EDF Simply Fixed renewal Dec18

Shoose

Hi
Our current tarrif with EDF is ending this month. In their comparisons, the above tarrif is showing I would make a saving. But what I don't understand is that the KwH price shown for the new tarrif is more expensive than the current one I am on. If the same yearly usage is being used for both comparisons, the standing charge is the same, but the KwH price is more expensive in the new one, how can it be cheaper?
I did chat with their customer services yesterday, but the guy just kept referring to the direct debit amount (ie overpaying the direct debit during the current contract would make the next one cheaper as we had over paid, even though the KwH cost was more ?!).
It must be something obvious, as the same thing looks to be the case for their other tarrifs too.
Any help much appreciated. Thanks.

System

Shoose wrote: »

Hi
Our current tarrif with EDF is ending this month. In their comparisons, the above tarrif is showing I would make a saving. But what I don't understand is that the KwH price shown for the new tarrif is more expensive than the current one I am on. If the same yearly usage is being used for both comparisons, the standing charge is the same, but the KwH price is more expensive in the new one, how can it be cheaper?
I did chat with their customer services yesterday, but the guy just kept referring to the direct debit amount (ie overpaying the direct debit during the current contract would make the next one cheaper as we had over paid, even though the KwH cost was more ?!).
It must be something obvious, as the same thing looks to be the case for their other tarrifs too.
Any help much appreciated. Thanks.

Hi - welcome to the forum, Ofgem mandates, at least for the moment but this may be changing, that suppliers use a rolling 12 months cost projection. It works like this:

(Assuming you have a month left on your fixed term contract)

Your cost going forward will be one month on your present tariff and 11 months on the supplier's expensive SVT.

You chose the supplier's cheapest fixed tariff which is more expensive than you are paying now BUT as it is compared to the flawed INFLATED 12 MONTH cost, you end up with what appears to be a saving.

In fairness to Ofgem, some form of assumption has to be made so they chose the SVT as this is the customer do nothing default position.

The answer is: do a full market cost comparison using MSE Cheap Energy Club. This shows the Ofgem method and a much more helpful ANNUAL COST NOW for 12 MONTHS compared to COST FOR 12 months on these tariffs with the cheapest at the top of the list.

Shoose

Thank you! I have updated all the details in the MSE Cheap Energy Club and have initiated a switch.