MASSIVE EDF PRICE HIKES (from August 2010)

Monkfish_2

This thread pertains to anyone on EDF Online Tariff Version 5 and possibly other online tariffs. If you have received the following letter from EDF please list your current tariff here so we know which are being affected.

This letter from EDF Energy is a classic example of marketing misdirection. This technique involves the offering of an insignificant benefit that can be hyped in a letter, to camouflage the principle disadvantage that the letter is actually about. In this particular case, the insignificant benefit is the small increase in Direct Debit and Dual Fuel discounts that hides the principal point of the letter, which is the fact that the current tariff is being discontinued and replaced with one that is substantially higher. This letter should read:

“Dear Customer, we have decided that your current tariff is WAY too generous and have decided to take it away from you. From August 2010 you will be paying 62% more for the first 225 units and 30% more for the remaining units of electricity you use, and 20% more for the first 670 units and 2% more for the remaining units of gas that you use. To compensate for this loss, please accept this packet of peanuts.”

Here’s the actual letter:

Dear Customer,

Great saving with EDF Energy

As an EDF Energy customer on our Online Tariff Version 5 product, you’ve benefited from one of our best deals. In fact, a typical customer could have saved up to £446¹.

From 1 August 2010, we’ll be aligning your prices with our competitively priced Standard tariff. Your new prices are on the reverse of this letter.

If you would like to go through our full range of available products, visit edfenergy.com/online

Your monthly Direct Debit and Dual Fuel Discounts

Because you’re paying by monthly Direct Debit for both gas and electricity you’ll save even more off your energy bills every year with your new discount structure. You’ll now receive a 6% monthly Direct Debit discount and we’re also changing your annual Dual Fuel discount to £8.40. This means a typical customer that has both gas and electricity with us and pays by monthly Direct debit will now benefit from a discount of £68 a year².

Save today. Save tomorrow

We’re always looking for new ways that we can help you save energy, and money too. Visit edfenergy.com to see how we can help you.

Yours sincerely, Steve Hayfield.

It’s letters like this that really annoy me. Essentially the letter is trying to con you. The larger middle paragraph is deliberately worded to make the reader think that they are actually going to be saving money! There should be laws against this sort of cynical obscuration. The last line is just an insult once you realize what the letter is actually about.

Well, I’m now straight off to look at other suppliers.

KimYeovil

Sorry, but you are throwing your dummy out after having received a VERY generous deal from EDF. It was widely reported when the tariff was launched that it was uncharacteristically generous to users with low consumptions - much cheaper than Ebico, even. You knew it was due to end in July this year. They HAVE NOT withdrawn the bargain early and bumped it up to 2% less than the standard (or whatever the guarantee was). Instead they have maintained the brilliant rate right up to the end of the assured period (despite other tariffs being increased earlier in the year.)

I appreciate the frustration - I am in the same boat as a very low user - massive increase in rate 1 and a miniscule 6% pro rata discount rather than a flat £25 quarterly discount (which equates to a 30% discount for me) - but I guarantee you are not going to find a better deal from any other supplier.

Yes, the letter is a bit irritating - but you knew it was coming.

Monkfish_2

Whose side are you on!! Do you work for EDF or something? This post is trying to counter a deliberately misleading letter and make sure that users are fully aware that their charges are going to be significantly increased. What do you mean "I knew it was coming"? I knew nothing of the sort... probably because of previous obscuration. Do you think that all EDF customers live on forums like this every day and have their fingers on every tariff pulse in existence! Get real!

Premier_2

[STRIKE]
Use a comparison site to check what is the best deal available to you.
(Be aware that comparison sites may not yet reflect the upcoming change in price the letter advises you of)

If they are still the cheapest, (some people in a similar situation found they would be better off going on EDF Online 6), don't go cutting off your nose to spite your face.
[/STRIKE]

Edit:
Just saw the OP's latest post

Yeah you show 'em! Take your custom elsewhere

Is that real enough for you? (cuz I'm not sure you are) :cool:

Mr_K

There's already a thread about this here. Rang them today as I haven't had a letter, they claimed Online 5 wasn't changing and the tariff was valid till 31/03/2011. Might try again and see if i get the same answer....

janninew

I'm on EDF Online V5 and I've not any letter yet? I've only been with them since November last year and now I'm confused! :huh: If I changed to another supplier will I be hit with a penalty?

paceinternet

What an annoying post title!:(
In the "rules" for that tariff it says there is an end date of the 31st July 2010, and from then certain changes will take place.
There are similar EDF tariffs, eg Online Saver version 6 will run until 30 June 2011.

What would be helpful for forum users would be to say how to change to another lowest cost EDF tarrif to start 1st Aug without loosing any discounts etc.
Edit:
Actually I now see others are switching with a telephone call without problems as shown here:
https://forums.moneysavingexpert.com/discussion/2584565

portchieboy

As Janinew says, are there any penalties for switching out?

Mr_K

No penalties for switching from v5.

There is a £25 per fuel charge if you go to the new Saver V6 and switch away from it before 30/06/11. This is why some of us are a bit reluctant to switch to it. Nothing to stop them massively increasing this tariff before then and you're abit stuck unless you want to pay £50.

EON's latest online tariff is very similar (for me anyway), but there's no cancellation charge, leaving you free to move if they become uncompetitive.

Monkfish_2

Sorry for the title worrying those not on this or related tariffs.

I should restate that this thread is principally about the use of cynical misleading correspondence, not about the pros & cons of this particular tariff. I could have made the title more appropriate in this regard, but as the fairies might say: you're never going to get anyone's attention by hiding under a toadstool.

I should add that this tariff isn't one of those fixed price deals with an expiry date. It was sold as a cheaper (unfixed) tariff that was cheaper because it would reduce administration costs through paperless bills and customers taking their own readings. In practice EDF continued to send paper bills and send round meter readers to check that customers weren't fiddling their meters. I'm sure I didn't sign up for a fixed period... although now I'm not sure about anything.

I should also underline that they are not discontinuing the tariff (as far as I'm aware) but simply putting up the prices to match the standard tariff.

I really don't understand some of the negative comments to this thread. Whose side are you guys on?

So let me reiterate: this thread is principally a heads-up for anyone receiving this letter over the next week.

Mr_K

Don't worry Monkfish, I think you're right to alert EDF customers to this. The letter sounds like typical spin, telling you everything except that your bill is about to dramatically go up. I too, don't remember anything about this tariff being for a fixed period of time.