Big hikes in direct debit payments - EON

Aginoth

DirectDebacle wrote: »

Just a few of the threads by Eon customers experiencing similar problems:

https://forums.moneysavingexpert.com/discussion/3531893=

https://forums.moneysavingexpert.com/discussion/3573373=

https://forums.moneysavingexpert.com/discussion/3578607

https://forums.moneysavingexpert.com/discussion/2861072

https://forums.moneysavingexpert.com/discussion/2262031

Have a read and if you feel their DD policy was never properly explained to you at the time you joined them, insist the DD is set to 1/12th of annual usage per month from the date you joined to the correct anniversary date, which will be August not 'spring'.

If they refuse complain in writing and also pass a copy of the complaint to Consumer Focus.

Please let us know how you get on.

You can add mine to that list as well my ongoing story/thread is here... https://forums.moneysavingexpert.com/discussion/3358872

The E.on Direct Debit Calculation system is an utter Joke. I received my latest stupid DD increase letter today...a 112% increase from £120 to £255.

jalexa

Aginoth wrote: »

The E.on Direct Debit Calculation system is an utter Joke. I received my latest stupid DD increase letter today...a 112% increase from £120 to £255.

It is well worth reading the recent Consumer Focus representative post. It contains this phrase...

"We will need specific details about the impact that E.ON’s policy has had on the ability to manage your energy account."

IMO without doubt a "sudden excessive hike" of that magnitude must satisfy that phrase so please inform Consumer Focus. Details in the post.

FWIW, my advice is not to use terms such as "stupid" and "joke". I believe the Eon calculations are "accurate" - in accordance with the unilateral process being applied by Eon and others - (i.e. tariff increases being calculated over a short year of less than 12 months).

That is the fundamental issue that Consumer Focus must consider.

emerald21

I have just noticed my d/d with Eon has gone up from £43 per month to £105 per month and i dont even remember recieving a letter off them. Not very pleased

DirectDebacle

Aginoth wrote: »

You can add mine to that list as well my ongoing story/thread is here... https://forums.moneysavingexpert.com/discussion/3358872

The E.on Direct Debit Calculation system is an utter Joke. I received my latest stupid DD increase letter today...a 112% increase from £120 to £255.

emerald21 wrote: »

I have just noticed my d/d with Eon has gone up from £43 per month to £105 per month and i dont even remember recieving a letter off them. Not very pleased

To re-iterate the advice from jalexa, please report the problems to Consumer Focus. Consumer Focus thread is here. At the time the post was made C.F. had only received one complaint. Their hands are pretty much tied unless they have evidence to put to E.ON.

C.F. are there to help. Help them help us by providing them with the details of your complaint.

DoYouThinkImStupid

Hi All,

I received a letter from EON telling me that my monthly DD would go up to cover the energy I MIGHT use. I also received a similar letter the same day telling me that the DD amount HAS been increased and that I don't need to do anything!

So, long and short - they told me my DD needs to increase from £70pm to £203pm!

I called them, and after a debate with their rep for 20 minutes he hung up on me. During the call I asked him to explain why the increase was so large (290% if my maths is correct). He couldn't explain, but insisted that it was due to the meter readings I'd just given him. Now, I'm not a genius, but I'm pretty sure that if I called in response to the letter they sent and then provided readings, those figures were not the basis of their assumptions. The rep also went to speak to someone. When he came back he said that he didn't agree with what his colleague said and that he believed the new figure to be correct. I'm reading between the lines here, but I'm guessing his colleague said something along the lines of "that's not right"!?

After the rather ignorant rep hung up on me, I called again. I spoke to another guy who knew straight away why I was calling. He was like a car salesman - didn't shut up and kept throwing numbers at me in an attempt to confuse me. I asked him to break-down the bill and explain how I could possibly need to pay £203pm if I only owed £1 up until December 21st. He couldn't explain why the DD was so different, but did tell me that I actually owed £201 based on their calculations up until yesterday, and that actually after providing accurate meter readings that figure was in fact £231.94.

This begs the question, why does the guy on the phone tell me I owe a completely different amount to what it says on their website?

Maybe one of the experts here could tell me if I'm being stupid here. I am looking at a statement that tells me I owe £1 as of 21st December. This would indicate to me that the £70 I am paying each month is pretty much accurate...

Date Description Debit Credit Balance
21 Dec 11 Payment Received 70.00 CR 1.00
12 Dec 11 71.00
12 Dec 11 Energy Charges 227.15 71.00
21 Nov 11 Payment Received 70.00 CR 156.15 CR
21 Oct 11 Payment Received 70.00 CR 86.15 CR
21 Sep 11 Payment Received 70.00 CR 16.15 CR
12 Sep 11 53.85
12 Sep 11 Revised Charges 9.73 CR 53.85
11 Sep 11 63.58
11 Sep 11 Energy Charges 203.58 63.58
22 Aug 11 Payment Received 70.00 CR 140.00 CR

jalexa

DoYouThinkImStupid wrote: »

they told me my DD needs to increase from £70pm to £203pm!

IMO the Eon Direct Debit "practice" breaches in whole or in part "specific elements" of the regulations. Currently Consumer Focus are investigating a "specific element" of E.ON's Direct Debit policy (or practice), so inform CF of your experience.

Regardless of any argument however it is (IMO) morally indefensible to impose unilaterally such a "sudden excessive hike".

What I say next is not a defence of E.ON's conduct but your "£1 in credit" is a flawed argument (because it applies a monthly payment without applying energy charges). The reality is your posted summer and autumn energy charges are £203 and £227 and your account showed a debit balance after summer and autumn energy charges. Statistically 80% of annual heating fuel usage is between October and March. The *probability* therefore is that your £71/month does not represent (by quite some way) 1/12 of your *probable* annual consumption. Of course E.ON have totally failed to explain that clearly - and have allowed the situation to arise unchecked over at least 6 months - contrary to their own policy. In other words, incompetent customer account management.

For balance and argument perhaps you could post the historical basis for the selection of £71 as the regular fixed monthly payment.

The relevant regulation (SLC27.14) requires that suppliers provide...

"to each such Domestic Customer an explanation in clear, plain and intelligible language of the basis upon which a fixed amount (and any variation of that fixed amount) has been determined."

If you do not think that the letter and two adviser contacts satisfies that regulation then I suggest a very focussed formal complaint to E.ON on the "specific issue" of SLC27.14 notification.

Mrs_Arcanum

DirectDebacle wrote: »

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

No further explanations. I believe the graph is meant to show the reasoning behind the prices charged.

mvan

These large companies only listen when their bottom line is being threatened, energy companies / low cost airlines / mobile phone companies will try anything to try it on as they know those in charge do nothing to protect the consumer. I have had my dd increased a couple of time with crystal ball numbers as far as I can see and have argued the case numerous times over the phone , in most cases when the data is laid out for them they move the dd back down again, but why should we have to do this every time to avoid providing eon with free money for their savings account...Fed up with the whole thing, latest was from 81 to 153 pounds, when I companied the first time they mentioned it should be 203 pounds, my usage is around 103 according to their own billing info. So thinking of switching to a smaller company, at the moment OVO is looking positive and does not appear to have the corporate mentality the big 6 have. Vote with your feet is the only answer to this corporate greed.

jalexa

Mrs_Arcanum wrote: »

I believe the graph is meant to show the reasoning behind the prices charged.

That is an interesting theory as to the paucity of the explanation, however I am confident that "the basis upon which a fixed amount (and any variation of that fixed amount) has been determined" requires "numbers" not "pictures".

DoYouThinkImStupid

All I can see is evidence to support my thinking, in that based on the last 6 months I have practically covered what I've used. I know that usage is more in the winter months when compared to the summer months, but the figures certainly don't warrant a £400 increase over the next 3 months.

If you look at the figures I posted (which are almost complete apart from a £70 payment in July as I have only been an EON customer since June) you will see that I have provided meter readings in December, and that when my bill was recalculated I owed £71. Following the next DD just over a week later I owed £1. I understand that this would be inaccurate based on that week's usage but still... upping the DD by 290%... that's just wrong!

I am going to post new meter readings on the EON website now to see how much I've used between Friday and today. I don't believe this rubbish about posting too many readings causing the system to crash. I'm a qualified Microsoft Systems Engineer - they're just talking rubbish to justify using estimated readings.