Consumer Focus response to MSE posts on E.On 'Spring review' DD scheme

poet123

My case has gone to the deadlock dept, EON have admitted they have no idea how my DD was set so much lower than the input information would have required. I will be taking it as far as I can to get the matter resolved.

jalexa

poet123 wrote: »

EON have admitted they have no idea how my DD was set so much lower than the input information would have required.

Thanks for the update.

It is my "understanding" that when using a Consumer Focus accredited comparison website to make a switch, the Direct Debit amount is set to either the actual annual consumption compared or to the monthly consumption compared (adjusted for the new tariff costs), or to the "typical" consumption compared.

I am uncertain about and looking for confirmation whether the monthly payment is set by the comparison website and passed to the gaining supplier or whether "consumption" data is passed to the supplier which then performs the calculation.

Any opinion etc on that would be useful in building an argument against E.ON.

poet123

I think it must be the latter from what little EON have disclosed. Apparently they receive the input data and make a calc from there, it appears the input data in my case cannot be found. They can see where they set the DD but not what info they used to set it.

jalexa

So E.ON's marketing director (he of the two year deferred discount "turkey tariff") says "the spring balance policy is not part of the terms and conditions of the contract but it is explained in our literature...."

Perhaps he means here...
http://www.eonenergy.com/NR/rdonlyres/143C45C7-D919-42AF-8677-D05B91EED4F4/0/DD_Policy_April2011.pdf?WT.mc_id=Our_Direct_Debit_scheme_explained&WT.svl=13

A distorted use of the word "explained" methinks. A not unclear explanation of the "annual review" process, even meticulous mention of automatic balance refunds down to £5. And account debit balances - at annual review - being recovered over 12 months.

But where is the (similarly) meticulous explanation of the possibility of interim reviews resulting in "sudden excessive hikes"? Not much more than a bland reference to 10 day's DD notice.

The guide includes this "what's more, paying by direct debit saves you money", except - not in the guide - but elsewhere this, "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." So how much does the customer save Mr Davies? Given that statement isn't the policy graph "misleading"?

DirectDebacle

Despite the (understandable) reluctance of C.F. to post on Forums such as this and their initial comment following E.Ons' announcement of alleged policy change, the matter is not yet closed.

I have received information from a reliable source that C.F. are still engaging with E.On over their DD policy. Also that some of the issues raised on this and other related threads, together with analysis are being forwarded to Ofgem for their consideration.

I for one am pleased, should this be the case.

On the one hand C.F. are trying to persuade E.On to speedily (relatively speaking) rectify the disadvantage their policy causes to many of their customers.

On the other, the regulator Ofgem are aware of the nuts and bolts of the situation and I hope they decide to mount an investigation which will not just cover this particular issue but include the wider issue of suppliers compliance with their licence conditions and corrruption of the original DD scheme. At a guess such an investigation could take the best part of a year.

I anticipate it may some weeks before there is any further change announced by E.On on their DD policy, if at all.

In the meantime I hope that customers of E.On continue to submit complaints to C.F. re the spring balance policy. Also that customers from other suppliers who receive explanations of changes to their DD which they do not understand, complain and request a full explanation from their supplier.

Copying such complaints and the inadequate explanation to Consumer Direct should ensure that Ofgem are aware that they have more work to do to ensure suppliers treat their DD customers in a fair, open and transparent way.

DirectDebacle

poet123 wrote: »

I think it must be the latter from what little EON have disclosed. Apparently they receive the input data and make a calc from there, it appears the input data in my case cannot be found. They can see where they set the DD but not what info they used to set it.

If you are intending to complain to the Ombudsman and have not yet done so, I would suggest that this is done forthwith.

Before the Ombudsman will consider a complaint the matter has either to be unresolved after 8 weeks since the supplier first received the complaint or the complaint has not been resolved to the customers satisfaction.

You refused a £50 goodwill payment that was offered as their resolution. Therfeore it has not been resolved to your satisfaction. There is no point waiting for a deadlock letter to be issued.

I sympathise with your feelings towards the switching site and do not wish to dissuade you from complaining on that aspect. However I think you should separate it from the complaint against E.On.

AFAIK switching sites are not signed up to the Ombudsman scheme.The Ombudsman may refuse to accept the whole complaint if they consider part of it is not within their remit.

To avoid this possibility I suggest you only submit a complaint re-E.On and their inability to explain and manage your DD. It is with them that you have the supply contract and I believe it would be helpful if that were not intertwined with third party issues.

You could submit a separate complaint in respect of the switching site/E.On if you wished.

Copying the complaint and correspondence from E.On to Consumer Direct may be helpful as supporting evidence of poorly explained DD payments that Ofgem may investigate.

jalexa

DirectDebacle wrote: »

AFAIK switching sites are not signed up to the Ombudsman scheme.The Ombudsman may refuse to accept the whole complaint if they consider part of it is not within their remit.

Think that is right, however Consumer Focus accredited comparison sites must operate a complaints process...

"The service provider must establish and operate an effective consumer complaint and enquiry handling procedure and respond to any complaint or enquiry within seven working days of receipt."

The value of that would be to inform the E.ON complaint. I still think it is unclear *exactly* what information is "securely submitted" to the supplier, but from personal experience (initial DDs always set accurately) it must be "comparison consumption" related. Whether consumption, or annual (or monthly) cost I do not know. That would be a useful outcome from the website complaint.

poet123

DirectDebacle wrote: »

If you are intending to complain to the Ombudsman and have not yet done so, I would suggest that this is done forthwith.

Before the Ombudsman will consider a complaint the matter has either to be unresolved after 8 weeks since the supplier first received the complaint or the complaint has not been resolved to the customers satisfaction.

You refused a £50 goodwill payment that was offered as their resolution. Therfeore it has not been resolved to your satisfaction. There is no point waiting for a deadlock letter to be issued.

I sympathise with your feelings towards the switching site and do not wish to dissuade you from complaining on that aspect. However I think you should separate it from the complaint against E.On.

AFAIK switching sites are not signed up to the Ombudsman scheme.The Ombudsman may refuse to accept the whole complaint if they consider part of it is not within their remit.

To avoid this possibility I suggest you only submit a complaint re-E.On and their inability to explain and manage your DD. It is with them that you have the supply contract and I believe it would be helpful if that were not intertwined with third party issues.

You could submit a separate complaint in respect of the switching site/E.On if you wished.

Copying the complaint and correspondence from E.On to Consumer Direct may be helpful as supporting evidence of poorly explained DD payments that Ofgem may investigate.

I have only been told that the complaint has now been referred to their deadlock dept "as they may be able to glean more information on how the DD was set" not given a definite end to investigations.

I sent an email to CD early last week but have not had a response.

I take your point re the separation of the issues, and will take that tack.

Thanks for your advice.

backfoot

https://forums.moneysavingexpert.com/discussion/comment/51158547#Comment_51158547

Post 37 of the above thread contains some damning detail of how Eon have failed to address ' clear and understandable explanations' of their DD increases.

Combined with totally inadequate complaint handling, Eon are clearly failing to abide by the SLC.

I have encouraged the poster to let CF have details.

poet123

Ok, How wise it is to post detail here I am not sure, but I don't have much to lose really!!

Letter from EON saying the complaint is deadlocked.

Seems they have now found my input details(!) and confirm that I was told that the yearly spend would be reduced by £584. They must have found them because I said "just under £600" and they have come back with the exact, correct figure. The cynic in me wonders why they have suddenly found them, and wonders if it is because I told them verbally that under SLC 27 they were obliged to be able to tell me. Now they have told me, they have attempted to justify it as below.


However, they contend that from the details input they did a projection calculation for both fuels. I do not know if that projection would have been accurate for the DD set but I will be asking. In reality that projection was 1200 units short of the usage we had at that point for each fuel. EDF confirmed my usage for the 12 months prior (Oct to Oct) so I can prove they underestimated on the figures given.

Now comes the underhanded part imo, they say that the debit has accrued because of the huge rise in fuel used by us, but instead of giving the annual amount used so that comparison would be easy and transparent, they give the total usage since we joined a period of 15 months. So, the difference seems huge.

We have had to work out the annual usage and yes, it is higher but had the original projections been correct, had the six month review taken place, had the DD been reflective of the amount used at point of sale then obviously less of a debit would have accrued. We expected to have used more/pay more as we have had two bad winters, and a 20% price rise, but the effects of these would have been mittigated if EON had done their jobs correctly and accurately.

So, after all this, and a deadlock letter which, on the face of it shows it is our fault for using more fuel, they offer a £50 goodwill gesture!!

I have a lot of questions for the deadlock office on Monday, but if anyone has anything to put forward that would help, a nuance I may have missed, that would be very helpful.