EDF Increase Gas Price Online V3 Direct Debit

Need_More_Money_2

I got the same letter and did a comparison. EDF still came out cheapest in my area (Yorkshire). Beware though that not all the comparison sites show all the EDF online tariffs. I used energyhelpline.com and it had the correct tariff

malamute

Your spot on with your comment Need_More_Money by all means use the comparison sites but before committing to any change you need to look closely at the Tariffs being offered, what may be suggested can be biased for various reasons and the savings to be made exaggerated.

LeifGR

Correct, most comparison sites have weaknesses in the tariff completeness, perhaps understandeable since providers build up a quagmire of tariffs over time as they keep old customers on tariffs no longer offered to new customers, etc.

Anyway, that is why I always use the comparison sites only to provide details of the new (potential) suppliers' tariff; I then plug that into a spreadsheet that also contains a correct reflection of my own current tariff. This takes into account any dual fuel, direct debit and other discounts.

Cardew

LeifGR wrote: »

Correct, most comparison sites have weaknesses in the tariff completeness, perhaps understandeable since providers build up a quagmire of tariffs over time as they keep old customers on tariffs no longer offered to new customers, etc.

Anyway, that is why I always use the comparison sites only to provide details of the new (potential) suppliers' tariff; I then plug that into a spreadsheet that also contains a correct reflection of my own current tariff. This takes into account any dual fuel, direct debit and other discounts.

Nice to see people who seem to understand gas/electricity tariffs!!

Whilst I totally agree with your method of calculating who will offer you the best deal, I suggest however that the average consumer is not that aware(sophisticated?) and will take the figures given by the comparison sites as ‘gospel’.

Even before the recent increase by EDF for editions of their on-line tariffs, people were changing to more expensive tariffs simply because the comparison sites did not have version 3.1 etc on their database and used a later tariff version.

I personally think the comparison websites are an abomination; they are driven by the need to maximise their commission which can only be achieved by getting people to change supplier. Parasitic organisations that we, the consumer, pay for their huge profits.

It is an absolute disgrace that OFGEM do not set up an ‘official’ comparison site that would give unbiased advice.

A further point. Whilst I am not inclined to defend any Utility company, I am not sure your criticism of EDF raising prices while wholesale prices fell is entirely valid. That is not to say I am questioning your calculations but putting them into context.

As I said earlier, some versions of EDF on-line tariffs(particularly those ‘inherited’ from other companies) were inexplicably much lower than anything available on the market as they simply did not increase in line with all the other companies and indeed their own tariffs. Even after the increases they are still pretty competitive.

It doe seem a little unjust to criticise EDF in this situation. Had they increased prices throughout 2006 in line with all the other companies, and their own other tariffs, and then reduced them to their present level, they wouldn’t be subject to your criticism???

The bottom line is those customers on early EDF tariffs have done very well over the past couple of years, and all that has happened is their advantage has been eroded.

LeifGR

Cardew: pretty much agree with all of your (eloquent) points. One small way of not supporting the comparison sites is to seek out the best possible deal available through other avenues such as Quidco (direct to suppliers). But then again...this brings me to your point about unfairly singling out EdF.

Guilty as charged -- I should have made the point that I believe the entire UK industry (more of an oligopoly) has conned the UK consumer by holding on to price increases from late 2005/early 2006. While European prices have come down, the UK level has stayed high.

So here we are, with supposedly good competition supported by comparison sites, and we are paying a much higher margin than our European friends. Hmmmm...OFGEM just scrapped the 28-day rule (see article in This is Money) -- which will allow suppliers to lock customers in for years. On the one hand, this may pull out the rug from under the comparison sites' feet, but I am not convinced that it is going to be good for consumers (as OFGEM seems to contend).

Is the market efficient?

jem16

Cardew wrote: »

As I said earlier, some versions of EDF on-line tariffs(particularly those ‘inherited’ from other companies) were inexplicably much lower than anything available on the market as they simply did not increase in line with all the other companies and indeed their own tariffs. Even after the increases they are still pretty competitive.

Totally agree with this. It was almost as if the inherited tariffs were forgotten about. I always wondered if eventually EDF would bring them into line. I suspect this is perhaps their first move to do just that. The letter I received mentions being competitive for "all our customers".

The bottom line is those customers on early EDF tariffs have done very well over the past couple of years, and all that has happened is their advantage has been eroded.

For the last 2 years I have done very well on this tariff. Cardew and I have had a number of discussions about it. At the moment it's still the cheapest tariff for me but only by around £15 now. I will keep checking however as I suspect EDF may still change and bring it into line more again.

Geoff_W

It may, of course, tip the balance if EDF tell us they are also increasing the price of electricity for their V3 customers...

Geoff

cm233lh

I got the letter yesterday. It actually said they were changing the price, but I guessed they meant increasing it. I've already put a switch to SP in train. EDF were dreadful, and got my opening readings wrong when I switched to them last year. It took them 6 months to sort out. Their nectar points if you reduce your bills thing is laughable. If I reduce my bills I'll save a heck of lot more than a few pence off my Sainsbury's groceries. Still, sounds like I'll save a whole lot more by dumping EDF.

jem16

cm233lh wrote: »

I got the letter yesterday. It actually said they were changing the price, but I guessed they meant increasing it. I've already put a switch to SP in train. EDF were dreadful, and got my opening readings wrong when I switched to them last year. It took them 6 months to sort out. Their nectar points if you reduce your bills thing is laughable. If I reduce my bills I'll save a heck of lot more than a few pence off my Sainsbury's groceries. Still, sounds like I'll save a whole lot more by dumping EDF.

So how does the SP tariff compare to EDF?

Gambler

I can now save £17 with Scottish Power and £6 with powergen but the cashback may make it worth me switching.

My letter states that if I ring within 14 days to cancel the supply of gas the price will not increase while I transfer.