EON Rip Off

DirectDebacle

Airmike23 wrote: »

If you are not paying Enough over winter with any power company they will up your dd in spring/summer statement, as industry has set the precedent to be in cr over summer, if that credit will not cover projected winter usage with current payment amount may still get an mdd increase in autumn.

There is no precedent but there is a policy of a zero spring balance. This is not made clear to customers on sign up and is probably a breach of contract in some cases.

The DD scheme is still the same as it ever was ie cost of annual usage/12 = MDD payment.

If a customer joins in Novemeber usually 1st DD taken December and 12th taken following November = 0 balance in a perfect world. Such an account would be unlikely to ever be in credit.

Join in April, 1st DD May and same pattern would be an account that was likely to be always in credit until 0 balance in April.

It has always been the priniciple that for most DD accounts it will at times be in credit or debit over the 12 payment months.

Suppliers are trying to move the goalposts by aligning all accounts to a 0 balance after winter. This can cause big rises in DD payments in addition to other more ususal changes caused by alterations to price and/or usage.

Suppliers should not be altering DD payments "because winter is coming". Seasonal changes in usage should have been included in the initial DD calculation and spread over the 12 payments. What suppliers are trying to do (through backdoor methods) is to achieve 0 balances after winter. This improves their cashflow by ensuring the majority of accounts are almost always in credit.

Most customers should know their annual usage and if they don't it is relatively easy to find out what it is. Every time a supplier alters a DD payment they must inform the customer of the basis upon which the change has been made. That has to include amount of energy used and will be used (or estimates). In other word calculations and an explanation of them that is clear and easy to understand.

If you think a DD adjustment is unjustified then ask for a full written explanation of the reasons for the change. If the reason or part of the reason for the change is to achieve a 0 spring balance and your balance date is for a different time of year, object to the change.

Demand the DD be reassessed on the correct terms. Complain. Copy complaint to Consumer Focus and mark for attention to C. Urquhart who is investigating this 0 spring balance policy. Let C.F. know even if they agree to put you DD at the correct level.

E.ON_Company_Rep_Chris

Hiya OP

I'm sorry for the confusion here, I appreciate you feeling ripped off when the amount you're currently paying seems to cover the estimated annual use on your bill.

How long have you been with us? Been paying £124.00 for a while? Have you changed tariff recently? These factors all play a part in the amount you pay. I suspect that this is your first bill after our September price increase too, so unless you've been on a fixed price plan with us for awhile then this will have an impact too.

Whyisthissitecrap wrote: »

Eon have sent me a statement dated 12/11/11. That is 3 days before my monthly DD £124 goes through. It says I am £57.61 in credit. Therefore I must be £181.61 in credit. Fine, you would think.

They estimate I will use £782 Electricity and £682 Gas in the coming year. That is £1464 or £122 per month. OK, no problem, you would think, bearing in mind that I am already £181.61 in credit.

However, they go on to say they will increase my DD to £149.

This is a rip off. They want me, and no doubt many others, to finance their business.

Just to clarify, the increase in your payments isn't to cover what we estimate you'll use over the next 12 months. We'll do this after your Spring bill and as long as the bills correct and your use or prices don't change in the meantime, then you will be looking at £122.00 a month.

We're asking you to pay £149.00 a month to cover what you'll use from now until your Spring review. When we work out the new amount we look at what you used for the same period last year and your current prices.

If your circumstances have changed or we have a milder winter this year and you're still in credit in the spring you'll get a full refund and start again from zero.

We take into account the credit balance on your account and the DD that's come in since. I'm happy to check the calculations for you and see if there's anything we can do to help keep the payments down.

If you'd like some help just drop an email to the address on my profile with your details and I'll take a look

Amanda

backfoot

E.ON_Company_Rep_Amanda wrote: »

Just to clarify, the increase in your payments isn't to cover what we estimate you'll use over the next 12 months. We'll do this after your Spring bill and as long as the bills correct and your use or prices don't change in the meantime, then you will be looking at £122.00 a month.

We're asking you to pay £149.00 a month to cover what you'll use from now until your Spring review. When we work out the new amount we look at what you used for the same period last year and your current prices.

If your circumstances have changed or we have a milder winter this year and you're still in credit in the spring you'll get a full refund and start again from zero.

'However, it is important to realise that in these austere times, that Eon's cash flow is much more important than struggling individuals. Our policies are designed accordingly.

DirectDebacle

If your circumstances have changed or we have a milder winter this year and you're still in credit in the spring you'll get a full refund and start again from zero.

Will this refund include any interest charges from the bank/credit card co. if the customer has to borrow to pay unexpected and unjustified DD increases?

Marmaduke123

StephenM wrote: »

They've just decreased my DD from £100 to £70. :beer:

Three months after increasing it from £84.

Theyve just decreased mine too, from £149 to £96. We had paid £149 for just two months, after an increase from £115.

Never could see why it had gone up so much, now can't see why it's gone down to less than last years payments. Still, I prefer the idea that we might owe them money at the end of the winter, rather than the other way round!

backfoot

DirectDebacle wrote: »

Will this refund include any interest charges from the bank/credit card co. if the customer has to borrow to pay unexpected and unjustified DD increases?

I suspect that one has gone on the too difficult pile.

keystone

Whyisthissitecrap wrote: »

This is a rip off. They want me, and no doubt many others, to finance their business.

:rotfl::rotfl::rotfl:Get off your high horse and read that sentence again.

Cheers

DirectDebacle

keystone wrote: »

:rotfl::rotfl::rotfl:Get off your high horse and read that sentence again.

Cheers

What a rude way to address a newbie making their first post. Get off your high horse, lose the arrogance and find some manners.

I knew perfectly well what the post meant. If you can't understand posts or can't be useful, don't bother reponding.

Cheers.