EDF Direct Debit increase despite £130+ credit

Bark01

There are a number of points to take into account when calculating the DD payment:

1) Credit/Debit on the account
2) The time until the next DD review (this will be on the anniversary of opening an account). The aim of the DD plan is to hit a neutral credit/debit value on this date.
3) Seasonality/weather correction – As you say this winter has been mild with reduced consumption, applying seasonal normality would predict increased consumption next year when comapred to this one.

Most of this can be gained from your latest bill. As you regularly submit reading you should have a bill from within the last month or two. On the right had side of the first page of your bill there will be a personal projection for next year’s cost (this should factor in point 3 above). This is the base value the DD will be trying to hit. Without any credit/debit on your account the DD will be the personal projection/12 rounded up to the nearest £1.

Work this out from your bill and tell us if its close to your actual DD

Bluebirdman_of_Alcathays

Hengus wrote: »

The OP's post may seem petty, but some statistics I looked at recently did suggest that 30% of DD accounts were in credit at annual review, and of this figure 40% were owed a refund of over £100. Put another way, if 12% of customers are owed at least £100 at the annual review, then energy companies' algorithims may need to be looked at.

Or rather, 70% (with the small exception of 0 balancers) are in debt - you can understand energy companies' caution.

kingstreet

I'm £605 in credit and expecting a quarter bill of around £500 at the end of February.

I wouldn't be comfortable if my credit balance at this time of year was less than what I expect to use in the heaviest quarter.

I thought the point of the level direct debit system was to smooth out the peaks and troughs of annual consumption...

Ageing_Stick_Insect

ic wrote: »

I wonder what your time and stress is worth chasing all this. I bet its a lot more than the £5 you've averted, and certainly more than any £25 payment should they not respond quickly.

I'm not stressed in the least and I have loads of time. My judgement tells me I don't need to increase my payments which is why I challenged EDF's assertion that I do. Not bothered about the £25. It's the principle that's important. Having hugely over-estimated my usage resulting in a large refund they lost my confidence.

Ageing_Stick_Insect

Bluebirdman_of_Alcathays wrote: »

The war in the Middle East is outrageous.

Policing the Ecuadorian embassy at a cost of £10m is outrageous.

EDF putting your DD up by £5 is not outrageous.

Fair point. I withdraw 'outrageous' and change it to unwarranted.

Ageing_Stick_Insect

Bark01 wrote: »

There are a number of points to take into account when calculating the DD payment:

1) Credit/Debit on the account
2) The time until the next DD review (this will be on the anniversary of opening an account). The aim of the DD plan is to hit a neutral credit/debit value on this date.
3) Seasonality/weather correction – As you say this winter has been mild with reduced consumption, applying seasonal normality would predict increased consumption next year when comapred to this one.

Most of this can be gained from your latest bill. As you regularly submit reading you should have a bill from within the last month or two. On the right had side of the first page of your bill there will be a personal projection for next year’s cost (this should factor in point 3 above). This is the base value the DD will be trying to hit. Without any credit/debit on your account the DD will be the personal projection/12 rounded up to the nearest £1.

Work this out from your bill and tell us if its close to your actual DD

Currently £132 in credit after paying Nov-Feb bill of £344.27.

On today's bill my estimated usage for the next 12 months is £900. Divide that by 12 and you get £75. I'm currently paying £73 which is near as dammit spot on.

I will continue with quarterly meter readings so they can better assess my usage. Seems to me I'm their perfect customer apart from not wanting to increase my credit amount!

Ageing_Stick_Insect

kingstreet wrote: »

I'm £605 in credit and expecting a quarter bill of around £500 at the end of February.

I wouldn't be comfortable if my credit balance at this time of year was less than what I expect to use in the heaviest quarter.

I thought the point of the level direct debit system was to smooth out the peaks and troughs of annual consumption...

Based on your figures you'll have a smaller balance that I have now. Expect them to increase your DD!

Agree on your second point. Mine was well above.

Your 3rd point depends on when you join them. In autumn or winter you'll initially be in debit which they probably hate so will take as much as they can get away with. Join in the spring is the best time as you build up a credit but they'll still probably over-estimate usage so they can take as much as they can get away with.

Spot a trend?

SoletraderSteve

How did you get on with your complaint?

Ageing_Stick_Insect

I didn't take it any further than accepting their written response. It's all computer controlled anyway.

Nada666

I think it would be more appropriate to ask at the end of April and its showers to see whether the balance is still 'outrageously' high or if cold and wet weather has used it up (no cheating through being atypically frugal, now!)