MSE News: EDF Energy price hike to hit thousands

Oneday77

Could all the Egos please get back to the point of this discussion.

The letter does not help the consumer in any constructive manner. We don't care how much we could have saved and the rest of the spin. All utilities providers should be forced to detail price increases to consumers. Standard letters are still a mail merge so it would be relatively easy to put: -
Dear customer,

Thank you for your custom on 'x' tarriff. We have made the decision to withdraw this deal and will without any action by yourself move you to the 'y' tarriff. Using your past years usage to provide and exmple of how this will affect you column A shows your existing tarriff cost and column B shows the new charges inc revised DD and Dual Fuel Discounts.

Of course they won't do this without the regulator forcing them as they will lose customers and get complaints. Where are the consumers rights. It should also be that if you switch to a company and there is a minimum term with them before no penalty. The tarriff should not be allowed to be removed until after such time, mobile phones work that way

KevinM

Just received my notification letter this morning, and having had no idea this was coming, it was a bit of a shock to see that my prices going up by 15-20%

I telephoned Ofgem (consumers direct) to get some advice, as I thought 5 days notice was very poor, and they were very helpful.

So, I now have the situation where EDF are keeping me on the Online v5 tarriff until the changeover to my new supplier takes place in about 6-8 weeks.

All I have to do now is choose a new supplier and place my order, which I hope to finalise later today.

I can see quite a few people leaving EDF over this.

Cardew

KevinM wrote: »

So, I now have the situation where EDF are keeping me on the Online v5 tarriff until the changeover to my new supplier takes place in about 6-8 weeks.

Are you sure this will happen?

It is quite clear that companies must keep you on the same old prices when you leave because of a price increase. e.g. you are on a Standard tariff and the price of that tariff increases.

However ofgem have rstated to me that this doesn't apply when you are on a tariff that ends on a specific date e.g. 01 August.

Linhurst

Until the letter there was no indication (that I was aware of) that Online Tariff Version 5 was due to end on a specific date. I agree the position would be different if the tariff had an agreed end date that was provided to customers in sufficient time to change suppliers before the change took place.

My understanding (I am not an expert) is that any contract is an agreement between two parties. A change in tariff is a change in the terms so requires agreement of both parties to be enforced. You should be allowed a reasonable time to make alternative arrangements by your current service provider. If you do not make alternative arrangements then you will accept the change by default so action is required.

I have used this argument with several service providers in the past. It is often better to find the best deal first and start the switching process as this puts you in an informed position. My email to EdF contained the following:

"I do not agree to this change in the terms of your supply. I have taken this opportunity to compare prices and as yours are no longer competitive I will be switching supplier. Given the date of your letter does not provide me with sufficient time to switch in advance of your change I trust you will keep me on the Version 5 tariff until the change takes place."

Sometimes it just works or the supplier contacts you with a better deal to keep your custom (hence why it is good to know the best deal in advance). On other occasions I have needed to follow up when the higher prices were incorrectly charged. Once I needed to claim the payment back under the direct debit guarantee and involve Ofgem.

Hope this helps with the general principles involved.

davidgmmafan

"Some customers who are led to believe they are being switched to a competively priced deal are probably unlikely to check the figures until the bill arrives. Most would however probably do so if they thought or were clearly told that there was a 15 or 16% price increase about to hit them."

I'm not with EDF, was and found them to be very good in terms of customer service. Not being a customer I did not get the letter however it does seem to me to be lacking something in clarity. I do agree it should show the current (or past) prices alongside the new new prices. It should be done by (or forced on) all suppliers.

I think the thing that is most unclear is the word competitive. What does this actually mean in the present day? They say competitve standard tariff when any suppliers standard tariff is NOT competitive. The average person saves £2-300 pe year on the online tariff. I keep repeating this in the hopes that it catches on...

It does raise questions above payments too, if the customer does nothing they will end up with a large balance, partly thier fault I agree but the company knew it was going to happen. Again they don't say we'd best put your payments up to X amount to avoid a shortfall for fear they'll lose customers.

undaunted

[QUOTE=davidgmmafan;35092009
I think the thing that is most unclear is the word competitive. What does this actually mean in the present day? They say competitve standard tariff when any suppliers standard tariff is NOT competitive. [/QUOTE]

I reckon it means something like well yes, we may be ripping you off, but so are the rest of them too! (& that isn't intended particularly facetiously, I do think it basically true)

harz99

undaunted wrote: »

I reckon it means something like well yes, we may be ripping you off, but so are the rest of them too! (& that isn't intended particularly facetiously, I do think it basically true)

I would think EDF would say that as a standard tariff it is competitive (with like products).

I have put the wheels in motion to switch from V5 to V6; does anyone know whether the V6 exit penalties apply in the event of moving home, as I can't seem to find any specific reference in the T&Cs?

shymanuk

just spoke to them and as the letters have not given enough time to switch they will keep you on v5 prices for a extra 60 days whilst switching companies .

matthew57

Linhurst wrote: »

Until the letter there was no indication (that I was aware of) that Online Tariff Version 5 was due to end on a specific date. I agree the position would be different if the tariff had an agreed end date that was provided to customers in sufficient time to change suppliers before the change took place.

I have the leaflet which states "Enjoy our competitive online tariff until 31 July 2010". Also rule 7 in the small print states the customer agrees that once V5 ends, that they will automatically be tranferred to the Standard Tariff.

This would seem to rule out your arguement?

Edit- just seen Dave M's messages on the other thread- it seems if you signed up early you were not told of the end date.

KimYeovil

I agree with [STRIKE]Nick[/STRIKE]Matthew.

The change in price of the standard tariff was many weeks ago. If you were on a Saver tariff that was due to revert to Standard on July 31st then weeks ago was when you would have had to invoke the price change clause (despite Saver tariff not changing :confused;.

Bad luck.

([STRIKE]Don't[/STRIKE]Do mean to gloat [STRIKE]but[/STRIKE]- eight weeks ago Scottish Power were offering £140 cashback. I took the gamble that that would not last and even if I had a £50 early termination penalty the £90 balance would still be higher than any cashbacks available in the middle of summer. As [STRIKE]luck[/STRIKE]foresight would have it the switch is going through on... 2 August 2010.)

I still maintain the letters and pamphlets are fair enough. Petty pedantic petards aside*.

(* Yes, yes, I know. Me pleading overlooking pedantic petards is bare-faced hypocrisy of the basest order.)