EON's rubbish computer ....

SandC

Yes, I too appreciate Helena's input on here, it's very useful to have feedback from someone who works for the company concerned and, more importantly, can give answers that don't come from a computer screen!

DirectDebacle

SandC,

PM sent.

backfoot

Just to add two further comments to my previous post.

I presume the spring alignment covers three months so that customers can be captured within the six month recovery period. i.e a customer joining in December will get their review in June and be caught by recovery over the shorter period.

The table profiled an electricty cost of £667 and gas of £533 totalling £1200.

By way of example, my profile would be electricty of £360 and gas of £840. Even assuming the same seasonality used in the table,it produces a DD which is then 31% above the 1/12th basis.

This perhaps explains the very high DD increases for some customers.

the_purse

Mr_K wrote: »

You don't always have to contact customer service to get the DD changed. It can be done online, another quirk of Eon's 'system'.

In my case I was paying £69 a month, they wanted to put it up to £93 although I am well in credit. If you go to your online account and choose direct debit and change bank details, it automatically recalculates the DD (you can just put the same bank details in). You can do this just to check what amount it sets and cancel before going through with it if you're not happy with the amount. It came up with £84 for me even though they had just sent a letter wanting to put it up to £93 ! Maybe they have 2 rubbish computers !! :rotfl:

Wasn't happy with £84 either so rang up and agreed £75. Could be in debit in the new year but I'm happier making a one off payment to clear it then. Much better than having a large credit. EON aren't a savings bank, they'd be pretty rubbish if they were as they pay 0% interest on your credit balance !

Thank you - did as you suggested and reduced my DD by £30 - hope it works! :rotfl:

Unimpressed by EON's policy to have all customers at Zero balance in Spring - utter nonsense!

DirectDebacle

E.ON_Company_Representative:_Helena wrote: »

Hi backfoot


For new customers we do not have any data for you to understand how the use changes between seasons, so it is alright to set it up (just to start with) on the annual amount divided by 12. When you do end up having a Direct Debit review, the above method will be used to make it more accurate.
It’s just worth me saying that most of the queries from users in this thread are those that have had reviews, not those who set it up from the start. What I’ve been trying to explain is the process for how we do reviews, not how we calculate the usage at the start of your time with E.ON.

I hope this makes things a little clearer.

Helena

Hi Helena

Posts 10 & 16 sum up the root problem. It is compounded by Eon not communicating in precise terms how their DD policy works.

Your post implies that, for new customers at least, the information they receive on how their DD payment has been calculated may be completely different to the basis upon which a subsequent review is calculated.

The information given here:

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

Is inadequate, confusing and goes nowhere near to explaining the methodology you are giving on here as to how DD payments are calculated.

backfoot

While we wait for Eon to mend the link and comment further, I modelled my electricity and gas spend into the Eon table. I also modelled the actual September price rises of 11.4% on electricity and the whopping 18.1% on gas !

As I thought in the previous post, it is that huge increase combined with seasonality and short term recovery which causes a DD rise to 53%.:eek: (above a normal 1/12th basis)

Are they seriously not expecting a customer backlash?

E.ON_Company_Rep_Chris

Thanks for the feedback, we'll pass it all on, but for now just trying to explain our way of calculating Direct Debits.

I'm not promising it'll change, because we've also had positive feedback from our customers over this way of calculating it - trouble is, they don't come on to MSE to say that.

Sorry I haven't been able to sort the link out, because of my newbie status It seems some can see it and some not. Helena's back in on Monday so will have another try then.

Amanda

backfoot

E.ON_Company_Rep_Amanda wrote: »

Thanks for the feedback, we'll pass it all on, but for now just trying to explain our way of calculating Direct Debits.

I'm not promising it'll change, because we've also had positive feedback from our customers over this way of calculating it - trouble is, they don't come on to MSE to say that.

Sorry I haven't been able to sort the link out, because of my newbie status It seems some can see it and some not. Helena's back in on Monday so will have another try then.

Amanda

Amanda,

Thanks.:)

The link to the table still isn't working.

I find it amusing to think that customers are writing in to Eon to say thanks for artificially increasing my direct debits by 50% so that I can have a zero spring balance. :rotfl:

DirectDebacle

No wonder customers do not understand your DD policy if the only explanation they receive is that contained in the link and repeated in a letter.

E.ON_Company_Representative:_Helena wrote: »

We do send out information explaining the Direct Debit arrangement details for each customer when we set them up, along with the Direct Debit guarantee.

This is also online for customers wanting DD info and clearly explains that "Your Direct Debit agreement is designed to bring your account to a zero balance in the spring of each year" and "We check each time a bill is produced to make sure that your payments are on target to achieve a zero balance. If a change is required, up or down, then we will let you know at least 7 working days before any change occurs."

This is what it says.

How are my monthly Direct Debit payments calculated?

Your Direct Debit agreement is designed to bring your account to a zero balance in the spring of each year, when we carry out an annual review of your account.

Customers typically build up credit in the summer to help cover their heavier winter consumption. However, depending on how much energy you use, there is sometimes not enough credit on the account to ensure you arrive at a zero balance.

We check each time a bill is produced to make sure that your payments are on target to achieve a zero balance. If a change is required, up or down, then we will let you know at least 7 working days before any change occurs.

By definition an annual review is something that relates to a period of one year and is examined with the intention of changing it, if necessary. Customers who understand what an annual review is would find the first sentence confusing, if their account anniversary date did not fall in the spring. It is likely they would conclude that the correct interpretation of annual review would apply to their account.

The remainder of the given information supports that conclusion. There are no further references to spring. Described are the more common means of DD management. It would be reasonable for a customer to assume that DD payments would be calculated by cost of annual energy /12 monthly payments = zero balance.

In terms of answering the question, How are my monthly Direct Debit payments calculated? Eon answer is worse than useless. It is, in my opinion, deliberately constructed to confuse.

If you have recently received a DD increase from Eon which seems unreasonably high, it may be because it has been calculated in an ‘Eon year’, which for some can be considerably shorter than 12 months, but does contain a full years usage.

Customers should request their DD be recalculated using their DD start date to arrive at the 12 monthly payments later anniversary date, if their understanding was that of the usual DD of 12 even monthly payments.

Thanks for the feedback, we'll pass it all on, but for now just trying to explain our way of calculating Direct Debits.

The fact that two reps are spending so much time explaining their policy, suggests that the information supplied to customers is inadequate.

E.ON_Company_Representative:_Helena

Hi guys,

We can still see the table, so not sure what's gone wrong.

Here is a link to it.

Spot on DirectDebacle, you're right I am spending most of my time on this thread at the mo, explaining something E.ON related to a lot of non E.ON customers

Helena

Edit to add; hang on a mo now there's a problem with that link, let me get it sorted won't be long.