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

poet123

USwitch provide the data based on E.ON's figures, after you click "Switch now" you go through to E.ON's own website to complete the agreement. At that point if they are not happy that the info they have will give an accurate representation of what they can provide, or that another form of data will give a better result they should ask for further info. They didn't and afaik still don't, that is bad practice at best, sharp practice at worst.

dude89

Just out of curiosity what tariff did you sign up for with eon?

poet123

Online duel fuel, I believe they have changed the name of it now though. Why? Are you employed in this field?

DVardysShadow

meggsy wrote: »

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

A nice find - thanks!

jalexa wrote: »

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

But not how they don't work:D

Exactly. It looks to be useful, but actually it dodges the one of issues which causes a lot grief on Direct Debits. This is the recovery and payback periods for accumulated credit or debits.

Until the utilities declare their calculation methods for DD's so that anyone can calculate the monthly payment and get the right answer within £1, the games will continue. The payback and recovery periods are an essential part of the calculation.

DVardysShadow

davidgmmafan wrote: »

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.

JimmyTheWig wrote: »

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.

I am another one who likes this idea. Ofgem are remarkably hands off and letting competition do its thing. But frankly, while the utilities are playing their games with DDs, true price competition will be seriously hindered by the cloaking effect of monthly DD payments.

Ofgem should really get their backsides in gear and direct the exact calculation of DD's as plainly competition so far is about who can garner most money from consumers for energy they halve not yet consumed.

backfoot

dude89 wrote: »

But do you question the amount of usage they are charging you for?
Are they charging you on the unit rates you signed up for?
Are they applying the appropriate discounts correctly?

If they have dont nothing wrong then i dont see where a complaint can be made.

They have stuck to everything in their contract

There is nothing in the contract stating how the DD Scheme operates. A customer would make the assumption that it would be a 1/12th basis over the next 12 months.

To alter the payment scheme out of the norm is the problem customers have faced. Less than 12 months to acheive a zero spring balance is not a contractual term so cannot be enforced.

xellieqx

So glad this is happening to other people, I almost had a panic attack on Friday when I got a letter saying my DD was increasing from £40 to £343 a month. It's still worrying me now, but reading through this makes it much more simple to digest. Should I email consumer focus to let them know I am another one of many?

DirectDebacle

xellieqx wrote: »

So glad this is happening to other people, I almost had a panic attack on Friday when I got a letter saying my DD was increasing from £40 to £343 a month. It's still worrying me now, but reading through this makes it much more simple to digest. Should I email consumer focus to let them know I am another one of many?

That is an extraordinary amount. If the increase is in part due to the zero spring balance policy then let Consumer Focus know asap. If you would like this to be looked at by The Times PM me for contact details. Their article would have been much stronger with an actual victim.

The pressure brought so far is producing encouraging signs. I have heard that as a result E.On are looking at this as part of their Project Reset and have as a short term measure switched off their Q.1. payment adequacy review. This is not verified but is from a reliable source.

If correct it may have filtered down to their CSA and enable customers to more easily contest any DD increases caused by their zero spring balance policy.

xellieqx

DirectDebacle wrote: »

That is an extraordinary amount. If the increase is in part due to the zero spring balance policy then let Consumer Focus know asap. If you would like this to be looked at by The Times PM me for contact details. Their article would have been much stronger with an actual victim.

The pressure brought so far is producing encouraging signs. I have heard that as a result E.On are looking at this as part of their Project Reset and have as a short term measure switched off their Q.1. payment adequacy review. This is not verified but is from a reliable source.

If correct it may have filtered down to their CSA and enable customers to more easily contest any DD increases caused by their zero spring balance policy.

We've had some trouble with our meter in the past, as the previous tenant in our apartment didn't pay their electricity bill, then the meters were read wrong, so we've been paying much more than we thought necessary due to the initial confusion, and that the advisor at Eon told us that'd be a reasonable amount to pay via DD... so when we got the letter, I was quite flabbergasted, as there is only 2 of us living in a small, 1 bed flat property, are out most of the day, put a jumper on instead of the heating etc.!
Whilst I can appreciate that there might have been overspend due to cold weather and having the heating on every now and again, I did not expect it to be that much.
We opened the account in May last year, not sure if that's relevant?

mvan

***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

I got the please stay phone call after switching, why are you going question was answered with, the other company was cheaper and even if they were not still off because eon keep increasing my dd amount based on some future projection thing then climb down when I complain! So bye bye....maybe they will take note of people leaving and revise their policy on taking customers money above what we consume to line their bank account.