Big Six supplier E.ON has decided to renovate into its Direct Debit (DD) policy after customer complaints that it was unfair. These changes were announced on the 7th February but came into effect on 16th January.

The change revolves around the “Spring Review” this is the date when E.ON expect customers on DD contracts to have a zero balance. E.ON was working out customers energy spends based on their previous annual bill and then dividing it by 12. Therefore, if you joined before the winter you’d often be paying less for your energy than you should and face a bill or higher DD rate come the Spring Review.

E.ON surveyed their customers and they received complaints that this system was unfair as customers have not be able to build up enough credit over the summer months to cover their higher winter energy use. E.ON has now renovated its DD process so any customer who joins in the second half of the year is given up to 18 months to get their Direct Debit accounts to a zero balance.

E.ON Chief Executive, Tony Cocker, said: “We recognise that our Direct Debit policy was causing problems for some of our customers and so this is the first step in improving this. We’ll now look at further improvements, including giving customers more choice about how we deal with any over or underspend at their annual review and allowing customers’ Direct Debit levels to immediately reflect any change in circumstances which may affect the amount of energy they’re using.” (www.energylivenews.com/, 08/02/2012)

Responding Audrey Gallacher from Consumer Focus said: “We welcome the move by E.ON to change its Direct Debit policy. It is a victory for common sense and hopefully the first of many steps the company will take in its Reset Review programme to improve the experience of its customers. With this in mind we call on E.ON to look again at doorstep selling, which it continues to do despite all of its major competitors stopping the practice. If E.ON is serious about listening to customers then it must explain why it is the only one of the Big Six to still sell energy on the doorstep.” (www.energylivenews.com, 08/02/2012)