[meldrewreborn]

I received an Email inviting me to pay an increased DD, or pay a one off amount and pay a different level of DD, but still an increase.

This is my response:

Thank you for your email.

You do not seem sure of what my account balance currently is – the message you sent mentions £193.32 and later £83.51. The latter figure is correct as of 1 September 2024.

Looking at my latest statement the "official " estimate of my electricity consumption is an over estimate and based on out of date data, going back some 2 years.. My annual consumption now is circa 1600 kWh per annum and using that figure to compute my future (12 month) energy costs less my current credit means that a properly computed Direct Debit is £109.84, and the current figure I'm paying is 109.81. Therefore I suggest that my direct debit be left at its current level.

		units	cost	ann cost	days	standing	ann cost		total
			£	£		£	£		£
gas		12532	0.0571	715.5772	365	0.3101	113.1865		828.7637
elec		1600	0.2442	390.72	365	0.4992	182.208		572.928
									1401.692
							credit		83.51
											Direct Debit
									1318.182		109.848475

I look forward to your early response agreeing to my computation.

Regards


Polite, accurate and properly argued. I'll let you know what the response is.

[retrotecchie]

@meldrewreborn

I would have just ignored it if it was simply an 'invitation' or even a suggestion!

I have a neighbour who regularly invites me to the village hall for the monthly Bingo Night. I simply don't go. No response or action required.

Of course, you can always avoid the situation altogether by switching to Variable DD. I could avoid the unnecessary invitations in much the same way as I avoid carol singers or trick and treaters...just pretend to not be in when they come round 🤣🤣🤣

[meldrewreborn]

@retrotecchie

This was an invitation with menaces!!! In that it will be this or that, unless you get in touch. I thought I'd do it by email so that their response can be displayed here.

Setting a fixed DD isn't rocket science, and providing the underlying data is accurate it shouldn't be a cause celebre. But so many people don't really understand how the process should work , I thought an example might be useful. We'll see.

I know that some prefer the variable DD option (which not all suppliers offer) but I've got lots of fixed DD's and because I manage my funds using a home accounting product (quicken 98 - still works fine!) I'm able to replicate the fixed DD so that most matters are automatically posted without requiring attention. Fixed DD works for me, and many on tight budgets find the same.

[Mailman]

Originally Posted by meldrewreborn

I received an Email inviting me to pay an increased DD, or pay a one off amount and pay a different level of DD, but still an increase.

This is my response:

Thank you for your email.

You do not seem sure of what my account balance currently is – the message you sent mentions £193.32 and later £83.51. The latter figure is correct as of 1 September 2024.

Looking at my latest statement the "official " estimate of my electricity consumption is an over estimate and based on out of date data, going back some 2 years.. My annual consumption now is circa 1600 kWh per annum and using that figure to compute my future (12 month) energy costs less my current credit means that a properly computed Direct Debit is £109.84, and the current figure I'm paying is 109.81. Therefore I suggest that my direct debit be left at its current level.

I would have been tempted to agree to raising the DD

............ but only by thruppence.

OR making a one-off payment of 36 pence 🤣

BTW how far out of sync are your EAU estimates? For my own personal consumption, I've compiled the highest gas usage (kWh) from Jan23 and Jan 24 and so on each month over the last 2 years. My results for gas were 6552 kWh using this method v 6389 kWh used just over the last year v 7088 kWh for the EAU industry provided (approx 10% higher). Leccy is much closer.

[meldrewreborn]

@Mailman

Its the electricity that is still over estimate. My consumption is now fairly stable following the Freezer replacement saga , but the EAC is looking back still before the replacement.

their figure is about 10% more than mine, which I think represents the variance between us, give or take some computational factors.
Gas is pretty much spot on , although this is the fuel where the consumption is more likely to be out from actual as my consumption is very much weighted to the winter period and the severity of the winter can increase my annual consumption by 30%. I'm not altogether upset by news that temperature records are centrally being broken as far as my own costs are concerned, although weather and climate are not the same beastie.

[Tommysgirl]

@meldrewreborn

I pay by monthly variable DD, but my brother and sister- in law pay by fixed DD. They have quite a bit of credit built up but Eon Next sometimes try to get them to increase the DD. If Eon Next increase their DD automatically, they change it back online to what they're currently paying.

[meldrewreborn]

@Tommysgirl

A fixed DD has to be reasonable. It can be entirely legitimate to ask for a DD to be increased, but it depends upon the facts. I’m fairly sure that the aggregate balances on customer accounts are hugely positive, so in effect customers are giving interest free loans to their supplier. If the system were operating in an entirely even handed way the aggregate balances would be close to zero.

I’m a strong believer in the notion that customers should stick up for themselves - to be intelligent customers. Its because many don’t that the sector needs firm regulation, and that is lacking too.

[meldrewreborn]

I've had a response to my reasonable and logical reply to the Eon Next suggestion that I increase my Direct Debit.

It reads:

"Good Afternoon,
Thank you for your email!
The direct debit has increased to allow more credit to build up for the winter. This also prevents the direct debit increasing further in the winter period.
Based on your current usage, you are using around £75 per month. I can change the direct debit for you, but this may result in the direct debit increasing further in November/ December time, depending on your usage.
Please let me know your thoughts.
Kind regards,
Sophie"

Now, firstly, Sophie has completely avoided the points I made. Then secondly, a totally new concept is introduced, namely that a direct debit which should be set with the intention that after 12 Months should result in an account balance of zero, per OFGEM guidance, now has to be set at an artificially high level to build up up large account balance to offset higher winter bills.

On the Help pages it says:

"We'll need to increase your Direct Debit to cover your energy use so that you don't end up in debt. We regularly check how much electricity and gas you're using to make sure that you're paying the right amount. If you've not given us a meter reading in a while then your Direct Debit could be based on estimated use, so we recommend sending us one as soon as you can." So nothing about building up a healthy balance before the winter.

I can readily see that Eon Next would like it it every customer had a positive balance on their account when paying by direct debit, but in reality if the system is working as it should as many customers would be in debit as in credit and no advantage should accrue to the company from interest free loans from the aggregate of all customers.

Am I missing something?

[Tommysgirl]

@meldrewreborn

I don't think you're missing something. The response you've received looks very like a 'standard' or 'stock' letter/email, where the main text is pre- printed and they just 'fill in the blanks' with names and amounts, and don't answer the questions raised.

I pay by monthly variable DD, because I had a lot of trouble with British Gas severely over-estimating what I should pay monthly when I was with them. I always felt, rightly or wrongly, it may be a ploy on their part to gain more interest and profit at the customers expense.

[meldrewreborn]

@Tommysgirl

I'd be surprised if this is a stock answer as it's not a correct statement of Eon Next policy - so I don't imagine it could be - but you never know!