Big hikes in direct debit payments - EON

wouldbeqaulitymoneysaver

Watching as EON Customer and I despise the behaviour of these Energy Companies.

jalexa

Mrs_Arcanum wrote: »

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

First of all its is far better to get Eon to show it's hand first (so that their figures or assumptions can be rubbished rather than mine)...

However since you ask, my process to the calculation is (1) to recognise that the heating fuel use (normally gas) is highly seasonal and that last winter resulted in a 10% exceptional increase which there are no grounds to project forward. FWIW, and as others have pointed out it's provenence and accuracy is unknown, Eon's "Twitter Table" suggests that from November to mid-April 78.5% of annual gas would be consumed. I cannot say it is right (or "official"), I can however say my last year's consumption profile agrees quite closely.

Applying the figures with an adjustment for last years exceptional weather, a "projected" annual figure might be about 12,690kWhrs. Electricity is not normally so seasonally affected and a similar calculation could be 9700kWhrs. I stress these are "theoretical" figures and if they don't suit deploy another argument.

I think the electricity consumption is at the centre of the problem. It is about x3 "average":( though gas is well below average:). Electricity being relatively expensive has a disproportionate effect on the bill. If you have made significant changes to your electricty usage (since April) you should ask for that to be monitored closely before future electricity usage "assumptions" are incorporated into a payment recalculation. And if (for whatever reason) Eon's last April/May "annual review" calculation was wrong, IMO there are grounds for that recovery to be extended over a full 12 months not the payment "short year" to the next "annual review".

And finally there is the industry wide issue that an autumn price hike, seasonal weighting and a payment "short year" to the next "annual review" results in a sudden excessive payment hike. The reasonableness of *that* would be a good issue to take to the Energy Ombudsman, though I cannot predict the outcome.

Mrs_Arcanum

Thanks jalexa

The electricity is high in part because I have all electric cooking including an induction hob and heat the dining room with electricity. Now have a slow cooker so things should get a bit better. Irony is we have ALWAYS switched the TV off properly (don't know how to leave it on standby). :cool:

DirectDebacle

It might be useful to know the date you first joined Eon and on which tariff. Also on what basis they calculated your DD payment. Just as important what you understood that to mean. Do you still have the letter they sent explaining the DD payment.

Have you changed tariff since you have been with them. If so date that occured, which tariff and what was the basis for that DD payment.

willo_the_wasp

Received call from Eon today stating that they apologise for misleading me and have agreed to keep my payments at £120 monthly until review in February.and that they will esacalte my complaint to a manager. It shows that these people will listen to their customers if they make enough noise. So anyone that has issues should keep fighting to get what Eon promise them. Do not take NO for an answer.However I have informed them that they have been reported to Watchdog ,consumer direct and a national Sunday newspaper and hopefully they will take this story on board and bring the complaints into the wider public domain.Result for me then and I hope others complain vehemently with issuses they have with power compnies.:j

Mrs_Arcanum

DirectDebacle wrote: »

It might be useful to know the date you first joined Eon and on which tariff. Also on what basis they calculated your DD payment. Just as important what you understood that to mean. Do you still have the letter they sent explaining the DD payment.

Have you changed tariff since you have been with them. If so date that occured, which tariff and what was the basis for that DD payment.

Joined September 2009 with everything starting from November 1st. Save on-line 3. When I it changed to the new tariff (Age-UK) I upped the DD to compensate (before the new tariff started on November 1st) allowing for the price hike (18% average increase & I upped by 22%).

DirectDebacle

Thank you for that. How did the DD payments work out for the year you were on Save online 3? Were they 1/12th of annual consumption or something different.

Same question for Age UK tariff.

7. Payment
You agree to pay us as set out in your payments detailed overleaf unless subsequently agreed otherwise. Payment is due immediately if we send you a bill.

The above is from the general T&C's. What does it say overleaf?

18 Qualifying for the Age UK OnlineSaver discount




To qualify for the Age UK OnlineSaver discount you must meet the following criteria:

• register your online account within 30 days of receiving your account number and continue to manage your account online;
• pay for your energy by fixed monthly Direct Debit;
• provide us with your email address and notify us if it changes;
• provide meter reads online when requested;
• update your details online if they change.

The above is from the additional T&C's for Age Uk. In a previous post of yours you quoted SLC 14. I am trying to establish if they complied with that in your case.

As per my previous post you should have somewhere in your paperwork, either in the main T&C's, on a separate letter or both, a full explanation of how your DD was calculated.

When Eon respond to your complaint it would be useful to be able to compare the DD explanation they give to the one given when you signed up. If there are discrepancies it will strengthen your argument.

If the one given at sign up is not precise, what did you understand it to mean.

Did you receive any reviews of your DD while you were on Save online 3 or Age UK (other the one you are disputing).

DirectDebacle

willo_the_wasp wrote: »

Received call from Eon today stating that they apologise for misleading me and have agreed to keep my payments at £120 monthly until review in February.and that they will esacalte my complaint to a manager. It shows that these people will listen to their customers if they make enough noise. So anyone that has issues should keep fighting to get what Eon promise them. Do not take NO for an answer.However I have informed them that they have been reported to Watchdog ,consumer direct and a national Sunday newspaper and hopefully they will take this story on board and bring the complaints into the wider public domain.Result for me then and I hope others complain vehemently with issuses they have with power compnies.:j

Thanks for the update. Good result and well done for bringing it to the attention of other parties.

Have you received an explanation (in writing) of how your DD payments have been calculated?

BenNevis

Although I took a lot of stick from Direct Debacle and Backfoot on another thread on this subject (and BTW if a poster writes something that others disagree with there shouldn’t be any need to resort to bullying or insults) I did concede that unnecessary hardship was being caused but sadly neither Backfoot nor Direct Debacle were able to demonstrate that Ofgem’s SLC’s could be used to prevent this and their arguments fell apart.

FWIW here’s my analysis of SLC 27.15 which may be of use.

First the full condition.

Ofgem’s SLC 27.15

“Save where a clear and express Principal Term of the relevant Domestic Supply Contract provides otherwise, the licensee must take all reasonable steps to ensure that the fixed amount of the regular direct debit payment is based on the best and most current information available (or which reasonably ought to be available) to the licensee, including information as to the quantity of gas which the licensee reasonable estimates has been or will be supplied under the relevant Domestic Supply Contract.”


Lets take this condition a piece at a time

• “Save where a clear and express Principal Term of the relevant Domestic Supply Contract provides otherwise…” It’s very doubtful the energy supply companies will ever introduce a principal term that enables them to opt out of this licence condition so we can forget this bit for now

• “…the licensee must take all reasonable steps to ensure that the fixed amount of the regular direct debit payment…” Note the reference to a fixed amount of a regular direct payment which arguably indicates a regular amount that’s calculated based on the customer’s anticipated consumption especially as it’s followed by the words

• “…is based on the best and most current information available (or which reasonably ought to be available) to the licensee…” The meaning here is self evident and continues

• “…including information as to the quantity of gas which the licensee reasonably estimates has been or will be supplied under the relevant Domestic Supply Contract.” Note the words “under the…contract” because while many contracts last for a year many others last for longer or shorter periods including from month to month.

Take a contract lasting exactly a year then it’s hard to see how any energy company could argue that the “fixed…regular direct debit” could be calculated for any period less than a year and still comply with this licence condition. So if an energy company calculates its figures for just the winter it’d appear to be in direct breach of this licence condition.

Even for contracts that last for periods other than exactly a year it’s arguable that the only practical way of calculating a fixed regular direct payment would be by reference to the customers estimated annual consumption. So again if an energy company calculates its figures for just the winter it’d appear to be in direct breach of this licence condition.

Perhaps a formal complaint should be made to Ofgem and let’s see if Ofgem dare turn it down. Maybe CF could make the complaint.

Mrs_Arcanum

DirectDebacle wrote: »

Thank you for that. How did the DD payments work out for the year you were on Save online 3? Were they 1/12th of annual consumption or something different.

Same question for Age UK tariff.




The above is from the general T&C's. What does it say overleaf?



The above is from the additional T&C's for Age Uk. In a previous post of yours you quoted SLC 14. I am trying to establish if they complied with that in your case.

As per my previous post you should have somewhere in your paperwork, either in the main T&C's, on a separate letter or both, a full explanation of how your DD was calculated.

When Eon respond to your complaint it would be useful to be able to compare the DD explanation they give to the one given when you signed up. If there are discrepancies it will strengthen your argument.

If the one given at sign up is not precise, what did you understand it to mean.

Did you receive any reviews of your DD while you were on Save online 3 or Age UK (other the one you are disputing).

Always had on-line account access with E-On.

When I first joined E-On they wanted to drop my DD to £105 which I knew would not be enough to cover the winter period so requested £120 (still less than my previous supplier). The annual review seemed to take place at the end of April/early May at which point they wanted to reduce things to £78 but as I did not believe that would be enough to prepare for the next winter I decided on £90 per month. Then as soon as the price hike was announced & a tariff change decided upon I increased this to £110.

I have always wanted to be ahead of the costs for the Winter period which is why apart from this latest change I have paid more than E-On have suggested.