Your AF Energy FAQs answered
AF Energy Procurement Manager Catherine Williams answers the questions that our Members are asking most frequently about their new AF Energy contracts.
Why has my standing charge changed so dramatically?
Standing charges have been greatly affected by the Targeted Charging Review (TCR). The aim of the TCR was to distribute the charges to maintain the electricity networks more fairly across consumers.
We have included on your electricity rates document the loss line factor (LLF) of your MPANs as this is what determines the fixed or standing charge from your Distribution Network Operator (DNO). If you would like to see a copy of these rates we can send you the link to them on your DNOs website.
As the standing charges are calculated and issued by the DNOs, AF and our electricity supplier EDF have no influence on these charges. But we can appeal if your site appears to be in the incorrect charging band. If you believe the banding may be incorrect then please do contact us.
We will be conducting reviews across the portfolio to double check the rates being charged so be assured that AF and EDF are monitoring standing charges.
What is this additional cost for AMR? Didn’t I already pay this as £110 earlier?
The fee of £110 is the charge for meter operating. The AMR (automatic meter reading) is charged on a per day basis according to what the agent charges EDF and can vary depending on where you are within the UK.
AF are working with EDF to ensure the AMRs are as low as they can be and will be in touch if we identify any potential ways to reduce this cost.
You have put me into a contract without giving me the prices first. How do I opt out?
Our intention was to purchase 100% of the portfolio’s energy requirement for April 2022 – March 2023 prior to the 1st of April. However changes in the energy market meant that this plan was changed. After a comprehensive decision-making process with the AF Board, it was decided to buy electricity monthly unless market conditions improved making a longer period the more favourable option.
We always intended to confirm April’s rates prior to the contracts starting. But due to queries raised by our robust validation process this was delayed. We have been communicating with you and all the other AF Members buying electricity from us with updates around these delays.
We sent you all the information about your new contract at the beginning of September 2021. This outlined our proposal to buy energy on a flexible rate, within the terms and conditions of the auto-renewing portfolio, and that we required notice to be given by 1st January 2022 to opt out.
If you would like to opt out of the next autorenewal (1st April 2023) we will require notice in writing by 1st January 2023.
Why isn’t this a fixed price? What if it goes up?
We followed independent advice to not fix our energy costs. AF has fixed the non-energy costs for 12 months. Non-energy costs includes your standing charges, taxes and levies.
It is just the wholesale energy price that we have not fixed. If we buy the energy cheaper for the next chunk of time than we paid for energy in April 2022, you will see a negative adjustment amount within the relevant billing period (your rates will go down). If the wholesale price rises you will see a positive adjustment to the price (your rates will go up).
I can get it cheaper elsewhere. Surely as a big buying group you would have more sway with the prices?
Whilst it is true that for today’s market rate you may be able to procure fixed energy deals cheaper than your rates with AF, it’s important to note that if AF bought from an alternative supplier today, you would have needed to have been on what are known as ‘out of contract rates’ from 1st April.
Out of contract rates vary depending on type and size of supply but doubling the unit rate is a good estimation for a starting figure. In addition, the standing charge would also be higher on out of contract rates.
It is also important to note that the rate quoted by alternative suppliers of energy on a rate card is only the “base rate”. Whilst the base rate will remain consistent throughout the contract, the reconciliation lines will mean that average contract price over the contract will be a different amount.
Why are my rates higher than the price cap?
AF’s entire electricity portfolio is in a commercial contract with EDF. This makes us exempt from any of the price capping measures that the government has offered for domestic consumers.
We hope that this helps answer your questions.
If you have another question for us, you can call us on 01603 881910 or email email@example.com.
Your AF Energy team is here to help.