EDF Ripoff? Beware - Wrong Tariff Advice

TheWilliams

Not sure what to make of this.

Had a look inside my EDF account earlier
and was offered a tariff with a "saving of £25"

When I looked at the unit pricing of this offer (kWh),
it was higher than what I'm currently paying!

How does that work then?
It's mathematically impossible to pay more
on your unit price and have a lower bill.

I spoke to live chat, they kept going around
the subject and insist that everything is right.

Spoke to someone on the phone and they din't know what to make of it.
It has been escalated as a "Technical Error"!

First of all, how many people would have trusted EDFs advice that they where saving money? (when they where really switching to a more expensive tariff!)

How much money does EDF energy make from this "Technical Error"?

To me a "Technical Error" is when you under charge your customers. When you overcharge them, that goes by a different name

Bark01

When does your tariff end? if its in less than 12 months the saving will be calculating using your current tariff until its end and then any remaining months at their Standard (variable) rate. Its the cost of inaction rather than a like for like saving message

This is a mandatory calculation set out in the supplier license conditions, so if it is due to this its not EDF's fault.

What tariff are you currently on as I'd be surprised if what your being offered now is any more extensive than something that's ending soon. Although electricity prices are starting to rise again.

teddysmum

As above.
I noticed a suggestion to change offer, on my account (different supplier),a few months ago, but found that the change would be more expensive.


It is the fault of 'the powers that be' for insisting that we be told of better offers, but unfortunately , for most on a fix, this is misinformation, though those on the standard variable rate would probably be better off.


The point is that you cannot trust any offers without doing your own maths.

System

Worth a read if you want to know more:

https://assets.digital.cabinet-office.gov.uk/media/54da24ebed915d514400000b/The_Energy_Shop_Submission.pdf

matto

I think more people should be aware of this.

The savings quoted by edf when switching to one of their newer tariffs are based on the annual cost and assuming you switch to the standard variable tariff once the plan you are on expires. The standard variable tariff is about double one of the Blue plans, so as soon as you have been on one of their plans for a couple of months the edf advice will be to change tariff. This is grossly misleading, although apparently they don't have a choice. However, they ought to be able to warn that the tariff you are switching to is more expensive per kwh than the tariff you are on.

I checked my kwh prices having noticed that I was being quoted a cheaper tariff, to find that for gas I'm currently paying 1.95p (Blue Price Promise March 2017) and on the new tariff it is 2.4p.

System

matto wrote: »

I think more people should be aware of this.

The savings quoted by edf when switching to one of their newer tariffs are based on the annual cost and assuming you switch to the standard variable tariff once the plan you are on expires. The standard variable tariff is about double one of the Blue plans, so as soon as you have been on one of their plans for a couple of months the edf advice will be to change tariff. This is grossly misleading, although apparently they don't have a choice. However, they ought to be able to warn that the tariff you are switching to is more expensive per kwh than the tariff you are on.

I checked my kwh prices having noticed that I was being quoted a cheaper tariff, to find that for gas I'm currently paying 1.95p (Blue Price Promise March 2017) and on the new tariff it is 2.4p.

Nothing new here. It is an OFGEM-mandated requirement for all supply licence holders to calculate savings in this way. Some form of assumption has to be made as to what happens at the end of a fixed term contract. If you are unhappy then e-mail consumeraffairs@ofgem.gov.uk.

PS. I don't agree with OFGEM but it suits their purpose which is to encourage non switchers to switch. The methodology only falls down for those on fixed term contracts with less than 12 months to run.