MSE News: Eon pays out £1.7m after billing blunder

backfoot

Crabman wrote: »

Thanks for the response Malc. Will you be automatically refunding the withheld final bill discounts to affected customers?

http://forums.moneysavingexpert.com/showthread.php?p=51667463&highlight=#post51667463

Posts 3 and 4 of the above thread and in other places I made the point.

Former_E.ON_Company_Representative:_Malc

Crabman wrote: »

Thanks for the response Malc. Will you be automatically refunding the withheld final bill discounts to affected customers?

Hi Crabman

Just to be clear, discounts on final bills has nothing at all to do with yesterdays press announcements.

Sorry if I didn't make this clear initially.

Malc

Former_E.ON_Company_Representative:_Malc

descartesmum wrote: »

I received a letter from E.on todaythat had a voucher for 130 pounds. I have to take the letter to the Post Office where they will put that money on my key.

Hi descartesmum

This sounds like the Warm Home Discount payment.

This is a Government led scheme to offer support to customers likely to be at risk of fuel poverty.

Again, this is completely separate from yesterday's press announcements.

Malc

backfoot

Malc,

I think the point Crabman is making is that following notification of a price increase a Supplier is obliged to hold the initial price after a switch has been notified.

Not only is the £1.7m refund due but Eon changed the price on their final bill to an even worse 'no discount' price.

What is the difference between the two situations? Didn't Eon disclose this to Ofgem?

Former_E.ON_Company_Representative:_Malc

Sorry backfoot, but as you know, I'm only an ordinary advisor and certainly not party to our discussion with Ofgem.

Will, of course, pass yours and others comments on as usual.

Malc

Wywth

Wywth wrote: »

I switched from E.on in about 2008 following their price increase. I followed the rules and they still charged the increased prices.

So I raised a complaint and got the matter resolved that way. Who wouldn't having already gone to the time & effort of (a) notifying the supplier of the rejection of their notice to increase prices and (b) changed supplier.

Will I get part of that £1.7m?

(Actually I can't ever remember any supplier not charging me the increased price, until I raised a complaint about it and subsequently got each final bill revised - I get the feeling no supplier has the accounting software in place to keep anyone on the original prices)

E.ON_Company_Representative:_Malc wrote: »

...All customers affected by this mistake have been identified. They'll each be sent a letter and a cheque in January 2013.

Hope this answers these questions but if anyone has anything else on this matter please let me know. I'll be happy to help.


Malc

Just to update all, it does appear that E.on have indeed identified me as being affected (despite them already having resolved the issue back in 2008 when I complained and got rebilled)

So now I do have part of that £1.7m too :beer:

No details of how they calculated the sum, other than it includes 5% VAT and 8% interest.
I dare not ask them in case they ask for it all back.

Former_E.ON_Company_Representative:_Malc

No need to worry Wywth. The cash is all yours. We won't be asking for it back.

To make sure we didn't miss anyone, we targeted all customers who told us they were leaving us immediately after the price increases in 2008 and 2011. Even those, like yourself, who had already sorted this out with us.

We've tried to do a belt and braces job so as not to miss anyone, particularly as it was our mistake in the first place.

Malc

senex

I am afraid the problem remains. I told Eon in December 2012 I would be leaving because of the January 2013 price rise and started switch the same day. Letter from Eon, December 2012, said prices would not be increased if notice of leaving had been received. I confirmed by phone that no cancellation charges would apply either. Switch over took place on 8 Feb.

Downloaded bill yesterday. Cancellation fees had been applied and higher charges had been applied since price change. Helpful rep, yesterday 28/2, said all would be sorted and would have bill amended, with confirmatory phone callback in 5 minutes.

Did not get phone call because computer systems had crashed. Called back later to learn fresh bill would be issued in 24 hours. Should have bill reduced by around £62.

So double check final bill if you are in process of switching due to Jan price rise.

Biscuit_Tin

senex wrote: »

I am afraid the problem remains. I told Eon in December 2012 I would be leaving because of the January 2013 price rise and started switch the same day. Letter from Eon, December 2012, said prices would not be increased if notice of leaving had been received. I confirmed by phone that no cancellation charges would apply either. Switch over took place on 8 Feb.

Downloaded bill yesterday. Cancellation fees had been applied and higher charges had been applied since price change. Helpful rep, yesterday 28/2, said all would be sorted and would have bill amended, with confirmatory phone callback in 5 minutes.

Did not get phone call because computer systems had crashed. Called back later to learn fresh bill would be issued in 24 hours. Should have bill reduced by around £62.

So double check final bill if you are in process of switching due to Jan price rise.

Did Eon call you to confirm they received your notice rejecting their price increase?

I recently switched away from Eon
(see my earlier thread about their 10,000% cost increase, I don't seem able to post links)
sent them a rejection of the proposed price increase and that I would be changing supplier.

They called me to confirm receipt of my letter and that, as a result, they would not be applying the new higher prices to my account.
(I remember the caller also said they would not be applying any early exit fee and then quickly corrected himself by saying no early exit fee actually applied to my tariff anyway, ... but if one did they would not apply it)

Switch to new supplier all complete and have had final bill from Eon.
Checked it at the time of receipt, but have just double checked it following your post, and I can confirm Eon did not apply the new higher costs to my account.

Thank you Eon

Former_E.ON_Company_Representative:_Malc

senex wrote: »

I am afraid the problem remains. I told Eon in December 2012 I would be leaving because of the January 2013 price rise and started switch the same day. Letter from Eon, December 2012, said prices would not be increased if notice of leaving had been received. I confirmed by phone that no cancellation charges would apply either. Switch over took place on 8 Feb.

Downloaded bill yesterday. Cancellation fees had been applied and higher charges had been applied since price change. Helpful rep, yesterday 28/2, said all would be sorted and would have bill amended, with confirmatory phone callback in 5 minutes.

Did not get phone call because computer systems had crashed. Called back later to learn fresh bill would be issued in 24 hours. Should have bill reduced by around £62.

So double check final bill if you are in process of switching due to Jan price rise.

Hi senex

This is worrying. Our systems have been updated to make sure the problems of 2008 and 2011 aren't repeated.

It seems to have worked for Biscuit Tin but not for you.

To be clear, following a price increase announcement, customers wishing to leave as a result need to let us know on or before the day prices go up.

Following this, we need to receive a loss notification from the new supplier within 15 working days of the intention to leave date. Any long- standing debt will also need to be cleared.

If this is done, they'll not be affected by either the new prices or, if applicable, any cancellation fee.

As our prices went up on 18 January 2013, it certainly looks as though you've met all of the above and so definitely shouldn't have suffered the new prices or a cancellation fee.

I'm really sorry this wasn't the case. If you drop an email with your details to the address in my Profile, I'll start an investigation immediately.

As you phoned in, it may be a case of the advisor failing to log the information on the correct screen (we've a new screen for just this purpose).

If this is what happened, we need to identify the individual agent and make sure they're fully conversant with what to do. Possible training issue here.

Should this not be the case, then I need to take the matter higher and see what happened. This I'll gladly do.

I have to say, this is the first time I've come across this but if anyone else is reading and has suffered a similar problem, I'd be grateful if they could let me know too. As above, please drop an email to the address in my Profile.

Again, sorry this happened senex but glad we've put it right.

Malc