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E.ON Direct Debit Scam ??????

Last post Thu, Jan 05 2012, 7:42 PM by billbo. 26 replies.
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  •  Mon, Aug 08 2011, 2:32 PM

    Re: E.ON Direct Debit Scam ??????

    If you are registered to use their website you can put in your meter reading monthly this will produce a bill, you should also have a letter giving you the cost of a unit which you can use to calculate the amount. I understand you can also ask for a usage meter which shows usage and cost although I have not been offered one but my son has one.
    • Post Points: 20
  •  Mon, Aug 08 2011, 2:00 PM

    Re: E.ON Direct Debit Scam ??????

    You say that you calculate your usage yourself?

    How do you do this? I've never understood what all these 'units' mean, and I've always thought E.ON are overcharging us massively.... but it's difficult to do anything about it if you don't understand what anything means!
    • Post Points: 35
  •  Fri, Jun 03 2011, 2:58 PM

    Re: E.ON Direct Debit Scam ??????

    Roadking:

    Hi Jalexa are you saying that you can read your meter and input the details on a monthly basis? Does this apply to all tariffs?

    Thanks

    Hi Roadking

    Yes, you can enter meter readings online monthly if you wish.

    We've also recently introduced a Real Time Billing facility on our website. Customers registered with our website can enter readings and immediately see the balance this will produce. They can also request a bill to these readings if they like.

    This applies to nearly all our current tariffs.

    Hope this answers your questions Roadking. Give me a shout if you need any more details as will be happy to help.

    Malc

    • Post Points: 5
  •  Mon, May 30 2011, 8:04 PM

    Re: E.ON Direct Debit Scam ??????

    Roadking:

    ... are you saying that you can read your meter and input the details on a monthly basis? Does this apply to all tariffs?#

    I can't speak for all tariffs from all suppliers, but usually on online tariffs there is a facility to enter meter readings online. As a minumum the reading would be noted and used to increase the accuracy of future estimates. More functional online systems provide an instant recalculation of your account balance based on the submitted readings. Most online systems, when a customer reading is provided shortly after a bill containing estimated readings is generated, will automatically replace the estimated bill with a bill using the customer readings.

    If that functionality is important to you that's another thing to consider when chosing a supplier.

    • Post Points: 5
  •  Mon, May 30 2011, 4:44 PM

    Re: E.ON Direct Debit Scam ??????

    Hi Jalexa are you saying that you can read your meter and input the details on a monthly basis? Does this apply to all tariffs?

    Thanks

    • Post Points: 35
  •  Wed, May 25 2011, 12:45 PM

    Re: E.ON Direct Debit Scam ??????

    malc - eon:

    Thanks for the info Malc

    • Post Points: 20
  •  Wed, May 25 2011, 11:58 AM

    Re: E.ON Direct Debit Scam ??????

    Hi Jalexa

    Yes, that's correct. The annual review is carried out between April and June.

    Payment arrangements are checked after each scheduled bill and adjusted if necessary but the annual review is always in the spring as above.

    Payment arrangements for customers joining us part way into a 12 month period are treated differently. Their usage is estimated for the period between the joining date and the time of the annual review. This is then used to calculate how much we expect them to spend up until the annual review and then divided into equal monthly payments.

    After this initial period, arrangements are calculated over 12 months.

    Hope this answers your questions Jalexa. Give me a shout if you need any more info as will be happy to help.

    Malc

    • Post Points: 20
  •  Tue, May 24 2011, 5:16 PM

    Re: E.ON Direct Debit Scam ??????

    malc - eon:

    Reviews are carried out between April and June.

    Malc

    I don't personally have an issue with Eon, but that is an interesting point. Are you saying that the review isn't 12 months from a customer first moving to the company? If so how is the first review synchronised to the April to June window?

    • Post Points: 20
  •  Tue, May 24 2011, 5:04 PM

    Re: E.ON Direct Debit Scam ??????

    Hi erikbloodaxe

    I'm sorry you're unhappy with our Direct Debit policy.

    Accounts are now reaching their annual reviews and are being adjusted for the next 12 months. Our aim is to achieve as near to a zero balance as possible by the time of the next annual review in 2012.

    To do this, we look at the past usage and calculate how much we expect you to use over the coming 12 months. The prices we use will be based on your current plan up until the expiry date and then, if applicable, the default product after this.

    Reviews are carried out between April and June.

    Sometimes there are discrepancies between our calculations and those of customers. These tend to be down to things like being based on different dates or using differing prices later in the year. I've also known calculations affected by the date the Direct Debit is collected, in that, either we or the customer have included/excluded a payment.

    I'm not suggesting any of the above affected the calculation used in your case but these are the sort of things I've come across in the past. As I say, the result we aim for is a zero balance and we're happy to work with customers to achieve this.

    Whatever the reason, agents can tell you how the figure has been arrived at and I'm sorry those you've spoken to haven't been forthcoming with this information. This is not acceptable and you're right to complain.

    What tariff are you currently on and have you recently changed plan? If so, from what tariff? Just a thought, but the timing of changes can sometimes make a difference to calculations.

    Again, I'm sorry our agents failed to explain the calculation used erikbloodaxe. Give me a shout if you need any more info as will be happy to help.

    Malc

    • Post Points: 50
  •  Sat, May 21 2011, 10:59 AM

    Re: E.ON Direct Debit Scam ??????

    Thanks, Jalexa, for your comments.

    The account type I usually have is a fixed online dual fuel monthly direct debit account. I always know my annual energy consumption and I check for the cheapest deal at review time. This year there was only a £20 saving to be made by moving supplier so it was not worth the hassle. Any savings would be lost by the fact that the existing supplier withdraws any discounts from the final bill.

    EON always agree with my calculations and adjust my Direct Debit to the value that I have calculated ( the same value is made by all the comparison web sites).

    I input, online, my monthly meter readings and my monthly balance is always in credit. This credit varys from about £550 in November (after th low usage summer period) to about £5 at review time early May. When I ask EON why they want to charge more, they say that is their computer system that makes the calculation and that they do not know why the 'extra' amount is added to the 'true' amount.

    I suspect that the majority of customers won't challenge their payment rate so EON will be getting free borrowing from their customers who have high credit balances on the type of account that I have.

    • Post Points: 5
  •  Fri, May 20 2011, 6:08 PM

    Re: E.ON Direct Debit Scam ??????

    erikbloodaxe:

    There is only you, me and a few others on this forum who take a zero-tolerance approach to this sort of thing.

    My advice to you and to others is to take a very focussed approach (aka set a trap). Start with the assumptions that the supplier has about annual consumption. The previous twelve months or 4 quarters will be a matter of fact if actual readings have been provided. They are now legally obliged to inform the customer about annual consumption. However projected consumption may be a matter of opinion. Make sure there is agreement on that. Then establish the date of the next annual review (or bi-annual for some suppliers). Then do the sums as I think you have done. Demand that the payment is set so that a zero account balance is achieved at the next review date based on the agreed assumptions for annual consumption. Complain if they don't agree and you are confident of your calculations.

    I have only had to police this twice becasue I switch frequently. First with Scottish Power where their calculation was almost identical to mine (as it should be because it is fact and rule based). With another company (due to their late start on direct debit) there would have been a deficit. Their calculation was nearly right but I challenged it anyway and interestingly and disappointingly they did not even attempt to justify their calculation but continued with the same payment. I made my own extra payments.

    I don't know about your particular tariff, but some suppliers (principally NPower and Atlantic) feature deferred discounts. Under the tariff rules the discount payment cannot be anticipated in the calculation and this alone will result in higher monthly payments until the review date following the discount payment.

    There is a side issue here that consumers should be aware that the best time to leave a deferred discount supplier (assuming no "handcuffs") is immediately after payment of the discount.

    How has Eon responded to your calculations?

    • Post Points: 20
  •  Fri, May 20 2011, 4:10 PM

    E.ON Direct Debit Scam ??????

    Last year my fixed rate energy plan needed a payment of £125 per month. The final bill resulted in £122 per month. However, at the start of the fixed rate period, EON asked for a payment of £145 per month, a 16% overcharge.

    I have just renewed on a new fixed rate plan that requires a payment of £145 per month. Guess what? EON are asking for £162 per month, a 12% overcharge.

    My fuel usage is pretty constant over the years so I can estimate, quite accurately, my energy usage per annum.

    It seems to me that EON deliberately overcharges for Direct Debit payments unless you challenge them. I wonder if other customers have experienced the same situation.

    • Post Points: 80
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