

I agree with Helena post.
Put it another way, the discount offered by paying by direct debit (8% duel fuel with EON) is not available on saving interest through banks.
Overpaying on direct debit would be an issue if there are high deposit interest rates but the reality is that its better to grab the higher direct debit discount offered by the utility company.

Of course there are those to struggle to pay the electricity/gas bills and where paying more than the bill amount appears overpaying but, the direct debit system is setup that customers overpay during summer and balances out during higher winter bills. I sympathise with those who struggle to pay ulitity bills but I've only sympathy for those people who have cut out all other non-essentials to pay their utility bills. It seems its rather 'essential' nowdays to have a mobile for most, if not all members of a family and possibly cable TV. Looking at the facts behind most stories and well there really is very little fuel poverty but its bad money management.

dshart

sky111 wrote: »

the direct debit system is setup that customers overpay during summer and balances out during higher winter bills.

Please read the posts properly, no one is complaining about the DD average meaning you pay higher in the summer to cover the additional use in the winter, the complaint is that after paying the average over the summer EON appear to do a seasonal adjustment in the winter and further increase the DD amount.

If I pay by DD I get the discount you mention even if my DD exactly covers my usage for the year, so them having extra money of mine is not equivalent of me earning 8% interest on it as you suggest.

I am perfectly happy to pay for what I use and have it averaged out over the year but I am not that daft with my money that I want to give them an interest free loan. The interest I can earn on £200 may not be much in these times of low interest rates but it better in my pocket than theirs and I am sure there are many people out there to whom that extra £200 would mean the difference in going overdrawn and suffering additional charges.

dshart

Well EON have finally proved to me that their whole DD system is a shambles. To summarise my tale for those who havent followed the whole thread.

I was paying DD of £179/month for a year till my annual review in June when they brought my account to zero balance by refunding about £260 credit. They left my payments at £179/month for the next year.

Then in September without any increase in usage they decided to increase my DD to £228/month (a 27% rise even though their dual fuel prices had only gone up 15%) They could not explain it apart from some weak excuse about seasonal adjustment. Anyway this caused me to look round and find another supplier which I did and started the transfer.

Now to cap it all I receive a letter today stating that they need to reduce my DD payment to £44/month as they regularly review payments to ensure I am not paying too much!!!!!!!

Now even I can work out from my bills that £44 will not cover my usage especially over the winter and I should be paying more in the region of £179/month over the year. Their system is a shambles and cannot do even the most basic of averaging calculations. Or maybe it is just a con to get me to stay with them. Either way its bye bye EON and a warning to others to watch their bills closely.

Tomo85

dshart wrote: »

Now even I can work out from my bills that £44 will not cover my usage especially over the winter and I should be paying more in the region of £179/month over the year. Their system is a shambles and cannot do even the most basic of averaging calculations. Or maybe it is just a con to get me to stay with them. Either way its bye bye EON and a warning to others to watch their bills closely.

Have you already started the transfer to another supplier for both gas and electric?

Maybe one of the fuels has already been transferred to your new supplier leaving one fuel with EON for a period of time until the transfers completes and the system has reduced DD to cover the one remaining fuel?

dshart

Tomo85 wrote: »

Have you already started the transfer to another supplier for both gas and electric?

Maybe one of the fuels has already been transferred to your new supplier leaving one fuel with EON for a period of time until the transfers completes and the system has reduced DD to cover the one remaining fuel?

No the letter is dated before the transfer completion date and actually states that "We need to decrease your electricity and gas direct debit to £44 a month"

Tomo85

dshart wrote: »

No the letter is dated before the transfer completion date and actually states that "We need to decrease your electricity and gas direct debit to £44 a month"

Haha there goes that theory then! Seems EON's direct debit system does what it wants!