Have EDF conned me into joining them?

yogurtspy

I joined EDF from Scottish Power at the end of October. I used the MSE comparison thing, and supplied the tool with my usage that Scottish Power supplied me with, and it came out at a monthly cost of £76 for dual fuel.

Now I am with EDF I used the website to check the gas/electric tariff costs on the March 2016 fixed deal.

What confuses me, is that there is now an April 2016 fixed deal, with exactly the same gas/electric unit prices, but it's saying it would cost me £87 a month, so unless the standing charge is £11 a month dearer, then I suspect EDF have 'tempted' me in with a lower monthly direct debit, which will be increased to a higher cost when they do their 'review'.

polymaff

The "MSE comparison thing" doesn't discuss direct debit amounts, as they're not relevant to the comparison process. If you've made decisions based on the MSE CEC system, temptation doesn't come into it. It is all down to the consumption data you supplied and CEC's evaluation and comparison of the various tariffs. Negotiating the DD amount is between you and EdF.

It is quite common for there to be a disconnect between annual cost and DD demanded by the supplier. My last two tariff switches have been to cheaper tariffs and yet the proposed monthly DD has been higher - until I argued it down.

yogurtspy

OK. I probably wasn't clear.

My current DD with EDF is £76 a month, using actual usage over a year. This is for the March 2016 fixed deal.

Looking on EDF at their April 2016 deal, the gas/electric prices are exactly the same, but it is saying if I switch to that deal, it will cost me £87 a month.

I don't understand this as I haven't even supplied them with a meter reading yet, only my opening readings.

System

When you say prices, I assume you mean that the tariffs are the same; ie, unit price and standing charge? Their is no 'con' here: you will pay for the energy you use at the agreed price. My guess is that your calculation of usage differs from that used by EDF. Why not just ring them and ask?

polymaff

yogurtspy wrote: »

OK. I probably wasn't clear.

My current DD with EDF is £76 a month, using actual usage over a year. This is for the March 2016 fixed deal.

Looking on EDF at their April 2016 deal, the gas/electric prices are exactly the same, but it is saying if I switch to that deal, it will cost me £87 a month.

I don't understand this as I haven't even supplied them with a meter reading yet, only my opening readings.

You posted as I edited in a final paragraph on my post. That last paragraph may address your issue.

I cannot find details of the withdrawn March tariff - but are you sure that, end date apart - they are identical? Same unit prices, same standing charge?

yogurtspy

Yes, electric is 13.89p per kwh, and gas is 4.00p per kwh, on both March 2016 and April 2016 fixed price tariffs.

March 2016 tariff DD = £76 p/m
April 2016 tariff DD = £87 p/m

I can't see what the standing charge is.

They have no meter readings from me yet, apart from the opening readings.

I can only assume they have based the April 2016 tariff on 'average' usage rather my actual usage, or the standing charge is a lot more on the newer tariff.

I'm concerned that a couple of months from now, EDF will say my DD needs to increase. Not because I am using more energy, but because they underestimated my usage just to get me as a customer.

suse*

There are lots of comparison sites and any that you use you're estimating your usage for the next year so it is never 100% guarenteed that is what you will pay. So far in november it has been warmer than average but now it is freezing where I live today. It all depends on the weather as to how much you're going to have your heating on now between now and easter or later even.

Based on that your dd might need to go up just as you're a new customer just as they are trying to help you not get into debt by doing this. Once it gets to spring / summer again you can always see if you have too much credit built up and ask that to be refunded.

If you don't like that idea change the dd's to the actual quartly bill amount rather than paying monthly dd but then it isnt going to work out to be exactly £76 as it will no doubt be a lot more in winter - when the heating is on and it gets darker earlier - compaired to summer with no heating and not having to have the lights on as early.

So when using comparison sites all you can do is look for the best deal for the tarrif rates vs standing charge or no standing charge, and getting those fixed if you're worried the wholesale prices might increase is something to consider.

polymaff

yogurtspy wrote: »

I can't see what the standing charge is.

Well, it is there - and that must be the issue

yogurtspy wrote: »

I'm concerned that a couple of months from now, EDF will say my DD needs to increase. Not because I am using more energy, but because they underestimated my usage just to get me as a customer.

But you switched on the basis of the CEC comparison site's computation, not because of EdF's promises. If EdF DID then offer you a low monthly DD that may eventually have to go up then - hooray! - they've given you an interest free loan for a while. Do divorce the issue of monthly DD amount from being on the best tariff.

If you gave the CEC site good annual consumption figures for gas and electricity, trust the CEC comparison site. You've got their estimate of your annual cost with the tariff you've switched to. Divide that by 12 and that is your long-term target for the monthly DD

BTW - this time of year the suppliers do steadily up their DD estimates as we are going into a high usage period. Switch in the summer and the opposite occurs. That in itself may explain the different figures

Don't Panic! Do bone up on standing charges if you'd like to understand the process a bit more - although this is not necessary if you trust the comparison sites - and the data you give them.

lvf

Oh, sounds that like extra month of fixed prices will cost you dearly!

Fixed Monthly Direct Debits don't just take your gas and electricity use into consideration. It is a main factor, don't get me wrong, but DD payments also take account for any balances, debit or credit, and any other payments into your account such as the WHD. Also, it does account for the "annual review date" on your DD as well, so if your review date is on or before about June, and your balance is not in much credit or any at all, it may be a higher amount on the DD as energy companies have an obligation to try and get your balance as close to zero on your annual review date. It would be calculating the estimated use between now and then, divided by number of payments so this could be why the DD shows higher now. Have you considered that possibility?

I can't imagine it being much else if the unit prices are exactly the same, and I don't know about the standing charges (although you should have this on your tariff info, and I think the standing charges for EDF are now 18.9p elec and 26.25p gas on April 2016).

teddysmum

I do my own comparisons, using figures taken from individual companies' websites. The actual cost per year and not the monthly dd amount should be the decider, as only the former is certain (for a stated consumption, of course).