EDF Bill confusion, should I withdraw my credit?

Hi all, 

First time poster, be gentle! My direct debit amount for my EDF gas and electric has increased from £250 per month to £322 per month, despite me being £673 in credit according to the latest bill. My last bill itemised charges from the period 30th June to 28th November, this amount based on actual readings amounted to £344 of usage. I cannot see how we will use enough energy in between now and April, that would require us to maintain a direct debit amount of 4 x £322, plus the £673 credit. Interestingly EDF is offering a tariff change with an approximate monthly charge of £185 per month. We use roughly 12000 KWh gas and 4000 KWh electricity, and the tariff is dual fuel. Any help greatly appreciated, on whether it seems I am overpaying and should request a refund of the credit they are holding.

Thanks, 

George

Comments

  • What are the unit rates they are offering on the fix, and what are they quoting your estimated annual usage at? You should be able to use those bits of information to challenge the DD as being not reasonable. 
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  • QrizB
    QrizB Posts: 13,640
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    First time poster, be gentle!
    Welcome back to the forum; you last posted in 2015!
    My direct debit amount for my EDF gas and electric has increased from £250 per month to £322 per month, despite me being £673 in credit according to the latest bill.
    EDF review DDs annually; however that seems a big increase. Have you recently reduced your energy use?
    Which tariff are you currently on, and what are the rates?
    Interestingly EDF is offering a tariff change with an approximate monthly charge of £185 per month. We use roughly 12000 KWh gas and 4000 KWh electricity, and the tariff is dual fuel.
    £185 per month sounds about right for that amount of usage. Ate thise numbers (12000 / 4000) consistent with the Estimated Annual Consumption figures quoted on your most recent bill?
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  • Robin9
    Robin9 Posts: 11,968
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    Can you confirm that the estimated consumption is based on ACTUAL readings not Estimated please?

    I have similar consumption and £185 is appropriate.
    Never pay on an estimated bill
  • Have not recently reduced or increased usage, electricity is pretty steady throughout the year, obviously gas has increased around October/November as we have combi boiler.

    Estimated annual consumption on latest bill is 12194 KWh gas and 3777 KWh electric.

    Current Tariff (as of January 1st)

    Electricity (starts 01 January 2024)
    Unit rate: 28.12p per kWh
    Standing charge: 54.35p per day

    Gas (starts 01 January 2024)
    Unit rate: 7.342p per kWh
    Standing charge: 29.60p per day

    Actual monthly direct debit amount £322

    Fixed tariff offer

    Electricity unit rate: 27.47 pence
    Electricity standing charge: 54.35 pence per day

    Gas standing charge: 29.60 pence
    Gas unit rate: 6.807 pence

    Estimated monthly cost £181

  • BigApples84
    BigApples84 Posts: 9
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    edited 20 December 2023 at 9:30PM
    Robin9 said:
    Can you confirm that the estimated consumption is based on ACTUAL readings not Estimated please?

    I have similar consumption and £185 is appropriate.
    Yes my latest bill includes actual meter readings, although the annual consumption figure is "based on estimates". In my opinion for me to have built up credit of £673, use apparently roughly £185 worth of fuel each month and pay £322, the credit will only increase each month. I am considering phoning up and attempting to request a refund of the full amount of credit and leaving the DD at £322 for now, although this still seems high.
  • Gerry1
    Gerry1 Posts: 9,760
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    Why not switch to Variable Direct Debit?
    Higher bills in winter, lower in summer but at least you can earn ~5% interest in an easy access savings account rather than donating it to EDF.
  • Brie
    Brie Posts: 9,275
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    Utility companies make up an estimate to suit themselves rather than what actually is right for the consumer.  Mine decided that the annual use needed to be inflated by 20% (for my own financial safety) and then came up with an annual figure that they divided by 10 to get a monthly DD.  When I questioned why 10 instead of 12 given that there's 12 months in the year the customer service person basically laughed and said that was to ensure I paid too much.  

    So - do your own calculations and tell them what you will pay.  And that will be after they have refunded your credit.  Or, as Gerry suggested, go for a variable DD so you pay for what you actually use.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • dunstonh
    dunstonh Posts: 115,669
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    , despite me being £673 in credit according to the latest bill.
    Credit at this time of the year is normal and typically around 3x your monthly payment (assuming your monthly payment is an accurate ballpark of your use)

    If you are on the old 6 monthly billing and you last bill was November then that credit could include December's direct debit but not Decembers energy use.

    If you are on the monthly billling method (identified by account numbers starting A-) then you will find things a lot easier going forward.   Everything is being moved to that method in phases.
     I cannot see how we will use enough energy in between now and April, that would require us to maintain a direct debit amount of 4 x £322, plus the £673 credit. 
    Households can use around 80% of their annual energy in the Autumn and Winter months.

    We use roughly 12000 KWh gas and 4000 KWh electricity, and the tariff is dual fuel.
    Is that your average over say the last 5 years or just the last 12 months?  Winter 2023 was mild for most people and energy use was lower than normal.    So, modelling should not be based on that period (or if you do, then add around 20% to the heating part)

    Any help greatly appreciated, on whether it seems I am overpaying and should request a refund of the credit they are holding.
    The best time to refund credit is May.   All your summer credit built up the year before should be at around zero by May and the cycle begins again.  If you in debt by May, then you are not paying enough.  If you have a surplus, then you have paid too much.     But be wary of changing amounts.   Your use will be much heavier in cold winters compared to mild winters.   
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • As has already been mentioned, do your own calculations based on your actual usage. Even £250 pm seems excessive based on your quoted usage. A lot depends on how much you need the "cash". You could ask for your credit back and leave the payment at £250 pm to build up some credit again - assuming your winter usage doesn't exceed £250 pm.

    How long is the fixed deal? You might save about £90 p.a assuming January's prices remain unchanged, although AIUI expectations were prices may drop later next year, BUT whether the latest goings-on in the Red Sea may have any consequential knock-on effects, who knows!

    If you want to change your DD amounts, you can do so logging in to your on-line EDF Account and specify the amount you want to pay in the DD section. If they don't respond or agree, then phone up and make a complaint to start with!
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