EON increasing direct debit

rokat

hi,

I opened a new bank account and currently in the process of transferring all household direct debits. However, I just tried to switch EON using the online form and just before I clicked confirm it said that by doing this my 'fixed direct debit' would go up by £6 a month. I know it isn't a great amount but its not really something we can afford at the minute. We seem to constantly be in credit with them so I really don't understand the increase. I cancelled the direct debit transfer as I didn't want to agree to the increase and I don't want to ring them in case they increase it automatically.

Has this happened to anyone else?

tlh858

No such thing as a 'fixed direct debit' - they can all be varied. Only way around this would be a standing order, which you won't be able to use for energy payments (or very much else).
However they do have to provide notice of the change, so they won't increase it just by calling them.

If they refuse to keep it the same, then find another energy supplier. Plenty to choose from.

advantix

You can pay EON by standing order, they dont like it but you can. It just means you wont benefit from the Direct Debit discount as it is treated as payment on demand on receipt of bill.

jalexa

rokat wrote: »

hi,
I know it isn't a great amount but its not really something we can afford at the minute.

If you cancel because you can't afford £6/month you may be shooting yourself in the foot. As well as losing the direct debit discount mentioned by others you will make yourself liable for full bill quarterly payment at a time of highest energy use, whereas there is an element of smoothing in the monthly payment.

The £6 increase may or may not be reasonable. You are entitled to ask for a detailed calculation. The E.ON reps have previously confirmed this will be provided on request.

I suggest you phone up, explain you want the detailed calculation in writing and request that until you accept the calculation the previous payment amount should be setup on the new account until a proper future scheduled review determines otherwise.

If you wish, post details of calculation provided and you will get an opinion whether or not it is reasonable. You could also use that as a threat.:D

Mr_K

EON recalculate the DD if you change your bank details based amount outstanding and recent use. You can also make one off payments to get rid of any outstanding balance via debit/credit card on their site. That's what I used to do in Winter when I was with them to stop them increasing my DD to a stupid amount,and still benefit from DD discount rates ( plus get cash back from my credit card )

molerat

The EOn system recalculates the DD constantly so it may be worth submitting readings and selecting "yes" for a bill. This will then give an accurate account status and the DD will be calculated accordingly.

rokat

thanks for all the replies.

I didn't think there was such thing as a fixed direct debit but I was just quoting what was written on their website.

I haven't cancelled the direct debit. I just didn't continue with changing the bank details because it said about the price increase so I still have the direct debit discount at the moment.

I will ring up tomorrow and see why they are increasing it. The reason why I am so confused is we are currently £90 in credit with them. We still have one more direct debit before the next bill which will mean we will be £160+ in credit with them and our average bill over the last year has only been £150.

I update the meter reading monthly online and the EON meter reader has also read it twice in the last six months. I would have thought they would have increased it when I updated my meter readings not my bank details.

molerat

EOn DDs are constantly updated but not acted upon unless you manually go in and change anything in the DD section. Looking at your above post you will be entering the dearest quarter with only a £10 credit which is what their software is seeing. As I posted earlier submit a read and ask for a bill and see what it then comes up with.

jalexa

molerat wrote: »

EOn DDs are constantly updated but not acted upon unless you manually go in and change anything in the DD section.

If you say so, its a long time since I have been an E.ON customer.

While I agree with your arithmetic, I think this unanticipated consequence of a bank change is a "cheap shot" by E.ON and if so disappointing that it was not eradicated by the "Reset". As an interested observer I do not believe a bank change in isolation should result in a recalculation outside of the review schedule.

As an aside, Edf hiked my monthly payment on a DD date change which reduced the number of payments by one. Arithmetically correct but the complaints handler (because I did):D said a date change should not have resulted in a recalculation. Mind you it was the system that did it not the hapless adviser:(. I think.

amiehall

Well I changed my bank details and it cancelled my DD so they clearly don't want my money

Former_E.ON_Company_Representative:_Malc

rokat wrote: »

hi,

I opened a new bank account and currently in the process of transferring all household direct debits. However, I just tried to switch EON using the online form and just before I clicked confirm it said that by doing this my 'fixed direct debit' would go up by £6 a month. I know it isn't a great amount but its not really something we can afford at the minute. We seem to constantly be in credit with them so I really don't understand the increase. I cancelled the direct debit transfer as I didn't want to agree to the increase and I don't want to ring them in case they increase it automatically.

Has this happened to anyone else?

Hi rokat

Monthly Direct Debits are calculated based on past usage and current prices. The aim is to achieve as near to a zero balance as possible by the time of the annual review.

Changing the Direct Debit details online automatically pulls through the figure that, at that specific time, we anticipate will be needed to achieve this.

Best to contact us and change your bank details that way. This can be done manually without affecting the monthly amount at this point.

Monthly Direct Debits are reviewed after each bill. As jalexa says, let us know if you're unsure and would like a detailed written breakdown of the calculation. We'll be happy to provide this.

Even though accounts may be in credit, the actual amount plus the remaining payments may not be enough to achieve the zero balance by the review date.

Hope this helps point you in the right direction.

Malc