E.ON press the re-set button

jalexa

backfoot wrote: »

I want to join Eon on the 30th November, when my contract ends.

I have gas only at £1200 per annum. (2/3 of the amount is from October to March).

I currently pay my Supplier £100 per month. I have no debt on switching.

What is my regular fixed monthly DD from Eon?

When is my review (spring aligned date) date?

I suggest you ask Consumer Focus. Given that they said "we welcome the move by E.ON to change its Direct Debit policy. It is a victory for common sense", I assume they must understand. Surely?

But don't ask me, I can't make sense of it.

JimmyTheWig

backfoot wrote: »

I want to join Eon on the 30th November, when my contract ends.

I have gas only at £1200 per annum. (2/3 of the amount is from October to March).

I currently pay my Supplier £100 per month. I have no debt on switching.

What is my regular fixed monthly DD from Eon?

When is my review (spring aligned date) date?

I don't understand how they decide on the review date; in this case it creates two distinct scenarios. I think I understand the rest.

(1) Review date end of June. That's more than 6 months away, so you will need a zero balance at that date when you reach it. That's 4 winter months (£133.33 a month) and 3 summer months (£66.67 a month). Total cost for the next 7 months = £733.33. Cost per month £104.76. At the end of June you'll drop back to paying £100 a month.

(2) Review date end of April. That's less than 6 months away, so you will need a zero balance at that date the second time you reach it (17 months time). That's 10 winter months (£133.33 a month) and 7 summer months (£66.67 a month). Total cost for the 17 months = £1900.00. Cost per month £105.88. At the end of that second April you'll drop back to paying £100 a month.

I'm assuming that your annual bill will remain at £1200 and that you use twice as much gas in each of the winter months as you do in each of the summer months.

Again, this is only my interpretation of what they've said.

DirectDebacle

The devil is in the detail, particularly how they apply the seasonal weighting.

Using your example (1) and the % seasonal weighting npower apply to their Tier 1 units, Nov-Feb @ 19.3% p.m, March @ 5.94%, April & Oct 5.93% and May-Sept @1 % the 7 month usage is £861.24 = MDD £123.03.

Lots of fun to be had with figures and no doubt E.On are having fun with theirs. Wonder if they will ever let on what they are?

meggsy

jalexa wrote: »

I suggest you ask Consumer Focus. Given that they said "we welcome the move by E.ON to change its Direct Debit policy. It is a victory for common sense", I assume they must understand. Surely?

But don't ask me, I can't make sense of it.

I'm afraid it reminds me of this blog ....

http://edmayo.wordpress.com/2009/02/14/12-million-pounds/

Ed Mayo was then Chief Exec of CF .....

backfoot

JimmyTheWig wrote: »

I don't understand how they decide on the review date; in this case it creates two distinct scenarios. I think I understand the rest.

(1) Review date end of June. That's more than 6 months away, so you will need a zero balance at that date when you reach it. That's 4 winter months (£133.33 a month) and 3 summer months (£66.67 a month). Total cost for the next 7 months = £733.33. Cost per month £104.76. At the end of June you'll drop back to paying £100 a month.

(2) Review date end of April. That's less than 6 months away, so you will need a zero balance at that date the second time you reach it (17 months time). That's 10 winter months (£133.33 a month) and 7 summer months (£66.67 a month). Total cost for the 17 months = £1900.00. Cost per month £105.88. At the end of that second April you'll drop back to paying £100 a month.

I'm assuming that your annual bill will remain at £1200 and that you use twice as much gas in each of the winter months as you do in each of the summer months.

Again, this is only my interpretation of what they've said.

A very good effort I would say, subject to more precise seasonality (DD's point) which I didn't provide. :T Two options though, so I will have to mark you down a bit.

Now how are Eon going to fit in all that in their clear and understandable explanation of the regular fixed monthly Direct Debit ? :eek:

That was the simple example,now add a price increase of 18% in November next year.

Thanks for having a go though.

I am sure Eon will clarify if there are any inaccuracies.

brewerdave

Do all who attempt the question get a GCSE or NVQ??

backfoot

No its a diploma with various gradings bronze to gold.

It's called USpin.

I would assess Jimmy only as lower bronze, but gold standard goes to Eon themselves as setting the benchmark for us all to aspire. Jimmy has only really done a calculation.

A ' Reset' of minimal proportion under the glare of the Regulator is really the stuff of dreams. Think Alistair Campbell like.:D

JimmyTheWig

backfoot wrote: »

A very good effort I would say, subject to more precise seasonality (DD's point) which I didn't provide.

Yes, I had to make my own assumption based on what you'd said.

Two options though, so I will have to mark you down a bit.

Ah, but maybe that's the point. Maybe eon reserve the right to two options so they can choose the one that makes them the most money?

Now how are Eon going to fit in all that in their clear and understandable explanation of the regular fixed monthly Direct Debit ?

"The Direct Debit level will be fixed to achieve a zero balance at your Spring Review Date (sometime from April-June) with equal monthly payments. Customers joining less than 6 months before their Spring Review Date will have their Direct Debit level set to achieve their first zero balance at their second Spring Review Date."

That was the simple example,now add a price increase of 18% in November next year.

I'll assume by November you mean 30th November - the anniversary of you joining. Maybe you had a 1 year deal?

With scenario 1. They have already passed their first zero balance date and so are now on 1/12th payments of £100.00 a month. You've got 4 winter months (now £157.33) and 3 summer months (now £78.67) until your Spring Review so you'll pay £123.62 a month for 7 months then drop to £118 a month.

With scenario 2. You're still paying £105.88 a month until the increase comes in. You've got 4 winter months (£24 extra due to increase) and 1 summer month (£12 extra due to increase) until your Spring Review so you'll pay an extra £21.60 a month (i.e. £127.48) for the next 5 months before dropping to £118 a month.

Thanks for having a go though.
I am sure Eon will clarify if there are any inaccuracies.

No problem.
I'm sure they won't, however!

meggsy

Yesterday they concentrated on their poetry

"I'm not ready for you to say goodbye
I know that mine's a confusing world
Different 'facts' and 'figures' you are constantly hurled
Now's the time to set things straight" etc.,

http://www.corpcommsmagazine.co.uk/news/2172-energy-ombudsman-gets-poetic

johnsons50

Dear EON,

I have just switched away from you after approximately 18 months. If you are genuinely interested in feedback on why I left then please have a read of my experiences:

I joined you after my previous energy supplier had hiked my direct debits to unaffordable levels. Originally I was paying £140 per month direct debit but, despite it being the coldest winter on record, my account was in credit and you dropped my direct debits down to £112 per month for the summer. Then just before this winter I you increased my direct debits to £180 per month.

I immediately cancelled my direct debit and changed supplier. My final bill from you was £176 for THREE months not one and that didn't include the direct debit discount that you have cheated me out of. Had I continued to pay by direct debit during my switch-over then you would be sitting on hundreds of pounds of my money that I need for such trivialities as feeding my family.

My new supplier is charging me £88 per month.

I know you are not the only company to do it but the hikes in direct debits cause massive stress and resentment amongst your customers.

Time will tell if your new policies address these concerns. I shall undoubtedly be looking for a new supplier again in 18 months so I will be checking on this forum for feedback before deciding whether to give you another chance.

Regards,

A former customer