EDF Fail Ofgem Direct Debit Rules

backfoot
backfoot Posts: 2,700
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edited 10 February 2012 at 11:14AM in Energy
My relative has just received their second bill around 6 months into their contract.

It is emblazened with 'Direct Debit Review'. The amounts previously paid are to be amended from the next payment date.EDf have taken firm meter readings.

There is no explanation whatsoever of the calculation of the revised amounts for gas and electricity. I have no idea how the amounts have been derived.

Ofgem in January 2012 reissued their factsheet for customers advising about Direct Debits.

http://www.ofgem.gov.uk/Pages/MoreInformation.aspx?file=directdebitleaflet.pdf&refer=Media/FactSheets

Specifically,it says:
'Information on why your direct debit needs
changing and by how much
If your payments need to change, your supplier must explain why.'

The procedure EDF have used is clearly not compliant with Standard License Condition 27.14:
27.14 The licensee must provide to each such Domestic Customer an explanation in clear, plain and intelligible language of the basis upon which a fixed amount (and any variation of that fixed amount) has been determined.
We have complained asking for :
1. A clear and understandable explanation of the DD amounts.
2. An explanation of why EDF are not compliant with the Ofgem Factsheet or SLC 27.14.
Direct Debit Arrangements were reviewed in detail by Ofgem in 2009 and new rules contained in SLC 27 were issued in 2010. The ongoing debate with Eon regarding their policy and EDF's obvious procedural failure demonstrates that Ofgem's Rules are being ignored.
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Comments

  • jalexa
    jalexa Posts: 3,448 Forumite
    backfoot wrote: »

    At this time I will restrict my comment to one point. The Ofgem document says the Edf "zero-balance" date is the supply "anniversary".

    I do not know whether that is true or not, however in my case I was allocated an April "annual review" date for a July start.:D

    So somebody is "mispeaking".
  • Good luck Backfoot.
    I complained on similar grounds recently (details documented in another thread) and edf gave me a calculation then changhed it later the same day when I pointed out the first made no sense.
    My complaint to CF ran into the sand as they required a deadlock letter from edf.
  • backfoot
    backfoot Posts: 2,700
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    This is a bill which just says there is a DD Review.

    It contains no target date, no forecast consumption, no remaining months.

    It looks like they have reviewed after 6 months. Have you had such a formally announced review or just random changes?

    There is no way the customer can tell if it is correct or even sensible.

    On a different tack,for some reason they have cancelled all previous charges, then gone back to the start date and created a six month bill.

    There are amounts going in and out,VAT cancellations and then bizaarely split the consumption between two periods. It is a fixed rate product so there is no need for this apportionment. What's that all about?
  • backfoot
    backfoot Posts: 2,700
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    snowcat53 wrote: »
    Good luck Backfoot.
    I complained on similar grounds recently (details documented in another thread) and edf gave me a calculation then changhed it later the same day when I pointed out the first made no sense.
    My complaint to CF ran into the sand as they required a deadlock letter from edf.

    Cheers Snowcat,

    The complaint is in two parts. Getting a calculation to explain the change and getting an explanation on why their procedure is not compliant.

    I may get the first but I can't see how they can satisfy the second until they amend their process. It is an obligation for this information to have already been provided. We shouldn't have to chase it.

    There aren't many requirements from SLC 27 and Ofgem don't want to police them, so it's left to a determined few to do their job.Ofgem only have to ask what the procedure is....they don't need my complaint, but unfortunately the whole regulatory system works in slow motion.

    This should result in a test case for the Energy Ombundsman.

    Jalexa or you may have got there before me but I am willing to try and catch you both up......;)

    As I get more response and feedback from other customers I will link this thread to the Consumer Focus thread on Direct Debits which I know Ofgem are following.
  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 10 February 2012 at 3:33PM
    backfoot wrote: »
    Have you had such a formally announced review or just random changes?

    What I get every time I submit customer reads more than 30 days after the last submission of a customer read which resulted in a bill being produced (a mouthful but read literally) is a 4 page effort headed "Your Direct Debit Review for your gas and electricity" in big letters.

    It has all the "SLC27.14" failings you mention. The early ones had a degree of randomness in the calculation, the later ones are more consistent but still wrong, I think because they are based on "historic" consumption that has not been adjusted for this year's less severe weather and/or the "most current information available" actual readings, contrary to the requirements of SLC27.15.

    I have had no difficulty (at least since the phone started being answered promptly) getting the previous payment re-instated, in fact on the last occasion I insisted on a small decrease. I have not yet pursued complaint escalation from Stage 2 to "deadlock". Instead, with a couple of months to my "annual review" I am waiting for the opportunity to ask them to explain why there is a surplus at annual review but the calculated increase was never in payment. Or a decrease offered.:D

    At that point I will probably choose to make more of the SLC27 failures.
  • backfoot
    backfoot Posts: 2,700
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    Thanks Jalexa,

    You must decide your own strategy, but I am fed up of all this stalling. I now have a live case I can push forward.

    My view and approach is that we shouldn't have to tease out correct details or have to chase information.

    We are now in a mature Supply Market with major European Businesses and clear obligations. EDF have just developed this new system.

    I could do better with an excel spreadsheet.
  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 10 February 2012 at 3:49PM
    backfoot wrote: »
    I am fed up of all this stalling. I now have a live case I can push forward.

    Good luck. Of course if the absent CF rep was to solicit information about Edf failure instead of the previously described "put-down" last time a poster offered help...

    And Ofgen have at least 2 errors to explain in their information sheet. So scope for some "fun" in due course.
  • undaunted
    undaunted Posts: 1,870 Forumite
    backfoot wrote: »
    Thanks Jalexa,

    You must decide your own strategy, but I am fed up of all this stalling. I now have a live case I can push forward.

    My view and approach is that we shouldn't have to tease out correct details or have to chase information.

    We are now in a mature Supply Market with major European Businesses and clear obligations. EDF have just developed this new system.

    I could do better with an excel spreadsheet.

    Or even a competent regulatory structure - what is the point of anyone making rules if neither Ofgem or Consumer Focus have actually been willing to do anything to ensure they are enforced when breached? ;)
  • You have inspired me to take this up again

    My edf change in DD was caused by new readings and a change in tariff from OS7 to Fix 2012.

    The edf letter is revealing
    ----
    To calculate the usage I have went back to our old system to confirmed reads taken by yourself on 01.04.2011.
    I have worked out the usage from this point up to the reads you provided 02.12.2011 using this info calculates your direct debit to be as follows:
    electricity £45 per month
    gas £35 per month
    total £80
    baring in mind these calculations are based on last years usage when your prices were lower, due to your tariff ending.
    Taking this into consideration I think £89 should be ok to cover your usage from now.
    I.e. they have used previous payment amounts and not kWh and not the new unit prices. I can do better on the back of an envelope

    I have gone back to them pointing out the change in DD had no attempt to explain the new amount as per SLC 27.14 and asking for a deadlock letter.
  • backfoot
    backfoot Posts: 2,700
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    snowcat53 wrote: »
    You have inspired me to take this up again

    My edf change in DD was caused by new readings and a change in tariff from OS7 to Fix 2012.

    The edf letter is revealing
    ----
    To calculate the usage I have went back to our old system to confirmed reads taken by yourself on 01.04.2011.
    I have worked out the usage from this point up to the reads you provided 02.12.2011 using this info calculates your direct debit to be as follows:
    electricity £45 per month
    gas £35 per month
    total £80
    baring in mind these calculations are based on last years usage when your prices were lower, due to your tariff ending.
    Taking this into consideration I think £89 should be ok to cover your usage from now.
    I.e. they have used previous payment amounts and not kWh and not the new unit prices. I can do better on the back of an envelope

    I have gone back to them pointing out the change in DD had no attempt to explain the new amount as per SLC 27.14 and asking for a deadlock letter.

    Well done.

    The explanation which is confusing and badly written is indeed illuminating.

    It doesn't attempt to explain their original demand and comes to another figure without giving any supporting calculations, consumption assumptions, prices or remaining recovery months.

    How could you possibly verify it?

    How could they possibly argue it was a clear and understandable explanation of the change?

    Why wasn't it provided along with the change request as is obliged.

    They are absolutely nowhere near what is required. It's a joke attempt in all honesty.
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