Misleading EDF change tariff information

wellnevermind

A warning to everyone to look at the detail. I was just on my EDF account, and looking at their built in change tariff helper. The headline they are giving is that I would save £10.58 per year on my electricity, if I change from the Blue+Price Promise February 2017 I am on, to the October 2017 version.

But looking at the details, my current tariff has a standing charge of 18.90 and a unit rate of 12.10. The tariff they claim that will be more than 10 pounds a year cheaper, has a standing charge of 18.90 and unit rate of 12.56. So obviously not only would someone not save by changing, it would actually cost them more.

I called EDF to query this, and was basically told, you don't need to change yet, you have until February. I said that is not the point, and made a complaint.

matelodave

They might be doing the calculation working on the assumption that you'd go onto their standard variable tariff at the end of your fix in February, which might be more expensive than their October fix.

It's the way OFGEM want them to work out comparisons and they can trap the the unwary. That's why it's always advisable to check yourself and do your own sums based on tariff rates and consumption and not just look at the headline figures.

System

Hi welcome to the forum. EDF is complying with the OFGEM guidance on energy costings based on a rolling 12 months in advance cost projection.

Let's assume that you are paying £50 per month with 4 months to run on your present fixed tariff. If you do NOTHING, then EDF will switch you to its standard variable tariff. Let's assume that this would cost you £70 per month. It follows that the cost to you for the next 12 months would be 4*£50 plus 8*£70 or £760.

However, EDF is offering you the chance to switch now to another fixed tariff at, say, £63 per month or £756 per year. You see this as a £36 per year increase but OFGEM, and EDF, portray this as a £4 per year saving.

Inflated costs lead to inflated savings. The savings methodology is only incorrect for those on fixed term contracts with less than 12 months to run. Complain if you wish to consumeraffairs@ofgem.gov.uk. You will not get an answer that you like.

wellnevermind

Thanks for the clarification. Shame they do not make it clear and their staff don't understand it either.