EDF Mis-Selling Compensation

[Beefy1976]

Hi All,

This is a bit of a long story but I will try and keep it brief.

On 12th May I called EDF and switched onto a new cheaper tariff (so they told me!).

On 2nd June I received a message saying they had messed up and hadn't switched me but they would do so straight away - They also said it wasn't an issue as my new tariff was more expensive anyway so I hadn't lost out on any savings.

When I signed up to the new tariff my direct debit was £80 per month - This new tariff was coming in at £71 but I asked for it to remain at £80 and she said that was fine.

June's direct debit went out but it was only for £40.

I contacted them using online chat and they said they hadn't set the gas element of the DD up in time so that's why it was only £40 but it be £71 as from July. I also asked about the letter and they said it was an error and that the new tariff was cheaper.

Yesterday they took another £40 out of my account! Back on online chat this morning and could get no sense out of them so decided to call them.

Basically, it's been a cock up from start to finish. They have admitted mis-selling the tariff as the adviser who sold it, compared the rates against the wrong tariff and this new tariff was in fact more expensive. They can see that I have also been lied to more than once about this. They closed my account in error and set up a new one and just set up the DD for the 20th without my permission, nor did they inform me. I actually have it in black and white saying they wouldn't take any more money this month. The contract they sent me is dated 2nd June when in fact it should have been 12th May.

They are going to resolve the issues with the account and are having a meeting on Monday about compensation for this cock up.

I have copies of the online chats so have all the proof I need and so far I have spent 4 hours trying to resolve this.

My question is, what is a reasonable amount for them to offer as there are several serious issues and I am fairly certain they have broken the law at least once. Do I accept any offer of compensation or would I be better of going to The Energy Ombudsman?

Cheers,
Beefy

[PlanB]

Re: EDF Mis-Selling Compensation

I have spent 4 hours trying to resolve this.

My question is, what is a reasonable amount for them to offer as there are several serious issues and I am fairly certain they have broken the law at least once. Do I accept any offer of compensation or would I be better of going to The Energy Ombudsman?

That's a hard question to answer.

You should expect EDF to put you back in the position you were in before the error occurred and compensate you for any actual loss such as the wrong amount being taken from your account by DD, only in this case they took too little not too much. You had instructed them to leave your DD at £80 per month. They only took £40. When the error was brought to their attention they took another £40 which is in line with your request.

In the meantime you've discovered that the DD from July going forwards should be only £71 so I'm not sure what your actual loss would be. A maximum of £9 for an overpayment in June since everything up until May is not in question?

On 12th May I called EDF and switched onto a new cheaper tariff . . . .

When I signed up to the new tariff my direct debit was £80 per month - This new tariff was coming in at £71 but I asked for it to remain at £80 and she said that was fine.

June's direct debit went out but it was only for £40.

. . . . Yesterday they took another £40 out of my account!

EDF may argue that you haven't suffered enough distress to warrant compensation. I expect they'll sort out the tariff error, refund you the overpayment (£9) and also offer you a Goodwill Gesture of £25. That's just my guess based on the fact that compensation reflects the distress caused. If I were to claim compensation every time I spent four hours sorting out a utility or phone bill I'd be a millionaire right now.

[Beefy1976]

Re: EDF Mis-Selling Compensation

Hi PlanB and thanks for your reply.

I am not expecting to be able to retire on the back of this but I am hoping for a little more than £20.

Had they have made the error and notified me, it wouldn't be an issue as mistakes happen. It's the fact they have lied to me that is winding me up.

They said the direct debit would be £71 before they took any money - I just couldn't be bothered to ask them at that point to set it to the £80 that had been agreed. I have that in writing.

They then took £40 and said they would take no more this month but would take the £71 next month.

I will see what they say on Monday - I really don't know to think about it. Had I have not kept on with them, I would never have known what has happened - Certainly not the fact they go the initially quote wrong as she compared the new tariff to an old one that I have never been on!

I know what you mean about being a millionaire by now - They seem to just do what they want when they want and have no customer service skills at all!

[PlanB]

Re: EDF Mis-Selling Compensation

It's the fact they have lied to me that is winding me up. . . .

. . . . They seem to just do what they want when they want and have no customer service skills at all!

I share your pain Beefy I really do

The thing is did they deliberately lie to you in order to deceive you and rip you off financially, or was this a *training issue* where they have admitted their mistake, agreed to put it right, and are now saying sorry they messed up?

Let us know what compensation is offered to you on Monday, and then we'll comment on whether or not it's acceptable.

[Beefy1976]

Re: EDF Mis-Selling Compensation

Hi PlanB - I am certain and have said to them that it's a training issue.

They seem to have no processes in place as the person I spoke to on Saturday said what he would have done, but that is not standard protocol.

I will let you know how I can on later but I don't think they are calling until later tonight.

Thanks again for your reply

[cardiac arrest]

Re: EDF Mis-Selling Compensation

If you look at the terms and conditions booklet EDF will have sent you (that booklet you need a microscope to read...) there may well be a list of the amounts of compensation they pay for the various varieties of cock ups they are capable of. including additional amounts for the delay in resolving the problem. From memory around £25 rings a bell..but that was a few years back..As a matter of interest, I switched from EDF this spring as I found "First Utility" were cheaper for the consumption levels of gas and electric I have..might be worth checking them out ?

[Beefy1976]

Re: EDF Mis-Selling Compensation

I did try and switch to the Utility Warehouse as they are considerably cheaper but they sent an email saying that they can't supply me due the specific type of meter I have. My gas meter is really old but the electricity one is less than a year old so not sure why they can't.

I have read their T&C's and I think it's £22 as a standard but nothing really in mentioned about what they have/haven't done with me.

Well update on EDF.. They didn't bother to call as agreed and when I called them they are not sure why the manager didn't call as she was meant to.

In the meantime I now have two accounts on two different tariffs and they have changed my direct debit to £95 now without telling me.

The manager I spoke to has now resolved the issues with the account and has promised to detail everything she has done in writing. She offered me £50 which I have turned down and detailed my reasons why I think it needs to be higher. She is going to thoroughly review the account and call me tomorrow (we'll see!) but she has admitted that they have made several serious errors.

I am having a glass of wine now to de-stress!

I will update tomorrow if they call back.

[cardiac arrest]

Re: EDF Mis-Selling Compensation

that's sounding a lot better...cheers..

[Beefy1976]

Re: EDF Mis-Selling Compensation

Quick update...

They called as agreed yesterday to say I was only worse off by £2 as now my direct debit would be £54...

I explained my direct debit was £80 which confused them somewhat.

I have had a family day out today so asked them not to call back until tomorrow - In the meantime, I have been sent an email saying they have changed by direct debit to £95!

I await their call...

[PlanB]

Re: EDF Mis-Selling Compensation

They didn't bother to call as agreed and when I called them they are not sure why the manager didn't call as she was meant to.

In the meantime I now have two accounts on two different tariffs and they have changed my direct debit to £95 now without telling me.

The manager I spoke to has now resolved the issues with the account . . . . . She offered me £50 . . . . she has admitted that they have made several serious errors.

No wonder EDF was 'fined' £4.5 million by Ofgem for misselling a couple of years ago. That fiasco resulted in customers getting £50 each for compensation which is probably where she got that figure from.

http://www.bbc.co.uk/news/business-17309882

[Beefy1976]

Re: EDF Mis-Selling Compensation

Another update of sorts...

They called today as promised to say everything was sorted and the account was now on the correct tariffs and that they would be conducting an internal investigation into the chain of events.

They also upped their compensation offer to £100.

In the meantime I had received a bill via email this morning saying I am in vast credit with them but it was only for gas, and they had removed the previous meter readings so this was totally incorrect. The bill stated I was still on two different tariffs.

When I asked about this she put me on hold and then said she would call back - Three hours later she called back to say they have got to the bottom of it and it's because they have my electricity meter listed as pre-payment and the system won't let them bill a pre-payment meter.

This is going to take two weeks to resolve! Once it has been resolved, they will call be and then discuss the compensation offer again.

Now, I tried to switch to First Utility ages ago and they said they couldn't supply me due to the type of meter I have. I am going to try and see if EDF had listed me as pre-payment as if that was the reason, I will try and get them to pay for the savings I missed out on by not being able to switch.

I really can't believe how this is dragging on!

[PlanB]

Re: EDF Mis-Selling Compensation

they have got to the bottom of it and it's because they have my electricity meter listed as pre-payment and the system won't let them bill a pre-payment meter.

. . . . I tried to switch to First Utility ages ago and they said they couldn't supply me due to the type of meter I have. I am going to try and see if EDF had listed me as pre-payment as if that was the reason, I will try and get them to pay for the savings I missed out on by not being able to switch.

What a mess but it's EDF's mess not your mess.

The big issue now is the cock-up over you being wrongly listed as having a pre-payment meter which is something only installed when an account is delinquent.

Have you kept any correspondence from First Utility who declined to accept you as a customer based on this erroneous information?

Have you ever been in arrears with EDF and do they report to any CRAs?

All of a sudden that £100 compensation offer is not looking realistic.

[Beefy1976]

Re: EDF Mis-Selling Compensation

Hi PlanB - Thanks again as always for your help with this.

When I purchased my house, it had a standard gas meter and a pre payment electricity meter with British gas. I switched to EDF and they swapped removed the pre payment meter for me and installed a standard credit meter. I then switched from their standard tariff to a price promise one.

I do look at Noddle and EDF are not reporting anything and I am always in credit with them and have never missed a payment.

The attempted switch to First Utility was completed through Uswitch and I have copies of the email from First Utility and the ones from Uswitch.

I can't believe it has gone so wrong I really can't.

[cardiac arrest]

Re: EDF Mis-Selling Compensation

I'd be tempted to wait for the compensation payment before I switch...I doubt you would have saved £100 by switching to First utility...but you might have..my annual saving by switching from EDF was around £60.00, based on my usage..

[Beefy1976]

Re: EDF Mis-Selling Compensation

I can't do anything now as it is going to take 2 weeks for them to sort the issue out with their incorrect meter type.

I tried to switch at the beginning of the year and I was projected to save £72 per year so I will be asking them for a pro rota payment for the savings I have missed out on plus the original £100 as a minimum now.

As they say, if you don't ask you don't get Once the money is in my account I will try to switch to First Utility again.