EdF Removing Discounts

mgarl10024

Hi all,

I'm with EdF and signed up long ago to their Blue April 2014 tariff, and have been very happy. They've messed up the bill a few times, but a phone call or two has usually resulted in them fixing it.

Recently, I received a letter saying that due to a ruling by Ofgem, EdF were being forced to remove the discounts applied to my bills. From memory, these amount to £8/yr because I have dual fuels, and 6% because I pay by Direct Debit.

If this is genuinely true (i.e. ofgem's ruling), I don't really have an issue with it. They have to do what is required.

I do have an issue however with it occurring within a contract period. When I signed the contract, it was on the understanding that these discounts would be in place - so while they are forced to keep the unit prices the same, the removal of the discounts amounts to an effective 6% increase in my bills.

I guess I'm not in a bad situation - the Blue April 2014 prices are pretty good, they'll only apply for another 4mths, and there are no exit charges (so I can simply leave if I don't like it), but it smells a bit.
I imagine liking it a bit to having a builder quote for a job, you sign a contract, and he then charges 6% more because he is 'forced to remove some discounts'.
While I have no doubt that in the pages of terms and conditions there is something covering this, it just doesn't strike me as fair play.

I plan to write to complain (for what good it will do), and refer it to Ofgem (or whichever ombudsman I can), but am not overly hopeful.

Just wondered if anyone else had made any progress on this, or had any advice?

Thanks,

molerat

The only discount they have removed is the dual fuel at £8.40 per year / 70p per month wef December 31st. The remaining discount due from Jan 1st until the end of the contract has been credited to your account this month.

giraffe69

EON have also removed discounts BUT they have reduced tariffs to compensate. Are you sure that EDF have not done the same?

alleycat`

If you read it again it does state they will apply any outstanding agreed "rebates" in December / Start of January to take you up to the end of the fixed period.

Rather than it getting applied every month / billing period it will be applied up front to take you to the end of March / April.

You won't lose out it's just getting applied upfront.

Edit: I suspect it'll equate to about £2.90 or something like that?

No i don't know what new "rule" means they have to do this?

mgarl10024

Thank you all for your helpful replies. I will double check the letter when I get back tonight to be sure, as it appears that I had misread it.

So, to understand what you are saying:

- the dual fuel discount of £8/yr, I'll get 4 months worth (Jan-Dec, about £2) credited to my account on Dec 31st, and the discount will disappear.

But what about the 6% Direct Debit discount. That will still remain?
They can't credit that upfront, as they don't know what I'll use between now and the end of the contract?

Thanks,

molerat

The % discount will run to the end of the contract, new contracts will have the discounts incorporated into the unit price.

brewerdave

According to an earlier thread you SHOULD have had a letter explaining this - the discount has apparently been calculated as £2.79 for those of us on the fix til April 2014 deal -its showing online for me already -but as I never received a letter I was dependent on the knowledge of others for the explanation!!

macman

I had a letter about ten days ago confirming this change.

mgarl10024

Hi,

A bit of further information - looks like I was sadly right.

alleycat` wrote: »

If you read it again it does state they will apply any outstanding agreed "rebates" in December / Start of January to take you up to the end of the fixed period.

No - my letter does not say that. It says that the dual fuel discount is not applicable to my current tariff and payment method - even though I've been receiving them for over a year!

alleycat` wrote: »

No i don't know what new "rule" means they have to do this?

I just spoke to a chap at EDF having received my current bill. He explained that on the 22nd October 2013, OfGem said to all suppliers that they had to remove all discounts to create a level playing field. He advised me to look up "RMR" which I think is the Retail Market Review. This means that all discounts are simply gone.

molerat wrote: »

The only discount they have removed is the dual fuel at £8.40 per year / 70p per month wef December 31st. The remaining discount due from Jan 1st until the end of the contract has been credited to your account this month.

No - from what he said, all discounts were being removed.

I asked about being credited and was told that the discounts were never part of the contract I signed. He said that the unit prices etc. were part of the contract and that the discounts were an offering by EDF on top and so could be removed without compensation.
I asked how I would know which things were part of my contract and which things weren't part of my contract by looking at the original paperwork I signed, and he said that it would contain no reference to any discounts - and from a quick skim he's right.

giraffe69 wrote: »

EON have also removed discounts BUT they have reduced tariffs to compensate. Are you sure that EDF have not done the same?

He explained that for a new contract, EDF are offering two prices - one for direct debit customers and one for non-direct debit customers - but that the RMR prevents them from offering a single price and a discount as before.
Are you saying that EON have reduced tariffs for those in fixed price contracts?

I could write to EDF for them to tell me the same (but at least I'd have it in writing), and I could write to OfGem to complain and be told that it was in everyone's interest to get clearer bills and easier comparisons.

I get the feeling I'm a little stuffed here.

molerat

If you are on Blue Price Promise April 2014 then the 6% discount is contractual as is the £8.40 pa discount. I have received the rebate for next year in my account, it does not yet show up anywhere but my balance is £2.79 more in credit than it would otherwise have been. They may well be reducing the unit and SC prices by 6% in the new year to avoid the now illegal discounts. The problem with call centres is that the operators have very little knowledge of their subject other than what is on the screen in front of them, if the question you ask does not come up on the screen then they are stumped and will often make something up. They pick up many ideas from rumours and canteen chat in he same way customers do.

You have got to love when OFGEM poke their noses in to simplify things which makes them anything but, usually costlier but never simpler.