Another Eon DD thread

temba

I'm sorry I know that plenty of people have posted on this, and I've read several of the threads.

I have a quite simple question.

I am on the energyonline tariff. I was paying £52 a month (down from £75 about a year ago, after ending up in credit at that time).

I knew that the prices had risen, so was waiting to see what would happen. They have now upped it to £90 a month. Quite an increase. Especially since on my last bill they say my usage is about the same (slightly up on electricity, slightly down on gas)

So my question is: have the prices really gone up by almost 80%? Have I just had my head in the cloud, or is this increase too much and should I try to lower it?

Thanks.

T

dprice1164

I'm on exactly the same tarriff and have experienced the same problems with E.ON over the past 3 years.

When they inform me that they're dropping my dd, I now simply ask them to continue taking out the same amount.

I'd rather be slightly in credit at certain times of the year and know it will more or less even up over time. If you don't your dd goes up and down like a yo yo.

JohnLong

The only people with their heads in the clouds would appear to be Eon.

I have just been quoted £127.00 per month as a DD payment to cover a projected spend of £988.72 over the next 12 months. As Eon's DD policy leaflet states "If your account is in debit at the time of your Annual Review, we’ll calculate your Direct Debit payments for the following 12 months and include the outstanding balance. If you

want to pay your outstanding balance in full, please call us on

0845 302 4317."

That means that I will be debitted for £1,524.00 - a surplus of £535.28 per annum or £44.61 per month.

While speaking to Eon's call centre I mentioned that the amount quoted was ridiculous and that £85 per month was more sensible. (I didn't have knowledge of the £127 charge before calling but £85 erred slightly on the side of Eon in my prior calculations, so £127 - £44.61 = £82.39. My calculations don't seem too far out )

During the course on the conversation I was told that it was not possible to set up a DD for any other amount, I didn't have to accept it (no less than 3 times), it was due to high usage during the winter months and that the amount was "calculated by the system". A formal request for clear details of how the amount was calculated under SLC 27.14 was met with "I don't know if I can do that but I will ask my manager" This lad eventually accepted a payment of £85.00 as a single payment and was told that a further payment would be made next month. This means that I will lose the discount for paying by DD. This I will take up with the Customer Service Director.

Now a couple of days have passed and no response to my SLC 27.14 request but I have received a letter from some bunch called Buchanan Clark & Wells who inform me that unless I phone them IMMEDIATELY will be passing my account to E-ons Field Collection Team applying for a warrent of entry to disconnect my supply and increase my bill by £250. I think they are debt collectors but are too embarassed to say so. As it is winter, we are pensioners and Eon are breaking all the rules, I don't think so! Interestingly the bill has been reduced by the £85 so they must be instructed by Eon and this must be the response that I was waiting for.

Needless to say trhis now goes to Eon's Customer service Director then to OfGen and if bcw don't understand their position, Trading Standards .

For reference see Eon's DD Policy on their website. I'm not allowed to post links as an anti spam measure (being a new poster) so you need to find DDpolicyoct2011.pdf unless somebody with the necessary privileges can post the link? It does spell out exactly what Eon should be doing.

Oh, and yes I did record the telephone conversation:T

Now a question for the forum. Can anyone tell me how to set up a standing order to pay Eon. Standing orders are mentioned as a payment option but there is nowhere that I can find on their site that allows me to do so? Also why can't SO payments attract the same discounts as DD? Apart from the ability for firms to take money from customers at will and the banks to impose charges when there is no money? This would seem to be decidely unfair to consumers and will probably be seen as another form of disgraceful corporate conduct in the future as we would now view the "truck" system of yesteryear.

backfoot

John,

Please have a look at these threads :

https://forums.moneysavingexpert.com/discussion/3531893

https://forums.moneysavingexpert.com/discussion/3589215

There are others. You have been treated appallingly by Eon and I expect the Eon Reps will be along shortly to say sorry.It really is a shameful case and exactly why some of us have campaigned about this penalising DD policy.

I suggest you immediately contact Consumer Focus regarding your case. Subject title: Eon DD Policy Attn C Urquhart.

http://www.consumerfocus.org.uk/contact-us

Consumer Focus are looking into this matter and your case illustrates very strongly how little Eon care about the impact and consequences of their policy.

You need to have your DD's reset at their original level while a formal complaint is handled.(perhaps Helena or Malc could at least set this in motion,please).

backfoot

John,

Just wondered how you were getting on with this and hopefully raising it again for the Eon Reps to help you with this awful and unnecessary situation.

You have a slightly different case to the Zero spring Policy threads and the key point for you is why they have overestimated your monthly payments.

I was wondering how you knew to correctly ask for a SLC27.14 explanation? This hasn't been forthcoming and the case has very quickly developed into a debt chasing exercise for Eon.

Really,this take it or leave it attitude is dreadful and we only heard recently that Eon were embarking on a 'Reset Initiative' to treat customers better. It obviously hasn't started yet.

I feel Eon owe you some prompt action and I would still be alerting Consumer Focus to the lack of compliance with clear procedures.

deshepherd

JohnLong wrote: »

The only people with their heads in the clouds would appear to be Eon.

I have just been quoted £127.00 per month as a DD payment to cover a projected spend of £988.72 over the next 12 months. As Eon's DD policy leaflet states "If your account is in debit at the time of your Annual Review, we’ll calculate your Direct Debit payments for the following 12 months and include the outstanding balance. If you

want to pay your outstanding balance in full, please call us on

0845 302 4317."

That means that I will be debitted for £1,524.00 - a surplus of £535.28 per annum or £44.61 per month.

It just the usual issue of Eon doing their annual review in Spring and attempting to ensure your account is in balance then. Bills, I think, are required to give an estimated usage/spend for the next 12 months but this is "for information" and not directly linked to the DD calculation.

From projected spend then you average ~£80 usage per month, but usage is higher in winter and lower in summer so it seem that they are adding ~50% to cover the extra usage over winter to ensure account is in balance in spring. If they didn't do this then you could have an account ~£100-200 in debit in march/april and you'd then probably be complaining if you tried to switch to a better deal and Eon blocked the switch due to the deficit on your account.

Don't think its just Eon that does this ... had a similar issue with NPower a couple of years ago - only difference there was big increase in DD triggered me to do a comparison with other providers and realize that my NPower tariff was hopelessly uncompetitive so I switched.

JohnLong

Thanks Backfoot
I look forward to a robust public dialog with E.on reps. SLC27.14 is frequently mentioned on internet forums as a useful tool to compel rogue companies to meet their obligations.

Just an update, by the time that you posted I had already spoken to one of their "specialist Complaints Advisors" as a prelim to an Ofgen complaint.

I did not expect much help and was not disappointed as a result.

I requested that collection activity cease as I was trying to set up a plan with Eon but couldn't get past their stupid DD payment levels. "Sorry we can't stop that unless the account is paid up or a payment arrangement is set up." said the script.

Then refer me to your manager I asked, "if you wish I can do that but he can't make those decision either" said our specialist complaint advisor. "Why not" I asked you are Eon, aren't you?

It then got very interesting because it transpires that I am in fact talking to a third party call centre "working on Eons behalf"

I suggested a standing order for £85.00 per month.
"That's not one of our payment methods" was the response.

I asked again for clarity on the way that the calculation was calculated and asked where was my response to my formal request and complaint. At my request the notes on my file showed a complaint but it was not actioned "because I was going to call back".

I point out that either Eon's Direct Debit Policy Leaflet is not Legal, Decent honest and Truthful as specified by the Advertising Standards Authority or Eon are not doing what they say they will.

At this point it was suggested that if I was having difficulty paying that I could pay a reduced amount each month of £70 plus an additional amount to pay off the arrears. We now move from pantomime to Whitehall Farce (for younger readers that is not the big building with the clock in Westminster but a series of theatrical plays in the dark ages).

Me " so you are telling me I can reduce my monthly payments to £70?"

Andrew, the outsourced complaint advisor " Yes. Then you can make an additional payment to pay off the arrears. The more you pay the sooner it is cleared!"

Me "So I could pay another £15 a month?

Andrew "Oh yes. Shall I set it up for you?"

Me "I can pay by Direct Debit?"

Andrew "Oh yes. Shall I set it up for you?"

Me "And I'll get my Direct Debit discount"

Andrew "'Fraid not*

Me "So I will be disadvantaged by this? Even though I will be paying by direct debit, an amount calculated by me based on your consumption figures and Direct Debit Policy Leaflet?"

Andrew "It's the way it works, sorry. Do you want me to put you through to my manager?"

Me "No thanks. After spending nearly half an hour with a call centre employee on a shared revenue phone line without any result, speaking to a third party call centre manager would be a further waste of time."

So after establishing that all details would be recorded on my file and obtaining official complaint number 1392926 I reiterated that if Eon permitted collection activity to continue whilst this dispute continued they might well find themselves facing a claim for compensation set at the magistrates disgression.

But then I was talking to a call centre "working on behalf of Eon" who couldn't apply any common sense unless it was in their script. A nice little system for Eon to distance themselves from their Customers and have somebody else to blame if things get rough.

So now send email to Customer Service Director to complete the complaint procedure with a copy to consumer direct I think. Thanks for that link - are you able to put up the link to DDpolicyoct2011.pdf for interested parties - I think it is a good reference and current. Unless ASA tell them to remove it of course:)

Joyful

I think the big question is how much debt do you have with them?

backfoot

Joyful wrote: »

I think the big question is how much debt do you have with them?

It's a key question and of course it would form part of the explanation that John should have been given as part of his formal request.

What is a bit confusing to me is why all this is happening now. (Nov/Dec).

Is it a so called Annual Review date?

Is that the month when John started this contract?

Wasn't he zero spring aligned last April/June?

Where are the Eon Reps?

Former_E.ON_Company_Representative:_Malc

temba wrote: »

I'm sorry I know that plenty of people have posted on this, and I've read several of the threads.

I have a quite simple question.

I am on the energyonline tariff. I was paying £52 a month (down from £75 about a year ago, after ending up in credit at that time).

I knew that the prices had risen, so was waiting to see what would happen. They have now upped it to £90 a month. Quite an increase. Especially since on my last bill they say my usage is about the same (slightly up on electricity, slightly down on gas)

So my question is: have the prices really gone up by almost 80%? Have I just had my head in the cloud, or is this increase too much and should I try to lower it?

Thanks.

T

Hi Temba

How long have you been on EnergyOnline? This is our standard online product which customers are automatically switched to when an existing online tariff ends.

If you were previously on another online tariff, you may have been receiving considerably more discount than is now available.

Lost discount plus the recent price rises will, I’m afraid, be reflected in your new payment arrangement.

Also, you say we put the monthly payments down about a year ago because the account was in credit. Has this credit now been used up?

It may be the lower monthly payments allowed this credit to be used towards ongoing usage but, if this has now gone, payments will be adjusted to reflect the actual usage.

I’m speculating rather a lot here Temba and I’m sorry if I’m barking up the wrong tree but these are a couple of possibilities. Give me a shout with bit more info if I’m wrong and I’ll take another look.

Malc

Former_E.ON_Company_Representative:_Malc

dprice1164 wrote: »

I'm on exactly the same tarriff and have experienced the same problems with E.ON over the past 3 years.

When they inform me that they're dropping my dd, I now simply ask them to continue taking out the same amount.

I'd rather be slightly in credit at certain times of the year and know it will more or less even up over time. If you don't your dd goes up and down like a yo yo.

Hi dprice

Your monthly payments need to cover the ongoing usage.

Payment arrangements are reviewed after each scheduled bill. If you’re paying too much, the monthly amount will be lowered automatically to reflect this.

Hope this explains what happens dprice. Let me know if you need any more info as will be happy to help.

Malc