Eon Next has a problem with £60 debit balance (May 2024)

jbuchanangb

I have stuck with E.ON Next as my electricity supplier since I was switched to them as SOLR when Symbio collapsed. I opted to add gas supply to them and switched from SSE two years ago. I am currently on their "Next Secure Fixed 12m v4" tariff. When I switched to that on 1 February this year, THEY dropped my monthly DD from £177.00 to £130.42. I paid that in March, and then they suggested I change my DD to £153, which I did. I made that payment in April. Then they imposed a new monthly DD of £171.75, and I paid that in May. I now have a £91.60 debit balance. There seems no rhyme or reason. One thing I discovered, they won't let you reduce your monthly DD when you have a debit balance.

Sailbad

I really don't understand why anyone with any savvy opts for so called fixed direct debits.
Just pay for what you use each month (variable direct debit). Only exception is if you are really struggling week to week on a very low income and have zero savings.

BarelySentientAI

Sailbad said:

I really don't understand why anyone with any savvy opts for so called fixed direct debits.
Just pay for what you use each month (variable direct debit). Only exception is if you are really struggling week to week on a very low income and have zero savings.

Because they don't want to use variable direct debit.  Different ways suit different people.

bristolleedsfan

Sailbad said:

I really don't understand why anyone with any savvy opts for so called fixed direct debits.
Just pay for what you use each month (variable direct debit). Only exception is if you are really struggling week to week on a very low income and have zero savings.

In most cases paying monthly fixed DD, is default sign up to energy supplier, variable DD is not an option merely something a customer can change to after signing up. ( if they know about it),  need to contact energy supplier to change to variable DD, no option to change to within account dashboard.

I stick with fixed DD  so that DD goes out every month irrespective of whether I have credit on energy account for current account monthly reward reasons.

victor2

In the "good old days", the fixed DD spread your cost evenly over the year. After summer you would have a credit balance, which would see you through the winter. After winter you would have a debit balance.
Now it seems many suppliers want to keep your account in credit and will refund a large credit balance when you ask for it.
That makes variable DD more attractive, but you have to budget for higher winter costs.

victor2

MattMattMattUK said:

It does not matter what tariff you are on or when it ends, the Ofgem guidance to suppliers states that customers should not have a negative balance in any part of the cycle. This means that if a credit built up over the summer was inadequate to cover winter usage then the monthly Direct Debit must be increased to clear the debt as well as the next month's usage in it's entirety. 

Which contradicts the variable DD method. With that, customers only pay for their utilities in arrears, so the account will permanently have a debit balance, albeit a relatively small one.

MattMattMattUK

victor2 said:

MattMattMattUK said:

It does not matter what tariff you are on or when it ends, the Ofgem guidance to suppliers states that customers should not have a negative balance in any part of the cycle. This means that if a credit built up over the summer was inadequate to cover winter usage then the monthly Direct Debit must be increased to clear the debt as well as the next month's usage in it's entirety. 

Which contradicts the variable DD method. With that, customers only pay for their utilities in arrears, so the account will permanently have a debit balance, albeit a relatively small one.

It is allowable for Variable as it gets cleared every month, it is never classed as a debt as the invoice gets paid in the period it is issued.

victor2

MattMattMattUK said:

victor2 said:

MattMattMattUK said:

It does not matter what tariff you are on or when it ends, the Ofgem guidance to suppliers states that customers should not have a negative balance in any part of the cycle. This means that if a credit built up over the summer was inadequate to cover winter usage then the monthly Direct Debit must be increased to clear the debt as well as the next month's usage in it's entirety. 

Which contradicts the variable DD method. With that, customers only pay for their utilities in arrears, so the account will permanently have a debit balance, albeit a relatively small one.

It is allowable for Variable as it gets cleared every month, it is never classed as a debt as the invoice gets paid in the period it is issued.

Shame the typical CS rep doesn't understand the regulations as well as you clearly do. They just use the "computer says" approach!

born_again

Sailbad said:

I really don't understand why anyone with any savvy opts for so called fixed direct debits.
Just pay for what you use each month (variable direct debit). Only exception is if you are really struggling week to week on a very low income and have zero savings.

Plain & Simple "Budgeting" Nothing to do with struggling.

I know that I have X amount to pay each month. I do not have to worry that in colder months I have to find a extra X to pay the bill.
Yes I could put it in a savings account. But I then have to over estimate future usage to ensure that there is enough in there to cover worst case & a far larger bill than expected.

So for me letting them do the work, is OK. larger than expected bill means I have longer to pay it back.

MattMattMattUK

victor2 said:

MattMattMattUK said:

victor2 said:

MattMattMattUK said:

It does not matter what tariff you are on or when it ends, the Ofgem guidance to suppliers states that customers should not have a negative balance in any part of the cycle. This means that if a credit built up over the summer was inadequate to cover winter usage then the monthly Direct Debit must be increased to clear the debt as well as the next month's usage in it's entirety. 

Which contradicts the variable DD method. With that, customers only pay for their utilities in arrears, so the account will permanently have a debit balance, albeit a relatively small one.

It is allowable for Variable as it gets cleared every month, it is never classed as a debt as the invoice gets paid in the period it is issued.

Shame the typical CS rep doesn't understand the regulations as well as you clearly do. They just use the "computer says" approach!

The typical customer services person is unfortunately someone on minimum wage, often in a different country who has been told to follow a scrip, not allowed to think.

There were some very knowledgeable previous posters (now banned) and they had previously explained the guidance, they also linked to it so those of us who wanted to read it could (although I cannot find those posts at the moment, it is likely somewhere on the Ofgem website. 

Some suppliers offer variable, for reason's only known to themselves (and possibly not even then) some do not, but the solution would usually be to move to a supplier that does offer it.