[SteveK]

Dear E.ON Next,

Where does all the interest earned from customers money go?

I was lucky enough to have a savings account that was earning me £50 interest every month. I’m in credit by £300 with E.ON Next and understand it will take between 7 and 14 days for an electronic return of my money. It will take between 14 and 28 days for a cheque to be sent..

How many private residential customers do you have?
What is the collective balance of credit across all those customers you have?
How much interest did their money earn in 23/24 tax year?
Lastly, if there was any interest earned, where did that money go?

Best wishes,
Steve

[Mailman]

Originally Posted by SteveK

Dear E.ON Next,

Where does all the interest earned from customers money go?

I was lucky enough to have a savings account that was earning me £50 interest every month. I’m in credit by £300 with E.ON Next and understand it will take between 7 and 14 days for an electronic return of my money. It will take between 14 and 28 days for a cheque to be sent..

How many private residential customers do you have?
What is the collective balance of credit across all those customers you have?
How much interest did their money earn in 23/24 tax year?
Lastly, if there was any interest earned, where did that money go?

Best wishes,
Steve

As someone who has a debit balance on my account due to paying by Variable DD (this means I actually have a debit balance for approx 17 days out of every month) another question you might also want to tag onto your original post is:

What is the collective balance of debit across all those customers you have?

Does Eon Next ring-fence all DD payments into a separate account rather than just one large corporate cash-flow transactions account? I have no idea for this one.

My various bank accounts earn 0%, 2%, 4% and 7% depending on the access etc. I think there is some merit to having say a 1-2% nominal interest on credit balances (matching an instant access saver bank account) although you then get into a sticky wicket of what to do about those customers with debit balances (be they regular or irregular). An energy supplier is not a bank although we might think that they treat funds as if they were.

TBH, I find VDD works around this problem in an efficient way with the least inconvenience to myself. Any surplus funds I have get stuffed into the appropriate account initially thus maximising the interest on my income and minimising the interest earned by the supplier.

[geoffers]

Originally Posted by Mailman

Does Eon Next ring-fence all DD payments into a separate account rather than just one large corporate cash-flow transactions account? I have no idea for this one.

I think in the regulated finance industry clients' money is retained in a Client Money Account (CMA) rather than going onto general corporate finance, but whether this applies to all other business accounting I don't know.

[SteveK]

Thanks for your responses!

Maybe I e used the wrong terminology.. not sure.. I am making the point that I am in credit by £300 and therefore E.ON Next has £300 of my money beyond my service use. As there statement says ‘£300CR’ so I’ve used that same reference.

I must be honest I’m a little bit lost with all the percentages and acronyms. My basic question is where does the interest go that is earned on customers money? They keep the money in a bank account so does that earn E.ON Next interest?

[SteveK]

Originally Posted by Mailman

As someone who has a debit balance on my account due to paying by Variable DD (this means I actually have a debit balance for approx 17 days out of every month) another question you might also want to tag onto your original post is:

What is the collective balance of debit across all those customers you have?

Does Eon Next ring-fence all DD payments into a separate account rather than just one large corporate cash-flow transactions account? I have no idea for this one.

My various bank accounts earn 0%, 2%, 4% and 7% depending on the access etc. I think there is some merit to having say a 1-2% nominal interest on credit balances (matching an instant access saver bank account) although you then get into a sticky wicket of what to do about those customers with debit balances (be they regular or irregular). An energy supplier is not a bank although we might think that they treat funds as if they were.

TBH, I find VDD works around this problem in an efficient way with the least inconvenience to myself. Any surplus funds I have get stuffed into the appropriate account initially thus maximising the interest on my income and minimising the interest earned by the supplier.

In short, you don’t know where the interest (if any) goes?