EDF Direct Debit Whole Amount Monthly

[Deleted User]

Mine's still £137 til June 2024! I keep checking 

pochase

Deleted_User said:

Oh and my annual usage is:

Gas 10,962
Elec 1,268

With this usage your direct debit would need to be £119 over the 12 months, see below. The numbers will be slightly off as I don't know which region you are in. Second set of numbers are based on the increase currently predicted by Cornwall-Insights, latest Ofgem numbers are 3% lower.


As you can see the £109 they would debit on a fixed direct debit is even on the low side.

If the £137 are based on your real usage figures it would be an excellent deal, but EDF tend to use estimates that are sometimes far off. What are the unit rates they are offering?

And finally, you have decided on the whole amount monthly direct debit. For the last month you have paid £80, that is a nice month without need for heating. This low £80 means as you have an average monthly energy cost of £120, there will be a month in winter where you have to pay £160.

The total amount of your energy cost stays the same, no matter if whole month direct debit or budget (fixed) direct debit. On the current SVT you are going to pay around £1438 for a 12 months period. In summer you pay now the nice low £80, but you will need to make up for this in winter, so you need to put money aside now for this.

[Deleted User]

Thank you Pochase. I appreciate your help

Currently

Electricity unit rate 27.86 per kwh
Daily standing charge 48.13 p per day

Gas 7.367p per kwh
Daily standing charge 27.22 p per day



On fixed rate for 2 years with an early exit fee of £300.00

Electricity unit rate 34.67
Daily standing charge 48.13

Gas unit rate 10.114
Daily standing charge 27 22

The £137.00 is based on the readings I input today. I assume EDF took them into account when they offered me £137!

pochase

I get to slightly different figures for the average monthly cost of £152 for the fixed tariff based on your real usage data. Still not a bad deal as for you it is "only" 27% more expensive than the current SVT.

Difference for you current SVT from my assumed rates was only 22p, so all of the above stays the same.

You need also to take into account that you lose the "cheaper" current SVT rates for the next three months, so the potential savings against the new cap rate is reduced.

Also nobody knows if the new cap will be as bad as I have shown it below, but the fact that Ofgem has already given a warning for £2800 means we need to be prepared for something bad.

[Deleted User]

Ok. So although I'm 'only' paying £80/month now, because this is the summer and its always cheaper in the summer and because enegry prices are going up.....£137.00, whilst expensive today, might be a saving when I look at £175.09 as a potential monthly payment.

The thing is...fixing at £137.00 for TWO years with a £300.00 get out charge. It makes me anxious 

pochase

I can completely understand that, especially considering the high exit fee.

To make it worse it is not £137, it is £152. I have no idea what EDF used for your consumption to get to £137. Check the offer if they used slightly different usage figures than those you quoted.

Also please don't forget, you are not paying £152, you are fixing at the rate you quoted, and it will be an average monthly cost of £152 over 12 month if your usage does not change. You might know this, but there are people who treat the fixed tariffs as all you can eat deals

[Deleted User]

Sure. I get that but thank you. Its easy to get lost in all the figures! Lord knows what's the right thing to do. I do save money against the probability of energy rising exponentially, but I have no idea if I have enough!

What would you do if you were me? 

pochase

Hard for me to give you an advice here.

I have fixed myself already in February at a rate slightly better than the one offered to you, 32.95p/9.05p with £200 exit fee for 2 years at EDF. I will be saving money from somewhere like December it seems, but it is still not a huge savings after deducting an expensive March and 6 months higher than SVT rates. And i have no idea if I will start to lose money again in a year.

I am in the lucky situation that while I like to save money as everybody does, the outcome of the gamble was not critical for me, worst case scenario I will pay the exit fee and have lost a few hundred pound.

I personally like the security of the fixed rate tariff, but that is all that it is now, the time of cheap fixed tariffs where you could save money are gone for now.

Can you afford the exit fee if the prices come down as some expect to be the case after April next year? If it would be a 1 year fix I would advise you to take it, with the two years I am really not sure.

[Deleted User]

Thank you. Thats how I feel.

One year yes, Two years,,,,hmmm 

The_Fat_Controller

I took the May24v4 fix and the percentage figures between tariffs are very similar to yours @Deleted_User

Looking at the predictions from OFGEM and others for minimum +40% in October and maybe -10% maximum next April, based on 6 month changes to the cap, I reckon I will "win" until the end of September 2023 unless world politics go mad.

For the last 8 months of the fix, well, my crystal ball is not seeing that far ahead.

I have taken the gamble but am fortunate to be able to afford whatever happens.