EON Monthly payment incorrect

Imperial926

I've been looking at the Next Pledge Tracker 12m V5 and considering whether it's worth moving from V2. I noticed that Eon think my monthly payment is £133 whereas I actually pay £110. They then calculate my monthly payment for V5 to be £128.

I don't know why their figures are incorrect and whether my actual payment on V5 would turn out to be lower. Does anyone have any experience of this issue before I ring them up? Thanks!

BarelySentientAI

Is there any actual difference in unit rate or standing charge between the two tariffs?

Monthly payment estimates mean very very little.

Scot_39

Annualised style DD payment comparisons can be misleading.

In one case found one supplier was using some nominal consuption estimate even for existing customers - when asked for a fix quote for sibling - and not their actual - despite being a customer for years.

The simplest way - unless your sure all are using the same actual consumption - is to go back to basics - standing charge and unit rates.

Yes it needs a calculator, spreadsheet or comparison site - to then work out the £s - but it's as it turns out been the only safe way for me in past.

Even Ofgem now give SC and unit rates - since they adjusted their median TDCV cap by on ave c5% units (500 less gas - c4%, 200 less SR electric c7% - iirc) - making old absolute comparisons a lot less meaningful.

FreeBear

Scot_39 said: The simplest way - unless your sure all are using the same actual consumption - is to go back to basics - standing charge and unit rates.

And then use the meter readings from a year ago to get an indication of annual usage. You'll want to factor in a bit of fudge for gas as the Calorific Value changes slightly from month to month. also bear in mind that last winter was relatively mild, so heating costs would have been lower.

I'd suggest annual consumption + 5%. Multiply by unit rates, add standing charges, and divide the lot by 12 to give a monthly DD figure. Rates will probably go up in the autumn (forecast is around 10%), so keep tabs on rate changes and recalculate.

Imperial926

I rang EON who said the only difference between v2 and v5 was that my old tariff would finish in September and the new one lasts for a year from tomorrow. This then runs into the anticipated period of increases later in the year. I signed up for v5 on this basis and my monthly DD has gone from £110 to £128 even though in the first few moments the app stated £82.50! I have £299 credit but if I try to take some back the app increases my monthly DD.
I get that I should really go by the unit rates and standing charges - my naive look at the monthly payment doesn't help.
Has anyone else regarded v5 as a good deal? I must admit I've grown extremely tired of playing this game and wish companies would just charge the best rate and stop making us all turn into hamsters on a wheel!

BarelySentientAI

Imperial926 said:

 I must admit I've grown extremely tired of playing this game and wish companies would just charge the best rate and stop making us all turn into hamsters on a wheel!

What is "the best rate"?  What is "best" for one person isn't best for another, and no supplier could possibly know what is "best" for you.

Even you've just said that the rate is exactly the same between the two tariffs you are considering, so it's not a "best rate" thing.

jbuchanangb

E.ON's ideas about monthly DD amounts are very strange. I was paying £177pm on a tariff called "Next Loyalty 12M Fixed Rate - July 23 Issue 1". In February I changed to a tariff called "Next Secure Fixed 12m v4" and E.ON themselves changed the monthly rate to £130.42. I made one such payment, and then E.ON suggested I change to £153, and I did this. I made one such payment, and in April E.ON imposed an increase to £171.75 which is where I am now. They actually notified me that I ought to increase it again, but as there had only just been an increase, I had the option to stay as I am. On my own calculations I should be paying about £174. The account is £103 in debit, but on the next DD it will go to about £68 in credit, and then credit will build up during the summer. In the end you pay for what you use irrespective of the monthly DD payment.

MeteredOut

Monthly payments are never really "correct" or "incorrect". They're a guesstimate for an amount that would roughly paid for your expected usage over the next year, based on your usage over the past year (plus some variables some suppliers might add).

The more accurate the historic kWh usage you provide when you sign up and the supplier first sets your DD, and the more regularly you (or your smart meter) submit actual readings (rather than estimates), then the closer to your actual usage your DD will be.

But some suppliers do seem to have some weird systems in setting DDs.

Scot_39

Until EPG discounting played havoc with my Ofgem based estimates - I used to use

Target DD = (average 12 months usage (from past 5 years records) at new rates +5% + SC - balance) / 12

Balance being a positive number if in credit - so reduces the amount needed to reach zero net over the next 12 months.

But there does seem a trend for higher numbers - arguably to force the bill cycle from 0 to max credit in early winter.

Many here have jumped to MVDD to counter the changes on annualized payment - OK if supplier supports and have reserves / or disciplined / good at budgeting if have not.