@eonhelp EON increase price to fixed term contract.

[Bazooka Boo]

 

So I entered into a fixed 12 month contract with Eon in January this year, at a very reasonable £32.50 a month, all going swimmingly until yesterday when they emailed me to say that my direct debit would be increasing to £43 a month!

 

Have just emailed them, and tweeted them, to say that there is absolutely no chance of paying this increase as I am on a fixed income, and their quote of £32.50 a month has been used in my budget each month, and there is zero wriggle room.

 

I am hoping that they can continue to take £32.50 a month, like they agreed in January, or I shall pull the direct debit and either set up a standing order, regardless of their threat of adding their penalty fees for not paying via DD, or vote with my feet and go elsewhere all together, and deal with the deforestation of begging letters for 'breaking' the contract early.

 

If I could be bothered to read the small print in the contract, I am pretty certain that it is all weighted in their favour, and no doubt it will say that they can change the rules and move the goal posts as and when they choose, but as a customer you're not able to.

 

But we'll see.

[Good Sister]

I believe that a fixed priced tariff simply means you will pay the same price per unit of gas/electricity throughout the year. They can still look to increase the direct debit during the year if you are using more gas and electricity than what was anticipated from the point the tariff was agreed.

 

May be worth looking into how much energy they were thinking you were going to use and how your bills in the meantime are stacking up against this?

 

From my experience of having fixed tariffs from E-On, they are pretty good at reviewing the account at regular intervals and will increase or decrease my direct debit as appropriate. But everyone'e experience will be different I guess.

 

This link may also be helpful to you.

https://www.eonenergy.com/for-your-home/help-and-support/direct-debit-and-manager-questions

[E.ON Company Rep: Helena]

Good morning Bazooka Boo,

 

I can see you've spoken to Pete on twitter and he's given you some good info there.

 

I think there may be a bit of confusion though, a fixed tariff means that your unit prices will not go up or down, they will stay the same for the length of the contract.

 

However, the Direct Debit can change as usage will go up and down.

 

Have we billed you up to accurate reads? Is the account in a debit or credit balance? If you have an online account pop your reads in on there, then have a look at the Direct Debit manager tool, this will give you a better idea of what you're using.

 

As Pete says, we may adjust the Direct Debit to ensure you have a zero balance at your review date. You'd also need to build up some credit over the summer months as this will help go towards your larger winter bills.

 

There's lots of information about how Direct Debit's work on the website along with Q&A if this may help you.

 

Thank you

 

Helena

[Old Cogger]

another Eon folly!

[BazzaS]

 

So I entered into a fixed 12 month contract with Eon in January this year, at a very reasonable £32.50 a month, all going swimmingly until yesterday when they emailed me to say that my direct debit would be increasing to £43 a month!

 

Have just emailed them, and tweeted them, to say that there is absolutely no chance of paying this increase as I am on a fixed income, and their quote of £32.50 a month has been used in my budget each month, and there is zero wriggle room.

 

I am hoping that they can continue to take £32.50 a month, like they agreed in January, or I shall pull the direct debit and either set up a standing order, regardless of their threat of adding their penalty fees for not paying via DD, or vote with my feet and go elsewhere all together, and deal with the deforestation of begging letters for 'breaking' the contract early.

 

If I could be bothered to read the small print in the contract, I am pretty certain that it is all weighted in their favour, and no doubt it will say that they can change the rules and move the goal posts as and when they choose, but as a customer you're not able to.

 

But we'll see.

 

Are you claiming that they agreed £32.50/month for "use as much as you like", or instead "fixed the unit price but you still have to pay according to the number of units you use"?

[estellyn]

In my experience the first direct debit of a deal set up with EON can be a bit on the low side when estimating usage - meaning that on review the direct debit needs to be increased. Sadly if you can't afford a higher payment every month, your options are to attempt to lower your your usage and/or switch to a new supplier. There are better deals out there.

[Bazooka Boo]

Hello Helena, thank you for responding.

 

I now understand what this 'fixed rate' tarrif involves, and whilst EON had all of my previous years readings to work out what

the rate would be set at, they came back with £32.50 a month, this has been happily leaving my account on time.

 

What has been very well hidden form me, is the fact that the price could go up, as well as down.

The fact that I have a fixed income and have budgeted my utility bill around my income is of no concern to utility companies.

All they want is to make a profit.

 

However, I fail to see how being £16 in 'debit' since January, so 7 months, no equates to EON increasing the DD to £43 a month.

 

I don't have an extra £10 a month to give, and looking at my I&E the maximum I can change the DD to is £35 a month, I'm not

interested in having a zero balance by Jan next year, you'll get your money, just send the the bill in Jan if I'm owing.

 

No wonder people stay with the same energy supplier!

 

I have also emailed EON, and have made it perfectly clear that if they change the DD and take £43 out next month, then I will cancel the DD and set up a SO, and if that isn't acceptable (I think I read something about demanding customers pay a penalty fee for non DD payments?) I'll go elsewhere, and stick my payments to £1 a month.

 

There is also the Warm front thingamejig that I have just applied for too, so that will more than cover any debit and crimbo period combined, with a little bit left over!

 

There are better deals out there.

I know MSE keeps emailing me telling me I'm paying too much already!!

 

Are you claiming that they agreed £32.50/month for "use as much as you like", or instead "fixed the unit price but you still have to pay according to the number of units you use"?

You know what, I have no idea what it was I signed up to, technically I fall into the 'vulnerable' category (Severe Traumatic Brain Injury) However, being a stubborn veteran, I try to be as independent as I possibly can.

 

They gave me a quote of £32.50 a month, after I had given them 12 months electricity usage, so they had my meter read at the beginning of Jan, and then the end 12 months later, so I wrongly assumed that their quote was for the year, clearly not to use as much leccy as I wanted, but as this is electric only building, I cannot do anymore than I have already done to reduce my bill.

E7 immersion heater, LED lightbulbs throughout, A rated appliances, curtains and shutting doors in the winter, using a Duronic electric heater instead of the perfectly useless storage heaters...even resorted to wearing multiple layers and jumpers last year or just getting into bed if I was too cold.

[E.ON Company Rep: Helena]

Good morning Bazooka Boo,

 

I don't think anything has been hidden, a Direct Debit has to cover the amount of energy you use, even though the actual unit prices are fixed.

 

We can't just let a Direct Debit run and then what's left in January, we do have to aim for the zero balance review date, this is the way it works, there's lots of info on the website about this.

 

I'm pleased you've emailed, as you'll be able to have a further breakdown of the figures.

 

It's brilliant that you've applied for the warm home discount and you should also let us put you on the priority service register.

 

It does sound like your usage is still low, as all electric properties can be expensive so I understand this.

 

Keep talking to us though, as it sounds like you're doing all the right things.

 

Helena

[Bazooka Boo]

Thank you for responding.

 

So in essence then, the £32.50 a month was a ruse to get me onto your books?

 

I use no more electricity this year than I did last year, and if you go ahead and adjust the DD to suit your needs,

then I am absolutely no better off than when I was with SSE!

 

Although should you go ahead and change the DD, then I will cancel it and go elsewhere, and won't entertain any of your letters.

[E.ON Company Rep: Helena]

Thank you for responding.

 

So in essence then, the £32.50 a month was a ruse to get me onto your books?

 

I use no more electricity this year than I did last year, and if you go ahead and adjust the DD to suit your needs,

then I am absolutely no better off than when I was with SSE!

 

Although should you go ahead and change the DD, then I will cancel it and go elsewhere, and won't entertain any of your letters.

 

Morning,

 

No we'll base the DD quote on the usage figures you give to us at the point of sale.

 

But you should have been aware that this amount can change, so I'm sorry if it wasn't clear.

 

I think you should pop your meter readings on and make sure the account is billed up to date and have a look at the Direct Debit manager tool and go from there.

 

Thank you

 

Helena

[Bazooka Boo]

But you should have been aware that this amount can change, so I'm sorry if it wasn't clear. Of course it wasn't clear, deliberately designed to be in my opinion.

 

I think you should pop your meter readings on and make sure the account is billed up to date and have a look at the Direct Debit manager tool and go from there.

 

Thank you Helena,

 

I've done the DD manager thing, and it just comes up with £16 in debit, so possibly by Jan next year I will owe £32, no great shakes,

I can pay it then.

 

TBH though, I'm probably going to dump EON and return to my old supplier, emails go unanswered, questions are ignored,

and no real customer care, just like all the others.

[E.ON Company Rep: Helena]

I'm really sorry you feel that way, I've tried to give you all of the information I can.

 

You should have had a reply to your emails though, did you send them through the website contact us page?

 

Thank you

 

Helena

[Bazooka Boo]

I've just sent another one through the website yes.

 

The trouble with that is that I have no record of it so my trail of evidence stops there.

 

Why isn't there an email address for customers to use so that they can maintain their evidence?

[E.ON Company Rep: Helena]

I've just sent another one through the website yes.

 

The trouble with that is that I have no record of it so my trail of evidence stops there.

 

Why isn't there an email address for customers to use so that they can maintain their evidence?

 

If you log in to your online account as normal, then click 'your correspondence' on the left hand side, all of your emails and replies are there.

 

Hope that helps.

 

Helena

[Bazooka Boo]

OK thank you!

 

I also notice that I have to accept the DD change before it's accepted, so if I don't accept it, does that mean that my payments remain at £32.50 just like we agreed in the contract?

[Bazooka Boo]

Jeez!

Their greed knows no bounds does it! They still don't get it, what part of "I cannot afford £43 a month" do they not understand??

 

Had a really good productive day yesterday, then came home to this abrupt email;

Your Direct Debit has gone up…..

 

Your Direct Debit has gone up from £32.50 to £56.00. The reason it’s gone up, is because your usage has increased and that there’s an outstanding balance on the account of £14.92.

 

Your annual review is 19 January 2016, and at your review we’d like you to have a balance of £0.00 on your account, so this is another reason why your Direct Debit has gone up.

 

Your complaint resolution…..

 

You can change your Direct Debit online, but only up to 20percent, so this would make your Direct Debit £44.80 rather than the £56.00, saving £11.20.

 

I can’t make this any lower because of the usage and outstanding balance.

 

If you are happy with this please let me know. If you aren’t then I’ll pass it on to another member of the team.

 

Yep that's right, £56 English pounds a month, of course, I'm absolutely delighted with these new figures go right ahead and empty my bank account, please do.

 

So I've cancelled the DD, and instructed my bank not to release any funds to EON without my express permission.

 

I shall set up a S/O for this months payment too them, which no doubt they will bleat on about how much extra cost they ''incur'' because it isn't DD...

[steviehowie]

The problem with EON is that they were:

a) fined by Ofgem £ 1.7 million in 2012

b) Fined by Ofgem £ over 2million for their free light bulb faisco in 2013

c) Fined by Ofgem £12 million for mis-selling in 2014.

d) Fined by Ofgem £ 7.75 million in 2015.

 

 

Now what really interesting is that some of these are repeat offences. The problem seem to be at Directors and CEO level within EON.

So those poor people thinking of engaging EON as their next supplier be very aware of their track record and lack of customer service.

 

 

Very quick also to issue Deadlock letters to customers, lie to customers. Also watch out for when the try the bill reversal trick( i.e substitute actual readings for estimated readings) normally it goes wrong.

 

 

IN fact to all energy customers EON come with a major health warning.

 

 

Stevie

 

 

It says to me their systematic mis management ongoing at EON

[estellyn]

Do they allow a change of suppliers if you have a debit balance? You may find your change is blocked.

[Bazooka Boo]

Do they allow a change of suppliers if you have a debit balance? You may find your change is blocked.

 

They can't stop you from moving anymore, as long as your debt isn't greater than £500 I believe?

 

Besides I hardly call £14 accrued over 8 months a debt, so am at a total loss as to how they have magicked up this figure of £56 a month in order to have a zero balance in Jan next year.

Something which they can't answer, or won't, not sure which?

[estellyn]

They can't stop you from moving anymore, as long as your debt isn't greater than £500 I believe?

 

Besides I hardly call £14 accrued over 8 months a debt, so am at a total loss as to how they have magicked up this figure of £56 a month in order to have a zero balance in Jan next year.

Something which they can't answer, or won't, not sure which?

 

I assume they're estimating heavy usage november/december/january and that's how they come to the figure.

 

Having had a similar thing happen with EON, I understand your feelings on this.

[Bazooka Boo]

I assume they're estimating heavy usage november/december/january and that's how they come to the figure.

 

Having had a similar thing happen with EON, I understand your feelings on this.

 

So much for a 'fixed term contract'!

 

Bunch of con artists, no wonder this industry is loathed, ''Lets offer new customers a really low monthly rate, reel them in then double that monthly payment, telling them their usage has increased''

Yeah nice one, how to further tarnish your already blackened name in two easy emails.!

Avoid these lot like the plague, never again.

[Good Sister]

Have you asked them how they have come to these estimates? As estellyn says, it looks like they are working on heavy usage for the winter months.

 

The thing to bear in mind is that energy usage can vary year-on-year. The winter of late 2013/early 2014 was comparatively mild, which would most likely have resulted in lower usage that year. When you gave your figures to E-On to base the quote, this figure may not have been fully representative of your likely use.

 

E-On are likely to carry on arguing that they want to aim for £0 difference in January, and they could also argue they are helping you avoid debt by bumping up the direct debit now (I know that doesn't help you with your financial situation, just saying what they are likely to say).

 

How much do you have to pay to exit your contract early? Mine is £5 each, if yours is the same and you can find a better deal elsewhere, then I wouldn't blame you for doing so.

[Bazooka Boo]

Hello GS, TY for your response, it's good to get different perspectives.........(but mine is always right!)

 

I really do appreciate what you're saying, BUT, they told me, in no uncertain terms that for 12 Mths, I would pay £32.50 a month for 12 mths.

 

I agreed, they took over the contract/deal, then claimed that as I was using more than leccy, they would have to increase payments from £32.50 to £43.00,

I am unable to match that figure, at the most I can push it to £35 a month, and there response was, ''actually we need £56 a month".

 

This is an energy company who requested last years meter readings, prior to giving me a quote, and a "FIXED" quote, for 12 months, then decided that they would move the goal posts 6 months down the line and "claim" I was using more electricity than the previous con artist.......

[steviehowie]

Have you asked them how they have come to these estimates? As estellyn says, it looks like they are working on heavy usage for the winter months.

 

The thing to bear in mind is that energy usage can vary year-on-year. The winter of late 2013/early 2014 was comparatively mild, which would most likely have resulted in lower usage that year. When you gave your figures to E-On to base the quote, this figure may not have been fully representative of your likely use.

 

E-On are likely to carry on arguing that they want to aim for £0 difference in January, and they could also argue they are helping you avoid debt by bumping up the direct debit now (I know that doesn't help you with your financial situation, just saying what they are likely to say).

 

How much do you have to pay to exit your contract early? Mine is £5 each, if yours is the same and you can find a better deal elsewhere, then I wouldn't blame you for doing so.

 

 

 

 

 

 

 

 

 

 

Hi All,

 

 

 

 

Can I add to this debate. EON are rip of Merchants.

EON and other energy companies cannot estimate energy usage to save themselves .Fact. So do not be fouled by their sales pitch. They are only in it for the money.

 

 

So please do not fall for, "that you have increased usage" trick. Think about.

 

 

 

 

Do you have the same appliances as last year? If yes, then its unlikely you have increased usage. The only way that would occur was if you ran all appliance say between 12 to 24 hours per day. I take it that you did not do so, in that case, challenge the assumptions made by EON.

 

 

Have you installed better energy efficient machines since last year, like old washing machine or fridge for new modern efficient machines , then the consummation should be lowering that case. Again this assumes you are not using appliances for long hours during the day.

 

 

example.

1 kW appliance x 1 hour = 1kWH

2 kW appliance x 1 hour = 2KWH

1KW appliance x 4 hours running = 4 kWH

So if you have not used appliance longer during the day, there is no reason to assume Larger consumption.

 

 

Also if you use gas for water heating and or heating your home then its likely to be more efficient than electric heating. I am not sure if your account with EON is electric or electric and gas.

 

 

Equally I making the assumption you have not extended or built new rooms onto you existing home, which would very marginally increase your consumption, over previous years .

 

 

Do not accept that you are usage has gone up. Argue the case with EON . On the EON front, I have seen a letter EON have written saying that the " Cannot Estimate Consumption " . They reason why the cannot estimate consumption is because the variables of time and equipment you usage, kW rating of appliances etc is not available to them to make such an estimate. But it's available to you to check yourself.

 

Stevie

[Good Sister]

Hello GS, TY for your response, it's good to get different perspectives.........(but mine is always right!)

 

I really do appreciate what you're saying, BUT, they told me, in no uncertain terms that for 12 Mths, I would pay £32.50 a month for 12 mths.

 

I agreed, they took over the contract/deal, then claimed that as I was using more than leccy, they would have to increase payments from £32.50 to £43.00,

I am unable to match that figure, at the most I can push it to £35 a month, and there response was, ''actually we need £56 a month".

 

This is an energy company who requested last years meter readings, prior to giving me a quote, and a "FIXED" quote, for 12 months, then decided that they would move the goal posts 6 months down the line and "claim" I was using more electricity than the previous con artist.......

 

Did you get a recording or some other correspondence saying you would pay that amount for 12 months? That would strengthen your case if that is so.

 

You are saying that they are claiming you are using more electricity than last year - are they using actual meter readings to back that up? If not, have they got up-to-date meter readings to work with?

 

I appreciate you say you can't afford it, but I think if you keep using that (and just that) as your argument, you and E-On are going to go round in circles. Ask them to explain how they have come to their figure of £56.00 a month. They are only estimating after all. If you manage your account online, there is a section in the Direct Debit Manager which should show a breakdown month-by-month of how much they *think* you will use.

 

Looking at it from a layperson's point of view, an increase of nearly double what you're paying for to help cover what is a small debit does seem steep, so I completely understand why you are fighting this. But at the same time, E-On do review the direct debits every six months or so (mine went up slightly last month), so I can see why they are saying what they are saying.

 

May be worth asking them about different tariffs to see if there is a better deal than the one you're on. I can't remember if you would have to pay your early exit fee though for breaking your current contract.

 

I really hope you get this sorted, either with E-On or going elsewhere.