Eon decreased direct debit, now i have a massive outstanding amount to pay.

BensonBlue

Hello everyone,
I have been with Eon since moving into this flat just over a year ago, at the end of July. It is all electric and has no gas. My direct debits to start with were £66 each month and as i haven't lived anywhere with only electric heating before i wasn't sure what i should expect to be paying.
In January they sent me a letter stating "We've checked your electricity Direct Debit and noticed you're paying too much." so they decreased it down to £46 each month. Who was i to argue?!
I then received another letter in April, which was estimated saying i was £62.39 in credit. With hindsight i should have taken more notice of the word "estimated".
Around May time i had a letter from them telling me they were going to be putting my tariff's up and i might want to think about changing tariff's or suppliers which i was going to do. However in
June i received a statement telling me i now owed them £321.84!
As a single parent, and anyone for that matter, that is a lot of money to find. It just seems very much as though Eon lowered my direct debit so i would end up owing them and having to stay with them until i pay it off. So if i want to go to someone cheaper i have to pay all the money off first or stay with Eon and pay more in the long run while paying off the balance. Surely that's not right!
I rang them to complain but was simply told that it was all done by an automated system and there was nothing they could do except raise a complaint and if enough people complained about the same thing then Eon would look into it! :mad:
Is there anything i can do about getting the bill lowered? And if i manage to pay the bill in one to move to a cheaper company can i still try and get a refund or something back from them?
Has anyone experienced the same thing and can give some advise?

Thanks in advance!

retired2011

You have fallen into a familiar trap

Estmated and money amounts.

These are meaningless as you have found out.

Your usage in kWhs is what matters times what the tariff is.

maas

Have you given regular meter readings?

sheffield_lad

BensonBlue wrote: »

Hello everyone,
I have been with Eon since moving into this flat just over a year ago, at the end of July. It is all electric and has no gas. My direct debits to start with were £66 each month and as i haven't lived anywhere with only electric heating before i wasn't sure what i should expect to be paying.
In January they sent me a letter stating "We've checked your electricity Direct Debit and noticed you're paying too much." so they decreased it down to £46 each month. Who was i to argue?!

Is there anything i can do about getting the bill lowered? And if i manage to pay the bill in one to move to a cheaper company can i still try and get a refund or something back from them?

OP,
You are free to move to whoever you want regardless of the outstanding amount. I don't know why you want any money knocking off regardless of the timing of payment you used it you need to pay it in full. Imagine if your bills were higher due to other folk not paying what they owed I suspect you would not be too happy then. GL


In general this is exactly why we need smart meters. While plenty who contribute regularly on here do keep a record of usage and would not get into this situation there are millions of people who can't manage readings , can't understand bills or are to busy with their lives. If there had been a smart meter usage would have been known and the op would also have understood the amounts used.

BensonBlue

No, they never asked for any meter readings (except when first moving in). I know i was stupid for not looking at the statements they sent more carefully but they're so difficult to read and my meter has 3 different rates! Very confusing and definitely a lesson learned on my part.

System

The trouble with giving regular meter readings is that it can trigger a review of the annual projection and, thus, the DD amount.

https://www.ofgem.gov.uk/ofgem-publications/83041/directdebitleafletaug2013englishweb.pdf

These reviews are not always accurate. I had one that said I could save £400+ per annum by changing tariff when my actual spend on gas was about £450 pa. The computer was using a corrupted gas projection figure which looked remarkably close to my annual spend on gas and electricity.

As others have said, a reduction in the DD amount 'seduces' people into thinking that they are using less energy when this may well not be the case. A sensible person puts the DD saving into a 'rainy day' pot just in case at the next review the DD shoots up which is often the case.

A more sensible policy, imho, would be a fixed DD which can only be varied when the credit/debit balance has reached an agreed amount. Ovo, for example, gives me 3% interest on credit balances so I am happy to leave them with a few £s of my money.

kelpie35

I would advise you to read your meter every month, then submit your readings and that will solve the problem of getting estimates.

As to the amount you owe you can either pay as a lump sum or arrange to pay so much every month along with the amount you are due.

Former_E.ON_Company_Representative:_Malc

Hi BensonBlue

I do understand what it's like suddenly facing a large bill. We can help with this by spreading the new balance over a more manageable period.

Even if you decide to leave us, it may be possible to set up a payment arrangement to cover the final balance. You'll need to talk to us about this at the time.

As others have said, I suspect the debit balance is partly due to under-estimated bills in the past. It sounds as though we've now billed up to the latest readings.

Monthly Direct Debits are based on current prices and past usage. If either changes, so will the monthly amounts. It's always best to pop in regular meter readings. This will help you keep on top of your usage.

You also mention a letter in May letting you know your prices were going up. This will have added to the costs.

Going forward, and if you decide to stay with us, I'd check out the Direct Debit Manager on our website. This helps you keep on top of your account and lets you alter the monthly payments should your circumstances change.

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

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

You can also create your own bills online by using the Real Time Billing facility. Just pop in your readings and select 'request a bill.'

As sheffield lad says, as the electricity's been used it's unlikely we'll knock anything off. We may be able to help in other ways though.

One possibility is through what's known as the Energy Company Obligation (ECO). This helps with things like loft/cavity wall insulation and boiler replacements. There's more information, including an application form, on our website.

Don't know if this applies but, as a single parent, you might be eligible for help through the Warm Home Discount scheme. This is worth £140 towards energy bills for 2014/15. Again, you can apply through our website.

Sheffield lad also mentions Smart Meters. These send us meter readings automatically. They come with an Energy Display that gives information about usage in real time. If you think this will help, you can register your interest through our website.

Totally understand the stress receiving an unexpected bill can cause BensonBlue but hope the above gives you a couple of ideas to help make things a bit easier.

Malc

BensonBlue

Thanks for all your replies everyone and the info you gave Malc. I have started the process of changing electricity companies and will have to use my savings to pay off the debit amount.
I don't have a problem paying for what i use Sheffield Lad (Or like the implication that i'm a bit of a thicky for not reading my bill properly.) What i don't agree with is the way the debit amount has built up because the direct debit was lowered. Obviously i was far too trusting that Eon knew what they were talking about when they said i was paying too much. But as i said in a previous post, lesson learned. I will certainly be checking all my bills more closely from now on.

lstar337

BensonBlue wrote: »

I will certainly be checking all my bills more closely from now on.

This is the best thing to take from your situation. Keep an eye on things yourself and you will not suffer these problems in the future.

sheffield_lad

BensonBlue wrote: »

(Or like the implication that i'm a bit of a thicky for not reading my bill properly.) QUOTE]

Sorry the bottom part of my response was aimed at the regulars and the debate over if smart meters will help.

As for the implication I suggest you re read my comments again,
who can't manage readings,
who can't understand bills
are to busy with their lives

You may have a busy life?

GL and keep an eye on it in the future.