Big hikes in direct debit payments - EON

jalexa

DirectDebacle wrote: »

What concerns me is that it appears that you and the other posters in several threads have been taken completely by surprise by the 'zero spring balance' policy.

If you look at Eon's explanation retrospectively it is "not wrong" but certainly bland and innocuous. What is completely unreasonable for an energy layperson to appreciate is that (according to Eon's own late in the day, but still welcome, Twitter table) 80% of the annual heating fuel is consumed in the 6 months from November until April.

It is inevitable that any payment profile deficit at this time of year (with a "spring review") will result in an excessive payment hike of approximately 60% (30% seasonally excess consumption over a 6 month short year). It is a disgrace that the regulator and/or consumer representation is silent on this mathematically proveable outcome.

The particular case described by the OP is unusual in that in spite of the account already having been subject(able) to an "annual review" (April/May 2011 according to Eon published information) the payment "set" (or allowed) has resulted in a seriously inadequate account balance 6 months down the line. I do not know the reason in this case but I cannot accept that these issues always seem to end up with the customer paying up-front for a process failure not entirely, or not at all, of the customer's making.

dshart

Just think, for every complaint you see about unreasonable increases in the DD payment to EON there are quite a few others who just accept the increase on face value without questioning it and it makes you realise how much EON are making on it.

I had enough of their messing around changed to a new supplier who also turned out to be cheaper, but unfortunately reading these forums it seems my new supplier plays the same kind of tricks with the DD, so I will have to see how it unfolds.

backfoot

johnsm13 wrote: »

I still really think this is very difficult to explain to customers (and the EON person I spoke to certainly struggled).

What is the point putting a forecast on a statement that I will use the equivalent of £1330 gas and electricity over the next year, then fixing a direct debit that would mean the payment of £2016 (12 x 168)? Why not just divide £1330 - the forecast - by 12?

Mike

Because it would not fit in with manipulative policy they have designed. It should and always used to work the way you suggest.:mad:

DirectDebacle

jalexa wrote: »

If you look at Eon's explanation retrospectively it is "not wrong" but certainly bland and innocuous. What is completely unreasonable for an energy layperson to appreciate is that (according to Eon's own late in the day, but still welcome, Twitter table) 80% of the annual heating fuel is consumed in the 6 months from November until April.

It is inevitable that any payment profile deficit at this time of year (with a "spring review") will result in an excessive payment hike of approximately 60% (30% seasonally excess consumption over a 6 month short year). It is a disgrace that the regulator and/or consumer representation is silent on this mathematically proveable outcome.

The particular case described by the OP is unusual in that in spite of the account already having been subject(able) to an "annual review" (April/May 2011 according to Eon published information) the payment "set" (or allowed) has resulted in a seriously inadequate account balance 6 months down the line. I do not know the reason in this case but I cannot accept that these issues always seem to end up with the customer paying up-front for a process failure not entirely, or not at all, of the customer's making.

I have looked at this explanation and this one and this one. IMO none of them are right. Neither are they bland or innocuous. Quite the opposite. They are deliberately misleading and have been carefully designed to deceive.

I agree that it would be impossible for the average customer to know how their DD would be actually administered from the information given.

The disgrace is that when Ofgem introduce a Standard Licence Condition, some energy suppliers, instead of complying with the letter and spirit of it, prefer to bend, twist, distort and even break them.

I asked Consumer Focus if they were aware of Eons policy and the problems it was causing some customers. They had not been made aware but promised to make enquiries. Unless customers bring problems to the attention of the appropriate organisations they won't be doing anything to resolve them. Their role is, in the main, reactive not proactive.

Customer apathy maintains healthy profits for energy suppliers.

Quite simply if a customer has not had their DD payment scheme fully explained to them by their supplier then the supplier is in breach of their licence conditions.

If the supplier then attempts to coerce the customer into accepting a DD scheme (that had not been fully explained to the customer) by threats of removing discounts or other sanctions, this needs to be brought to the immediate attention of Consumer Focus and the Energy Ombudsman.

If the customer has suffered loss as a result, it would be open to them to take any appropriate measures to recover any losses.

Mrs_Arcanum

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.

backfoot

Mrs_Arcanum wrote: »

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.

You need to formally complain and let Consumer Focus know of the problem as advised by DirectDebacle above. If you cancel they will have unfairly and inappropriately forced you to pay more.

i.e. the DD discount will be lost.

This isn't a take it or leave it matter,it is governed by Standard License Conditions which Eon are not abiding by.

cherydee

I also sent E.ON my meter reading as requested online. I pay by direct debit but if any money is due on the bill I always clear it to start afresh. Sent the meter reading in to them and I was pleased to find I was £260 in credit...I thought to myself I am getting ahead and it was a good start for the winter months. Even now as it is a bit chilly on an evening I will sit with a blanket over me watching TV rather than heating the whole house ....much to my husbands annoyance as he wants the heating on. So shocked to receive a letter days within sending them my reading to find out they are upping my direct debit from £124.00 per month to £155.00.....£31 increase, which had me in a state of shock. How am I suppose to find an extra £31 per month .....spoke to someone on the phone but did not get anywhere with getting it reduced.

tweets

Thought i would come on here and put in a good word for EON just got my latest bill and my DD gone down from £61 to £33 thats for both gas electric so i am well chuffed. I was in credit by over nearly £150 on my last bill.

jalexa

cherydee wrote: »

shocked to receive a letter days within sending them my reading to find out they are upping my direct debit from £124.00 per month to £155.00.....£31 increase, which had me in a state of shock. How am I suppose to find an extra £31 per month .....spoke to someone on the phone but did not get anywhere with getting it reduced.

Did you ask for an explanation in compliance with "Standard Licence Condition 27.14"? A failure to supply that (on request) would be a Licence breach.

If you supply the estimated future gas and electricity cost figures provided by Eon, I will calculate whether the increase appears to be accurately calculated in accordance with their own published procedures.

What was the date of the meter reading that trigerred the hike?

cherydee

jalexa wrote: »

Did you ask for an explanation in compliance with "Standard Licence Condition 27.14"? A failure to supply that (on request) would be a Licence breach.

If you supply the estimated future gas and electricity cost figures provided by Eon, I will calculate whether the increase appears to be accurately calculated in accordance with their own published procedures.

What was the date of the meter reading that trigerred the hike?

I read the meter or should I say husband read the meter on 25th October and the letter I received from E.ON is dated 26th October. I asked what I had used in the last year and I was told Gas £1,056 and Electric £630, totalling £1,686 for the year for both. I am £260.74 in credit. I did not ask for any explanation......I think it was mentioned something about an 18% price increase.