Big hikes in direct debit payments - EON

backfoot

jalexa wrote: »

A few quotes, not entirely random, rather chosen as relevant.

'discounts not payable on final bills'

The point about that is that the customer is being informed of a very specific issue and therefore cost.

Just wanted to say that saying it doesn't make it acceptable.

Yet another mischievous Eon policy akin to Termination Fee abuse. I have personally raised this with the Regulator as being another issue for clarification. I think Meggsy has as well.

Following a price increase,discounts normally allowed should not be withdrawn if a customer elects to switch supplier. i.e. it is a principal term of the contract, just as much as the unit price is.

I can't see Ofgem allowing such a policy under the Retail Market Review.

DirectDebacle

Just wanted to say that saying it doesn't make it acceptable.

Agreed and applies to their policy re SLC 27. Whether it complies or not the policy is still 'wrong'.

As you point out the document Mrs Arcanum posted falls far short of explaining an individual customers review. I see it is page 2 of 3 pages. Perhaps there is more relevant stuff on the other 2.

In respect of the Retail Market Review and the proposed introduction of a Standard Tariff by Ofgem, I suggested to C.F. they ask Ofgem to consider requiring suppliers to offer the 'default' DD scheme on all tariffs, where paying by DD is an option.

Other payment plans, such as Eons, can be offerred as an alternative.

Mrs_Arcanum

backfoot wrote: »

Just some initial thoughts on the Eon document.

1. They have totally twisted the explanation of the DD discount given. It is suddenly claimed it is for paying in advance. It never was and is a discount for their preferred payment method. i.e. it is now part of their cash flow mainipulation.

2.If I was sent this document in relation to a DD change or after I asked for an explanation of my increase,I would reject it as being unsuitable and non compliant with SLC27. It's not clear and it doesn't explain my specific increase.

3. I get the impression that this is being sent out following a complaint. Not good enough. A different suitable document explaining an individual's DD change should be produced along with the change request.(in advance)

4. The real impacts of pre winter price increases are not explained.

5. The real impacts of joniing Eon pre winter or during winter are not explained.

6. Even if these matters were explained, they penalise a customer unfairly and are outwith the normal and established DD procedures operated by Suppliers. CF now seem aware of this impact.

7. I know personally that such information is not given if you request a phone quote. I was given a flat annual DD quote. Annual cost/12.

8. An astute Regulator should easily see through the manipulation. :think:

The one I previously uploaded was the one received along with the massive hike to £149 pcm. The latest accompanying my agreed £120 DD is below. Note the huge chunk missing bottom right column.

DirectDebacle

^^^ Was there any further explanation on the other 2 pages of the letter. E.g. estimates of consumption. dates the estimates covered, calculations etc?

stagey_2

Mrs_Arcanum wrote: »

Just been suggested for over 35% increase when I AM £87 IN CREDIT already. :eek: Unlike many I prepared for the increase in prices as soon as the rates went up by increasing my DD. I cannot afford sudden ridiculously huge price hikes.

Even more alarming is were I still to be on my previous DD rate it would be a 65% hike - No way on earth can this be justifiable. :mad:

And for any E-on reps out there - should you take the outrageous amount suggested I will cancel the DD payment.

I too had this problem £89 in credit and wanted to increase from £65 permth to £83!!! I did speak to someone eventually and agreed to £72 - but it is outrageous - and I will be watching it very carefully.

DirectDebacle

Another clear (as mud) explanation from Eon here #123

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

stagey, would you mind passing the details of your problem on to Consumer Focus who are looking into this. The more evidence they have the better.

backfoot

We know Eon are monitoring the Forum and this issue in particular.

Forum posters, both regular and one off visitors have discussed this issue for some time now and it is common knowledge that the matter is with both Consumer Focus and Ofgem. No doubt, Eon have received information requests regarding this matter.

The main body of posters have identified the issues at stake be they regulatory,clarity, unfairness and an almost unanimous feeling that the system is biased and wrong in Eon's favour. These arguments have been put forward by customer focussed posters with good track records for fairness.

Eon are no longer posting on these matters.

I would ask if Eon are willing to state where they are with this?

Do Eon still feel that they are right?

Have any of the issues raised struck a chord and it is accepted that some change is required?

MisterCee72

First time poster on the forum, but registered specifically because of this issue.

Have been tussling with E.ON since late August about the opacity and lack of accuracy in their direct debit calculations and estimates.

Will post a more specific and detailed post about my situation tomorrow, but I was told by someone high up in E.ON complaints within the past couple of weeks, that the new/incoming CEO has issued a briefing note to staff about how E.ON handles direct debits, as he has a different take on how that should work compared to the previous Chief Executive. Basically, it sounded like a review was about to be undertaken on direct debits.

On one of my other phone calls with E.ON, I was told that there are some FOUR MILLION customers on direct debits with the company and reading this post, coupled with my fruitless dialogue with E.ON, does little to dissuade me that there are not FOUR MILLION accounts within non-accurate direct debits.

If people in the pay of E.ON do indeed loiter or even participate on this forum, then it's time for you to lose your spaghetti spines and show hand on this matter, as it will do your company no favours if it's akin to the npower gas 'sculpting' issue, that I also had the misfortune to get caught up in. Perhaps their PR department thinks that appearing on BBC Watchdog is a good thing?!

Bonus thought.... does anyone at E.ON's Bolton offices (BL6 4SD) fancy earning some good karma points on this and confirm how most front line people in the customer services/billing teams find it almost impossible to break down the direct debit figure that "the system" has decided upon and replicate it?

Additionally, they have a fascinatingly named section known as the Payment Adequacy Team, which appears to be the internal team who customer services go to for direct debit amount verification purposes etc. I suggested they might stand a better chance if that middle word was changed to ACCURACY but it's quite telling that they picked adequate I think.

Anonymous whistleblowing is to be encouraged on here in the circumstances I think, or at least I can think of FOUR MILLION reasons why it should be.

I'm game to engage with Consumer Focus on this. Does anyone know if they have someone specific dealing with this matter, or is that just speculative?

More tomorrow......

backfoot

MisterCee72 wrote: »

First time poster on the forum, but registered specifically because of this issue.

Have been tussling with E.ON since late August about the opacity and lack of accuracy in their direct debit calculations and estimates.

Will post a more specific and detailed post about my situation tomorrow, but I was told by someone high up in E.ON complaints within the past couple of weeks, that the new/incoming CEO has issued a briefing note to staff about how E.ON handles direct debits, as he has a different take on how that should work compared to the previous Chief Executive. Basically, it sounded like a review was about to be undertaken on direct debits.

On one of my other phone calls with E.ON, I was told that there are some FOUR MILLION customers on direct debits with the company and reading this post, coupled with my fruitless dialogue with E.ON, does little to dissuade me that there are not FOUR MILLION accounts within non-accurate direct debits.

If people in the pay of E.ON do indeed loiter or even participate on this forum, then it's time for you to lose your spaghetti spines and show hand on this matter, as it will do your company no favours if it's akin to the npower gas 'sculpting' issue, that I also had the misfortune to get caught up in. Perhaps their PR department thinks that appearing on BBC Watchdog is a good thing?!

Bonus thought.... does anyone at E.ON's Bolton offices (BL6 4SD) fancy earning some good karma points on this andconfirm how most front line people in the customer services/billing teams find it almost impossible to break down the direct debit figure that "the system" has decided upon and replicate it?

Such a failure is absolute evidence of the breach of SLC27.

Additionally, they have a fascinatingly named section known as the Payment Adequacy Team, which appears to be the internal team who customer services go to for direct debit amount verification purposes etc. I suggested they might stand a better chance if that middle word was changed to ACCURACY but it's quite telling that they picked adequate I think.

Anonymous whistleblowing is to be encouraged on here in the circumstances I think, or at least I can think of FOUR MILLION reasons why it should be.

I'm game to engage with Consumer Focus on this. Does anyone know if they have someone specific dealing with this matter, or is that just speculative?

More tomorrow......

Welcome to the Forum. May I congratulate on a first class post and I will look forward to seeing more. I will let DirectDebacle (gas sculpting guru) advise on the route to CF.

You may have made some very telling observations and have added some valuable new information.:T

DirectDebacle

MisterCee72 wrote: »

I'm game to engage with Consumer Focus on this. Does anyone know if they have someone specific dealing with this matter, or is that just speculative?

More tomorrow......

I am liaising with someone who is assigned to deal with this specific issue. I have suggested a subject title to use in emails to C.F. so thay can be filtered. I am waiting for a response as to whether this will be useful.

Excellent post BTW.