EDF - new maths? (compare tariffs)..

FedUpWithHikes

my current tariff 'fix' is due to end this month, so I thought I would start by checking what tariffs they would offer me.. but the amounts shown didn't add up..
If the rates rise by up to 46% (gas), how can the yearly projection fall?
I tried their chat, to see what they would say. Lots of excuses that had nothing to do with the figures, but showed how they can maximise suggested 'savings'..
They compare tariffs against their SVT, even though I am an existing customer and looking at what is supposed to be a direct comparison against my current tariff.
2. They use 'estimated usage' - even though they have my actual usage.. and even if they did estimate (e.g. for new customers), then why not use the same figures to compare tariffs?
The chat advisor transferred me to their supervisor, who said they will look into it and email me.. That should be interesting!
I will have to find somewhere to upload my screenshots before I can include them, here..

System

FedUpWithHikes wrote: »

my current tariff 'fix' is due to end this month, so I thought I would start by checking what tariffs they would offer me.. but the amounts shown didn't add up..
If the rates rise by up to 46% (gas), how can the yearly projection fall?
I tried their chat, to see what they would say. Lots of excuses that had nothing to do with the figures, but showed how they can maximise suggested 'savings'..
They compare tariffs against their SVT, even though I am an existing customer and looking at what is supposed to be a direct comparison against my current tariff.
2. They use 'estimated usage' - even though they have my actual usage.. and even if they did estimate (e.g. for new customers), then why not use the same figures to compare tariffs?
The chat advisor transferred me to their supervisor, who said they will look into it and email me.. That should be interesting!
I will have to find somewhere to upload my screenshots before I can include them, here..

Suppliers and PCWs have to use an Ofgem-mandated 12 month rolling cost projection. An assumption of some sort has to be made as to what consumers will do at the end of a fixed tariff. Do nothing is as flawed as any other assumption.

The calculation goes like this. One month to run on fixed tariff so cost for the next 12 months is one month on present tariff plus 11 months on SVT = inflated cost.

A sensible consumer looks at other fixed tariffs which may well cost more. However, as savings are shown as inflated cost minus cost of new tariff, it is possible to end up with a saving but also having to pay more.

Sites such as MSE CEC also now show a simple cost now versus cost future comparison, and Ofgem is consulting on revising the present cost/savings model.

Assumed usage is a different matter as each supplier has its own weighted monthly algorithms. Use more or less in any given month and it can have a distorting effect on assumed annual usage.

The only safe course is to calculate your own annual projections and do your own full market comparison.

FedUpWithHikes

But the projection is actually lower than that shown for my current tariff, so it is not really comparing my tariff with the new one.. at the least this is misleading!
A 23% hike in the electric rate and 46% for gas is really awful - so much for "inflation = 3%"!! Energy prices never fell when the price of crude dropped over 70%.. I suspect end users are maintaining profits 'lost' in the wholesale part of the business..

System

Thinking about it some more the £642.22 figure includes 11 months on EDF's SVT. It is not in anyway misleading, it is the mandated way that Supply Licence holders have to calculate your cost for the following 12 months. EDF doesn't know what you will do at the end of your fixed tariff term. A lot of people do nothing and therefore default to the SVT. At least the SVT is a given.

S0litaire

Are you putting in your current values as "Kw/h per month/year" or as "£ per month/year"

Or is it pre set on their site. (i.e. you get shown your current tariff and they show you the best 'deal' available.)

Have you used other comparison sites to see if you get different numbers?

footyguy

What is your anticipated annual consumption in kWh?
What supply region are you in? (or first part of your postcode)
What are the names of each of the two tariffs being compared?

trickytree1963

FedUpWithHikes wrote: »

But the projection is actually lower than that shown for my current tariff, so it is not really comparing my tariff with the new one.. at the least this is misleading!
A 23% hike in the electric rate and 46% for gas is really awful - so much for "inflation = 3%"!! Energy prices never fell when the price of crude dropped over 70%.. I suspect end users are maintaining profits 'lost' in the wholesale part of the business..

Lots of companies offering Electricity at 11 to 13p per kWh and Gas at around 3p per kWh. EDF seem very expensive.on those rates

footyguy

From the EDF website, when you click the question mark.

What’s a personal projection?
The projected yearly cost on this tariff based on the information you’ve provided. Supplier costs could include a period on their Standard tariff if your fixed tariff ends within the next 12 months.

lilac_dawn

Exactly the same with me! It stated my current tariff and the savings I would make by switching to their cheaper tariff. Actually, it is not my current tariff, but the new tariff EDF will move me on to if I don't switch. So I'm not saving anything at all but spending more as, of course, their now cheaper tariff is more expensive than my current tariff. I asked the chat adviser how come EDF prices have gone up but my bill has apparently gone down and if they perhaps had amazing insight into the winter weather and how this might alter my usage as to whether I needed to turn on my heating... I found it misleading too as it isn't my current tariff.

System

Things are a changing as reported here:

https://www.moneysavingexpert.com/news/energy/2017/07/rules-over-projected-energy-bills-set-to-be-relaxed-

Ofgem was due to issue a Decision this Autumn! That said, the decision is likely to be that suppliers and PCWs can now do their own thing provided they are consistent across their website. The irony here is that Ofgem brought in its projected cost methodology to stop suppliers from giving misleading cost comparison information.