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EDF have increased my DD payments by 400%

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Just received my EDF annual dual fuel bill and they've increased the direct debits from £91 to £370 per month.

I originally joined EDF in January 2011(online saver v7 dual fuel) paying DD of £91 per month and received my previous bill in December 2011 with a £60.16p balance having used 7,589 kWh electricity and 17,169 kWh gas between January 1st 2011(actual reading) and Nov 1st 2011 (customer reading).

For 2012 we used 10,704 kWh electricity and 30,146 kWh gas between 2nd Nov 2011(customer reading) and 13th December 2012 (actual reading).

Looking at the bill I now realize that they switched me to the Standard variable rate on the 1st of January 2012 so believing everything to be in order I continued to pay the unchanged direct debit of £91 per month.

If EDF had adjusted my direct debit when they switched me to a more expensive tariff in January, I would have realized and switched! Instead I now have an energy debt of £1,600. They should have changed my direct debit in January from £91 to £230 per month to cover this projected cost, I certainly would have noticed this and been able to take avoiding action.

Where do I stand? How can they knowingly under charge me for 11 months. They knew my approximate consumption from the previous year and they knew the price they were going to be charging me. Yet I only find out one year later when I see the bill!

Comments

  • jalexa
    jalexa Posts: 3,448 Forumite
    edited 20 December 2012 at 7:35PM
    Ron_Ed wrote: »
    If EDF had adjusted my direct debit when they switched me to a more expensive tariff in January, I would have realized and switched!

    No. The size of the underpayment is nothing to do with the tariff. Your electricity consumption is 3 times average, your gas 2 times average. How did you come to pay £91/month, roughly the cost for 'average' consumption? Did you never submit meter readings?

    In answer to your direct question - you allowed them to. On that issue you have shared responsibility.

    Personally I would ask (nicely) for longer payment terms.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Ron_Ed wrote: »
    Just received my EDF annual dual fuel bill and they've increased the direct debits from £91 to £370 per month.

    I originally joined EDF in January 2011(online saver v7 dual fuel) paying DD of £91 per month and received my previous bill in December 2011 with a £60.16p balance having used 7,589 kWh electricity and 17,169 kWh gas between January 1st 2011(actual reading) and Nov 1st 2011 (customer reading).

    For 2012 we used 10,704 kWh electricity and 30,146 kWh gas between 2nd Nov 2011(customer reading) and 13th December 2012 (actual reading).

    Looking at the bill I now realize that they switched me to the Standard variable rate on the 1st of January 2012 so believing everything to be in order I continued to pay the unchanged direct debit of £91 per month.

    If EDF had adjusted my direct debit when they switched me to a more expensive tariff in January, I would have realized and switched! Instead I now have an energy debt of £1,600. They should have changed my direct debit in January from £91 to £230 per month to cover this projected cost, I certainly would have noticed this and been able to take avoiding action.

    Where do I stand? How can they knowingly under charge me for 11 months. They knew my approximate consumption from the previous year and they knew the price they were going to be charging me. Yet I only find out one year later when I see the bill!
    You have used so much more than last year that they weren't to know. They are only required to read the meter once a year. It's up to you to read it more often.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • good_advice
    good_advice Posts: 2,653 Forumite
    1,000 Posts Combo Breaker Mortgage-free Glee! Rampant Recycler
    Hello Ron, it sounds like bad housekeeping on your behalf.Don't worry you are not the first or last. Times have changed, you really do have to watch these bills carefully.

    When all the fuel firms put the cost up, it was a good time to check yours. A Lot of people were shouting to move on to fixed rates fast! surely you herd something?

    Where do you stand? you have to pay for the fuel and tariff you were on.
    The secret to success is making very small, yet constant changes.:)
  • chris1973
    chris1973 Posts: 969 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    edited 21 December 2012 at 5:06PM
    Personally i'd sack the Direct Debit and go back to paying Quarterly by cash , cheque or credit card, provided you submit accurate meter readings once a quarter you'll only ever pay for what you actually use.

    It takes less than 30 seconds to read a meter, and most companies allow you to text or enter you meter readings online in less time than it takes to make an internet forum post. Not taking that 30 seconds out to read you meter every month / quarter, can cost you - £1600 in this case.

    Direct Debit's are more intended for those who keep a close eye on their usage and are happy to check that their direct debits are representative of their actual rolling 12 months usage (or real time monthly usage if its a new property). Those who don't are sadly the ones on here paying catch up bills.

    Yes, quarterly billing costs around 1.5% more than Direct Debit bills, but it stops you from getting into the brown stuff and its a small price to pay to avoid a £1600 debt.

    (Sometimes our Grandparents' bill paying methods were actually the best)

    Unfortunately, energy is now an expensive luxury and probably just as harsh on the pocket as the weekly shopping bill, and whilst many can tell you what they spent last week in Asda, they are clueless when it comes to how many energy units they used last week!. Until attitudes to this change there will be a growing number of people living off the credit of energy companies, until the day when they want it back.

    As far as tariff goes, well this is entirely your choice. Generally its a good idea to use a comparison site to check that you are getting the best deal everytime an Energy Company announce a price change (up or down), I do mine at least once every two months, and generally change supplier at least once a year.
    "Dont expect anybody else to support you, maybe you have a trust fund, maybe you have a wealthy spouse, but you never know when each one, might run out" - Mary Schmich
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    And get off Standard tariff-it's the most expensive! However, this will only account for about an extra 6% on your annual bill. The rest debt is due to a huge increase in consumption, and no accompanying increase in your DD, which only you can explain. Is the property being occupied and heated now all day, and formerly not? Immersion heater switch left on 24/7?
    You say you noticed 'looking at the bill'-which rather suggests that it's the first one you've looked at since you were defaulted to Standard back in January.
    No free lunch, and no free laptop ;)
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