Eon credit refund.

retired2011

I got a letter today from Eon saying that they are refunding my £250 credit and keeping my DD at its current level of £100.

That means that my Eon account is at zero.and my next DD of £100 will start my account off at £100.

Yet they say that my next years usage will be £1600 meaning my DD should be about £134 a month.

This means that in a years time I will have a debit of £400.

I will of course make allowance for this.

Crazy.

KierBrook

Yep crazy but thats why they love to have you on DD. Unfortunately some people dont account for the debit of £400 they will incur. Glad to see you have.

Former_E.ON_Company_Representative:_Malc

Hi retired2011

You're right, this does seem a bit odd. Think I might be able to shed some light on this. Need to ask a few questions if that's ok.

Is next year's usage taken from your Personal Projection on a bill or the annual statement? Also, are you on a Fixed Price tariff? If fixed, is it due to end within the next 12 months?

The Personal Projection is meant to give you an idea of how much your energy will cost for the next 12 months. This is to help compare with other tariffs, both with us and with the other suppliers. It takes into account everything we know at the time, including when a tariff ends.

With fixed deals, we'll work out the costs for the remaining part of the contract and then estimate after that based on our standard tariff.

For instance, if you're on a fixed tariff with 3 months to run, we'll work out 3 months at current fixed prices and 9 months at standard. This may well lead to a higher estimate.

Of course, you may decide to switch tariff/supplier once your existing deal ends. In which case, the estimated costs will change. We won't know this, though, when the Personal Projection is done.

Monthly Direct Debits are worked out a little differently. They're based on usage over the previous 12 months and current prices.

With Monthly Direct Debits, we aim for accounts to have as near to a zero balance as possible by the time of the annual review. To do this, we review them every 3 months and will be in touch if we think payments need to change.

Looks like your account has just gone through this review. At this point, any remaining credit is automatically refunded and the monthly payments reviewed.

You're doing exactly the right thing in keeping an eye on things to make sure you don't build up too much debit/credit. There's a handy tool on our website to help with this. It's the Direct Debit Manager. This gives you more control over payments and is particularly useful should things change.

Provided the account is billed up to the latest meter readings, you can change the payments by up to 20 per cent up or down. By up to 5 per cent up or down without readings.

Before the change goes through, we'll let you know how much we anticipate the account will be in debit/credit if the change is confirmed but things don't alter as suggested.

Sorry if I'm barking up the wrong tree retired2011 but hope some of the above's of interest. Let me know if you need any more details as happy to help.

Malc