EdF tariff-switchers beware

polymaff

I've just done some sums on EdF's offer to save me £53 p.a. by my moving to the March 2017 tariff.

As far as I can see, the electricity is up by .52p per kWh and the gas down by .074p per kWh.

My electricity consumption is just about flat during the year, so on my 5,000kWh p.a. I'd pay £26 extra p.a. irrespective of when I switched.

My gas consumption averages 28,000kWh but varies significantly. Savings over a year would be £21. Savings per cubic metre would be about 0.8p.

The savings balance point is the day on which my flattish electricity cost at 7p per day MORE is balanced by about the savings on 9 cubic metre of gas. I would thus only save during that period when my gas consumption is more than 9 cubic metre per day. That appears to be the four months between mid-December and mid-April.

If I switched now, and then, later in the year, switched again - as I probably would - I'd lose. Mind you, even if I stayed for a full year and so smoothed out the gas consumption, I don't recognise their saving computation. So much for a level playing field !!

BTW Standing charges are identical.

Bark01

All suppliers use the same methodology - its mandated by OFGEM in the supplier license conditions.

Its a weather corrected forward projection of usage of the next 12 months. If your product ends in less then a 12 months it will also factor in a change to the EDF Energy Standard tariff.

Where have you taken your consumption figures from? The consumption EDF Energy have used to calculate the saving is shown on the right column of page 3 of your bill.

polymaff

Bark01 wrote: »

All suppliers use the same methodology - its mandated by OFGEM in the supplier license conditions.

Its a weather corrected forward projection of usage of the next 12 months. If your product ends in less then a 12 months it will also factor in a change to the EDF Energy Standard tariff.

And knowing all of that - as good MSEers do - I'm warning that they still maybe misled by a spring tariff involving cheaper gas but more expensive electricity. As a pal of mine has.

Bark01 wrote: »

Where have you taken your consumption figures from? The consumption EDF Energy have used to calculate the saving is shown on the right column of page 3 of your bill.

My own long-term records.

Bark01

polymaff wrote: »

My own long-term records.

This is why the savings you calculate won't match the savings shown by EDF.

The 'could you pay less' message is done individually on each fuel, if one of the fuels is more expensive it won't suggest switching that fuel and will give a message for each fuel. If both fuels are cheaper then the 'could you pay less' message will give a single, dual fuel message.

If your 'pals' new electricity price is more expensive than his previous tariff and the 'could you pay less' message told him it would be cheaper. It will be because his old tariff was due to end within 12 months and the Standard rate was higher than his new tariff.

teddysmum

My supplier had a message on the last but one bill (didn't check the latest), suggesting that I would be better off on the new fix (based on the promise to tell you of cheaper tariffs), but this was not so, as electricity was dearer on sc and unit rate, while the gas saving was minimal, because of a higher sc.


It is fair enough for external comparisons to assume you would go from a fix to standard (would anyone, unless they needed to leave soon?), but your supplier actually knows what tariff you are on and how long it has to run.


Unaware people will be mislead (ie just those the system is supposed to help).

Bark01

Problem is the supplier needs to quote you over the next 12 months. They won't know what the price of their fixed products will be in x months time.

System

teddysmum wrote: »

My supplier had a message on the last but one bill (didn't check the latest), suggesting that I would be better off on the new fix (based on the promise to tell you of cheaper tariffs), but this was not so, as electricity was dearer on sc and unit rate, while the gas saving was minimal, because of a higher sc.


It is fair enough for external comparisons to assume you would go from a fix to standard (would anyone, unless they needed to leave soon?), but your supplier actually knows what tariff you are on and how long it has to run.


Unaware people will be mislead (ie just those the system is supposed to help).

Fairness doesn't come into it. An assumption has to be made. The fixed term default position at the end of a fixed term contract is a move to the supplier's standard tariff. It also suits OFGEM to use this methodology as 70% of consumers have never switched so the stated savings are accurate.

MSE CEC, theenergyshop.com inter alia also provide a simple year on year comparison. If you are unhappy then e-mail consumeraffairs@ofgem.gov.uk with your concerns.

teddysmum

Hengus wrote: »

Fairness doesn't come into it. An assumption has to be made. The fixed term default position at the end of a fixed term contract is a move to the supplier's standard tariff. It also suits OFGEM to use this methodology as 70% of consumers have never switched so the stated savings are accurate.

MSE CEC, theenergyshop.com inter alia also provide a simple year on year comparison. If you are unhappy then e-mail [EMAIL="consumeraffairs@ofgem.gov.uk"]consumeraffairs@ofgem.gov.uk[/EMAIL] with your concerns.

I have no problem, as I have a mathematical background, but those less fortunate will be mislead.

SoletraderSteve

You can have different tariffs for each fuel, you don't have to switch both to the new tariff so you could switch your gas to the new Blue tariff and leave the electricity as it is for now. There are no early exit fees on any tariff with EDF Energy.