New Direct Debit Adjustment totally inappropriate

  • Ischiahatter's Avatar
    Level 1
    Even though e on are making ridiculous profits on the back of the energy crisis and insist in leaching off the back of paying customers by expecting fixed monthly direct debit to build a credit up first rather than paying off any debit, for example building a bank of money first, rather than reverse, this way the company gain on interest or overnight markets rather than helping the hard up customer. This way you might as well pay as you use and keep the summer month payments in a interest account
    In my particular case e on have asked me to increase my payments from 150 plus 63 grant to nearly 400 a month with 2 weeks notice . My account has been in credit for about a year, up to 5 to 6 times my Direct Debit payments and have only just gone into Debit by a small amount, having stayed in credit during the winter months..
    I have contacted customer services by phone to complain about the amount and suggested the amount should only be increased by just over 60 to cover for the withdrawn government grant .rather than 230 a month, especially as I have installed Solar Panels in the summer and due to a pump fitted later this month. This is a 20K investment to support the sustainability agenda as well as keeping my bills lower. No support is provided from the energy supplier, infact over 600 kwh was given back to the grid for nothing. I am aware that I can sell them at around 5p a kwh, when we are paying around 35p a kwh. I can not see why the excess that goes to the grid can not be credited or banked to use when no energy is being produced. A scheme could easily be introduced with an administration fee like the standing charge. This would be an incentive for more people to install Solar.
    Customer Services were very rigid in their approach and explained that there was a Debit that needs to be added on estimated usage. They could not answer my questions of why the amount was sufficient fo ther last year, and why there needs to be a credit built up for winter, rather than the otherwaotherwise Plus why they will not take into consideration the lower use due to Solar and pump
    What makes it worse I was refused the opportunity to speak to a manager and promised a call back from one....I am still waiting a week after the promise. In the mean time I have cancelled my fixed direct debit and now propose to pay by invoice on a pay as you use, every 3 months
  • 8 Replies

  • meldrewreborn's Avatar
    Level 91
    @Ischiahatter

    all you need to do is switch from fixed to variable Direct Debit. You will pay for your actual usage each month, so no credit to build up and will allow your new usage levels to be established.
    Current Eon Next and EDF customer, ex Zog and Symbio. Don't think dual fuel saves money and don't like smart meters. Chronologically Gifted. If I offend let me know by private message, but I’ll continue to express my opinions nonetheless.
  • JoeSoap's Avatar
    Level 91
    @Ischiahatter

    As far as I’m aware, by choosing to pay on receipt of bill, you will still have to settle your bill monthly and not three-monthly. By cancelling your DD you will now pay more for your energy and will almost certainly be worse off even considering losing potential interest on your credit balance. By doing as @meldrewreborn has suggested and moving to variable DD you will only pay for what you use each month but will still keep your DD discount.
    I'm an Eon Next dual fuel customer with no particular expertise but have some time on my hands that I am using to try and help out a bit.
  • Mailman's Avatar
    Level 56
    Even though e on are making ridiculous profits on the back of the energy crisis and insist in leaching off the back of paying customers by expecting fixed monthly direct debit to build a credit up first rather than paying off any debit, for example building a bank of money first, rather than reverse, this way the company gain on interest or overnight markets rather than helping the hard up customer. This way you might as well pay as you use and keep the summer month payments in a interest account

    As the other gents have indicated perhaps Variable Direct Debit might suit you better. This is how I pay - has worked flawlessly since I started doing this 1 year ago. I no longer get into a lather about the 'negotiation' of a fixed direct debit amount.
  • retrotecchie's Avatar
    Level 92
    @Mailman Likwise. The only need for fixed direct debits is for anything that you contract for on an annual basis that is divided into equal installments. Council tax, loan repayments, car insurance, etc.Electricity and gas usage are 'variables', as is doing the grocery shop. I pay for my usage...not a penny more nor a penny less every month. Same as in the supermarket...I pay for what the checkout totals up. Morissons don't take £100 a month off me irrespective of the value of my shop and neither do E.On Next. Variable is definitely the way to go. 👍
    Don't shoot me, I'm only the piano player. I DON'T work for or on behalf of EON.Next, but am willing to try and help if I can. Not on mains gas, mobile network or mains drainage. House heated almost entirely by baby dragons.
  • meldrewreborn's Avatar
    Level 91
    @JoeSoap

    I’m not certain on whether variable DD always being a monthly settlement is correct. I came upon something that said quarterly was also available- but not sure where.

    I pay by fixed DD. It suits me OK. Some people will prefer the certainty that normally comes with that, but rapid changes in pricing have and will test that notion somewhat. At least we have that choice and that is important when conflict is in the air.
  • JoeSoap's Avatar
    Level 91
    To be fair, I think there are advantages and disadvantages to both types of DD. The most important thing as far as I can see is that as long as you pay by either form of DD you are going to get better tariff rates. The temptation of spending what is left after the monthly DDs have been accounted for could be too much for some in the summer, and if winter is harsh then the monthly energy bills could spell trouble and a tough festive season.

    I've cut my energy consumption considerably and I know, given DDs are set using historical data, it's going to take time for my fixed monthly DD to settle down to a realistic rate. I use the online tool to reduce the DD as far as I can and then just claim some credit balance back as and when. It's like when the meter man came and emptied all the shillings out... a nice little windfall.
  • JoeSoap's Avatar
    Level 91
    @meldrewreborn

    You could be right about paying quarterly. I'm really not sure. P.S... my previous post was being drafted as you posted so wasn't in reply to your post. Just general musings.
  • Ischiahatter's Avatar
    Level 1
    Thank you for the replies. I will definitely go back on variable DD after the comments. In the old days it was payment on 3 months usage, so I need to check if it is now 3 months. I can not see why the customer services team have not come back to me as promised this is poor.
    I also can not understand why they could not include the savings already made on the Solor in the Autumn and winter and work the average out over these months rather than the year, as some spring and summer months are still 100% from the grid and not take into account expected savings when the pump is installed. Saving estimates are given in the sales pitch
    Also it is also beyond me in this day and age of modern technology, why excess energy going back to the grid can not be banked and given back at a later date , minus a administration fee . The only answer I believe is more profits , if the government really wanted a sustainability agenda then they should tell the energy companies to look at this......I guess it also suits them to keep it as it is for VAT receipts.
    Incedently anyone thinking of going solar, I have made significant savings on paper even in the winter months