(3 July 2020) As part of sorting out my mother’s “estate” (as it is grandly called) I have taken over her energy bills. This precipitated two thoughts.
The service is provided by EDF- the world’s largest electricity producer with over 60% of it coming from nuclear power. It is also a French state company. I, in my simple way, fail to understand why the government “privatised” the British State energy producers and then allow the French government to take over. I assume this will change after Brexit and we “take back control”.
However, what outraged me the most was the price my mother was paying.
Her standing charge for electricity was 29.02p and gas was 31.99.
EDF has a consistent standing charge for both of 24.05 and 27.35
So, over a year EDF were taking an extra £21.14, just because they could, from someone not familiar with “switching”.
If you look at this nationally there are 6.5 million households headed by someone over 65 and 3.8 million over 65s live alone.
Given that this group are most likely to be IT illiterate or deficient and assuming 3 million of this group have never switched then some big numbers appear.
On the electric standing charge this generates over £49 million a year and for gas it is less but still just under £14 million.
On standing charge alone this equates to £ 63,414,000 excess revenue.
On the kwh rate she was paying 19.27p for electricity and 3.786 for gas.
EDF’s most expensive tariffs are 17.83 and 3.504.
On their calculations of her usage they were taking an extra £25 for electricity and £21 for gas. Over £80 a year, just like that.
Applying these calculations to the population as above and if it was EDF (and I suspect this is the same for all the older companies) then they are trousering an extra £241,743,840 a year or over £20 million a month.
I am not sure why this is allowed.
I changed the EDF tariffs through a reasonably straightforward online form.
My suggestion for my readers would be, if you know any digitally disadvantaged people, to help them change tariff, even staying with the same company if they are afraid of a switch.
Don’t go to the pub on Saturday as it will be chaotic. Just enjoy this kitten instead.
Is “excess revenue” the same thing as ‘excess deaths’?