E-on massively overestimating bills to increase DD?

RightyTightyLeftyLoosey

I've been with E-on for about 15/16 months without issues. Live in a new build, highly energy efficient home. At outset, they wanted £80 p/m DD (3 bed property) but after winter bills I was in credit by a sizeable amount, so adjusted the DD to the minimum.

Obviously, its very mild and has been for months. Heating has been off since March. I enter my readings when prompted by emails. Suddenly E-on have estimated the last couple of months bills as being crazily high. My elec meter is smart, so should be reading automatically, bills should not be estimated. They have over a year's usage data, so the 'estimate' should be more accurate than this.

My usage graph normally shows me below similar energy efficient homes. Now I am above all homes - estimated to be using 3 x the kWh that I actually have. I've entered my up to date readings but E-on have sent an email saying they will adjust my DD back to £64 pm.

Anyone else had this problem? I'd just re-contracted for another 12 months, as I'd had no problems, so I can't even look for another provider.

matelodave

I had the same with Scottish Power, the DD went up and down like a yo-yo as they reviewed my energy consumption. I used to argue that it would work out if they left it alone but sometimes it did take a bit of persuading to get them to see sense - I've got four years of monthly records and can pretty well estimate how much I'm going to use in any month but can be hard to persuade a computer or even a person in a call centre that you actually know what you should be paying - just persevere.

Cardew

The energy companies are in a no win position on the setting of a DD these days.


It is impossible to get it accurate, and half the complaints on MSE are about it being set too high('the B*******s want the interest') and the other half complain it is set too low("so I run up a debt which I can't pay and cannot switch")


If you send an email to the company saying you want to pay £xx per month(as long as it is a reasonable figure) it will normally be accepted. You then cannot complain if a debt is run up.

Former_E.ON_Company_Representative:_Malc

Hi RightyTightyLeftyLoosey

Sorry for the confusion with your monthly payments but glad we've now re-set the amount.

Not sure from the information posted as to exactly what's happened. You're right, though, you shouldn't be receiving estimated bills with a smart meter.

Sometimes, we may come across a problem that stops us taking readings remotely. This is usually down to the technology involved and can lead to an estimated bill. In turn, this can have a knock-on effect on other things like payment arrangements, usage charts etc.

Not saying this is the case with your account. It's just something that can happen.

Thought it might be useful to give a bit of information about how Monthly Direct Debits should work and about an online tool to help you stay in control.

Our Monthly Direct Debits are worked out over a 12 month period. They're based on past usage and current prices. If either changes, so will the monthly payments.

The aim is to have as near as possible to a zero balance by the time of the annual review. At this review, any credit balance over a fiver is automatically refunded.

Every quarter, we'll check accounts are on track to meet this aim. We will, though, only amend the payments at the mid-term and annual reviews.

At the other quarters, we'll let you know if we think the payments should change but leave it up to you to make any alterations.

To help with this, we've a tool on the website called the 'Direct Debit Manager.' This is really useful should circumstances change.

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

Before the change, we'll let you know how much we anticipate the account will be in debit/credit if the change is confirmed but usage doesn't alter accordingly.

Sounds like you've gone for our one year fixed tariff. Just to let you know, you can still change supplier if you wish. The only drawback is an exit fee of £5 per fuel if the change completes before the end of the tariff.

Hope this is of interest RightyTightyLeftyLoosey. Let me know if you need any more details as happy to help.

Malc

tbarson1

I have just moved into a new build eco house and E-On have estimated that my monthly direct debit will be £108! I have a smart meter too. Its all electric and has an air source water pump. 40cm walls for insulation and will no way cost £108 a month. We just set this up yesterday.

It is a 3 bed semi new build (Built 2013) so is very efficient as it is. I don't understand the £108 DD

Nada666

tbarson1 wrote: »

It is a 3 bed semi new build (Built 2013) so is very efficient as it is. I don't understand the £108 DD

£108 is fair enough for a three-bedroom home. Of course you are very likely to average a lot less than that - but if you did not specify what you wanted as a starting amount then they will start you off with an average.

tbarson1

I think after 3 months they re evaluate it based on your usage and then balance it out to cover winter. £108 is crazy. In my last house, also a 3 bed semi it was £70 per month. The woman I set the account up with was adamant that the amount had to be £108 a month.

RightyTightyLeftyLoosey

Hi Malc,

Thanks for the quick response. I'm not sure what has happened either! The last 3 electricity readings appear to be estimates, despite the smart meter. The estimates are bizarrely high, easily triple what I would use. I'm out at work all day, gas heating is off, minimal lighting being used as its summer.

The website seemed to indicate that I could adjust the DD to a figure I was happy with but I received an email indicating that you would be moving it automatically - which is accurate? Given my last 12 months usage, a figure of £40-45 would leave me nearer a zero balance.

Nada666

I agree it is trivially simple to use a lot less than the average. See how their direct debit manager works - two steps to reduce it to £70 a month - though whether they allow you to do that over two months or two quarters I have no idea.

Former_E.ON_Company_Representative:_Malc

RightyTightyLeftyLoosey wrote: »

Hi Malc,

Thanks for the quick response. I'm not sure what has happened either! The last 3 electricity readings appear to be estimates, despite the smart meter. The estimates are bizarrely high, easily triple what I would use. I'm out at work all day, gas heating is off, minimal lighting being used as its summer.

The website seemed to indicate that I could adjust the DD to a figure I was happy with but I received an email indicating that you would be moving it automatically - which is accurate? Given my last 12 months usage, a figure of £40-45 would leave me nearer a zero balance.

Thanks for coming back to me RightyTightyLeftyLoosey.

Sounds like you're at either your mid-term or annual review. This is the only time we'll look to automatically change your payments.

If this is the case, we'll look to alter the payments ready for the next collection after the review. I suspect this is what the email's about.

You can change it through the Direct Debit Manager if you wish. If it's the mid-term review, you'll be able to change it straightaway but, if it's the annual review, you may have to wait until the review is over.

This is because, when there are two payments or less left until the annual review, we lock the system down. This is to stop too many changes before the review as this will skew the calculation, particularly if there's a debit balance on the account.

Going forward, best to take regular readings and use the Direct Debit Manager to make sure payments match usage. This will stop the account running into debt.

We try to spread payments evenly over the year so I'd expect accounts to build up credit during the summer ready for higher winter bills.

Have we always supplied the property or was the smart meter originally installed by another supplier?

Just a thought but, if there's been a change of supplier since the meter was installed, it'll no longer work as a smart meter. This is because smart technology isn't yet compatible between suppliers.

If it isn't our meter, it'll have reverted to a conventional set up with the possibility of estimated bills.

If there hasn't been a change of supplier and it's our original meter, I'd have a chat to our smart meter specialists. Contact details are on your bills and our website.

It may be the meter hasn't been able to talk to us and send us your readings. Could be a weak signal or a blocked meter. I'm guessing, though. Best to talk to the smart guys. They'll be able to tell you much more.

Hope this helps RightyTightyLeftyLoosey.

Malc

Former_E.ON_Company_Representative:_Malc

Nada666 wrote: »

I agree it is trivially simple to use a lot less than the average. See how their direct debit manager works - two steps to reduce it to £70 a month - though whether they allow you to do that over two months or two quarters I have no idea.

Hi Nada666

Unless there are two payments or less left before the annual review, the Direct Debit Manager can be used whenever needed.

The new payment will stay in place unless the customer alters it again or the account reaches its mid-term or annual review points. Even then, we may not change it if it's covering the ongoing usage.

Hope this makes it a bit clearer.

Malc