EDF direct debit increase

Snuzer

I'm with EDF for gas and electricity - and so incredibly lucky to be on a fixed rate until March 31, 2024. Despite being on a fixed rate, my payments increased £20 a month the past year (they wanted to increase them even more - but managed to get it reduced). And EDF now want to increase them a further £27 a month (I have applied to have this reduced). But the whole thing makes no sense. 

Last August and this month they refunded the extra money I paid throughout the year (circa £250). I didn't request a refund - EDF has simply chosen to do this. But surely the point of direct debit payments is the cost is spread over the 12 months. Why can't they keep my payments static and simply not refund the money?

If I am on a fixed rate, my energy usage is pretty stable and I am on a smart meter - why should EDF need to increase my direct debit payments?

Mobtr

I think you have answered your own question, you are on a fix until March 24 when your prices are going to massively increase, payments should be consistent over the year. The extra cost is being divided over the year 

CSI_Yorkshire

Plus "energy usage is pretty stable" normally means "can go up and down by 20% or so depending on how cold the winter is".

dunstonh

Despite being on a fixed rate, my payments increased £20 a month the past year (they wanted to increase them even more - but managed to get it reduced)

I am not sure why you say "despite".    A fixed rate deal affects the unit price not your direct debit.       If you use more, you will pay more.  If you use less, you will pay less.  e.g. 1000 units multiplied by fixed rate will require a higher direct debit than 800 units multiplied by fixed rate.

Last August and this month they refunded the extra money I paid throughout the year (circa £250). I didn't request a refund - EDF has simply chosen to do this. But surely the point of direct debit payments is the cost is spread over the 12 months. Why can't they keep my payments static and simply not refund the money?

They cannot keep the payments static as peoples use varies.   2022 was a drought year and a very mild winter into 2023.   So, peoples use over 2022 and early 2023 was much lower than typical.   With lower use, they can refund any excess.     This Autumn/Winter could be more typical or worse.   So, they are modelling, not on 2022 data but closer to the median.

If I am on a fixed rate, my energy usage is pretty stable and I am on a smart meter - why should EDF need to increase my direct debit payments?

That would make you quite unusual then.  Most people's usage is not pretty stable.  Yes, their core usage is but during cold snaps, most people tend to use more and during warm snaps they tend to use less.

I could say I am pretty stable on use. I have data going back to 1st Jan 2019 and our life is pretty much the same as it was then.  However, here is our use:
2019: 13,323 kWh
2020: 15,699 kWh
2021: 17,467 kWh
2022: 14,675 kWh
2023:  9,596 kWh (first 6 months. so trending to a yearly figure of 19,192 kWh - that increase is due to a PHEV from March and doesn't include the summer months when the AGA is off so ignore this year)

So, 2019-2022 were all very similar years in terms of our life and situation but look at the differences in use.  Multiply that by your fixed rate and you see you would have very different monetary amounts due and the direct debit cannot remain stable to cover those amounts.  

How far back are you measuring your use?   

dealyboy

Snuzer said:

...

Last August and this month they refunded the extra money I paid throughout the year (circa £250). I didn't request a refund - EDF has simply chosen to do this. But surely the point of direct debit payments is the cost is spread over the 12 months. Why can't they keep my payments static and simply not refund the money?

If I am on a fixed rate, my energy usage is pretty stable and I am on a smart meter - why should EDF need to increase my direct debit payments?

The direct debit payment method is really for convenience for both the payer and the payee and reduces costs for the recipient.

I am with EDF and have opted to pay by variable direct debit, referred to as 'Direct Debit Whole Amount (Monthly)' so it is up to me to budget for the high usage seasons. I am on their standard variable tariff and I suspect the 'static' type of DD is a requirement of the 'fixed' tariffs and of course is preferred by EDF.

CSI_Yorkshire

Why does every post asking "why has my direct debit changed" get answered by people saying "here's how to make sure your direct debit always keeps changing!"?

Gerry1

CSI_Yorkshire said:

Why does every post asking "why has my direct debit changed" get answered by people saying "here's how to make sure your direct debit always keeps changing!"?

Probably because people don't like their supplier building up a credit balance that earns the company interest?

MVDD means that the user is full control; if they pay the same fixed amount into a savings account then they will be the one receiving the interest.

CSI_Yorkshire

Gerry1 said:

CSI_Yorkshire said:

Why does every post asking "why has my direct debit changed" get answered by people saying "here's how to make sure your direct debit always keeps changing!"?

Probably because people don't like their supplier building up a credit balance that earns the company interest?

MVDD means that the user is full control; if they pay the same fixed amount into a savings account then they will be the one receiving the interest.

Did you read the OP's post?

"But surely the point of direct debit payments is the cost is spread over the 12 months."

Doesn't strike me as someone who's desperate to reduce the non-existent interest that their supplier isn't earning.

MVDD doesn't put "the user in full control" in any other way than if they use less, they will pay less.  It's still a direct debit, it's still the supplier working out how much to take, and doesn't give the user any more 'control' than they had before.

Gerry1

CSI_Yorkshire said:

Gerry1 said:

CSI_Yorkshire said:

Why does every post asking "why has my direct debit changed" get answered by people saying "here's how to make sure your direct debit always keeps changing!"?

Probably because people don't like their supplier building up a credit balance that earns the company interest?

MVDD means that the user is full control; if they pay the same fixed amount into a savings account then they will be the one receiving the interest.

Did you read the OP's post?

Yes, I did.

You referred to every post asking "why has my direct debit changed" so I answered accordingly, i.e. the generic case.

CSI_Yorkshire said:

MVDD doesn't put "the user in full control" in any other way than if they use less, they will pay less.  It's still a direct debit, it's still the supplier working out how much to take, and doesn't give the user any more 'control' than they had before.

Well, MVDD certainly puts me in full control.  I pay for exactly what I have used in the previous month, not a penny more and not a penny less.  It stops any credit building up so it's my account that's earning interest, not my supplier's.

CSI_Yorkshire

Gerry1 said:

CSI_Yorkshire said:

Gerry1 said:

CSI_Yorkshire said:

Why does every post asking "why has my direct debit changed" get answered by people saying "here's how to make sure your direct debit always keeps changing!"?

Probably because people don't like their supplier building up a credit balance that earns the company interest?

MVDD means that the user is full control; if they pay the same fixed amount into a savings account then they will be the one receiving the interest.

Did you read the OP's post?

Yes, I did.

You referred to every post asking "why has my direct debit changed" so I answered accordingly, i.e. the generic case.

Very droll.

Gerry1 said:

CSI_Yorkshire said:

MVDD doesn't put "the user in full control" in any other way than if they use less, they will pay less.  It's still a direct debit, it's still the supplier working out how much to take, and doesn't give the user any more 'control' than they had before.

Well, MVDD certainly puts me in full control.  I pay for exactly what I have used in the previous month, not a penny more and not a penny less.  It stops any credit building up so it's my account that's earning interest, not my supplier's.

Then we have very different definitions of the word "control".

The supplier taking whatever they happen to have billed me this month directly from my bank account doesn't really sound like I have any control at all.

But hey, if you think that the supplier deciding how much you owe and just taking it means that you have "full control" just because it happens to be a different amount each month, that's up to you.

pseudodox

MVDD puts me in full control of what I pay.  And I regulate exactly how much the supplier gets by using as much or as little energy as I choose.  The same level of control that I had when the meter reader called every quarter & I then got a bill for my usage.  I currently put money aside towards winter bills & earn interest for myself.  I also have control of the DD as if the supplier did not take the correct amount as billed each month I am backed by my banks DD guarantee.  The one aspect I cannot control is the price of energy.  But the supplier does not dictate a FDD to me at a level I don't agree with - which seems to be a continuous issue for many posters on here.