EDF Fail Ofgem Direct Debit Rules

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  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
    edited 25 May 2012 at 2:48AM
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    I've put the link on the previous page about how to escalate them. They are a professional member of a body as stated in the post, but the initial stage is a complaint that gets investigated via their quoted process.

    At the end of the day, you're only asking "how are you calculating my DD" and that's just a set of variables in a system with the possibility of a manual rejection triggering a response from an operator.

    System wise, the supplier will have documentation. For a start, they've gone into SAP and that is well known for having for too much documentation!

    The manual operation, would mean a local working practice that is a common document issued to their staff.

    The fact they can't explain it is not the issue, its more likely someone has given up due to complexity or a commercial decision to prevent your complaint being discussed.

    The EO can argue that how they implemented SAP is a commercial decision, but if the SLC states you are entitled to know how this one function works...Ofgem or the EO should be able to demand it.

    I think something you need to consider is the fact the EO knows they are getting involved in something that is a known market issue affecting many and they don't want to saddle themselves with it.

    One thing to consider is the wording of a complaint. If you said you want to know how the supplier has built the system to work they hide behind commercial decisions, but what if you said it from a different angle such as "my DD has been set too high and they won't tell me why?". Then it becomes about you and not their known system mess.

    SAP is likely to become more of an issue and Ofgem should really have someone assigned to govern it.

    I think their response is a cop out and they seem to think you should be championing something for all customers, when really you want to sort your own issue out.
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • snowcat53
    snowcat53 Posts: 602 Forumite
    edited 24 May 2012 at 10:46PM
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    jalexa wrote: »
    Possibly. But another interpretation is possible from "this is the job of Ofgem". I completely agree with that and if it is the job of Ofgem it cannot be the Energy Ombudsman's job.

    You are right. I will return to Ofgem now armed with the EO's letter. Their previous (standard) response stated "Ofgem does not have a direct role in dealing with general enquiries and complaints about the energy industry" and redirected me to Consumer Direct and Customer Focus. I am not still optimistic that they will agree to take it on though.
  • backfoot
    backfoot Posts: 2,700 Forumite
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    Snowcat,

    I agree that the Ombudsman is entirely negating their duties. I believe there are sufficient grounds, after your two clear attempts to explain the issue, to show that The EO has no grasp of the complaint whatsoever.

    I am happy to pass this detail onto Ofgem as further evidence of why they must act to clarify the SLC. Your complaint is identical to mine, in that you simply seek an explanation for the change in your Direct Debit. EDF refuse to supply a clear and understandable explanation and now the EO won't adjudicate.

    This matter will not rest and it will show that firstly EDF are not abiding their own Regulations and that, the EO is not fit for purpose, if they consider breaching License Conditions is a commercial decision.

    Time will tell if Ofgem have the will to enforce their own Regulations. I am confident they will. I am due an update from Ofgem but that has been delayed due to special circumstances.This will give me the opportunity to renew my representation.
  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
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    Whilst it seems common the stance is that Ofgem don't investigate individual queries, the do have a Consumer Affairs Team.

    There is also a published "whistle blowers" policy for those in the industry.

    I just think the EO know its a right nasty one...and possibly that they won't get backed up Ofgem. That's their problem and collating complaints would be good so its all lumped together and Ofgem make it an investigation.

    Complaints reporting in this market is not good at all.
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 26 May 2012 at 11:55AM
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    snowcat53 wrote: »
    You are right. I will return to Ofgem now armed with the EO's letter...

    Looking again at my last comment and also taking into account Backfoot's "...the EO is not fit for purpose, if they consider breaching License Conditions is a commercial decision...", without knowing the exact issue you referred, I am troubled by the EO approach.

    They seem to be adjudicating an issue without consideration of the issue. That is hardly a credible position for an ombudsman to adopt (unless they have already fully investigated an identical referral and have indeed established "commercial decision").

    We don't know this is a "commercial decision". On the contrary, the Edf Energy public domain information on Direct Debit does not support that. We only know that at the moment of "deadlock" the Edf Energy Customer Services Director has been unable to satisfy a specific customer concern within 8 weeks. There is a clear issue there for the EO to investigate. After EO investigation, should it be determined that the issue is indeed a "commercial decision", but on the face of it contrary to regulations, that is what should be reported (to Ofgem).

    In my case I embarked on the Edf Energy customer relationship, no differently from every preceeding supplier, determined to pay the initial monthly payment at transfer as calculated by the switching comparison (if necessary for 12 months) and then an amount reflective of "actual current consumption" (until 2014). With considerable effort I now have a payment exactly reflective of my "actual current consumption". Had it gone to the EO my complaint would have been that I calculate the payment to be "£xx" (for the following reasons), but Edf are imposing "£yy" (and won't explain the calculation).

    IME Edf Energy doesn't contest an informed calculation, but it shouldn't be be necessary to continually challenge the supplier calculation and I suspect too many customers accept an unsubstantiated calculation without challange. That's potentially "free money" for Edf Energy, therefore a competition issue. Yes I realise Consumer Focus has been marginalised, a pity, but also a great pity they are departing without even a whimper.

    So maybe consider a slightly different tack with the EO?
  • snowcat53
    snowcat53 Posts: 602 Forumite
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    Jalexa,
    Thank you for that - there are some useful arguments you make I might use in a reply to the EO. They did leave the door open to pursuing a complaint on grounds that edf hadnt satisfactorily answered my complaint.

    All rather Alice in Wonderland crossed with Kafka.
  • backfoot
    backfoot Posts: 2,700 Forumite
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    A commercial decision might be for EDF:

    To charge specific unit rates.
    To calculate DD values over a six month period (not 12).
    To recover annual charges at twice the rate annual rate.

    Such features would need to be specified in the contract documentation.However,perverse such decisions, the customer would be able to see them up front.

    EDF cannot have a contract condition which overides a Standard License Condition. So for example, it is a requirement for them to explain the basis of the DD and any change thereto.

    If they do not, enforcement action is required by the Regulator to ensure that customer's can compare the contract conditions(the commercial aspects) to the reality. If the reality is different there is a breach of contract as well as a breach of the License Conditions.

    At the moment, the evidence is that Snowcat has been given no information to accompany DD changes (a clear breach of SLC27) and subsequently information which is inconsistent and not clear and understandable. A further breach of SLC 27 and cause for Customer Service complaint.

    In my case, a different argument has been put forward to stonewall the production of data. That is a bogus defence that SLC31A overides SLC27.

    I have asked Ofgem to look into this evidence as it appears (bizzarely) that the Energy Ombudsman has elected to opt out from investigating SLC matters. If that is a correct interpretation it is incumbent then on Ofgem to directly investigate.

    I think that is acually a good outcome and would advocate that customers now write directly to Ofgem (consumer affairs) if they are affected.
  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
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    I agree.

    I think it also shows that work is required between the EO and Ofgem to prevent pushing customers back when advice about how to pursue the matter and why should be given.

    Sadly, Ofgem are only reactive, they've never been any good at governance until sometime, often media pressure and customers, force them too.

    When the create a new SLC or modify one, they don't do any checks, they just take the industry parties word for being compliant to it.n

    Now, on the BSC side, there are at least yearly independent audits and the ability to conduct a Technical Assurance Visit.

    What do Ofgem do to audit the industry? Very little.

    If a supplier builds systems and processes that are non compliant to a SLC, it proves no such post roll out checks occur.
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
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    Back foot, that certainly is bogus.

    SLC31A does omit them from providing illustrations of consumption and bill values until you reach 12 months, hence providing a forecast of the next 12. SLC27 is very clear in stating that a fixed DD can vary but any variation must be explained clearly to the customer.

    ...clearly doesn't mean "trust us, we've done our sums"...

    Surely, if you were shuffling paper at Ofgem this would be a slam dunk?
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 27 May 2012 at 10:49AM
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    Terrylw1 wrote: »
    SLC31A does omit them from providing illustrations of consumption and bill values until you reach 12 months, hence providing a forecast of the next 12.

    Terrylw1

    FWIW I tend to agree with you on that narrow point (though not failure to provide as a matter of fact the "assumption" used in the calculation) without which the calculation cannot be verified as correct.

    You may have explained this before but I'm not certain I understood. This is from Wiki so may or may not be totally accurate.

    "For non-half-hourly metered supplies, the NHHDC determines the consumption by calculating the advance (the difference between the last two meter reads, this is annualised to produce an annual advance (AA), this being the data the Supplier will pay on).

    The NHHDC is also responsible determining the Estimated Annual Consumption (EAC), which is a forecast for a year ahead. The EAC is initially provided by the Supplier, and thereafter forecast based on actual meter readings.

    Data from the DC (EAC/ AA's) is provided to the Non Half Hourly Data Aggregator, which 'Aggregates' the individual values provided into a single figure...
    "



    In simple terms can you explain the difference between AA and EAC?

    At what stage in the process does the supplier "initially provide the EAC" and on what basis?

    Is the supplier provided with updated EAC and/or AA (individually for each metering point)? If so how frequently?

    Can a customer read influence EAC and AA as held by the NHHDC?

    I understand the above is for electricity. Is there an equivalent for gas?
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