MSE News: Eon shakes up direct debits to stop bill shocks

eezyrider7

jalexa wrote: »

Given that the announcement included "E.ON has therefore changed its Direct Debit process so that any customer who joins in the second half of the year is given up to 18 months to get their Direct Debit accounts to a zero balance" and you joined in April you are probably right.

It is hard to tell from the payment amount only, but my gut feeling is that just under two payments in credit by November for an April start *probably* indicates an insufficient monthy payment, but whether the E.ON calculation is correct is an entirely different matter.

Could you please obtain from E.ON your *exact* "annual review" date and post the answer. That would be very useful to the ongoing debate.

Later edit:
How was the initial monthly payment calculated?

Thanks for your reply Jalexa -

I agree that my DD may have had to go up but the intial increase was excessive, and the one after that was insane. Taking into account what I have paid them and deducting my refunds I have paid an average of £91 per month. This was roughly what I was paying my previous supplier and it was that figure I gave EON when I switched. They used that to calculate my monthly payment.

I plan to phone them back next week and speak to them again. I'll ask them at that point when my annual review date is and post back.


shimmeringsky - by paying by standing order doesn't that mean you are losing out on the Direct Debit saving?

EZ

jalexa

shimmeringsky wrote: »

I rang them, they told me the best they could do would be an increase of £35 per month.

Until the conclusion of a formal complaint (and then possibly an Energy Ombudsman referral), you cannot be sure that you have heard "the best they could do".

The regulations require this...

"27.14 The licensee must provide to each such Domestic Customer an explanation in clear, plain and intelligible language of the basis upon which a fixed amount (and any variation of that fixed amount) has been determined."

If you do not agree that the "best they could do" telephone explanation complies with regulatory requirerement then you have grounds for formal complaint.

Consumerist

shimmeringsky wrote: »

. . . so i cancelled my direct debit and have set up a standing order instead for what i believe i should pay. . .

Be careful - they might shift you to a more expensive tariff. :eek:

agmoore

Hi,
Wondering if anyone can help offer advice..

Joined E.On late September 2011 after moving into property, and have been paying roughly £60/month direct debit for dual electricty and gas. I submit meter readings when asked, and got a bill saying I was in debit of roughly £300 since the Winter usage (fair enough).

I have now received a review letter telling me that my DD will now go up to £150/month for both to cover this bill. I'm concerned that surely to pay the debit they just need £150 x 2 months (at worse) and then continue on £60/month as the heating is off is my house.

I'll call E.On tomorrow, and to be fair I have no penalties for leaving so will probably do that if they become unfair.

Cheers.

Consumerist

agmoore wrote: »

Joined E.On late September 2011 after moving into property, and have been paying roughly £60/month direct debit for dual electricty and gas. I submit meter readings when asked, and got a bill saying I was in debit of roughly £300 since the Winter usage (fair enough).

I have now received a review letter telling me that my DD will now go up to £150/month for both to cover this bill. I'm concerned that surely to pay the debit they just need £150 x 2 months (at worse) and then continue on £60/month as the heating is off is my house.

Without knowing your consumption, it's hard to be precise but you've got 4 more DDs up to the end of September to clear the £300 debit and pay for mostly Summer usage.

I would say that £300 plus 4 x £60 = £540 to pay up to the end of the year to give £540/4 = £135 per month should leave you a little in credit at the end of the year.

On this rather crude assessment, I would say that £150 per month is probably a little over the top.

If you accept the new DD, however, don't forget to get it re-adjusted from the October payment. I would suggest around £85 - £90 per month depending on whether rates increase before then.