Big hikes in direct debit payments - EON

jalexa

cherydee wrote: »

.. 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

Something doesn't seem right to me, you are about 50% above average consumption on gas and about 30% above average on electricity. Doesn't seem consistent with shivering under a blanket.

Would you consider yourself well above average users? Are you sure the meter readings and the usage informed by Eon are correct?

cherydee

We have a large high ceiling victorian terraced house with 11 radiators, top floor has 3 attic rooms which the central heating does not cover. Unable to have cavity wall insulation due to age of house. Heat just seems to disapear. I try to keep a check on the heating as much as I can but we have the grandchildren around during the day ....so try to compensate on an evening hence the blanket. The boiler was put in in 1994, so I would imagine coming to the end of it's life.

willo_the_wasp

My save online3 tarrif was coming to an end on 31/10 and I called and was advised to sign up for save online10 and was assured that my £120 DD payments would remain the same until review in February. Surprise surprise when 4 days later I receive letter stating payments increasing to £171 monthly.Upon calling to complain I was told the best we can do is £165 DD which I refused and the manager I spoke to informed me that he would cancel my DD for save online10 and put me on standard energy plan which is more expensive but my DD payments for the same usage on this tarrif would only be £150. How does that add up? When I pointed this out to him he became flustered and agreed to keep me on save online10 at £139 monthly. Not ideal but better than £171. Oh and his biggest mistake was when I suggested to him that maybe I was told that my payments will remain at £120 to keep me as a customer his response to this was and I quote "yeah well there is that". An admittance of misleading customers. Passed my complaint to consumer direct and BBC Watchdog and have written to Eon and await their response although I do not hold out much hope for a stisfactory response.:mad:

backfoot

[QUOTE=willo_the_wasp;48283673_Passed_my_complaint_to_consumer_direct_and_BBC_Watchdog_and_have_written_to_Eon_and_await_their_response_although_I_do_not_hold_out_much_hope_for_a_stisfactory_response.:mad:[/QUOTE]

Well done for standing your ground. :j

If you don't get a satisfactory response, take the matter to the Energy Ombudsman who may make an award of compensation as well as highlighting Eon's actions.

mardatha

I got moaned at last time I said this - but why give these people your money like this ? why not set up a savings/budget account and pay a 12th of your average annual bill into that every month, then pay the bill cash when it comes? In winter with high bills you might have to scrape around for the first year but after that you're all set. Is a few pence less on the rate (which you never see cos you're paying way over the bill amount anyway! ) is that really worth all this hassle?

brewerdave

mardatha wrote: »

I got moaned at last time I said this - but why give these people your money like this ? why not set up a savings/budget account and pay a 12th of your average annual bill into that every month, then pay the bill cash when it comes? In winter with high bills you might have to scrape around for the first year but after that you're all set. Is a few pence less on the rate (which you never see cos you're paying way over the bill amount anyway! ) is that really worth all this hassle?

In principle I agree with you but......... practically it would cost me ~ £20 per month more to pay like that. Even if I "LEND" my supplier £200 on average all year @ 2.5% net interest its only costing me ~ 50p per month. No contest !!!:)

DirectDebacle

@ mardatha.

I take your point and no doubt your suggestion will be good for many customers. For others it will be a recipe for accumulating debt and was one of the reasons that DD was introduced.

If DD payments were managed correctly there should be none of this hassle. All it requires is the DD to be set 'about right' and kept at that level by suppliers and for customers to understand that the level may need to be changed from time to time in order to reflect changes.

It should be as simple as that but unfortunately in some instances suppliers appear to be abusing this basic form of payment.

Suppliers have ignored Ofgem guidance on the management of DD and also the code of practice of their own organisation, the Energy Retail Association. Because of suppliers continued failure to comply Ofgem have had to introduce a Standard Licence Condition to dictate to suppliers how DD are to be managed. True to form some suppliers are ignoring this.

The point is that where suppliers continue to abuse the DD sytem customers need to challenge this with their supplier and bring it to the attention of Consumer Focus and the Energy Ombudsman. By doing this it can be brought to Ofgem notice who can investigate and impose sanctions if necessary.

The problem is not with the DD scheme itself but with it being abused. I believe the correct approach to deal with this is not to leave the DD scheme but to stay within it and attempt to force the suppliers to play by the rules.

As an example if an unwarranted DD amount were taken from my account and caused bank charges to be charged then I would require my supplier to re-imburse them. If they refused I would have no hesitation in taking this to the County Court if necessary. This would be in addition to the complaints made re breaches of licence conditions, terms and conditions and whatever else I could find.

It is a shame that customers sometimes have to fight so hard to obtain a basic standard of fairness and good service.

backfoot

Another excellent post from DD about DD's.:T

jalexa

I think there is a fundamental problem with the drafting of the relevant regulation SLC27.15. It contains two mutually exclusive phrases...

"...fixed amount of the regular direct debit payment..." and "...which the licensee reasonably estimates has been or will be supplied..." (my emphasis)

Why should we be surprised when the suppliers interpret that to their benefit?

I don't support the principle of sudden and excessive payment "hikes". The scale of the "hikes" is being adversely influenced by "short year" calculations where there is a seasonal deficit and/or an increase, but "interim reviews" (i.e. short year calculations) are explained in the suppliers description of the regular payment process.

Of course the result of applying a short year to a mid-term seasonal deficit and/or a tariff increase is not "clearly" stated. (is that a SLC 27.14 breach?)

A recent post stated that Consumer Focus were unaware. I don't disbelieve the post but can it be that all of Consumer Focus is ignorant of suppliers online explanations and the demostrable mathematical result of a "short year" calculation?

The check calculations I have made of several recent posts here (about Eon) have (unfortunately) only revealed (on the basis of sparse information posted) that the calculation broadly accords with the Eon's online information about payment review. Of course only Eon have been brave (or foolish?) enough to post a "Twitter table" which, as it happens, my last year's seasonally weighted consumption quite closely agrees with.

IMO, what is happening is just "guaranteed discount II" and it is time for Ofgem to wheel out again their "it was always intended to capture" phrase.

backfoot

Jalexa,

Have you considered raising any of these issues with CF or Ofgem or both?

There has been direct input by at least two posters to my knowledge.