EDF Fail Ofgem Direct Debit Rules

jalexa

rednblack wrote: »

Can I ask a question re DD? When paying by DD are you expected to pay for your utilities in advance?

I don't speak for Edf but I have studied this. To answer a different question, for a March payment year start date it is arithmetically impossible to argue not to have a summer/autumn credit balance. (My draft unverified figures suggest an approximately 10% account balance credit is required, or about one monthly payment)

Next, at the March review, Edf were entitled to add any 'annual review' debit balance to be recovered over the next 12 months. That is easy to calculate. Edf "state", but do not substantiate, a projected annual cost. In my case a 5% usage hike on previous, another poster reports a 10% usage hike and another a 30% usage hike. Not seen any reports of usage reductions. A nice cash flow massage if across the board.

So there is scope to make "mischief" via the complaints procedure regarding the justification of the projected cost. There may be a valid fight for you there, but not against the arithmetic need to maintain a summer/autumn balance or to repay in 12 months a review date balance.

You mention "It seems convenient my annual review is after the winter!" Indeed it does. In my case a summer start date was "manufactured" into a 'spring' review. When did you first join Edf?

[an aside - can any posters report a "non-spring" review date?]

Information provided to and published by Ofgem does not substantiate 'spring alignment' as a policy, but their DD scheme description only works for 'spring alignment'. So make up your own mind on that.

There is no answer to your calculation corundum until you are satisfied the "projected cost" is reasonable.

victor2

I joined EDF in May and have a May review, or next billing, date. But they have of course "reviewed" my DD (upwards) every time they've had a reading, bar the one I gave a few days ago.

I do not believe that DD payments are intended to be advance payments. In theory they spread the annual cost evenly over 12 months. But, you would expect such a scheme to have an account in credit at this time of year.

wakeupalarm

I've just had my bill after being with EDF for more than 1 year. I have a small credit balance after 1 year but EDF have increased my DD by 15%. They have billed me accurately during the last 12 months with actual readings. On the annual usage statement at the bottom of the bill they have calculated my Gas usage at 10% higher than my actual readings. This has led to the 15% increase in my DD amount for next year.

Why if they have accurate actual readings read by their own meter reader are they using completely different predictions for gas usage?

What should I request from them to explain how they have calculated my DD amount?

jalexa

wakeupalarm wrote: »

Why if they have accurate actual readings read by their own meter reader are they using completely different predictions for gas usage?

No idea and I have not needed to push the issue (see next answer). Theoretically if the last 12 months were statistically significantly warmer than average then there might be a case. The Met Office has the data but I think it is a hostage to fortune for Edf to use such data, because a tenacious customer will run rings round a customer service explanation not sufficiently rigorous or tailored to lthe customer's locale.

Go ask the question if you like. Send an email (if the system is not down:D) and a failure to respond (to a difficult question:D) within 10 working days is a customer service fail which you can exploit.

What should I request from them to explain how they have calculated my DD amount?

You are entitled to conformance with SLC27.14 and SLC27.15.

The other approach, which I have tended to follow, is to work out my own costs and payment calculation. The projected usage has to be based on something, at least initially (and for 6 months at least) I think previous actual consumption is reasonable. Work out your own costs for the current tariff. Then if you consider a reviewed monthly payment is unreasonable (and you have a modest credit balance after a recent reading) ask for the previous payment amount to be restored. In 12 months I never had a refusal, including for balance refunds. While the calculation was continuously "random", the Direct Debit collection mechanism worked flawlessly and with only one early exception I found customer service staff demeanor excellent.

rednblack

Thanks for your response jalexa. In my case next years projection is identical to last years. I'm afraid I have no idea when I joined edf.

I did offer to pay the debt off in March as cash is a little tight at the moment due to buidling work and the purchase of a kitchen, but they wouldn't budge.

I will have think about appealing to their conscience again overnight.

Terrylw1

wakeupalarm wrote: »

I've just had my bill after being with EDF for more than 1 year. I have a small credit balance after 1 year but EDF have increased my DD by 15%. They have billed me accurately during the last 12 months with actual readings. On the annual usage statement at the bottom of the bill they have calculated my Gas usage at 10% higher than my actual readings. This has led to the 15% increase in my DD amount for next year.

Why if they have accurate actual readings read by their own meter reader are they using completely different predictions for gas usage?

What should I request from them to explain how they have calculated my DD amount?

This is the mystery of what they have built in their new SAP billing system.

They seem to using the industry data, known as the Annual Quantity (AQ) for gas but if they are incorporating weather bases data, it could be that this has caused the increase.

Either way, if you are on top of your readings & DD's, lower it and manage it per bill by adjusting through the year.

Terrylw1

I agree Jalexa, debt is a harsh negative word. It would have been better to use balance outstanding instead.

Redesigning a bill would see a project involving sign offs depths including the legal & marketing side so surprised it wasn't raised.

wakeupalarm

Just to be clear they do have correct actual readings for the last year taken by their own meter reader, 364 days difference between the two readings. I know they are correct because I noted them down at the same time. They have put on my annual summary statement a different figure 10% higher for my actual usage for the last year and then used this same 10% higher figure for next years predictions.

I rang them up, and the CS adviser didn't know why they had put a different figure down. He didn't put up any resistance so we agreed to put my DD 10% lower then last years amount, so sorted until their next review.

Next time they mess about I'll asked them to explain how they have calculated my DD to conform with SLC27.14 and SLC27.15.

NiftyDigits

Terrylw1 wrote: »

I agree Jalexa, debt is a harsh negative word. It would have been better to use balance outstanding instead.

Redesigning a bill would see a project involving sign offs depths including the legal & marketing side so surprised it wasn't raised.

Are you seeing your PMs? Have sent you a couple of messages.
Would appreciate some feedback.

Thanks

wakeupalarm

With energy companies having 5-6 million customers each, why are annual reviews always after the heavy winter period rather than spread out over the year? Surely this creates a bottleneck in April/May? This must have been a policy change at some point in the last 4-5 years as I remember before this time reviews were carried out in October with some companies.