Can they change my Direct Debit

jalexa

Moonbeam wrote: »

I've put on the full details of our last gas bill

As others have pointed out the calculation appears correct for a metric meter (unfortunately).

Considering you have only had the heating on "part way through October", your usage seems very high. I can't tell why that might be but there is no need to have the heating on when the house is unoccupied. When it is occupied try reducing the temperature settings particularly in infrequently occupied rooms.

At the £££s you are "wasting" better time and temperature controls would probably "pay" but that is a subject in itself. Not forgetting better insulation.

victor2

Your gas rates don't look too bad, but you could possibly eliminate the IGT charge, as not all suppliers charge for that. Equally though, not all suppliers will take customers with gas supplied by Independent Gas Transporters, but the big 6 will and only E.On and npower charge for it at the moment. So, if you can clear any debt, it might be worth shopping around. Depends on what tariff you are currently on as well, and if it is better to wait until it completes.

AfricanViolet

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Former_E.ON_Company_Representative:_Malc

Moonbeam wrote: »

Hi

I'm a customer with EON - I currently pay £180 per month in duel fuel to them and have just had a letter saying they want to increase my payments to over £450. When I called they said the minimum they could offer me would be £352 per month, which I simply can't afford.

They suggested I cancel the Direct Debit and just pay what I can, but this means I will lose 8% Direct Debit discount...

Can they simply put the direct debit at any amount they want to or do I indeed have to cancel?

They are basing their estimates on the fuel we used last year, but since then we have taken major steps to reduce the amount of energy we are using in the home so don't expect to use as much this winter.

Help please....

Moonbeam wrote: »

Hi Jalexa

There is an amount owing on our bill for just over £400. This resulted when they drastically reduced our bill as we were in credit by over £400 and it wasn't adjusted back up at the correct time when we started owing them more...

I was going to pay some towards this lump sum owed, but they say even if I do that my payments will go up to at least £352.

I am in the process of converting some tesco clubcard rewards to put towards the overdue amount, but that will only take about £90 off.

They've advised me that our usage for gas & electricity over the summer months was approx £100 per month and they expect that to double over the winter months to around £200 based on previous years usage. However, we're working really hard to ensure our usage is low - buying hot water bottles, thermal underwear, slippers and using blankets in the evening to keep warm.

Last year we kept the heating on constant, but I think that was bad advise, so this year we are putting our water and heating on timed....

Submitted a read to them today, and generally try to log on every few months with a reading. Also last year we didn't realise that one of our children had flicked a switch and put on our underfloor heating in the conservatory. That won't happen this year!

Would agree to increase D/D to about £220, but can't afford any more - even that will be a struggle...

Hi Moonbeam

That's certainly high usage and you're definitely doing the right thing in attacking this at source by cutting back. However, our Direct Debit calculations are based primarily, but not wholly, on previous usage and constant heating/underfloor heating in the past will have had an impact.

I suspect the original increase will have spread the debt over the minimum period. Whereas, the revised figure has probably spread the debt over a longer term.

You're doing exactly the right thing in talking to a manager. It may be possible to spread the debt over an even longer period. This will reduce the monthly payments.

If possible, paying off all or part of the debt will also help bring the monthly payments down.

As well as clearing the debt, it's important to make sure the ongoing usage is covered. Not doing this will only lead to similar problems in the future.

Payment arrangements are reviewed and adjusted regularly so the savings you're now making will begin to show up as time goes on.

I agree with Jalexa, ask for a written explanation of the calculation. We'll be happy to do this for you. We can also send it by email for quickness.

Hope this is of interest Moonbeam. Give me a shout if you need any more info as will be happy to help.

Malc

jalexa

E.ON_Company_Representative:_Malc wrote: »

However, our Direct Debits are calculated based on previous usage

Malc

As always a helpful and engaging response.

As I stated in my first post, debit balances are difficult to deal with. I recognise that one of the regulation objectives was to stop that happening, something I understand and agree with. However I am a tad concerned at the comment I quote, because what the applicable regulation says is "...including information as to the quantity of gas which the licensee reasonably estimates has been or will be supplied under the relevant Domestic Supply Contract..." (my emphasis).

IMO there is clearly scope for "negotiation" on that, and (I hope) on the reasons that a very significant debit balance has arisen (for reasons I am not privy to), in spite of review measures being in place. For example the last two years have included exceptional winter peaks which I personally don't accept should be used to predict this year's winter consumption. Anyway the "Eon numbers" quoted by the OP didn't stack up. I can only comment on the numbers posted.

I welcome a supplier's undertaking to provide a written "explanation", something I believe the regulations require of a supplier. I am not pillorying Eon here, from personal experience only Scottish Power has ever been able to satisfy me on that. I reflect that Scottish Power doesn't (AFAIAA) include "winter weighting" in their review explanations.

Former_E.ON_Company_Representative:_Malc

Hi Jalexa

Yes, I should have made clearer that past usage would have been just part of the calculation concerning the OP's increased Direct Debit. Sorry about that, I'll edit my previous post to make clearer.

Negotiation may certainly be possible depending on the individual circumstances. Difficult to say in the case of the OP as not enough info.

Just to confirm, written explanations of our Direct Debit calculations can be sent whenever requested.

Hope this is a bit clearer Jalexa. Give me a shout if not.

Malc

DirectDebacle

E.ON_Company_Representative:_Malc wrote: »

Just to confirm, written explanations of our Direct Debit calculations can be sent whenever requested.

Malc

Just to confirm that Standard Licence condition 27 is not voluntary. It also applies to all suppliers which includes E-ON.

SLC 27.14 states:

"The licensee must supply to each such Domestic Customer an explanation in clear, plain and intelligble language of the basis upon which a fixed amount (and any variaition of that fixed amount) has been determined."

Perhaps E-ON are confusing the statutory requirements of Standard Licence Condition 27 with their voluntary agreements under the Energy Retail Association Code of Practice for accurate bills, to which 4.1 and 7.1 may be relevant.

The sooner energy companies begin to comply with the statutory requirements placed upon them and the voluntary codes of practice they have pledged to follow, the better.

Standard Licence Condition 27 has been effective from 18th January, 2010. I appreciate that this isn't much time for an energy company to adjust to such a radical change but neither should it take an eon.