EDF trying to increase our direct debit payments, when we are in credit.

1976Chris1976

This is not a question. Just a warning for people. We have just received our bill from EDF for Oct 22 to May 23. We are £450 in credit. EDF, though increased our direct debit by £130/month. When questioned it, we were given a lengthy explanation with figures added, VAT added, something else and something else. Didn't make sense. So we asked for the actual calculation and a proper breakdown. Their answer was: 'just in case our usage was increased and our current direct debit didn't cover it'. 

As our heating is now switched off we asked them to keep the direct debit as it was. They agreed but they did warn us that if our usage increases, they will have to increase our direct debit. Is that a threat?

MattMattMattUK

1976Chris1976 said:

This is not a question. Just a warning for people. We have just received our bill from EDF for Oct 22 to May 23. We are £450 in credit. EDF, though increased our direct debit by £130/month. When questioned it, we were given a lengthy explanation with figures added, VAT added, something else and something else. Didn't make sense. So we asked for the actual calculation and a proper breakdown. Their answer was: 'just in case our usage was increased and our current direct debit didn't cover it'. 

As our heating is now switched off we asked them to keep the direct debit as it was. They agreed but they did warn us that if our usage increases, they will have to increase our direct debit. Is that a threat?

No, it is a warning. 

Alnat1

Not a threat, simply advice. If you use more you will have to pay more.

dunstonh

 EDF, though increased our direct debit by £130/month. When questioned it, we were given a lengthy explanation with figures added, VAT added, something else and something else. Didn't make sense.

2022 was a drought year and very mild.   Heating use was around 20% lower than the mean.   EDF will be projecting closer to the mean and not 2022 levels.   Plus, as things stand, energy costs are higher than they were 12 months ago.

When dealing with suppliers, it is best to talk in their language.  e.g. talk in kWh and present them with factual information on your use.     If you are wishy-washy with them and focus on payment rather than use, then they can only be wishy-washy back at you.

You have all your data.    Does their suggestion of an increase match your usage pattern or not?

As our heating is now switched off we asked them to keep the direct debit as it was. They agreed but they did warn us that if our usage increases, they will have to increase our direct debit. Is that a threat?

Not sure how you can possibly see that as a threat.  It is logic.   If you use more your payment will need to increase to cover it.  
It is effectively a risk warning.  i.e. if you do not put aside enough money to cover your use, then your payment will need to go up.

1976Chris1976

Thank you. We did give them our data. We are keeping a close eye on that. Their wishy-washy figures were based on our actual usage. And of course, yes, the more you use, the more you pay. But I feel more comfortable at putting something extra every month in my easy access savings account to use just in case. Not in the EDF bank account. 

I had dealings with energy providers in the past (before the energy crisis) where they were coming up with some wishy washy calculations. When you ask them to show you in writing how they get to their figures they haven't got an answer. 

GingerTim

r1976Chris1976 said:

Thank you. We did give them our data. We are keeping a close eye on that. Their wishy-washy figures were based on our actual usage. And of course, yes, the more you use, the more you pay. But I feel more comfortable at putting something extra every month in my easy access savings account to use just in case. Not in the EDF bank account. 

I had dealings with energy providers in the past (before the energy crisis) where they were coming up with some wishy washy calculations. When you ask them to show you in writing how they get to their figures they haven't got an answer. 

You might consider switching to Direct Debit Whole Amount (Monthly), in that case, so that you only pay for what you used during the previous month. That does of course mean higher monthly payments in the winter and lower in the summer rather than spread out across the year.

BikingBud

Take the projected usage kWh from the bill and work out what that will cost at current rates, including standing charge and VAT.

Divide by 12 > DD amount, (perhaps allow 10% for risk of over use)

Monitor usage weekly and record, be stingy and ensure you come in below the projected usage.

1976Chris1976 said:

This is not a question. Just a warning for people. We have just received our bill from EDF for Oct 22 to May 23. We are £450 in credit. EDF, though increased our direct debit by £130/month. When questioned it, we were given a lengthy explanation with figures added, VAT added, something else and something else. Didn't make sense. So we asked for the actual calculation and a proper breakdown. Their answer was: 'just in case our usage was increased and our current direct debit didn't cover it'. 

As our heating is now switched off we asked them to keep the direct debit as it was. They agreed but they did warn us that if our usage increases, they will have to increase our direct debit. Is that a threat?

Did you ask for a refund?

Using the DD above and expected consumption you should be able to calculate a break even point, ie when your £450 has depleted.

When you next speak to them reinforce that you will meet your side of the contract and they should meet theirs, ie they deliver the energy and you will pay the bills.

Can you go onto variable DD, this might run your credit down and allow you to prioritise cash for savings, then only pay for what you use once you are in debit.
 

[Deleted User]

1976Chris1976 said:

Thank you. We did give them our data. We are keeping a close eye on that. Their wishy-washy figures were based on our actual usage. And of course, yes, the more you use, the more you pay. But I feel more comfortable at putting something extra every month in my easy access savings account to use just in case. Not in the EDF bank account. 

I had dealings with energy providers in the past (before the energy crisis) where they were coming up with some wishy washy calculations. When you ask them to show you in writing how they get to their figures they haven't got an answer. 

Suppliers sit between a ‘rock and a hard place’. They are under direction from Ofgem not to allow consumer debt to accrue; they are criticised for setting DD payments too high and in one case too low, and when debt presents itself they are stopped from fitting pre-payment meters. EDF also has a policy of refunding all credit over £150 at the annual review.

Do not forget - the one thing that you can be certain of is that any debit/credit balance will not be accurate. 

michaels

WE have cut usage a lot and are about £600 in credit with EDF at the end of winter and on a fix so or price will not increase.  However EDF say that because our annual review is in October they can not adjust our DD until then when we are likely to be over 2k in credit.  Based on our current annual usage the annual cost is about 2k less than 12 month of DD.

Robin9

Have you tried to change it yourself on line ?

Change to the monthly vatiable DD - but be pepared for big winter bills

Ps edf automatically refund balances of over £150 on review. What was the situation at your April review  ?

wrf12345

You can usually only increase, not decrease, the DD online but being forceful on chat with the customer agent usually resolves the problem in your favour if you can demonstrate lower usage and credit balance, bit tiresome. The software system they use seems to generate an increase in DD without any reference to you actual credit balance and not all companies offer variable direct debit (and I am not convinced that the systems are reliable enough to trust them with open access to your bank account). From June prepayment meters are supposed to be charged at the same rates as other accounts so may be an option to convert a smart meter to a prepayment meter (I think it can be done remotely) and just pay as you go by topping up online (so if you have a lot of credit presumably that will be loaded on to the meter and you won't have to pay anything for a while).