EDF Blue and Price Promise April 2014

hibald

I am on the above scheme and I've been informed by DD is going up. When I queried why, as I thought the price was fixed until April 2014. I was told only the unit rate is fixed and not the DD. This wasn't made aware to me at the time of signing up over a year ago. Is there anything I can do.

Wywth

hibald wrote: »

I am on the above scheme and I've been informed by DD is going up. When I queried why, as I thought the price was fixed until April 2014. I was told only the unit rate is fixed and not the DD. This wasn't made aware to me at the time of signing up over a year ago. Is there anything I can do.

I suggest you read the terms before agreeing to them in future

Where and how did they ever imply to you the monthly cost was fixed irrespective of whatever you consumed??? :huh:

macman

Oh dear. No energy tariff is an 'all you can eat for £x per month' offer! Seems like you failed to do the most basic research.
Your DD is going up because it doesn't cover your actual kWh usage.
If you no longer want this tariff you can leave without penalty-but you may not get a cheaper one now. It's a good deal at current rates, and will see you through the winter and the inevitable rises this Autumn.

Wywth

macman wrote: »

Oh dear. No energy tariff is an 'all you can eat for £x per month' offer! ...

There is (was?) one actually

Let me introduce to you E.On Stay Warm tariff.
http://www.eonenergy.com/campaigns/StayWarm-FAQs

StayWarm is only available to customers over 60 who live in a home with no more than 3 bedrooms and have no more than 4 people living there. It is designed for homes that do not use large amounts of energy so not everyone will be eligible to join.

Furthermore it is being withdrawn entirely from 6th October 2013, so I doubt they are taking on any new applicants.

It wasn't cheap either, but it was/is an 'all you can eat for £x per month' tariff.

brewerdave

hibald, just be aware that EDF have a habit of increasing the DD more than is necessary -ask them for the calculations justifying the proposed increase.
If you know your annual consumption (which should be supplied by EDF) then you can calculate what you should be paying taking account of any debt you currently have.

Buzby

You can avoid the increase by simply paying the bill quarterly on presentation.

You pay for what you use, if you opt for a payment scheme there always be an element of estimation, and this rarely will be to your advantage.

apt

Paying quarterly will not avoid any increase. With EDF it means missing out on the 6% direct debit discount.

brewerdave

Buzby wrote: »

You can avoid the increase by simply paying the bill quarterly on presentation.

You pay for what you use, if you opt for a payment scheme there always be an element of estimation, and this rarely will be to your advantage.

....but if you manage your account actively by checking meter readings on a regular basis,it is easy enough to ensure that the supplier doesn't get too much of your money in advance by challenging any recalculations -and the DD "savings" outweigh any notional loss of interest on monies paid in advance.:)

Neil_Jones

hibald wrote: »

I am on the above scheme and I've been informed by DD is going up. When I queried why, as I thought the price was fixed until April 2014. I was told only the unit rate is fixed and not the DD. This wasn't made aware to me at the time of signing up over a year ago. Is there anything I can do.

The unit prices are fixed until April 2014. It sounds like you've had a bill recently and your Direct Debit amount has to change. Nowhere in the documentation for this tariff does it say "your direct debit is fixed until April 2014". Prices yes, but DD? No.

Section 18 of the terms and conditions for this tariff:

If you want to pay for your electricity or gas by a fixed direct debit, we first need to agree the initial fixed amount ... We’ll review this amount within 12 months of the direct debit first being set up.

...

Whenever we review your direct debit, we’ll estimate the cost of the energy you will use up to the date of the next review date. This estimate will be based on the amount of energy you have used in the past, energy prices at the time, and any existing debt or credit on your account. If your direct debit needs to increase or decrease by more than a set percentage ... we’ll let you know and make the necessary changes

As to what can you do... Consider switching? This tariff has no early exit fees. As previously stated though, this is a good tariff as things stand.

Buzby

apt wrote: »

Paying quarterly will not avoid any increase. With EDF it means missing out on the 6% direct debit discount.

You misunderstand.

You still pay by DD but quarterly with each bill as it is presented. The 6% discount is applies as before.

You avoid the increase in DD amounts which s due to estimation and rounding which EDF calculate un the last three month usage and pro-rata it for the next 12 months, increasing your monthly charges which may not be required.

Buzby

brewerdave wrote: »

....but if you manage your account actively by checking meter readings on a regular basis,it is easy enough to ensure that the supplier doesn't get too much of your money in advance by challenging any recalculations -and the DD "savings" outweigh any notional loss of interest on monies paid in advance.:)

None of which you need to do if you pay by DD quarterly. It is only the guesstimated forward charges that are used to recalculate the monthly costs, not the quarterly ones.

Perhaps you don't mind having an ongoing dialogue with your utility provider each time they hike your estimated usage, but Ai've got better things to do.