EDF fixed query

BradD1992

Hi guys, I’m just reaching out for a little advice regarding energy tariffs. I’m currently on a fixed tariff with EDF that luckily doesn’t end until March 2023, however I’m not sure I fully understand how fixed tariffs work. I know the price per unit is sold at a fixed rate during the term, so the price each month can change dependant on usage. My question is, before all of this price madness happened, we were paying £84 per month since March 2021, which is when our new fixed term agreement started. Fast forward to April 2022, EDF contacted us requesting we increase our monthly payments, which we did to £110 per month, even though at that time we were £90 in credit. I’m on a smart meter, so surely I should be paying for what we are actually using, and given we are being very frugal now, are paying more per month than before, whilst using much less. 

Are EDF just trying to claw some money back, because they are now selling energy to us much less than the current cost, because we are still fixed? 

Many thanks,
Brad

QrizB

Welcome to the forum.

The first thing to understand is that your direct debit is not your bill. You're on a budget payment scheme where your monthly payment is 1/12th of your estimated annual charge. As a result you will be paying more than your usage in the warmer months and building up a credit balance on your account; this will be used up in the winter when your payments will be much less than the price of the energy you use.

If you don't like this arrangement, and would rather pay your exact bill every month, you can contact EDF and switch to variable Direct Debit. On a variable DD you will need to do the budgeting yourself, making sure you are able to pay eg. your December & January bills which could be much larger than your current monthly DD.

BradD1992

Thanks for the explanation, that makes sense. 

However, if I was in credit, why did EDF request I up my monthly payment? 

I’m just a little suspicious that we’ve been paying a very similar amount each year, usage is very similar year on year, but when the prices started inflating I was asked to increase. 

In theory, I should be in credit at the end of my fixed term given I am paying more? 

Brad

QrizB

BradD1992 said:

Thanks for the explanation, that makes sense. 

However, if I was in credit, why did EDF request I up my monthly payment? 

I’m just a little suspicious that we’ve been paying a very similar amount each year, usage is very similar year on year, but when the prices started inflating I was asked to increase. 

In theory, I should be in credit at the end of my fixed term given I am paying more?

If you know your annual consumption, and your tariff, it's simple to calculate what your annual bill will be and what the equivalent monthly payment is.

If you'd like one of us to calculate it for you, post the details here.

[Deleted User]

If your usage hasn't changed, but your DD has gone up, then you should be in credit (or in less debt) at the end of the period.

They are not "trying to claw money back" because the money is still yours, sat as credit in your energy account.

Janie2008

I'm with EDF and when you change tariff they don't adjust the direct debit. They only do this on your review date. At certain times of the year you are supposed to be in credit as we use more energy during the winter. You can get some good information on your account on the EDF website such as how much energy you have used each month. You should be able to check how much you use annually and if the direct debit amount looks right.

MattMattMattUK

BradD1992 said:

Thanks for the explanation, that makes sense. 

However, if I was in credit, why did EDF request I up my monthly payment? 

I’m just a little suspicious that we’ve been paying a very similar amount each year, usage is very similar year on year, but when the prices started inflating I was asked to increase. 

In theory, I should be in credit at the end of my fixed term given I am paying more? 

Brad

EDF operate a six month billing cycle, at any point other than possibly the month they generate a bill you will appear to be in credit as it does not take account of the energy used but not billed. As an example I am currently around £1,100 in credit, my next bill is in October, as which point I expect that to fall to £550 in credit, which will then be absorbed by higher prices in Q4.

Upzeecreek

EDF did exactly this to my mum. Sounds like she's on same tarrif. She was paying £80 odd a month and then in Feb I happened to notice an email they'd sent her saying they were upping DD to over £200 a month. Her usage hadn't changed and we do monthly meter reading. Straight on the phone to edf, and their explanation was that energy prices were going up!! I explained that yes, but she's on a fixed tarrif and we calculated exactly what her dd should be taking into account the credit in her account and they did readjust the DD back down. They were very clearly just taking advantage! 

Robin9

@BradD1992  Have you had a statement from EDF recently ? They usually only produce them every 6 months but if you twist their arm via Chat they'll raise one -  they will say this will generate a new DD

BradD1992

Thanks everybody who has shed some light on this. 

I will check on my account for my usage etc and see exactly what’s going on. 

Maybe I’m a bit too suspicious, but I find it hard to trust these big companies at the minute!

[Deleted User]

Upzeecreek said:

EDF did exactly this to my mum. Sounds like she's on same tarrif. She was paying £80 odd a month and then in Feb I happened to notice an email they'd sent her saying they were upping DD to over £200 a month. Her usage hadn't changed and we do monthly meter reading. Straight on the phone to edf, and their explanation was that energy prices were going up!! I explained that yes, but she's on a fixed tarrif and we calculated exactly what her dd should be taking into account the credit in her account and they did readjust the DD back down. They were very clearly just taking advantage! 

Suppliers work on a rolling 12 month calculation. As no one can be forced to take out another fixed tariff, the default position is the Ofgem Cap.