EDF charging for energy not used?

B0bbyEwing

I've been asked about this tonight from a young first time home owner & it makes no sense to me.

Basically EDF have told them they owe EDF a few £100. They've been billed 3 times in March (only once in months prior).

They contacted EDF via some electronics means (not sure if twitter, email or whatever) but EDF are basically telling this person...

* we plan for you using £xyz per month (let's say £200). You're not, you're only using £abc per month (let's say £150)....therefore you owe us the difference. 

This is why I'm here - to check whether that is correct (can be done) as it doesn't seem right to me but then it wouldn't be the first time my view of right isn't the same as what can & can't be done.

They've been told that if they only want billing once per month with set amounts & dates then they MUST move to a fixed tariff & off the variable that they're on.

However if they do move to a fixed tariff then they can ONLY do this if they agree to having a smart meter installed. 


The text message I read...

"Upon review of your account, I could see you are on a variable direct debit and are expected to clear whole debit on account.
Also, the dates payments are collected can differ. However, your usage is quite low as estimated to be £xyz.
To resolve this I recommend you switch to a fixed direct debit which allows us take payments on a fixed day and a fixed amount to cover usage.
Lastly you may want to consider changing your current tariff to a fixed tariff also, that way your consumption will be calculated on a fixed unit rate for the period of the agreement."

And just in case anyone points out that there's no mention of MUST have a smart meter and need to pay for energy they've not used - they phoned EDF also & that was said over the telephone.

Brie

"Suggested" & "you may want to consider".  Doesn't look like they're making demands just trying to push them into bad changes that will adversely effect them.  

Brie

My previous supplier "planned" for me to use a huge amount more than I had ever done previously and we're going to bill me on that basis.  I showed them my figures and told them no. They agreed and stopped bothering me.

amanda1024

Definitely sounds a bit strange. Had they submitted multiple meter readings in March to prompt the bills?

If they're paying on receipt of bills I can't see how they'd owe EDF anything, let alone 'a few £100'. It might help to get sight of the bills - are they based on actual readings? Do the calculations seem to make sense? The bit about charging for energy not used sounds strange. But the text message doesn't say anything about charging for energy not used. Being expected to clear whole debit on account I think is the 'standard credit' means of paying so they should be covered by the price cap https://www.ofgem.gov.uk/energy-price-cap

There's two different meanings of fixed in the text message
- fixed direct debit, but actually 'fixed' is a bit of a misnomer, but this is the other common method of paying, I think, where the annual usage is divided by 12 so each month's direct debit is the same
- fixed unit rate - i.e. a fixed price tariff for a certain period of time

Getting a smart meter shouldn't be an issue - generally they make life easier and open up access to a broader range of tariffs - but equally I'm slightly surprised that a fixed tariff is only available for people who have smart meters.

EssexHebridean

Ok - so they are paying on “variable direct debit” - it’s useful to know EDF are now using the terminology as well now as they never used to. So at the moment, if they use £221-worth of energy in January, they will have to pay £221. If in July however, they use £43-worth of energy, then they will be billed - and have to pay - £43. I pay for my energy on a “fixed direct debit”. My supplier works out what they estimate I will use in a year, divides the relevant amount they expect to bill by 12, and I pay 1/12th of my expected annual billing each month.

if your couple wish to change to that “averaged” monthly amount they can do so - they do not have to change to a fixed tariff to do so. Many people find fixed monthly DD better for budgeting - but if your couple have a good solid grasp of their household budget and are disciplined with money now would be a good time to start making variable DD work for them. They would need to work out for themselves what 1/12th if their expected annual energy billing was, and then set that aside into savings each month to have it ready for the higher billing in winter, less what they pay for that month’s bill. So they might set aside £120 a month, the lower billing in the warmer months will then enable a surplus to build up in that savings account ready for the higher winter billing. The advantage of this is that the “credit” that builds up through the summer and autumn earns them interest rather than sitting in their account with their provider, 

If they do decide that they want to go with a fixed tariff some do come with the condition of agreeing to a smart meter attached - that is perfectly reasonable and acceptable. They might want to consider that in any case though as often the smart meter tariffs cost less! 

Qyburn

B0bbyEwing said:

* we plan for you using £xyz per month (let's say £200). You're not, you're only using £abc per month (let's say £150)....therefore you owe us the difference. 

This is why I'm here - to check whether that is correct (can be done) 

No, it can't be done.

I've seen business telephone tariffs based on a minimum spend but for domestic energy, no way in a million years.

B0bbyEwing

Thanks for the replies.

EH - you mention things like solid grasps & budgeting. In my personal opinion that's not really good here because from the info I have to go on they pull in different directions to each other. Everything appears point scoring & squabbly but at the end of the day to use the overused phrase ... it is what it is & unfortunately that's what it is right now.

The way they seem to do it now is female wants male to submit the meter readings because female does many jobs & male does not a great deal. As a result bills are often on estimates rather than actual readings (if what I'm lead to believe is true).

I've suggested going down the smart meter route. They actually seem for it, I just thought it strange EDF saying you can only have a fixed tariff if you agree to a smart meter.

I do also question whether their understanding of what was said over the phone is an accurate representation of what was said over the phone. I wasn't there so I don't know.
BUT, as they're under the impression they're being forced to pay for electricity they didn't use, they need to iron that one out one way or another before anything.