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Dear Chris, my wife and I are both over 60 and receive pension credit. Last October we moved into a retirement flat, and instead of gas central heating we now have night storage heaters. We also had an Economy 7 meter installed.
Our energy supplier, E.ON, has just sent us a bill for over £600! We had been paying a monthly direct debit of £21 a month, but this was increased to £41. Now it is being increased to £120 a month. What can I do? Can they raise our payments this much?
Can you help please!
Mr Boyle, Kent, via comments Tuesday 26 May, 2009
Dear Mr Boyle,
Thanks for contacting us about your increased direct debit payments. Unfortunately, E.ON (www.eonenergy.com) is well within its right to increase your payments. My advice in “can energy suppliers increase my direct debit payment?” should help answer some of your questions.
In this situation, the first thing I would suggest would be to contact your energy supplier. Call E.ON’s customer services on 0845 059 9905 and ask them directly about what it can do to help.
After you’ve contacted your supplier, there are three things you should do:
Read my advice below…
As you are both over 60, you may be eligible for financial help from the government. Because you live in England, the scheme you could get funding from is the Warm Front scheme.
The Warm Front scheme provides a package of insulation and heating improvements up to the value of £3,500 (or £6,000 if oil central heating is recommended), to low income families and other vulnerable households around England. It is a government-funded initiative, and is available to homeowners and those that rent from a private landlord.
For more information on the scheme, eligibility criteria and other schemes around the UK, read our guide to energy efficiency grants.
Economy 7 tariffs are designed to save customers money; however they can rack up bigger bills than other energy tariffs if not used properly.
With an Economy 7 tariff, for seven hours every night your electricity will cost considerably less than the standard daytime rate. Effectively, just as you can make cheaper phone calls during off-peak hours, you can do the same by using your electricity at off-peak times too.
The ‘peak-hours’ during the day however, will be a lot more expensive, so if the tariff isn’t managed effectively, your electricity can end up costing you significantly more than a customer on a standard energy tariff.
For more information, read my advice how to make the most of your Economy 7 tariff.
E.ON (www.eonenergy.com) offers its customers two social energy tariffs: Age Concern and StayWarm. Both cater specifically for the elderly and vulnerable.
E.ON StayWarm - This tariff is for customers over 60, who live in a house with three bedrooms or less. Customers must take both electricity and gas from E.ON and pay by direct debit.
This tariff has a number of benefits, including:
This tariff would suit you if you want a dual fuel tariff that is a fixed price for 12-months, as you will always know what to budget for your energy service. However, keep in mind your tariff could go up after your initial contract period.
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E.ON Age Concern - This tariff offers discounts on electricity and gas for customers aged 60 and over.
This tariff has a number of benefits, including:
This tariff would suit you if you can’t pay your bills by direct debit. This tariff can save you up to 3% on your bills if you’re a single fuel customer.
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If you don’t want to take a social tariff from E.ON, there are plenty of other options available. Compare energy suppliers and make sure you switch to a deal that suits you.
There are other ways you can cut your fuel bills too. Read our guide on saving money on your energy tariff for more information. Hope this advice is of help.
If you have an energy query please email ourexpert@energychoices.co.uk
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