EDF Fail Ofgem Direct Debit Rules

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  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
    Just to be clear they do have correct actual readings for the last year taken by their own meter reader, 364 days difference between the two readings. I know they are correct because I noted them down at the same time. They have put on my annual summary statement a different figure 10% higher for my actual usage for the last year and then used this same 10% higher figure for next years predictions.

    I rang them up, and the CS adviser didn't know why they had put a different figure down. He didn't put up any resistance so we agreed to put my DD 10% lower then last years amount, so sorted until their next review.

    Next time they mess about I'll asked them to explain how they have calculated my DD to conform with SLC27.14 and SLC27.15.

    The industry consumption figures are subject to weather calculations. That may explain the increase.

    The difference between 2 readings is not the full picture in elec, there are some smoothing factors applied which can cause the advance between the two to differ. So, in this scenario the supplier always charges you the difference between the two readings but the data entered into the consumption in the industry settlement is based on the final figure after the smoothing factors. So, this could cause a projection to differ to what it would be based on advances alone.

    It could always just be a variation in EDF's new SAP billing system that allows them to take your forecast and add X % to make more money upfront.

    It will be interesting to see if everyone has the same % issue and whether it moves over future years at the same rate which would indicate a use of a variable on their side only.
    :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
    With energy companies having 5-6 million customers each, why are annual reviews always after the heavy winter period rather than spread out over the year? Surely this creates a bottleneck in April/May? This must have been a policy change at some point in the last 4-5 years as I remember before this time reviews were carried out in October with some companies.

    I remember that it used to be driven by a settlement quarter marker that went 1, 2, 3 & 4. At 4, credits were refunded, DD's were reassessed and a new year began. Your date was derived from start dates so there were all over the place.

    I guess these reassessments have just become a way to manage them in bulk.
    :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:
  • In my Annual Review of 2nd October based on a year's actual readings EDF has forecast my gas consumption will be 30% more next year and increased the DD accordingly. Glad I'm leaving them as the time & effort to sort it is tiresome.
    604!
  • victor2
    victor2 Posts: 7,574 Ambassador
    I'm a Volunteer Ambassador First Anniversary Name Dropper First Post
    In my Annual Review of 2nd October based on a year's actual readings EDF has forecast my gas consumption will be 30% more next year and increased the DD accordingly. Glad I'm leaving them as the time & effort to sort it is tiresome.

    That is precisely what EDF need to realise. People will leave them, and actually pay more if necessary, to get a supplier who makes life easier for them, while still charging for utilities they use.
    Be it a 10% or 30% increase in forecasted use, with no explanation the consumer is left scratching their head. Many people are looking at ways to reduce their usage these days. For a major supplier to say "we expect you to use 30% more gas in the coming year" is just an insult.

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  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 6 October 2012 at 10:50AM
    victor2 wrote: »
    For a major supplier to say "we expect you to use 30% more gas in the coming year" is just an insult.

    Just an "insult"? An excessive projected cost improves cash-flow which could be used to influence the competitiveness of current tariff offers in the marketplace. It is an "insult" is that Consumer Focus in its "death throws" (the very same Consumer Focus that publicly trumpeted its role in E.ON "spring alignment") and the "IME facile" Ofgem consumer affairs directorate seem disinterested.

    It is quite hard to find understandable information about gas AQ (not electricity EAC thanks to Terry), but I *think* I found previously that AQ is only updated annually in August and is 18 months out of date. I speculate AQ is still, at least partially, reflecting the very severe winter 2 years ago.

    Anyway, Edf appear to be in breach of their own payment scheme. It is clearly documented as an 'annual review' plus the possibility of one [only] interim review, let us assume mid-period. While there needs to be a "projected cost", given a mid-term interim review the previous 12 months actual usage would be a perfectly reasonable basis.

    There is a clear issue. The motive however remain unclear and I think will remain unclear until the Ofgem consumer affairs directorate blinks in the spotlight of party political scrutiny. Consumer Focus is a goner and IMO deservedly so.
  • jalexa wrote: »
    Anyway, Edf appear to be in breach of their own payment scheme. It is clearly documented as an 'annual review' plus the possibility of one [only] interim review, let us assume mid-period. While there needs to be a "projected cost", given a mid-term interim review the previous 12 months actual usage would be a perfectly reasonable basis.

    It was concurrent with a change to Blue after the expiry of 12 months Fixed S@ver V2 tariff. Whilst I expected the price to increase slightly for the more expensive tariff the annoyance is that the forecast increase in gas consumption was kWh not £ based. No explanation as to why. Equally galling when the MiData spreadsheet on the same date showed a forecast Blue cost/kWh exactly the same as my actual over the previous year. Can't be that hard to link the MiData database to the DD algorithm - but I suspect that's not in their cashflow interest.
    604!
  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 6 October 2012 at 11:53AM
    ... Whilst I expected the price to increase slightly for the more expensive tariff the annoyance is that the forecast increase in gas consumption was kWh not £ based. No explanation as to why. Equally galling when the MiData spreadsheet on the same date showed a forecast...

    Indeed. Edf declined my "invitatation" to explain. I didn't pursue the failure to explain as my objective was to retain my current (and accurate) payment. TBH that has never proved difficult.

    Regarding Midata, there are only two relevant data items, a rolling 12 month "actual", which in my case appears to be accurate and a individual fuel "cost projection" (the estimated cost in pound and pence for the next 12 months if you stayed on the same tariff the tariff stayed the same (e.g. no price rises or price cuts) and if you carried on using the same amount of energy. This could be based on estimates...). What is meant by "same amount of energy"? Same as what?

    The VAT/discount/standing charge treatment or allocation is not explained which makes accurate comparison impossible. When I complained about the Midata cost inaccuracy it was explained as early problems affecting some accounts. It is still "inaccurate".

    It is interesting that Midata projects 12 months back and 12 months forward, but the DD is based on an 'annual review' date which likely less than 12 months ahead. So is Midata designed to explain or to confuse?
  • The MiData spreadsheet appears to update whenever accessed, so when I checked on 2nd Oct it was showing forecast 12 months' cost for my new Blue tariff and forecast usage in kWh, which was the same as the actual previous 12 months consumption kWh for my Fixed S@ver. If that cost had been divided by 12 for my new DD amount I would have been happy.

    I should of course complain about the 30% gas consumption hike in my new DD assumption but I'll have jumped ship to SP before the next unduly high monthly DD payment is taken by EDF. :)
    604!
  • jalexa
    jalexa Posts: 3,448 Forumite
    ... it was showing ... forecast usage in kWh,

    Well that is different from my Midata which (only) shows previous kWhrs and future costs (and the future costs do not agree for the stated previous kWhrs).
  • .........I think. :o
    604!
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