Big hikes in direct debit payments - EON

Mrs_Arcanum

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?

The section referred to is

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

However it does not help where they are increasing the rate over and above that needed to meet the ANNUAL total use.

jalexa

backfoot wrote: »

Jalexa,

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

Yes, I am waiting for the Edf complaints "timeframe" to expire. I say "timeframe" because it is clear they are unable/unwilling to deal with the substantive issue. So in time I will get two issues to refer.

The strange thing is the last "recalc" maybe wasn't so far off the mark. Except they couldn't/wouldn't explain. So I don't know whether that was luck or design. So another "trap" needs to be set.

backfoot

jalexa wrote: »

Yes, I am waiting for the Edf complaints "timeframe" to expire. I say "timeframe" because it is clear they are unable/unwilling to deal with the substantive issue. So in time I will get two issues to refer.

The strange thing is the last "recalc" maybe wasn't so far off the mark. Except they couldn't/wouldn't explain. So I don't know whether that was luck or design. So another "trap" needs to be set.

Great, I thought the EDF thing was building up.

It is great to have a live example to put through the complaints procedures and they will meet a formidable opponent.

That said,when they realise it they may well back down.

Will it also be worthwile at some stage using any positive outcome to put across the issues at Management levels within Ofgem and CF for the benefit of all customers? (as per the Termination Fee issues).

jalexa

Mrs_Arcanum wrote: »

However it does not help where they are increasing the rate over and above that needed to meet the ANNUAL total use.

I fully understand that time is of the essence when a household budget is faced with a sudden, unexpected and excessive hike but, if you are able, a failure to comply with SLC27.14 would be grounds to raise a formal complaint and I would say it would be resonable to demand the hike was stayed until the outcome of the complaint, including the possibility of Energy Ombudsman referral.

The energy suppliers display a number of characteristic such as masters of deception and (assuming you can get through) often unepowered staff unable to go further than "what the computer says" and after all the "hike letter" was what the computer said.

I remember your last post, I am on your side, but where are the figures to support (or refute) that they are increasing the rate "over and above that needed to meet the ANNUAL total use"? In isolation a mid-term seasonal balance of £87 may not be sufficent to fund the predicted seasonal consumption (in their terms).

I don't support sudden unexpected hikes, but what suppliers are doing (Eon in this thread) may well be in accordance with their interpretation of the regulations. It is time for consumer regulation to consider whether sudden excessive hikes (resulting from regulation) are reasonable.

Are Consumer Focus monitoring this Forum? I hope so but I don't see any evidence. There is a user name but no posts, though I know they post very occasionally to Moneysupermarket forums.

buzz41

same for me £280 in credit after october bill
and this still wont more dd up from 108 to 139
so dissapointed with you eon

DirectDebacle

jalexa wrote: »

It is time for consumer regulation to consider whether sudden excessive hikes (resulting from regulation) are reasonable.

Are Consumer Focus monitoring this Forum? I hope so but I don't see any evidence. There is a user name but no posts, though I know they post very occasionally to Moneysupermarket forums.

In the main I agree with your post.

The hikes are not the result of regulation. Eon were appyting their DD policy 9 months before SLC 27 was introduced.

I doubt Consumer Focus are monitoring this Forum. As far as I know they are still on Death Row after being included in last years govt. announcement of a quango cull. It is likely that resources (and morale) have been depleted since then.

Consumer Focus do like facts and evidence before approaching Ofgem so more than a few substantive customer complaints would be required. They could just use the info on Eons website but it would not be as strong on its own.

I don't understand how you can calculate a customers DD payments as to be correct or not. The issue is more of an information problem than a mathematical one.

Each customer is required to be told the basis upon which their DD has been calculated. This will have been explained to them in the letter sent out prior to becoming an Eon customer. Without seeing this letter you cannot tell whether Eon have complied with SLC 27 or not.

The only other information at your disposal is on the Eon website. Unless I have missed something there is insufficient information there to accurately calculate DD payments.

Information posted by Eon on MSE, Twitter, Facebook or your local lampost is irrelevant and cannot be used.

I have, in several threads asked if an Eon customer could post their original DD notification but alas no takers so far.

Like you I am hoping that Consumer Focus will pick up the baton before too long.

I like your suggestion of staying the DD increase pending the outcome of a complaint. That would be of help to those struggling to find the extra.

cherydee

buzz41 wrote: »

same for me £280 in credit after october bill
and this still wont more dd up from 108 to 139
so dissapointed with you eon

On the 7th tomorrow...I will be nearly £400 in credit after they've taken another payment and mines upped from £124 to £155......for some reason like you, E.ON seem to like £31 increases

Mrs_Arcanum

jalexa wrote: »

I fully understand that time is of the essence when a household budget is faced with a sudden, unexpected and excessive hike but, if you are able, a failure to comply with SLC27.14 would be grounds to raise a formal complaint and I would say it would be resonable to demand the hike was stayed until the outcome of the complaint, including the possibility of Energy Ombudsman referral.

The energy suppliers display a number of characteristic such as masters of deception and (assuming you can get through) often unepowered staff unable to go further than "what the computer says" and after all the "hike letter" was what the computer said.

I remember your last post, I am on your side, but where are the figures to support (or refute) that they are increasing the rate "over and above that needed to meet the ANNUAL total use"? In isolation a mid-term seasonal balance of £87 may not be sufficent to fund the predicted seasonal consumption (in their terms).

I don't support sudden unexpected hikes, but what suppliers are doing (Eon in this thread) may well be in accordance with their interpretation of the regulations. It is time for consumer regulation to consider whether sudden excessive hikes (resulting from regulation) are reasonable.

Are Consumer Focus monitoring this Forum? I hope so but I don't see any evidence. There is a user name but no posts, though I know they post very occasionally to Moneysupermarket forums.

Working things out based on last years consumption figures I would only need to increase the DD by £11 (to £121) to cover a whole years use & this would still leave me £87 in credit.

Once I have a reply to my complaint (Thursday at the latest) I will take things further if needed.

jalexa

Mrs_Arcanum wrote: »

Working things out based on last years consumption figures...

IMO there is no basis for last years heating fuel consumption (normally gas) to be used for a consumption calculation going forward. The last two years and especially last winter have had exceptional consumption peaks resulting in consumption being 10% in excess of longer term average. So knock off 10%.

Scrutinise very closely the usage "assumptions" Eon are making for the usage calculation to the spring "annual review". Make sure they inform you of the *exact* date of the review and make sure you are not being "cheated" out of a payment credit by a few days.

Also consider very carefully whether or not the last annual review calculation (spring 2011) resulted in an adequate payment to deliver their own objective of a zero balance by spring 2012 (though note that tariff increases would not have been factored in).

You must insist on every figure used to make the calculation. Then try to drive a wedge through any assumptions you do not accept. There is plenty of scope for some "fun with the figures", except I realise sudden excessive hikes are deadly serious for household budgets.

Good luck with the complaint.

Mrs_Arcanum

Can anyone advise what I should be expecting based on 1st November 2010 to 14th April 2011 total Electricity 5052 kWh, Gas 11066 kWh?

Also looking further at the details the daily average between November & Mid January was 85 kWh Gas dropping to only 64 per day Mid January to mid March. Then down to 33 kWh per day to Mid April and only 13 kWh per day max when only heating water.

The same details for Electricity are November to Mid January was 41 kWh dropping to only 28 kWh per day Mid January to mid March. Then down to 19 kWh per day to Mid April and only 16 kWh per day max during the summer.

Following my annual review E-on wanted to reduce my monthly payment to far lower than was finally agreed as even with the bad winter I was in credit by this point.

Any help and advice is most appreciated especially if I can back this up with confident factual figures to E-on.

Also based on the previous year electricity use is on a downward trend (stopped using the dryer unless emergency).