Watch Out -EDF 2009 Fixed Price and Standing Orders

bubblesbonbon

A belated warning to anybody who signed up for the EDF “Fixed Price 2009” scheme ( NOT the later “2009 Price Protection” scheme) and who remained on a Monthly Payment Plan paying in advance of billing by Standing Order.

EDF will probably be charging you according their “Cash/Credit” Tariff which has significantly higher kWh unit prices than the “Direct Debit” tariff.

This particular scheme seems to be unique in that it differentiated different methods of payment by manipulating unit prices on top of the £8 direct debit discount.

The newer Fixed Price 2009 scheme reverted back to a single tariff with the £8 DD discount.

However, if you are unfortunate and like me, paid them in advance of billing using a standing order, you could be over £100 a year worse off depending on your consumption.

My argument to EDF that a standing order is neither “Cash” nor “Credit” (Their terminology on the tariff tables) has been unanswered apart from a recent statement that standing order payments will attract the higher tariff.

I don’t wish to join the direct debit pro/anti debate other than to add that previous excursions into the direct debit guarantee world left me feeling like Ronnie Corbett in a basketball game.

KimYeovil

This is a warning that users with all companies should heed - almost all suppliers will charge you the standard tariff if you pay by standing order.

Standing order is charged a premium because the customer has control - the supplier can not forcefully implement a monthly debit that they believe is necessary to cover the annual usage. They can suggest - but can't implement.

Cardew

British gas, according to their website allow you to pay by Standing order on their Click 6 tariff.

Gas
3. Standing Order Discount is 4.78% of the previous bill up to a maximum of £2.50 per bill (inc VAT). It is applied to the next bill (but not to any outstanding amount).
Electricity
4. Electricity customers paying by Monthly Direct Debit or Standing Order will receive a discount off their quarterly Tier 2 consumption charges (and night rates where applicable) of 1.429 p/kWh up to a maximum of £10 (including VAT) per quarter.

Does anyone know if they insist on an agreed level of Standing Order?

What would happen if you went on Click 6 and dropped your Standing Order to, say, £1?

They surely must have some stipulation on the level of Standing Order????

bubblesbonbon

KimYeovil wrote: »

This is a warning that users with all companies should heed - almost all suppliers will charge you the standard tariff if you pay by standing order.

Standing order is charged a premium because the customer has control - the supplier can not forcefully implement a monthly debit that they believe is necessary to cover the annual usage. They can suggest - but can't implement.

Kim,

I had no problem for 35 years paying the standard tariff knowing that I could choose to opt for Direct Debit and enjoy a fixed discount.
What I do object to is the way that EDF introduced discounted tariffs for this particular plan only.

When they invited me to sign up for the Fixed Price 2009 "deal", they stated that “you will be paying slightly more than our standard prices” This was in fact 13.7% more.

Since I was on what they called a monthly payment plan, paying in advance of billing by SO, I assumed that this would not be classed as cash or credit (naive I know).


The penny dropped when they asked me to increase my standing order from £45 to £80 per month and since I was in control I refused until I had exhausted their appeals procedure for misleading advertising. (Gave up in the end due to frustration and anger)

The good news is that I dumped EDF and joined BG who have never had such severe differential tariffs for DD's and SO's (as far as I can remember) and saved myself about £75 a year with their dual fuel deal.

I really hope that the energy regulators will sort out the tariff jungle and make it consistent and easy for the customers to know where they stand. I believe Ofgem have termed it "transparent pricing"

bubblesbonbon

Cardew wrote: »

British gas, according to their website allow you to pay by Standing order on their Click 6 tariff.



Does anyone know if they insist on an agreed level of Standing Order?

What would happen if you went on Click 6 and dropped your Standing Order to, say, £1?

They surely must have some stipulation on the level of Standing Order????

Cardew, you will have to agree a monthly sum with them and they will notify you if it needs adjusting.

I've never done it but I would imagine that they would get quite stroppy if you dropped it and they would probably insist on cash settlement which would mean losing your SO discount.
:cool: