Edf electricity prepay meter unit rates much cheaper than fixed price tariff credit meter unit price

CHRISXX_2

Hello All,

Because my existing fixed price tariff with EDF is expiring on the 31st of October I have been looking at their next fixed price tariff and because I do not want to pay by direct debit or manage my account online I found that there is only one fixed price tariff available to me which is:

EDF Blue+Price Protection October 2019 - Kilowatt Hour price = 19p - Standing Charge 18.90p per day.

My existing tariff prices are Kilowatt Hour price = 16.24p - Standing Charge 18.90p per day so the only available fixed price tariff that suits my payment preference has a unit price increase of 2.76p which for my Yearly usage is approximately £150.00 !

There was also a very large price increase in 2017 when my Fixed Price Tariff expired - the Kilowatt Hour price went from 12.44p to 16.24p - a 3.8p increase which added approximately £200.00 to my yearly Electricity Bill.

I have always been under the impression that Prepay Electricity Meters have a unit rate which is MUCH more expensive than what is charged with a Credit Meter on any tariff including the Standard Tariffs - a belief which has been reinforced by comments / `information` provided on the MSE website for some years .

So I have never bothered to look into those charges before - however because of the very large increases that EDF have applied in 2017 and now in 2018 I decided to look at the anticipated ridiculously high unit prices that Prepay Meter users must be paying.

According to what EDF charge per Kilowatt Hour on their Prepay Electricity Meters - 14.469p that is by far the cheapest unit rate for Electricity that is available from them - the Standing Charge is 30.408p per day.

British Gas also charge exactly the same unit rate and Standing Charge which I assume is because those charges are capped by Government legislation ?

I have always believed what I read on the MSE website and other sources about `Prepay Meters meaning that their users were being penalised because they were being charged FAR more than Credit Meter users` - that is NOT true for Prepay Electricity Meters as I have just found out.

The difference in unit rate from 19p on the new fixed price tariff [October 2019] to what is charged with a Prepay Meter 14.469p = 4.531p would save me over £200.00 a year taking into account the higher Standing Charges !

Where is the evidence / information used by MSE website to inform users / readers that using Prepay Electricity Meters costs people much more than the charges for Credit Meters ?

I know that this will irritate some Forum Members because of the purpose of this Forum and website - but despite this very large difference in unit rate I am undecided whether to change my Smart Electricity Meter to a Prepay Meter because I feel that unfortunately there is a stigma associated with having one - it is associated with low incomes / people on Benefits.

My Electricity Meter is outside my Home in an external Meter box I would be seen using a Card or Key to top it up - also I am known in all of the Shops and Post Office where a Card / Key could be credited with a payment.

Sorry that this message is so long - I suppose that I could have just explained that EDF and British Gas Prepay Meters charge MUCH less per Kilowatt Hour / Unit that what is charged on a Credit Meter on any tariff !

CHRISXX

PennineAcute

In the main it normally does cost more. Not in all cases, as this shows.

Whilst you may get a good deal now, come next September ...

Do I ruin your association, as I am on benefits, live on what Cameron classed as a sink estate and have credit meters?

Stigma attached - you sure you are not Hyacinth Bucket?

ShatteredDad

You're hilarious haha.

You'll clearly go to the trouble of exchanging your meters in order to save a couple of quid, but God forbid anybody finds out. Ohhhhh what would the neighbours think! 'Shock horror Ethel, Chris at number 12 has got those ghastly pre payment meters!!'

Do you think you'll knock the housing prices down by 10% on your street? Ha.

Is this a serious post?

CHRISXX_2

Hello ShatteredDad and PennineAcute,

PennineAcute - I have demonstrated that Prepay Electricity Meters charge a MUCH lower unit rate than both EDF and British Gas Credit Meters - what I wrote is NOT a one off - standard unit rates on Prepay Electricity Meters from the 5 or 6 largest Electricity Suppliers are cheaper !

`Saving a couple of quid` is not what I would term an over £200.00 difference between either EDF`s Fixed Price October 2019 and Standard Tariffs.

I have seen recommendations on the MSE website for people to change companies to save a ridiculous £15 or £20 per year on both Energy suppliers and Mobile phone companies.

When I mentioned that unfortunately there is a stigma relating to Prepay Meters being associated with people on a low income or on Benefits I was just being honest - that is what a lot of people perceive regarding Prepay Meters.

I do NOT look down on people in those circumstances - a member of my own family is currently unemployed and so are some of my extended family members and a few of my friends, I know plenty of people who live on Council Estates and I definitely do NOT look down at them.

When I commented about being undecided whether I will have one installed because of the neighbours and people in the local shops and Post Office who know me and my family those comments were related to other peoples perceptions of me / my family.

I am an Engineer but my only `standing in society` is that I have a nice Family and a nice House, I am very friendly with my neighbours and people working in the local shops and I have been lucky to have had a career which has lasted decades so I am not short of money at the moment.

As a Family we probably do care what other people think of us related to having a Prepay Meter installed possibly being seen as a change in our financial circumstances - we are not `snobs` by any means we come from working class backgrounds and our lifestyles are funded by working hard.

I suspect that if most People / Families were asked whether they would want their neighbours to think or know that they had a financial change of circumstances the answer would be No.

When I wrote my original message I was just trying to alert Members of the Forum to the BIG difference in unit rates between Prepay Meters and Credit Meters - in my examples a 4.531p per Kilowatt Hour difference !

I also wanted someone from the MSE team to try and explain why the website has been suggesting incorrectly that Prepay Meters are penalising users because their unit rates are MUCH higher than what users of Credit Meters pay ?

I should have just given the financial information / price comparisons and NOT written personal details which as I suspected would happen have already been criticised.

CHRISXX

takman

CHRISXX wrote: »

Hello All,

Because my existing fixed price tariff with EDF is expiring on the 31st of October I have been looking at their next fixed price tariff and because I do not want to pay by direct debit or manage my account online I found that there is only one fixed price tariff available to me which is:

Well it's not a fair comparison because you refuse to have an online account and Direct Debit then you cost them more money so the tariffs are obviously going to be more expensive.

You obviously have internet access so stop being stupid and just go for the cheapest tariff with a Direct Debit and save some time and money.

CHRISXX_2

Hello takman,

The very large difference in unit prices that I described between a Prepay Electricity Meter and a Credit Meter applies to ALL of the Main Energy Suppliers Credit Meter tariffs - a `fair comparison` does not come into this - a Prepay Electricity Meter has the lowest unit charges

IF I did want to pay by Direct Debit and manage my Electricity Account online the EDF Fixed Price October 2019 Tariff charges 17.49p per Kilowatt Hour - still over 3p more per unit more than the 14.469p charged by a Prepay Meter.

I have had a lot of problems in the past with Direct Debit payments to both EDF and British Gas taking payments that were far more than the agreed amounts and taking interim payments and multiple payments in the same month.

That is why I do NOT want to pay by Direct Debit or manage my Electricity or Gas Accounts online as that requires paying by Direct Debit.


I take it that You are not aware of the countless messages on this Forum related to similar problems that Members have had when paying by Direct Debit ?

I know that being called `stupid` is all part of posting messages on any Forum where the messages are often read by many more people than ever respond to them but where some of the people who do respond have not got the ability to digest and understand the pertinent information but do have the ability to reply with inane comments.

I have been wrong in including personal details / comments instead of just the Financial Facts / Information and my request that a MSE Team Member try to explain / justify why the MSE website have frequently written that Prepay Meters penalise users because their unit charges are much higher than charges on Credit Meters / Credit Tariffs.

CHRISXX

[Deleted User]

Thanks CHRISXX for highlighting the big difference in tariffs , that was quite a surprise ,but will it last for long ? The prepayment meter price cap is due to be reviewed in 9 days time on 1 st Oct. I would expect that quite large price gap between standard and prepay to shrink to a little less than the standard tariff.
Prepayment meter tariffs have enjoyed subsidies before the price recent cap . The old prepay meters are much more expensive to service so the kwh price was always set higher than a suppliers svt rate to reflect the extra running costs, payments to middlemen on top ups and frequent meter breakdowns.
Lets see what the 1 st October review brings before coming to a conclusion.The prepay cap gets reviewed every April and Oct until 2020 when it could be scrapped altogether
At the moment prepayment meter rates appear to be easily beating svt.
Its still cheaper to go for a 1 year fixed deal on direct debit , eg in my area, Npower svt is 17.82 p/kwh,EDF is 16.65p/kwh , both suppliers have high daily standing charges.
Enstroga is the cheapest at 12.14 p/kwh and 15p daily charge.
People with active smart meters should be able to get their suppliers to remotely switch to prepay if after 1 st Oct the rates are still better.
I can see a future where smart prepay tariffs can compete with the best fixed deals and even end up the cheapest overall way of paying for energy , but only with smart meters..
The last Labour government lowered prepay rates down with a subsidy to a suppliers SVT and the latest price cap has brought the prices down even further. The Labour government gained some votes with " the poorest in the country are paying the highest prices so we have lowered them"
They have gone down very well over in Northern Ireland with the smart keypad meters much in use. The meters are foolproof and need no upkeep.
The old prepay meters suffer lots of damage and abuse and need constant visits from meter readers to try and get them working.
They are also the most tampered meters . 9 out 10 meters I find bypassed are all on the old key/card prepayment meters so the cost of this was passed on via higher prepay rates

takman

CHRISXX wrote: »

Hello takman,

The very large difference in unit prices that I described between a Prepay Electricity Meter and a Credit Meter applies to ALL of the Main Energy Suppliers Credit Meter tariffs - a `fair comparison` does not come into this - a Prepay Electricity Meter has the lowest unit charges

IF I did want to pay by Direct Debit and manage my Electricity Account online the EDF Fixed Price October 2019 Tariff charges 17.49p per Kilowatt Hour - still over 3p more per unit more than the 14.469p charged by a Prepay Meter.

I pay 11.52p per electricity unit, I challenge you to find a pre-pay meter tariff which a similar or lower unit rate.

Whenever you want to find the best deal you look at all suppliers and choose the cheapest tariff. Doing it this way credit meters will always be alot cheaper than the cheapest pre-pay meter tariff. That's all that matters.

CHRISXX wrote: »

have had a lot of problems in the past with Direct Debit payments to both EDF and British Gas taking payments that were far more than the agreed amounts and taking interim payments and multiple payments in the same month.

That is why I do NOT want to pay by Direct Debit or manage my Electricity or Gas Accounts online as that requires paying by Direct Debit.

So you had some issues with two companies which are probably not the cheapest you have got so you have written off every direct debit tariff ever?, doesn't seem logical to me....

CHRISXX wrote: »

I take it that You are not aware of the countless messages on this Forum related to similar problems that Members have had when paying by Direct Debit ?

I know that being called `stupid` is all part of posting messages on any Forum where the messages are often read by many more people than ever respond to them but where some of the people who do respond have not got the ability to digest and understand the pertinent information but do have the ability to reply with inane comments.

I have been wrong in including personal details / comments instead of just the Financial Facts / Information and my request that a MSE Team Member try to explain / justify why the MSE website have frequently written that Prepay Meters penalise users because their unit charges are much higher than charges on Credit Meters / Credit Tariffs.

CHRISXX

At the end of day the cheapest credit tariffs are cheaper than the cheapest pre-pay meter tariffs when you do any comparison.

The fact that the big 6 may charge less for some pre-pay tariffs may be a slightly interesting fact but considering their cheapest tariffs are not cheap at all when looking at smaller suppliers that information won't actually save anyone any money which is what you are suggesting.

PennineAcute

CHRISXX wrote: »

Hello ShatteredDad and PennineAcute,

PennineAcute - I have demonstrated that Prepay Electricity Meters charge a MUCH lower unit rate than both EDF and British Gas Credit Meters - what I wrote is NOT a one off - standard unit rates on Prepay Electricity Meters from the 5 or 6 largest Electricity Suppliers are cheaper !


CHRISXX

Where did I say it was a one off? I said in the main.

There are a lot of other companies, besides the big 6, and they (you will no doubt see) are cheaper.

I pay 11.07p per unit and 11.02p standing charge. So prepay is not the cheapest, as I have just beaten your prices.

[Deleted User]

OK the last 2 posters can come up with their current low electricity tariffs but I would bet that they are ending soon and you will both be shocked at the much higher prices you will have to face for the next year.
I live in one of the lowest priced energy areas in the UK and the best I can find now is Enstroga at over 12 p/kwh and expect they will very shortly raise their prices very soon.Hopefully they will hold off for a week or so until I can kiss goodbye to Bulb who I have just joined just as they increased their rates by 11%.Everyone is raising their prices and that will include PennineAcute and Takmans.. Your cheap rates are history.Get switching now is my advice if you can to keep them low for the next year
CHRISXX has highlighted a surprisingly large difference in prepay rates at the moment against SVT which he/she should be congratulated on. No one else on here seems to have spotted this.
If the day does come , and I expect it will, that prepay meters are the cheapest ,I for one will jump at the chance of paying for my energy up front as and when I fancy and build up my own winter credits on the meter and end the direct debit lottery which the "beast from the east " last year ended up with me way off the wrong direct debits

PennineAcute

Houbara wrote: »

OK the last 2 posters can come up with their current low electricity tariffs but I would bet that they are ending soon and you will both be shocked at the much higher prices you will have to face for the next year.
I live in one of the lowest priced areas in the UK and the best I can find now is Enstroga at over 12 p/kwh and expect they will very shortly raise their prices very soon.Hopefully they will hold off for a week or so until I can kiss goodbye to Bulb who I have just joined just as they increased their rates by 11%.Everyone is raising their prices and that will include PennineAcute and Takmans.. Your cheap rates are history.Get switching now is my advice if you can to keep them low for the next year
CHRISXX has highlighted a surprisingly large difference in prepay rates at the moment against SVT which he/she should be congratulated on. No one else on here seems to have spotted this.
If the day does come , and I expect it will, that prepay meters are the cheapest ,I for one will jump at the chance of paying for my energy up front as and when I fancy and build up my own winter credits on the meter and end the direct debit lottery which the "beast from the east " last year ended up with me way off the wrong direct debits

No, I am fixed until this time next year.

Look from prepay mobile phones came out. Charges were silly. Look at prepay mobile prices now, very cheap and comparable with monthly prices.

Yes, eventually prepay will come down, for all customers, but I fear it will be in the long term, rather than short term.