EDF Direct Debit Scam

Luvvaduck

As one of the unfortunate people to come off a fixed deal just as energy prices went crazy I was expecting my direct debit to increase as I moved onto the price cap tariffs but when it went up 45% I thought I would look into the calculation method used and I am glad I did.

First they have changed the calculation to being based on the next 6 months rather than the usual 12 which given that the next 6 months are the high usage ones means a big increase in the direct debit - however, given the current uncertainty of what the price cap will be in 6 months time I was prepared to accept this for now.

Second the calculation has changed to totally ignore the £150 credit that had built up on my account over the summer which is nothing but a scam to enable EDF to hold on to money that is supposed to build up over summer with the specific purpose of reducing winter bills.

Upon contacting EDF they initially claimed the calculation did take account of the credit balance so they obviously haven't even told their advisors about this change - maybe they are too embarrassed ?

Anyway, finally got the direct debit corrected to only(lol) a 20% increase !
So if you are with EDF and in a similar situation its worth checking.

JJ_Egan

Scam then contact Action Fraud .

TheMilkmansDad

"Computer - define SCAM".

Computer Replies "^ not this."

emmajones1976

Where is the scam? You realise you will ultimately only ever pay for the energy you use, yes?

Verdigris

First they have changed the calculation to being based on the next 6 months rather than the usual 12

That'll be on account of the Ofgem cap prices only lasting for 6 months.

Before you start making unfounded accusations of fraudulent activity, you may find it useful to read some of the advice and threads, here, on how the SoLR process works.

Luvvaduck

Re comments questioning my use of the word 'scam'

For most of you I would suggest reading the whole post and not just the first point might help

For the rest I would say that, to me, a change in the method of calculating the direct debit to deliberately keep in EDF's bank account and not mine for at least six months £150 of my money for no justifiable reason qualifies as a scam

When I googled 'scam' it came up with a definition of 'a dishonest scheme' and to me this is precisely that !

As to the SoLR process if this helps a few people keep over £35 a month of their own money in their own bank accounts then I would suggest this is precisely how it is meant to work

TheMilkmansDad

Where's the dishonesty? Everything thing is there and clear to see.

EssexHebridean

I read your post in full OP, in fact I read it several times, and I'm with those of the opinion that there is no scam. The summer credit build-up is absolutely standard and normal in the industry - it's designed to prevent people suddenly getting hit with a request for a large sum in the middle of winter once the heating has been on for a while. While in an ideal world we would all budget for extra expenses like this, you have to remember that there are still people out there who find that Christmas takes them by surprise each and every year... 

Luvvaduck

The dishonesty is in the calculation
They say you need to pay x to cover your expected bills when they have deliberately altered the calculation so that x is too high if you have credit on your account (which most people who pay by direct debit should have at this time of year)

Yes you will get the money back eventually but that doesn't matter if you don't have the money or need it for other things right now

They didn't need to do it this way, someone at EDF deliberately decided this was a good idea to boost their bank account by probably £millions and that to me makes it a scam

TheMilkmansDad

I respectfully disagree.

If you we're in credit by £1,000's than maybe I'd be worried - but for the (relatively) small amount of £150 I wouldn't be concerned. The DD after all is an ESTIMATE of what you will use for the given period (6 months/1 year) and not a bang on guarantee what you owe.

End of the day, if the account is set up originally with accurate estimated usage then you wont be far of point. I'd much rather be in credit by £150 than in debt by £150.

Can I just ask (so another can of worms don't get out!) - the calculated figure used for the DD - were they based on actual usage of estimated usage?

MattMattMattUK

Luvvaduck said:

The dishonesty is in the calculation
They say you need to pay x to cover your expected bills when they have deliberately altered the calculation so that x is too high if you have credit on your account (which most people who pay by direct debit should have at this time of year)

Yes you will get the money back eventually but that doesn't matter if you don't have the money or need it for other things right now

They didn't need to do it this way, someone at EDF deliberately decided this was a good idea to boost their bank account by probably £millions and that to me makes it a scam

If you are trying to work out if the rise is excessive you need to work out what your expected usage will be and take into account the likely very large increase in unit cost moving from an old fixed rate deal to the new price capped rate. As an example for electricity the price capped rate is around £0.21 per KWh, by current fixed deal is £0.155 and my previous deal was £0.138. That represents a rise of around 35%, I am not sure what it is for gas as my home is electric only but probably similar. 

As we are coming into winter the 45% increase does not seem hugely excessive, it might be a little on the high side, but probably not, especially as this winter is predicted to be colder than the previous two, especially as others have pointed out the period taken into account is only six months due to the price cap situation. My suspicion is that even with the £150 credit and the 20% increase you will, in six months time, find you are in debt rather than being in credit.