E.ON press the re-set button

E.ON_Company_Rep_Chris

Hi All

I'm sorry for the delay in responding to your concerns on this thread.

We're currently looking into this and will be back with you as soon as possible with some answers.

Amanda

DirectDebacle

Point 1. of post #38 has been answered in this mornings Times.

Jeremy Davies, E.ON’s marketing director, says: “The spring balance policy is not part of the terms and conditions of our contract but it is explained in our literature and on our website. We are reviewing whether it is clearly enough explained as part of our wide-ranging Reset Review.”

Before considering how to reword a policy, wouldn't it be better to find out if it is lawful to enforce a policy as if it were a T &C of a contract, when it clearly isn't a T&C. Have a look at the Consumer Protection from Unfair Trading Regulations, 2008. It would be good if E.On made it a T&C. The policy would then have to be thoroughly explained to customers in order to comply with those regulations. Problem solved.

Run it by Ofgem, they may be able to advise.

jalexa

E.ON_Company_Rep_Amanda wrote: »

I'm sorry for the delay in responding to your concerns on this thread.

We're currently looking into this and will be back with you as soon as possible with some answers

Thank you for that undertaking.

I would like to put some flesh on my question concerning the announcement "E.ON has therefore changed its Direct Debit process so that any customer who joins in the second half of the year is given up to 18 months to get their DirectDebit accounts to a zero balance".

Given that (apparently) the current process gives July starts 11 months to "spring review" and December starts 6 months to "spring review" and the new policy gives "second half" starts "up to 18 months to a zero balance" can you therefore confirm that for second half starts the review is no longer "spring" but "autumn" (otherwise July starts to comply with the new policy would require 23 months to the following "spring")?

Do first half starts retain "spring" as a review date?

I hope you can see that your Chief Executive's use of the marketing weasel phrase "up to" detracts from comprehension and IMO discredits the announcement.

backfoot

Just read the Times full page article in their Money Section. It is an excellent hard hitting piece which shows the grasp of the issue and evidenced by Times Reader's also adding their experiences.

Congratulations and thanks to Directdebacle for his excellent work.

Eon have clung onto their unfair policy and have tried to spin their way out of it. It has failed miserably and hopefully we will start to see some real progress.

I wondered why after blanking us for the week an acknowledgment suddenly appeared late on Friday.

backfoot

DirectDebacle wrote: »

Point 1. of post #38 has been answered in this mornings Times.

Jeremy Davies, E.ON’s marketing director, says: “The spring balance policy is not part of the terms and conditions of our contract but it is explained in our literature and on our website. We are reviewing whether it is clearly enough explained as part of our wide-ranging Reset Review.”


Before considering how to reword a policy, wouldn't it be better to find out if it is lawful to enforce a policy as if it were a T &C of a contract, when it clearly isn't a T&C. Have a look at the Consumer Protection from Unfair Trading Regulations, 2008. It would be good if E.On made it a T&C. The policy would then have to be thoroughly explained to customers in order to comply with those regulations. Problem solved.

Run it by Ofgem, they may be able to advise.

Other commentators have noticed that Eon's version of events tends towards the flakey.

http://www.guardian.co.uk/money/blog/2011/oct/07/eon-energy-fit-plan-overly-complicated

This was already part of my suggestions for their Reset along with losing discounts on final bills.(post 3 of this thread)

jalexa

E.ON_Company_Rep_Amanda wrote: »

We're currently looking into this and will be back with you as soon as possible with some answers.

Another specific question for you.

The following quotation is taken from the "E.ON Direct Debit scheme
explained" guide...

"When we calculate how much your monthly payments need to be, we base this on your last 12 months’ meter readings. This shows us how much energy you have used. If we don’t have a year’s worth of readings we’ll use estimated readings or other information, such as details about the property, to estimate how much energy you will use in the future."

Interpreted literally (as a judge might) it states "if we don’t have a year’s worth of readings we’ll use estimated readings...". Is it the intent and practice that (say) 11 month's worth of meter readings isn't enough to result in the calculation being based (mostly) on the 11 month's worth of actual readings, instead E.ON would still be using "estimated or other" information for the entire calculation?

Given that the E.ON marketing director cites the above reference, I think the lack of clarity in interpretation is really quite a serious matter.

Mrs_Arcanum

Small request.

Do not send out e-mails or have notes on the users front page following a price cut the option to switch to the lower priced package (without penalty) & then insist you have to call to get the lower rate.

I do things ON-LINE Not on the telephone. :mad::mad::mad:

JimmyTheWig

jalexa wrote: »

Is it the intent and practice that (say) 11 month's worth of meter readings isn't enough to result in the calculation being based (mostly) on the 11 month's worth of actual readings, instead E.ON would still be using "estimated or other" information for the entire calculation?

If it was me and I had 11 months actual data, I would estimate the year's cost based on those 11 months and typical monthly profiles.
E.g. 11 months usage from Febraury to December would result in a different annual usage to 11 months usage from August to June.
I.e. I would use the actual data and "estimated or other" information.

DirectDebacle

Further to the points raised by backfoot, jalexa, myself and others can E.On please give a detailed explanation of the following:

Currently your website still states this:

Why do I have a credit or debit balance?

Your account should always be in credit as you pay for your energy before you use it. This is why we give you a discount for paying this way.

Is it the case that an account opened in December will for some time be in debit as a result of your changes.

Will that mean that the DD discount will not be given until such time as it reaches and maintains a credit balance?

E.ON has therefore changed its Direct Debit process so that any customer who joins in the second half of the year is given up to 18 months to get their Direct Debit accounts to a zero balance.

Please clarify E.On definition of a year. If not a calendar year from 1st January-31st December, where the second half would be from 1st July-31st December, what is it? Is it not the case that presently a customer joining in January would be required to have a zero balance in April, May or June of the same year?

What month would be the first month of the second half of an 'E.On year'.

Why is there more than one month for the zero balance to be achieved and how is this month allocated to customers. It appears that a customer who joins in June could be required to have a zero balance the following April, May or June.

How will this impact on your tariff structure. Will tariffs be of a minimum of 2 years for example, in order that E.On can gain some benefit from accounts being permanently in credit.

Will there be early termination fees if accounts are closed/switched prior to the zero balance target date?

E.On implemented this policy on 16/1/2012. Perhaps they could give examples of how this new policy has been applied to accounts opened from 16/1/2012.

I am sure many of the above queries were explained to customers prior to them joining on or after 16/1/2012. As mentioned in a previous post, the fine detail will have been worked out prior to the implementation date as an integral part of the re-set procedure. It will therfore have been fully explained to customers, won't it?

Why has the website not been updated with the 're-set' explanation?

backfoot

7.4 million multiplied by an average cash flow gain of say £200 per customer (guess) is a matter for partial or hardly any 'reset' if you can get away with it.

You don't earn your performance related bonus giving this sort thing away lightly.