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

xarius

poet123 wrote: »

I have just clicked back through to Uswitch to see what info is asked for and the drop down boxes ask for either monthly spend or kw. Monthly spend is actually the top option. Obviously, when doing it online it is much easier to put in your monthly spend (by checking current DD info) than it is to dig out all your past bills and add up yearly usage. If using the monthly spend is not reliable enough, then they should not give the option. I know I put in accurate monthly spend figures because I checked them against my DD's via online banking.

Hi, all energy suppliers are required to put your annual energy usage figures in kWh on every bill or statement. Check the back of your bill for this information.

DirectDebacle

The Times will be printing an article about E.On spring zero balance policy in tomorrows edition.

There is also some encouraging news from Consumer Focus which I hope they will be updating the thread with soon.

***trumpeter***

If you haven't 'left' E.ON over this issue then perhaps you should. Once the other supplier has contacted E.ON to organise the switch you'll be contacted by

"RETUK Stay ( Retail )" <Stay@eonenergy.com>

who, after some disccussion, will offer to set your direct debit back to twelve equal and sensible payments. That's what happened to me, anyway. I suspect (though I don't know) that it's a bit like Sky with Customer Retentions having much more to offer than Customer Services.

Unfortunately I wasn't quick enough (and nor were E.ON) so I'm outside the cooling off period for my new supplier.

I hope this helps someone get things sorted, though.

Best wishes, Neil

poet123

***trumpeter*** wrote: »

If you haven't 'left' E.ON over this issue then perhaps you should. Once the other supplier has contacted E.ON to organise the switch you'll be contacted by

"RETUK Stay ( Retail )" <Stay@eonenergy.com>

who, after some disccussion, will offer to set your direct debit back to twelve equal and sensible payments. That's what happened to me, anyway. I suspect (though I don't know) that it's a bit like Sky with Customer Retentions having much more to offer than Customer Services.

Unfortunately I wasn't quick enough (and nor were E.ON) so I'm outside the cooling off period for my new supplier.

I hope this helps someone get things sorted, though.

Best wishes, Neil

Thanks, I am loathe to pay them off and move suppliers (I assume I have to do this if I did move?) but would rather make them wait for their debit balance and increase my monthly DD to cover it. Or are you suggesting I just make moving noises to see how they react?

My husband wants to pay it off and move suppliers and register a formal complaint with the regulatory bodies for malpractice. We just feel that we gave figures in good faith and now we are left to pay off what should never have accrued if the direct debit had been correctly set from those figures.

The saving came up as £600+ when checked on Uswitch, had it been substantially less I wouldn't have changed supplier.

I have had one call back today asking for meter readings which I gave them twice yesterday:( so I am still underwhelmed by the service. I am awaiting another call back from a manager.

Mrs_Arcanum

Sent my comments. Hope they help as it is all grist to the mill.

meggsy

Direct Debit advice from Ofgem published today ...

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?docid=98&refer=Media/FactSheets&utm_source=Ofgem+Website+Mailing+List&utm_campaign=6d4b243d5e-Ofgem_Email_Alert1_27_2012&utm_medium=email

sky111

poet123 wrote: »

We joined EON from EDF in October 2010. I had input the monthly payment figures for dual fuel as £200pcm. Uswitch (who EON are now blaming) calculated a saving of £600pa by a switch to EON. So we moved over and DD was set at £141 pcm.

By November 2011 debit balance was around £450, increased DD was worked out to cover that and from December we began to pay £207.

New bill arrived today and we are £949.60 in debit.


You moved supplier before winter usage.

Winter weather pre and post December 2010 was alot colder than this winters weather. EON will help you calculate your usage so far this winter compared to last winter.

EON increased tariff since you joined them - find out the % price increase upto date.

If your debit balance was 'around' £450 debit November 2011 and by January 2012 gone up to £949, then your last bill usage, excluding arrears, was £499 for 2 months ie £250pm.

Your debit balance is an example why a quarterly review of your dd would have prevented the high arrears and your dd should have been increased after your first bill.

jalexa

meggsy wrote: »

Direct Debit advice from Ofgem published today ...

"This fact sheet explains clearly how the big six suppliers’ direct debit arrangements work"

But not how they don't work:D

Blackdog

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

I emailed them about my situation but did not receive an acknowledgement or reply so it may be a case of the emails not getting to the correct person.

DirectDebacle

Extract from The Times.

The full version can be read online now or in tomorrows paper.

Consumer Focus, the watchdog, is investigating reports that E.ON, the energy company, is profiting unfairly from its direct-debit customers.

An energy campaigner says: “A number of E.ON customers say they are being asked to pay for the full year’s amount long before the 12 months are up. ”

The problem has been caused by E.ON’s desire to move all direct-debit customers to a billing year that starts and ends in spring or early summer. This presents difficulties for customers who join E.ON at other times of year.

“Take someone who joins in August and who agrees to pay a £1,200 annual bill in 12 monthly instalments of £100. His first payment would be in September and he is expecting to keep paying monthly until the following August.
“But what is apparently happening is that after a couple of months, let’s say November, after paying three instalments of £100, the customer is told by E.ON that it wants to have the bill cleared in full by June.

“This means the balance of £900 has to be cleared in just seven months. E.ON readjusts the direct debit accordingly — an increase of nearly 30 per cent.”

“While E.ON boosts its cash flow considerably by this device, it is presenting hard-pressed households with an unexpected extra demand which could result in them being unable to balance their monthly budget.”

A spokeswoman for Consumer Focus says: “We have written to E.ON and asked for an explanation. ”

A spokeswoman for E.ON says: “We review our direct-debit customers’ payments regularly and adjust them to reflect their balances and usage. Our aim is for customers’ balances to be zero in spring following the winter when they use most energy.”

Times Money would like to hear from readers experiencing a similar problem.

Not precisely as we now understand it but gets the message out. Talk of 'seasonally adjusted DD payments' and 'Standard Licence Conditions' can cause readers eyes to glaze over and move on to another article.

Contact details on The Times website if you want to tell them your experience of this.