EON Energy Discount V1 ALERT !

EdGasket

This plan is supposed to give a 6% Direct Debit discount. On my latest bill the total discount seemed rather low so I started going through the figures. No 6% Discount. Contacted E.ON who say:
"Unfortunately this was caused by a system error and we're unable to stop this from happening. We made some changes to our tariffs on 18 January 2014 and the discount has been worked out for just the 17 January 2014 and doesn't give any six percent discount after this date according to your bill."
Later on in the reply they say:
"There will be another bill before this tariff ends so please contact us when your June bill is produced so we can add the discounts manually for you again."

Although they have supposedly credited my account with the discount I find the response unsatisfactory for the following reasons:

1) E.On have known about this problem since January, therefore why was I not informed that I would be getting an incorrect bill instead of leaving me to work it out? Had I not noticed, would I have got my discount refunded? maybe, maybe not I don't know BUT if you are on this tariff, check your bill carefully for the 6% discount.

2) It is irresponsible to market a plan that they are then unable to administer.

3) Why should I have to email E.On at my next bill to ask for the discount they are contractually obliged to give me? It is their problem and they should be proactive in sorting it out not rely on the customer to tell them their billing is wrong yet again. I may not even think of it next time if I am busy or out of the country.

4) The email reply asked if there was anything else to let them know however it was emailed from [EMAIL="sysresponse-do-not-reply@eonenergy.com"]sysresponse-do-not-reply@eonenergy.com[/EMAIL] so how exactly am I supposed to reply??

5) Furthermore I was emailed to say I needed to pay more each month based on the increased cost of my energy usage. But guess what? £36 of that increase (£3 a month) was due to the lack of discount!

MorbidX

Unless something has changed that I'm not aware of the direct debit discount has always been 4% max for business and domestic customers not 6%. unless your factoring in some form of dual fuel discount too?

I'm sure one of the eon reps on the site will pick this up shortly in the morning and should be able to help you

EdGasket

6% Direct Debit discount is standard with the plan mentioned; I have it written in my contract. Alternatively I could have opted for Tesco Points instead but I chose cash off and that's what it should be. Anyway the 6% is not in question it is the fact of getting NO discount due to E.On's "System Error".

MorbidX

You are indeed right. just found it on the website for the 2013 plan. my apologies.

It must be a special discount for being on the plan as Non locked in customers and business customers get 4%

Admittedly the reply you got wasn't very clear, I'm wondering if the person replying is confusing issues with something else

Former_E.ON_Company_Representative:_Malc

Hi EdGasket

I'm really sorry but you seem to have been given some very poor advice about your tariff. If I might explain.

On 18 January 14, we made changes to the way we apply the Monthly Direct Debit discount to bills. Instead of a percentage discount of 6 per cent, we now give a cash adjustment. This is via a lower daily standing charge.

For all usage up to 18 January 14, the Direct Debit discount will have remained at 6 per cent. From then on, though, you're daily standing charge will be lower.

We wrote to all Energy Discount customers in early December 13 to let them know about this and other changes. At this time, we also advised of what actions they could take if they weren’t happy with the changes.

I'm guessing but I think the advisor you spoke to was confusing your query with another issue.

There's no need to contact us when your next bill is due as this will have the lower daily standing charges instead of the percentage discount.

With the Direct Debit, thought I'd let you know about some changes we've made to give you more control over the monthly payments. If you've registered with our website, you'll be able to use a new tool called the 'Direct Debit Manager.'

This lets you change your monthly payments by up 20 per cent up or down, provided the account is billed up to the latest meter readings. Or, up to 5 per cent up or down without readings.

You can also email us through the website if you wish.

Sorry again for the duff information you were given but hope this makes things a little clearer. Let me know if you need any more details as happy to help.

Malc

EdGasket

Thanks Malc. I don't recall any letter about lower standing charges but will compare the bills to see if they are indeed lower. So does the daily standing charge for the billing period get adjusted down such that the overall effect is equivalent to a 6% discount off the entire bill? Seems an overcomplicated way of doing it; why not just deduct the 6% as a cash discount from the bill?
I will have a look for the Direct Debit tool thanks.
It would be handy when receiving an email reply from E.On, to be able to respond to your reply, if necessary otherwise I have to repeat everything from scratch in a new enquiry if as a result of your reply, I have further questions.

EdGasket

OK, I investigated this a bit more and it seems like in lieu of a 6% discount, there is a fixed £35 reduction in annual standing charges for each service. As £70 equates to 6% of £1167, this change benefits anyone whose total annual bill is less than £1167 but any high energy users, like myself, would be worse off than with the 6% discount they originally signed up for.

I don't know why E.On are allowed to effectively tear up the contract and give me a worse deal without penalty whereas if I want to cancel early I have to pay a penalty?

Biscuit_Tin

EdGasket wrote: »

...I don't know why E.On are allowed to effectively tear up the contract and give me a worse deal without penalty whereas if I want to cancel early I have to pay a penalty?

If changes were made aware to you affecting your contract that would cause an adverse affect, then you would have had the right to not agree to those changes.
That would imply a termination of your supply contract with the current supplier, and you would have needed to appoint a new supplier to take over the supply in a reasonable time.

The fact you don't even recall getting the notice you were sent last year is probably your downfall in this matter.

EdGasket

Well maybe but it still seems E.On can change the terms as and when but I can't without penalty; thats hardly fair is it? What's the point of reviewing the market and signing up for a 12 month contract if, six months into that contract, the supplier adversely changes the terms? Maybe you think it is fine if they tear up their fixed-price contracts everytime the price of oil rises too?

giraffe69

I thought the changes were forced on suppliers by Government in the name of "simplifying" the tarrifs that were offered.

EdGasket

Even to the extent of having to abandon tarriffs that had already been running? I thought they would only have had to stop them for anyone new taking them out, not cancel existing tarriffs too.