Energy refund- how long to wait?

sp1920

I hope someone can help me with this. My elderly mum is owed £230 by EON as they put her direct debit up last year. Do they have to pay her back, or can they keep it & use it towards her bills now they have lowered her payments? Many thanks to anyone who answers this.

bristolleedsfan

sp1920 wrote: »

I hope someone can help me with this. My elderly mum is owed £230 by EON as they put her direct debit up last year. Do they have to pay her back, or can they keep it & use it towards her bills now they have lowered her payments? Many thanks to anyone who answers this.

https://www.eonenergy.com/for-your-home/help-and-support/refunds-questions

Former_E.ON_Company_Representative:_Malc

sp1920 wrote: »

I hope someone can help me with this. My elderly mum is owed £230 by EON as they put her direct debit up last year. Do they have to pay her back, or can they keep it & use it towards her bills now they have lowered her payments? Many thanks to anyone who answers this.

Hello sp1920 and your mum can have any credit balance refunded whenever she wants provided the account is billed up to the latest meter readings.

I do need to make you aware, by taking a refund part way through a Monthly Direct Debit arrangement, might mean we ask your mum to increase her monthly payments. This is because these arrangements spread the cost of energy evenly over a full 12 months. The aim is to reach as near as possible to a zero balance by the annual review. Refunding part or all of a credit balance might mean there's not enough in the pot to cover usage up to the annual review and triggers a request to increase payments.

I'd expect accounts to be in credit at this time of year ready for higher winter bills.

Please let us know if you want us to sort a refund sp1920. As I say, if the accounts billed up to date, it's your mum's money and we'll be happy to refund part or all of a credit balance.

Malc

sp1920

After seeing the reply from EON on this thread I phoned them. The representative I spoke to said wait for her next bill, which is due soon, because the money should be refunded automatically. I hope he’s right! Thank you to everyone who replied

Gerry1

E.ON_Company_Representative:_Malc wrote: »

The aim is to reach as near as possible to a zero balance by the annual review.

Oh, if only there were a way to charge you only for the exact amount you've used !

If I fill up the tank at a petrol station, Shell, Esso or whoever charges me only for the exact metered amount of petrol I've used; if I turn on the tap or hosepipe the water company bills me for the exact amount of metered water. No over or under payment, no surprises, no confusion about 'I've been overcharged' or 'The price has doubled', no snake oil salesmen offering to reduce your DD despite their rates being more expensive.

It's high time that the dozy Ofgem woke up and gave consumers the right to insist on Variable Direct Debit.

Former_E.ON_Company_Representative:_Malc

sp1920 wrote: »

After seeing the reply from EON on this thread I phoned them. The representative I spoke to said wait for her next bill, which is due soon, because the money should be refunded automatically. I hope he’s right! Thank you to everyone who replied

You're welcome sp1920. Happy to help.

It sounds like your mum is coming up for her annual payment review. At this point, there are triggers in place to automatically refund credit balances over £75 or one month's Direct Debit whichever is lower. The refund will go straight back into your mum's bank account within 10 working days.

Malc

Former_E.ON_Company_Representative:_Malc

Gerry1 wrote: »

Oh, if only there were a way to charge you only for the exact amount you've used !

If I fill up the tank at a petrol station, Shell, Esso or whoever charges me only for the exact metered amount of petrol I've used; if I turn on the tap or hosepipe the water company bills me for the exact amount of metered water. No over or under payment, no surprises, no confusion about 'I've been overcharged' or 'The price has doubled', no snake oil salesmen offering to reduce your DD despite their rates being more expensive.

It's high time that the dozy Ofgem woke up and gave consumers the right to insist on Variable Direct Debit.

Hello Gerry1 and I know where you're coming from. It would be nice.

Monthly Direct Debits are estimates based on current prices and past usage. A significant change to either will trigger a payment review. The best way to keep on top of this is by using our online Direct Debit Manager and entering readings on a regular basis.

We also offer Variable Direct Debits with the same lower prices as if paying with a Monthly Direct Debit.

Malc

PixelPound

E.ON_Company_Representative:_Malc wrote: »

I do need to make you aware, by taking a refund part way through a Monthly Direct Debit arrangement, might mean we ask your mum to increase her monthly payments. This is because these arrangements spread the cost of energy evenly over a full 12 months. The aim is to reach as near as possible to a zero balance by the annual review. Refunding part or all of a credit balance might mean there's not enough in the pot to cover usage up to the annual review and triggers a request to increase payments.

I'd expect accounts to be in credit at this time of year ready for higher winter bills.

The crux of the problem is the 12 month in a midterm review, and E.On are not alone in this, so apologies for highlighting on yours. If the "review" is done on say month 6 or month 8 of a 12 month fixed deal then the "12 months" includes at least half the time when on SVR tariff as the assumption has to be that when the deal ends the consumer won't move, even though they've moved onto your great deal and surely will move onto another since you'll tell them the new deal as an option at the end. So even if the consumer has been using energy exactly with forcast at the fix term outset and is on schedule to break even with a zero balance at the end of the fixed term the DD will increase because of the assumption to break even when including the period under SVR.