[CustomerOfLastResort]

I'm fortunate enough to have been able to afford to build up a credit balance on my account with Eon ahead of the 1st April 'price cap' increase.

My issue is that my Direct Debit has been automatically set at 1/12th of my predicted total bill for the next 12 months, and despite having a touch over 20% of that projected cost already paid in the website won't let me reduce it by more than 10%. "To help me avoid going into debt" according to Eon, but similarly seeming to be rigid for all customers.

In short, the algorithm used ignores existing credit-balances... being at anything over £0.00 doesn't influence it. It just does 'projection divided by twelve = monthly payment to be taken'.

It's hardly a question of introducing an AI quantum supercomputer to have the system be able to do 'projected amount minus credit on account, divided by twelve' rather than its current one-step calculation, so why not change it?

[RCC]

Probably because they choose not to, just like the change from quarterly variable DD to monthly for variable rate customers. It reduces their business risk and improves their cashflow at your expense. They do it because they can, because the whole unregulated private energy supply industry is a rotten deal for customers and EON are no better than anyone else.

I stuck with variable DD rather than a monthly deal simple because I didn't trust any energy supplier who might want to build up a cash surplus at my expense: would you hand over control of your payments to any other business? Looks like they will be looking after your money for a few more months unless you leave.

The hidden cost of corporate greed should be loss of customers just like Thatcher intended. Survival of the fit, not just the fat.

[meldrewreborn]

Its been argued that when DD are reset , large credit balances are automatically refunded in full. I've no idea if this is correct but a complaint to customer services might well elicit the answer.

[CustomerOfLastResort]

@meldrewreborn

That's bogus, IME. It hadn't happened when the DD was 'reset' upwards, or when I used the 'manual' option to cut it to the "minimum" (10% below 'auto') on the website. I then rang to get customer-services to cut it to the amount I actually wanted as in Projection minus (Credit + £200 October Loan), divided by 12. I wasn't asked to opt out of any credit refund, though I obviously wasn't proposing it happen.

I've since seen that Ofgem is 'investigating' the fairness of the DD setting process, and can guess that this sort of thing will be part of that. As always, I'm not particularly upset on my own behalf. Having to chase up Eon to get it fixed is just irritating for me, but I can easily imagine elderly/vulnerable/marginalised customers lacking the insight or confidence to do that and suffering real, avoidable hardship as a result.

[meldrewreborn]

@CustomerOfLastResort

Moderators here have claimed that it happens and other posters have confirmed that they've got the credit back. Its obviously unfair if people have to ask for their credit back for the very reasons you cite. There is no earthly reason for maintaining a high credit balance from the customers viewpoint and every reason for the suppliers to wish high balances to continue. A recent report for OFGEM (not by OFGEM) postulated that many of the failed suppliers used customer balances to fund their business in preference to raising capital, creating a one way bet for the owners - profits and dividends if things went well and no particular pain if the company failed.

[Philjay]

Originally Posted by meldrewreborn

@CustomerOfLastResort

Moderators here have claimed that it happens and other posters have confirmed that they've got the credit back. Its obviously unfair if people have to ask for their credit back for the very reasons you cite. There is no earthly reason for maintaining a high credit balance from the customers viewpoint and every reason for the suppliers to wish high balances to continue. A recent report for OFGEM (not by OFGEM) postulated that many of the failed suppliers used customer balances to fund their business in preference to raising capital, creating a one way bet for the owners - profits and dividends if things went well and no particular pain if the company failed.

I have just emailed Eon Next to ask them to reduce my direct debit.A primary school child could divide my annual estimated cost of£1203.58 by 12
and get £100.29 per month.I am £244-60 in credit before the £118-96 paid today is added to my account bringing it to £363.56 in credit.
I have asked them to reduce my monthly payment to £100-00 per month and I will still be in credit!! watch this space.

[JoeSoap]

@Philjay

If you have an online account then you should be able to drop your DD by 10% straight away. I know its not as much as you want it reduced by but it's something that's in your control and can be done immediately. If you then get a reply to your email you can negotiate it down further hopefully.

[Philjay]

Originally Posted by JoeSoap

@Philjay

If you have an online account then you should be able to drop your DD by 10% straight away. I know its not as much as you want it reduced by but it's something that's in your control and can be done immediately. If you then get a reply to your email you can negotiate it down further hopefully.

Thanks, I have just taken your advice and asked for my monthly amount to be reduced. New payment confirmed on my account from 1st October.

[Landmark]

Originally Posted by CustomerOfLastResort

why not change it?

Because there is an alternative in this thread to doing this that avoids the need for any algorithms etc if you are able to manage your money given the current cost of living crisis.
I hope you reconsider your options, as I believe that it is only worth fighting the battles that either one is likely to win or for ethical principles win or lose.

[JoeSoap]

@Landmark

The last paragraph in the first post in this thread is perfectly logical and hard to disagree with. The final four words you have selectively quoted, to me at least, form a perfectly legitimate question that deserves an answer. Merely suggesting your alternative payment method doesn’t answer the question sufficiently.

I’m fortunate that I find a credit balance a bit of a comfort and can afford to leave it there ‘just in case’. I do agree however that on starting a new tariff it should be the customer’s choice to have it refunded or taken into consideration when setting the new DD. Or finally, leave it there as a buffer. Hard to see how anyone could argue with that.

Rest assured, if there was a debit balance then they would want it paid ahead of the new contract or it would be added to your new DD.