[meldrewreborn]

@Lee_EONNext

I've found this link from OFGEM.

https://www.ofgem.gov.uk/publication...stic-consumers

In it is details the standards suppliers should adhere to when setting an Estimated Annual Cost - such as when assessing same as part of a Direct Debit computation.

OFGEM set out clearly what is REQUIRED (its not optional) of suppliers:

They Say "We have decided to amend the methodology that suppliers and some price comparison sites are required to follow when estimating consumers’ annual costs. The change will allow suppliers and comparison sites to come up with their own methodologies for estimating a consumer’s annual costs, where they are required to provide one, as long as the estimate:

• Is personalised to the consumer, based on information that is reasonably available to the supplier or comparison site, and on reasonable assumptions where actual data is not available;
• Is based on actual historic consumption wherever this is available (and a best estimate of consumption where it is not);
• Includes non-contingent discounts and non-optional bundled charges, and excludes contingent discounts and optional bundled charges;
• Is applied consistently when used to provide the consumer with a comparison of different tariffs, such that the same assumptions, where relevant, are made for all tariffs that are being compared; and
• Is transparent, and accompanied by a description of the estimate that makes clear to the consumer what it is, what it can be used for, and any assumptions that have been made in its calculation."

So its clear that suppliers can come up with their own methodology, but it has to conform to the standards. The second bullet point means to me that the first port of call in establishing the basis of an estimate should be Actual Historic Consumption wherever this is available. But that's not what Eon Next do - their first port of call is to the discredited industry standard EAC. While you've indicated to me that where a customer asks actual data can be used in preference to the EAC data, that seems to me to be getting things the wrong way round. Any comment?

[Lee_EONNext]

@meldrewreborn If you have access to actual data this is what we use, if the customer doesn't then that's when we estimate or use EAC as a guide and guide only, which as soon as there is enough history we use actual data

In terms of licences everyone has their own interpretation of those licenses. In this case, well your own lets say, we use actual data, so even if your EAC is wrong or not exact, being exact would mean its AAC not EAC, your payment adequacy is what matters in terms of billing.

When we do a quote based on EAC, we use the National Database to see the previous 12 months and use it as an estimate. Can you find in the regulations/licensing agreements that EAC should be an exact figure?

What you've said about Eon Next isn't technically correct, we would only use EAC for the quote if the customer didn't know their Actual Usage, this is something that should be carried out across the board, if this isn't then this of course needs to be raised.