What are EON playing at ?

backfoot

E.ON_Company_Representative:_Malc wrote: »

Hi Blackdog

Could be a couple of things here.

You say you've just taken out another contract. Was the previous tariff more favourably priced/higher discounts than the new one.

If so, added to the September price increase, this has more than likely increased your costs. This will be reflected in the new monthly amount.

Also, I would expect accounts to be significantly in credit at this time of year ready for the anticipated higher winter bills.

As there's a debit balance on your account now, I suspect previous payments haven't been covering the ongoing usage, even before the new prices kicked in.

The new monthly payments will have been re-calculated to take account of the usage plus the new prices. It will also have included the debit balance and spread this over a number of months.

May be possible to spread the debt over a longer period. This will lower the monthly payments a little. It's important, though, to make sure payments cover the ongoing usage or accounts may build up a debt.

Sorry I can't offer anything more positive Blackdog but hope this is of interest. Give me a shout if you need any more info as will be happy to help.

Malc

With respect to Malc, the Eon Rep he is giving you some reasons which only partially explain the horrendous DD increase.

The main reason for the huge increase is that Eon are recovering most of the things he has mentioned over a short period of between 3 and 6 months instead of over a 12 month period to the anniversary of the contract.

Eon have a policy of a zero spring balance which unfairly penalises you.

Please send the details of your complaint to Colin Urquhart at Consumer Focus.

More details can be found in the thread he has started here.

https://forums.moneysavingexpert.com/discussion/3686969=

Only by highlighting it to Consumer Focus can we get this unfair policy changed because Eon won't change it despite customer complaints and hardship.

Blackdog

backfoot wrote: »

With respect to Malc, the Eon Rep he is giving you some reasons which only partially explain the horrendous DD increase.

The main reason for the huge increase is that Eon are recovering most of the things he has mentioned over a short period of between 3 and 6 months instead of over a 12 month period to the anniversary of the contract.

Eon have a policy of a zero spring balance which unfairly penalises you.

Please send the details of your complaint to Colin Urquhart at Consumer Focus.

More details can be found in the thread he has started here.

https://forums.moneysavingexpert.com/discussion/3686969=

Only by highlighting it to Consumer Focus can we get this unfair policy changed because Eon won't change it despite customer complaints and hardship.

Thanks Backfoot!

Blackdog

E.ON_Company_Representative:_Malc wrote: »

Hi Blackdog

Could be a couple of things here.

You say you've just taken out another contract. Was the previous tariff more favourably priced/higher discounts than the new one.

If so, added to the September price increase, this has more than likely increased your costs. This will be reflected in the new monthly amount.

Also, I would expect accounts to be significantly in credit at this time of year ready for the anticipated higher winter bills.

As there's a debit balance on your account now, I suspect previous payments haven't been covering the ongoing usage, even before the new prices kicked in.

The new monthly payments will have been re-calculated to take account of the usage plus the new prices. It will also have included the debit balance and spread this over a number of months.

May be possible to spread the debt over a longer period. This will lower the monthly payments a little. It's important, though, to make sure payments cover the ongoing usage or accounts may build up a debt.

Sorry I can't offer anything more positive Blackdog but hope this is of interest. Give me a shout if you need any more info as will be happy to help.

Malc

Hi Malc,

Thanks for your reply. The new tariff is slightly cheaper for me than the previous one so that is not the cause. I realise my DD would have to go up as I am in debit but this rise is unacceptable. Why can't the direct debit be calculated at a more realistic level?

Blackdog

backfoot

Blackdog wrote: »

Hi Malc,

Thanks for your reply. The new tariff is slightly cheaper for me than the previous one so that is not the cause. I realise my DD would have to go up as I am in debit but this rise is unacceptable. Why can't the direct debit be calculated at a more realistic level?

Blackdog

Blackdog,

You should have already been provided with a detailed explanation using figures as to how the DD increase was calculated. It is a requirement of the Standard Licence Conditions under which Eon operate.

The fact that you are having to ask for an explanation shows that Eon have not fulfilled their obligations.

Malc is likely to offer you a reduction. That is not the point and his previous reply was designed to avoid the key issue which was the zero spring policy and the lack of detailed explanation.

Please refer the matter to Consumer Focus via the link I provided. Only by doing that can we get a change for the benefit of all customers.:)

Blackdog

backfoot wrote: »

Blackdog,

You should have already been provided with a detailed explanation using figures as to how the DD increase was calculated. It is a requirement of the Standard Licence Conditions under which Eon operate.

The fact that you are having to ask for an explanation shows that Eon have not fulfilled their obligations.

Malc is likely to offer you a reduction. That is not the point and his previous reply was designed to avoid the key issue which was the zero spring policy and the lack of detailed explanation.

Please refer the matter to Consumer Focus via the link I provided. Only by doing that can we get a change for the benefit of all customers.:)

Backfoot,

I did receive a letter from E.ON yesterday but there were no details of the calculations, it was just confirming what they had already told me. I have emailed Consumer Focus. Thanks for your advice.

backfoot

Bumping this thread as well in the hope that Ofgem have a look at it along with the associated CF thread.`

sky111

backfoot wrote: »

Blackdog,

Please refer the matter to Consumer Focus via the link I provided. Only by doing that can we get a change for the benefit of all customers.:)

Backfoot, what change are you refering to for the benefit for all customers?

Paying a utility bill is paying is arrears. Paying by monthly direct debit is also paying in arrears during winter but there must come a point during the year to achieve a target of zero balance and this policy does not penalise people. Indeed if it was a bank account, a constant debit balance would incur bank charges so why is the concept of tracking usage to direct debit supposed to lead to 'hardship'. In contract phone policies you pay in advance and if your exceed allowance you pay automatically - concept of forced hardship there!!! EON have no control on customer usage and no upfront payment is demanded to access supply (as direct debit can be cancelled at any time), so those who pay by direct debit will over most of the year be either in debit or credit but there must be a target point to achieve zero balance. Bump this thread all you like but there should be robust direct debit policy due to the prevalence of accruing debt and moving on.

elliesmemory1

E.ON_Company_Representative:_Malc wrote: »

Hi Hardupandfedup

I'm really sorry you found our staff arrogant. There's no excuse for this.

What was the reason given for the increase in the Direct Debit? Was it related to our aim of trying to achieve a zero balance on accounts by the time of the spring review?

Don't know if you've seen, but our new CEO has recently announced our intention to examine every aspect of our relationship with our customers. It's called the Reset Review (Helena mentioned it when it was first announced).

Over the next six months we'll be looking to re-evaluate all our processes to help improve the customer experience. We'll be asking customers to share their feedback and opinions with us on how we can do things differently and better.

There'll be lots of opportunities over the coming months for customers to let us know their thoughts.

One immediate channel of communication is through our customer 'Your Say' panel. This is a 28,000 strong group of customers we've worked with for some time now.

Among the issues being covered is our Direct Debit policy. If you're still with us Hardupandfedup, why not join the panel (details are on our website) and tell us what you think.

Hope this is of some interest. Give me a shout if you need anymore info as will be happy to help.

Malc

Thanks for reply, sorry i have only just read it. I have now switched suppliers due to Eons mistakes and due to the big hike in dd despite me being over £90 in credit in a one bed flat.
The reason eon gave was the spring policy, but that means they want me to pay in advance so my money can sit in their bank account.
The dd hike was just the last in a long list of mistakes by eon, including mixing up my meter with a neighbours, sorting it out only to do it again! then due to a admin error completlely cancelling my electricity account! Not to mention that when I moved house instead of sending me letters etc to my new address they sent them to where i had lived 4 years before and yes they had been notified ofthe moves.
The attituite of the staff when I rang to question my dd increase left a lot to be desired, was told I HAD to increase my dd and that was it. No sorry I dont haveto increase my dd so goodbye!
I have put in a formal complaint and am waiting for a reply.

backfoot

sky111 wrote: »

Backfoot, what change are you refering to for the benefit for all customers?

Paying a utility bill is paying is arrears. Paying by monthly direct debit is also paying in arrears during winter but there must come a point during the year to achieve a target of zero balance and this policy does not penalise people. Indeed if it was a bank account, a constant debit balance would incur bank charges so why is the concept of tracking usage to direct debit supposed to lead to 'hardship'. In contract phone policies you pay in advance and if your exceed allowance you pay automatically - concept of forced hardship there!!! EON have no control on customer usage and no upfront payment is demanded to access supply (as direct debit can be cancelled at any time), so those who pay by direct debit will over most of the year be either in debit or credit but there must be a target point to achieve zero balance. Bump this thread all you like but there should be robust direct debit policy due to the prevalence of accruing debt and moving on.

Eon's policy is different in that it requires a zero spring balance. A customer starting a contract in say November would then be expected to reduce the winter accrued charges over a short term rather than a full 12 month period.(the normal target period).

There are many customer complaints of the impact of this policy particularly after the massive price hike at the end of last summer.

DD's were rising typically by around 60%. This causes hardship to many overstretched families.

p.s.Looking at your posting history, it appears you have some background in Energy matters. It is Forum etiquette that if you work for a company involved in a thread you disclose that detail.

You posted in the thread below similarly and poster DS Hart explained the problem was the short term recovery and not any averaging process.

Post 127 refers.

https://forums.moneysavingexpert.com/discussion/comment/47854069#Comment_47854069

SnowMan

sky111 wrote: »

Backfoot, what change are you refering to for the benefit for all customers?

Paying a utility bill is paying is arrears. Paying by monthly direct debit is also paying in arrears during winter but there must come a point during the year to achieve a target of zero balance and this policy does not penalise people. Indeed if it was a bank account, a constant debit balance would incur bank charges so why is the concept of tracking usage to direct debit supposed to lead to 'hardship'. In contract phone policies you pay in advance and if your exceed allowance you pay automatically - concept of forced hardship there!!! EON have no control on customer usage and no upfront payment is demanded to access supply (as direct debit can be cancelled at any time), so those who pay by direct debit will over most of the year be either in debit or credit but there must be a target point to achieve zero balance. Bump this thread all you like but there should be robust direct debit policy due to the prevalence of accruing debt and moving on.

The point is that there is not an equal chance that customers will be in credit or debit because of the Spring break policy.

The Spring break policy means that a customer beginning a contract in Spring should if usage is as expected build up a credit during the Summer which reduces to zero by the following Spring. The same thing will happen in the second year.

A customer starting a contract at the beginning of or during Winter will (if usage is as expected) be roughly at no credit or debit until Spring (if usage is as expected). In Spring the amount is recalculated and customers then will be in credit until the credit runs out the following Spring.

So most customers will if usage is as expected be providing a credit facility to EON. It is a free credit facility to EON overall and that is not fair, especially if this is not explained clearly to customers when they take out a contract.


This contrasts with the traditional 12 month arrangements offered by other companies where customers are PROVIDING credit or being PROVIDED WITH credit with equal probability until 12 months is reached at which time the account should then be in balance. So customers overall considered as a whole are not providing a credit facility to the company and neither is the company offering a credit facility to customers. That seems fair.


If a company offered an Autumn break policy it would mean that the company would be offering a credit facility to customers. So the choice of the Spring date is deliberate and cynical and most importantly causing customers considerable problems.


A lot of the problems encountered are separate to this, and seem to relate to the difficulties in being able to operate a Spring break policy, the mis-application of the Spring break policy, no clear explanation as to how the Spring policy is applied and worsened by a non-explanation of individual calculated increased direct debits in breach of the license conditions.