Please help! Dual fixed rate going up

cherry_leopard

Hi all,

Really hoping someone can advise me what to do. I switched to Eon 1 year fixed rate v9 by using the Energy SavingClub on here in June. The direct debit was set at £59.60 and has been coming out every month.

I got an email last week asking to enter meter readings, which I did last night. This morning i got an email saying that they need to increase my direct debit to £108 in January (this is the rate that it would go up to at the end of the 1 year fixed rate in June 18).

The email said we could switch to a 'high user rate'. There are only 2 adults living in this house who are out working full time - we use the washing machine a couple of times a week and in evenings we spend time in one room with one lamp and the TV on. Of course heating is on in the evenings and mornings sometimes.

I really don't understand why its going up so much and how this can happen during the fixed rate period?? I find it really difficult deciphering energy bills

Can anyone advise what i should do?

Thanks in advance.

System

I am not sure what you mean by ‘high user rate’ but the underlying principle is that you will only pay for the energy that you USE at the agreed tariff rate. It would seem that when you provided E.oN with actual meter readings it re-calculated your annual projected usage; hence, the higher monthly DD payment. The only things that are fixed are the term; unit charge and standing charge. Use more: pay more.

For example, let us assume that my assessed annual usage is £720 per year or £60 per month. I provided the supplier with meter readings and it assessed that my annual cost would be closer to £840 per year.

With 6 months to run, the revised DD calculation is £840 less £360 paid/ 6 months or £80 per month.

matelodave

This sounds like the usual problem of someone who doesn't check their bills or statements, doesn't send in regular meter readings and is happily accepting estimated bills and not getting them corrected.

The assumption is that everything is OK until the day that the energy company get an actual reading and can then do a proper calculation.

That's when it becomes apparent that there's more energy being used than the DD has been paying for so the account is in arrears.

The DD then has to be readjusted upwards to avoid the arrears getting even larger.

What tariff are you on and what sort of heating have you got gas or electric. If it's electric what sort - panel heaters, storage heaters or even a wet boiler

footyguy

cherry_leopard wrote: »

Hi all,

Really hoping someone can advise me what to do. I switched to Eon 1 year fixed rate v9 by using the Energy SavingClub on here in June. The direct debit was set at £59.60 and has been coming out every month.

I got an email last week asking to enter meter readings, which I did last night. This morning i got an email saying that they need to increase my direct debit to £108 in January (this is the rate that it would go up to at the end of the 1 year fixed rate in June 18).

The email said we could switch to a 'high user rate'. There are only 2 adults living in this house who are out working full time - we use the washing machine a couple of times a week and in evenings we spend time in one room with one lamp and the TV on. Of course heating is on in the evenings and mornings sometimes.

I really don't understand why its going up so much and how this can happen during the fixed rate period?? I find it really difficult deciphering energy bills

Can anyone advise what i should do?

Thanks in advance.

You should read and digest this informative MSE article

https://www.moneysavingexpert.com/utilities/lower-energy-direct-debits

E.ON_Company_Representative:_Helena

Good morning cherry_leopard,

Thank you all for the help so far.

It sounds like you've not been quite enough for the amount of energy that you're using.

Even though you're on a fixed tariff, this means that the unit prices are fixed and won't change but the Direct Debit can increase or decrease if you use more or less energy. There's lots of information on the website about how this works.

I would suggest putting your meter reads on to your account once a month and producing a real time bill or balance, this means you can keep a close eye on your account and it will always be accurate.

If you do need more help though, please just ask.

Thank you.

Helena