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

brewerdave

Have to agree with backfoot - briefly, I've been with 4 different utility cos. since 2006 - SWALEC,SP,EON & EDF - all of them have,at different times,attempted to raise my DD beyond that necessary to achieve an annual zero balance. ON EVERY SINGLE OCCASION, when phoned, the Companies have backtracked and agreed to maintain (or even decrease) the existing DD payment.

MisterCee72

Happy New Year to you all!

My apologies for the lack of input over the past few weeks. This has been down to trying to reach either a final or deadlocked position with E.ON over the Direct Debit issue, which provisionally has now been achieved.

Subject to E.ON confirming the issuance of the cheque for compensation, I will have some further relevant information (both evidence and impact), which hopefully will be helpful for the users on here, as well as for the energy team at Consumer Focus in the work that they are doing around this issue.

DirectDebacle

Thanks for the update MisterC. I am sure C.F. will appreciate your information. MSE Team have passed my request for this issue to appear in the weekly email on to the editorial team for their consideration. As has been said in previous posts and threads customers need to pass their complaints on to Consumer Direct/Consumer Focus in order that suspected systematic wrongdoing can be identified and investigated.

Thank you for your efforts, a good example for others to follow.

davidgmmafan

On a similar note is it time there was a standard way for companies to calculate direct debit? The Ofgem guidelines seem to vague and they all do it differently. Is this a good thing? We moan about them being too similar, but here on something you would think would be fairly uniform there are massive differentials.

Personally I think it should be done on the 1/12th figure as others have proposed and be reassessed annually. There will still be errors to be sure, but this would be mostly where wrong information was given at the outset and at least wouldn't cause customers to suffer the kind of eye watering recalculations they currently see.

I would urge everyone, whether the issue has been resolved or not, to report. I can't help with that I'm afraid as I'm not with E.On (sounds like a blessing reading this frankly!).

JimmyTheWig

davidgmmafan wrote: »

is it time there was a standard way for companies to calculate direct debit?

I like this idea.

It would also stop the "'Switch to us and we'll reduce your DD to £x a month', only to find you've a massive outstanding balance months down the line" ploy.

davidgmmafan

Well it would seem to fall in nicely with the idea of having one unit rate and stuff like that...

DirectDebacle

MrCee72. PM sent.

MisterCee72

Thanks DirectDebacle. PM reply sent.

backfoot

As expected customers aren't queuing up to provide CF with specific details of their complaints.

The matter should still be put forward to Ofgem along with those relevant details which have been provided.

The abuse of the DD system to enhance Eon's cash flow at the detriment of customers is blatantly obvious.

The lack of provision of data and explanation of reasons for DD increases at the time of those increases breaches the SLC.

Along with the lack of explanation up front of the impact in any Terms and Conditions demonstrates the customer is being clearly penalised.

I would challenge the CF organisation to take up this matter with the utmost vigour or it will show that they are completely out of touch with customer concerns , powerless or don't have the appetite for a fight.

It is a sorry state of affairs where the ordinary customers and interested amateurs are having to first advise and then make the running over and above the 'professional' Regulatory bodies who should be representing us.

DirectDebacle

backfoot wrote: »

As expected customers aren't queuing up to provide CF with specific details of their complaints...

All valid points. It seems to me that C.F. may be constrained by rules which require a certain amount of complaints before they can be referred to Ofgem for investigation. I am only speculating though.

The DD policy of Eon is overt and I suspect that other suppliers are also pursuing and end of winter zero balance policy, though less obvious and/or aggressively applied.

My view is that if not industry wide (the big six) if Eon are allowed to continue with it then the others will come out of the closet and follow suit.

There is little merit or advantage for the customer of this practice, that all lies with the suppliers.

It may be possible to grab Ofgems attention through the press. I know a reporter on a respected broadsheet paper who would be willing to do an article on the subject.

However that is unlikely to happen unless there is a customer prepared to come forward and have their case published as an example.

If there is someone amongst the many complainants that have posted on these threads then PM me and I can put you in touch.

Ofgem were thoroughly embarrased in the press over their handling of the npower fiasco and may well not wish to face that sort of adverse publicity again.

Consumers can effect change but it requires the will and a little effort to make it happen.