Is this a good deal from edf?

littlerock

I am currently on edf Blue+ fixed price deal which comes to an end next month. Until July I was paying a £73 month SO for my electricity (its a big draughty old house). However I was running quite a big credit on this amount so edf lowered the monthly SO to £65 per month. As of now I still have quite a large credit on my latest bill.

They estimated my electricity consumption for the year on the current bill as £886.00, based on current usage charged at fixed price tariff from July 2016 to (mid) February 2017 (when the current fixed price deal ends) and then the standard variable tariff from mid Feb 2017 to July 2017.

They have proposed a new fixed price deal from next month and provided estimates for one year and 3 years. The 3 year deal shows no savings. The one year deal shows estimated savings of £75 over the year, on the new fixed price tariff.

To get this deal I have to pay a SO of £77 per month. So I have to pay them an extra £12 per month or £144 annually to achieve an annual saving of £75.

Am I missing something here?

victor2

littlerock wrote: »

They estimated my electricity consumption for the year on the current bill as £886.00, based on current usage charged at fixed price tariff from July 2016 to (mid) February 2017 (when the current fixed price deal ends) and then the standard variable tariff from mid Feb 2017 to July 2017.

You've said it there. The cost that they are indicating a "saving" against is based on you being on their standard variable (ie. most expensive) tariff for 5 months.
Forget the supposed savings, put your annual usage in kWh into a comparison site and see what is suggested. Again, ignore any "savings" as they will be using the same formula as EDF and mandated by OFGEM. Just look at the predicted annual costs going forward if you use the same amount of energy as you entered.
Compare those figures for a year going forward. EDF may well be listed in the comparison as well - they are more realistic numbers.

System

You need to do a full market comparison based on your annual usage in kWhs/year. Prices have risen considerably over the past 3 months - particularly, for electricity.

Remember, suppliers use the Ofgem-mandated methodology for calculating your annual costs. If you have one month to run on your present tariff then your cost for the next 12 months will be one month on present tariff PLUS 11 months on the SVR.

If you then choose a new fixed tariff then you could end up paying more but, at the same time, being told that you are making a saving.

littlerock

OK I had to set comparisons to one side while I did my tax return but now I am back on it.

Briefly I have an edf fixed price electricity deal which runs out at the end of the month. (I was paying a £77 monthly direct debit but that was reduced to £65 month last summer because I had built up a large credit and I was seen to be overpaying.)

My bill for the year to date is around £886.00 and edf has sent me quotes for going onto their new fixed rate for a year or to their standard variable rate. They are not recommending their 2 year fixed rate as they say there are no savings with that rate.

I thought I would just work out the savings they are proposing before comparing with other suppliers. I am very confused.

They have provided annual estimates for £1011 for this year if I switch to the new fixed rate from start of March, £1044 if I switch to the standard variable rate or £1041 if I switch to their new 2 year fixed rate So no savings between fixed and variable over a 2 year period. They also quote a saving of £15.60 this year if I switch to their new one year fixed rate. (and yes I know £1041-1011 = £30).

So apparently little or no savings between their fixed and variable rates over the next year. But a 23% increase in prices from my current rate? If this because rates have increased while I have been on the current fixed rate deal, or because prices are sky rocketing?

victor2

littlerock wrote: »

So apparently little or no savings between their fixed and variable rates over the next year. But a 23% increase in prices from my current rate? If this because rates have increased while I have been on the current fixed rate deal, or because prices are sky rocketing?

But you know what the rates would be in the second year if you took a two year fixed tariff. You can only speculate what their variable rate might be a year from now.
Prices are indeed jumping up when compared to current fixed rate tariffs nearing their end.

It always used to be that fixed rates started out a little higher than current variable rates and you only gained in the latter part of the tariff when variable rates had inevitably increased.

footyguy

Find out your anticipated annual consumption in kWh. This is usually what you used last year and should be on your bill ... or contact your supplier and ask them

Then put those detals into a comparison site.

Then see just how far down the list the tariff you have been offered is ... and how much more it will cost compared to the cheapest.

Simples! :cool:

http://www.moneysavingexpert.com/utilities/you-switch-gas-electricity

System

littlerock wrote: »

OK I had to set comparisons to one side while I did my tax return but now I am back on it.

Briefly I have an edf fixed price electricity deal which runs out at the end of the month. (I was paying a £77 monthly direct debit but that was reduced to £65 month last summer because I had built up a large credit and I was seen to be overpaying.)

My bill for the year to date is around £886.00 and edf has sent me quotes for going onto their new fixed rate for a year or to their standard variable rate. They are not recommending their 2 year fixed rate as they say there are no savings with that rate.

I thought I would just work out the savings they are proposing before comparing with other suppliers. I am very confused.

They have provided annual estimates for £1011 for this year if I switch to the new fixed rate from start of March, £1044 if I switch to the standard variable rate or £1041 if I switch to their new 2 year fixed rate So no savings between fixed and variable over a 2 year period. They also quote a saving of £15.60 this year if I switch to their new one year fixed rate. (and yes I know £1041-1011 = £30).

So apparently little or no savings between their fixed and variable rates over the next year. But a 23% increase in prices from my current rate? If this because rates have increased while I have been on the current fixed rate deal, or because prices are sky rocketing?

You are with respect going about this in the wrong way. You need to calculate how many kWhs/ year you have used - both for gas and electricity. Enter these figures into a comparison site and you will get an annual cost. Trying to compare £s now with £s in the future is a recipe for disaster as you need to make sure that any credit/debit balance is taken into account and that the debit/credit balance was based on actual meter readings.

FWiW, I have just run a comparison and, if I switched today, I would pay £78 a year more than I am paying now. A switch to EDF would cost me £274 a year more. Your figures will be different as costs are based on usage and postcode. My advice do a FULL comparison and then you can see whether EDF is offering you a good deal.

macman

As pointed out in post 3, you need to do your comparison based on annual kWh usage, not on annual spend. The former is more accurate.
None of the Big 6 are offering competitive tariffs at present, and yes, prices are soaring at the end of winter.