DD vs quarterly

Oranjj

We are told DD is cheaper because the tariffs are cheaper..but with DD I'm always in credit with EDF, sometimes upto as much as £300, which of course they make a huge amount of interest off (collectively). Arent we all better off going back to quarterly billing? I want to pay for what I owe and not a penny more!

NittyGritty

if your that much in credit then simply ring them and ask for the refund, i wouldnt let them keep hold of it

NittyGritty

either that or tell them you want your direct debit lowering

cifpower

How much interest do you believe EDF are making on £300?

Tea_Pea_Dee

cifpower wrote: »

How much interest do you believe EDF are making on £300?

Collectively?? A huge amount

EDF Energy is one of the UK’s largest energy companies and its largest producer of low-carbon electricity. A wholly-owned subsidiary of the EDF Group, one of Europe's largest energy groups, we generate around one fifth of the UK's electricity and employ around 15,000 people. We supply electricity and gas to around 5.5 million residential and business customers, making us the biggest supplier of electricity by volume.

jalexa

Oranjj wrote: »

We are told DD is cheaper because the tariffs are cheaper..but with DD I'm always in credit with EDF, sometimes upto as much as £300...

Study my guide to handling DD review. Includes a link to the Edf web page.

https://forums.moneysavingexpert.com/discussion/3409983

Premier_2

Oranjj wrote: »

We are told DD is cheaper because the tariffs are cheaper..but with DD I'm always in credit with EDF, sometimes upto as much as £300, which of course they make a huge amount of interest off (collectively). Arent we all better off going back to quarterly billing? I want to pay for what I owe and not a penny more!

With BoE rates at a record low of 0.5% (and savings rates considerably less), the amount of interest involved will be very small.

It's not what the company makes, it's what is cheapest for you. Use a comparison site to find out.

Premier_2

Tea_Pea_Dee wrote: »

Collectively?? ...

My Auntie Doris owes them £300 ... so that means no interest at all then

Oranjj

its not just the interest, if EDF has 5.5m customers and each have £0-300 in credit, that makes it basically a bank. it can borrow against that capital. we are talking hundreds of millions. and 0.5 is only the base rate. high interest accounts are 5% AER.

spiro

Oranjj wrote: »

its not just the interest, if EDF has 5.5m customers and each have £0-300 in credit, that makes it basically a bank. it can borrow against that capital. we are talking hundreds of millions. and 0.5 is only the base rate. high interest accounts are 5% AER.

What about all the customers who pay on bill or pay late so are paying in arrears.

At the end of the summer you will always be in credit by at least a couple of hundred pounds because you use loads more gas in the winter than summer.

If you dont like it change to a 'pay on bill' tariff but then loose the 6-8% DD discount plus possibly other discounts because all the best tariffs require you to pay by DD.

macman

Oranjj wrote: »

its not just the interest, if EDF has 5.5m customers and each have £0-300 in credit, that makes it basically a bank. it can borrow against that capital. we are talking hundreds of millions. and 0.5 is only the base rate. high interest accounts are 5% AER.

So manage your DD correctly and you won't need to lend them anything. You control the DD, not EDF. Most of the cheaper tariffs require fixed monthly DD payment.