[MattB]

Following threads on this forum and grateful for being directed to this advice:
https://www.moneysavingexpert.com/ne...omers-costing/

Given the advice it made sense to switch from Next Flex to Next Pledge Tracker 12M v2. I understand the considerations regarding how direct debits are calculated, and why account credits exist, given fluctuating prices and usage throughout the year.

I am struggling to understand the quoted price for switching to the fixed tariff, even given forecasted increases in cap or energy prices. I currently pay 303 direct debit per month. This month it was increased to 324pm from November despite decreased usage. However the quoted direct debit using the online transfer process is that my DDs will immediately increase to 395pm. That is despite the change this month on Next Flex from 303 to 324.

I appreciate there are changes in costs. But why would the DD change in the same month from 324 to 395 for the same usage?

My situation is somewhat more complicated in that following smart meter installation in Dec 2022, I have identified faults and massively reduced gas consumption. However I dont expect the DDs to reflect that yet, given that it took a few months to identify and rectify, so only achieved from May 23 onwards. To put it in context last November I used 3500 kwh for gas and this month I anticipate 1000 or less. I know they will kick in, in due course but I do not understand why switching to a fixed supposedly better value tariff will increase my Direct Debits which only just increased, and probably unnecessarily.

The reason I say perhaps unnecessarily is that while my usage situation is complicated, my credit balance has been consistently over 1000 for the last 12 months (even preceding the reduction in usage). The credit balance at the beginning of each month f has been:
Jan 23: £1283
Feb 23: £1361
March 23: £1316
April 23: £1314
May 23: £1401
June 23: 1540
July 23: £1543
August 23: £1561
Sept 23: £1594
Oct 23: £1563

I guess it is easiest to ask two questions:
1) Why would my predicted monthly fixed DD increase when switching to the new supposedly cost-saving tariff? I appreciate energy prices will increase, but in that case why was the new DD from November 2023 not at the same level?

2) Is a constant credit of 1000-1500 normal? I would not like to suggest that Eon are using customers like myself who are better placed to afford this situation as a source of zero interest loans.

Thanks

[Mailman]

Have you considered switching to a Variable DD?

This will run down your excessive credit over the winter months. 👍

Possibly when you get to the middle of next year your EAC's will have come tumbling down to a more realistic level and give a more realistic fixed DD amount should you wish to go back to it.

Either that or ask for a repayment of some of your excess credit and try to negotiate what you think might be a more realistic DD although this is crystal ball gazing by yourself and Eon Next whereas Variable DD payments will be known at each statement production and monthly usage-dependent.

[MattB]

Originally Posted by Mailman

Have you considered switching to a Variable DD?

This will run down your excessive credit over the winter months. 👍

Thanks - I absolutely have. I have seen discussion of this in the forum. Before I posted I thought I would switch as you suggest.

Interestingly it does not appear easy to do so. I began to assume it was no longer possible.

Have I missed the page where I can do this? Under Manage my Payments, there is a link to Change Amount, which takes you to a 'form' which asks you to submit a request for a new amount.

Apologies to EON if I have missed it, and grateful for a link to how to do so. In the absence of that I wonder....

[JoeSoap]

@MattB

You are not actually on a fixed tariff. This tariff tracks the price cap and will be about 3% under it. You can see your estimated annual consumption on your statements and could use this to get an idea of what you should be paying after taking your credit balance into account. Armed with this knowledge you could contact customer service to try to negotiate a better fixed DD or you could do as @Mailman says and opt for Variable DD.

[Mailman]

Originally Posted by MattB

Thanks - I absolutely have. I have seen discussion of this in the forum. Before I posted I thought I would switch as you suggest.

Interestingly it does not appear easy to do so. I began to assume it was no longer possible.

Have I missed the page where I can do this? Under Manage my Payments, there is a link to Change Amount, which takes you to a 'form' which asks you to submit a request for a new amount.

Apologies to EON if I have missed it, and grateful for a link to how to do so. In the absence of that I wonder....

You need to ring Eon Next CS to arrange this (they shut at 4pm on Friday). If no luck today, try on a weekday at 0900.

I've also amended my original reply if you look.

[MattB]

Thank you very much both. Mailman in particular and I apologise not sure I saw the difference in replies.

Thanks JoeS - I understand it is not 'fixed' and the way it works. I guess what I was querying was why my DD changed on my current tariff by £20 whereas it was nearly £100 when changing to the new tariff - for the same estimated consumption.

I appreciate the uncertainties of usage and rates and I can live with the current credit excess so do not intend to try to negotiate to get that down or change the current direct debit. More asking whychanging to a supposedly better tariff would increase the estimated direct debit when there was a reasonable credit existing and the direct debit has been re-estimated in the same month.

Thanks once again Mailman, I had not appreciated one had to contact directly to change to variable direct debit. Without being paranoid or conspiratorial, it once again does make me wonder why it is so easy to switch online to a new tariff and payment schedule which would increase my payments and very likely the credit amount as well - whereas switching to a payment method which might decrease my costs and my credit excess is more difficult. I suspect it may take some time to get through on the phone etc?

[JoeSoap]

@MattB

I few of us have had our DD increased lately for no apparent reason. The only thing I can think of is that with your new quote perhaps your existing credit balance has not been taken into consideration. I tend to just suck up the DD increases (within reason) but if I wanted to challenge it I would submit manual readings to get a statement. I would use the estimated usage from that statement together with my tariff rates and account balance to work out where I think my monthly DD should be set and then probably send my calculations in an email to hi@eonnext.com together with my suggestion of where my DD should be set.

[meldrewreborn]

The new DD must be reasonable given the tariff, EAC and current balance They are assessed at the commencement of the new tariff, projecting forward 12 months. The DD on an existing tariff will have started, and so will finish at a different time, so the comparison between the two isn’t valid.

the DD whenever it’s assessed or reassessed has to be fair and reasonable at that moment in time. Complain if you consider that it’s not - based on facts, not by comparison to any previous DD.

[Mailman]

Originally Posted by MattB

I had not appreciated one had to contact directly to change to variable direct debit. Without being paranoid or conspiratorial, it once again does make me wonder why it is so easy to switch online to a new tariff and payment schedule which would increase my payments and very likely the credit amount as well - whereas switching to a payment method which might decrease my costs and my credit excess is more difficult. I suspect it may take some time to get through on the phone etc?

I suspect that VDD is almost the worst situation for all energy suppliers and is the reason why most of them don't make it too easy to change to it (e.g. online via a click of a button as we would all like). Effectively when you go onto VDD, you are paying on receipt of bill or rather paying DD on receipt of account balance after bill generation as this is the way it has worked for me. And there is a delay between update of account balance/bill generation and actual DD taken of 16/17 days, so for that time (after statement generation) your balance will show a debit DR amount (unless you have accumulated a healthy credit as you have). This is what I mean



Re contacting Eon Next on the 'dog and bone', I've never had an issue whatever the time of day although I've found the fastest response times are first thing in the morning (weekday) at 0900.