MSE News: Npower confirms energy bill cut – but prices are still up

Former_MSE_Helen · 8 January 2014 at 1:03PM

"Npower customers will see bills fall following Government intervention, but prices are still up after winter hikes..."

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Npower confirms energy bill cut – but prices are still up

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SnowMan · 8 January 2014 at 2:02PM

http://www.npowermediacentre.com/Press-releases/npower-announces-energy-bill-reduction-1303.aspx

Only a £12 reduction applies to fixed rate tarriff dual fuel customers

I am not sure I understand what is going when in this news article it said

Npower will pass on all three elements of the Government's savings onto all households, including those on fixed tariffs. Savings will also be passed on to tariffs currently on sale. A date hasn't been set yet

So the £12 must be the total of all the three elements for fixed rate dual fuel customers?

So customers already on a fixed rate tarriff when the government made its announcement are notionally deemed to have had a £38 increase, that couldn't have been applied, because it was a fixed rate tarriff. So that the £12 reduction consists of this notional £38 increase that couldn't have been applied less £50?

To me it looks like Npower aren't passing on the reduction in full and are just pocketing a £38 windfall profit for some customers on fixed rate tarriffs.

I must admit I don't understand this. Can anyone else explain or tell me what I am missing?

NittyGritty · 8 January 2014 at 2:19PM

SnowMan wrote: »

http://www.npowermediacentre.com/Press-releases/npower-announces-energy-bill-reduction-1303.aspx

Only a £12 reduction applies to fixed tarriff dual fuel customers

I am not sure I understand what is going when in this news article it said

So the £12 must be the total of all the three elements for fixed rate dual fuel customers?

So customers already on a fixed rate tarriff when the government made its announcement are notionally deemed to have had a £38 increase, that couldn't have been applied, because it was a fixed rate tarriff. So that the £12 reduction consists of this notional £38 increase that couldn't have been applied less £50?

To me it looks like Npower aren't passing on the reduction in full and are just pocketing a £38 windfall profit for some customers on fixed rate tarriffs.

I must admit I don't understand this. Can anyone else explain or tell me what I am missing?

yeah looks like MSE got it wrong or were lied to by Npower with the quote that ALL 3 Savings would be passed on INCLUDING those on Fixed terms..

just read this on npowers website
Which customers won’t benefit from the price decrease or one off rebate? open/close

Only approximately 54,000 gas customers on fixed term fixed price tariffs will not benefit from the price decrease or receive the one off rebate from npower. However, if they receive electricity from another supplier they will be paid the £12 (inc VAT) rebate by them.

so no those on fixed terms wont be getting anything. apart from the £12

NittyGritty · 8 January 2014 at 2:26PM

I think the giveaway was in the announcement on MSE today but wasn't sure myself until I went to npowers website

Here's what's happening for Npower customers:

Customers on a standard variable tariff (including prepay customers and those on discounted fixed-term variable tariffs) will see bills fall from 28 February

note no mention on those on long fixed terms
so I guess MSE thread the other month when npower told ALL would get the reduction just meant the above only

maybe next time MSE should double check and clarify these in future, rather than lead people to believe that everyone would get it

Mrs_Rachel_Trelfa · 8 January 2014 at 2:31PM

What I find highly strange/ amusing/ frustrating is that all the energy companies have said that the green levies etc are a large proportion of the cost that they have no control over yet when these get cut by the government we only see a £50 reduction on our £1,300 bill....

SnowMan · 8 January 2014 at 2:32PM

NittyGritty wrote: »

Only approximately 54,000 gas customers on fixed term fixed price tariffs will not benefit from the price decrease or receive the one off rebate from npower. However, if they receive electricity from another supplier they will be paid the £12 (inc VAT) rebate by them.

so no those on fixed terms wont be getting anything. apart from the £12

If there are 54,000 gas only customers then perhaps there are 500,000 dual fuel customers (I've no idea what the number is but you guess most people with gas with Npower will also have electricity).

Does that mean a £19 million (=500,000 x 38) windfall profit to Npower, by them not passing on the increase to these 500,000 fixed rate customers?

NittyGritty · 8 January 2014 at 2:35PM

what I don't get is, the green tax is ADDED to every BILL, be it standard, variable, or even long term fixed.

so why arnt those on long terms fixes not being refunded too? regardless of the price hike in dec 2013

just look at SSE statement

All customers (including prepay customers and those with fixed or capped deals): Typical dual fuel users will see bills reduced by £38/year for a typical customer from 16 June, although this will be backdated to cover the entire period from 24 March. This is due to the Government reducing the cost of the Energy Company Obligation (ECO),

yes that's right they raised prices, yet they are refunding people on long term fixes also. its just a farce with some of these companys excuses

SnowMan · 8 January 2014 at 2:44PM

So effectively the government have given Npower some money. Npower have passed some of it on and pocketed the £19 million remainder (or whatever the correct figure is based on the correct numbers). Madness.

I am genuinely trying to understand this but that is what it looks like. Surely that can't be right?

DragonQ · 8 January 2014 at 4:18PM

I'm confused. I'm now on Price Fix April 2015 for electricity, meaning I had no price increase in December (technically). So all I get is a one-off £12 payment in a year's time?? What if I'm not a customer then? What if I've moved home?

NittyGritty · 8 January 2014 at 4:51PM

well I just got off the phone to the complaints team,. rather than just ring customer services...

and this was their response to why they wont be passing on the green levy reductions (Energy Company Obligation) for those on fixed long term deals....

they basically told me because I wasn't affected with the dec price increase no reduction will be applied to me.

I then asked why this was when I told them the levy tax was already factored in when I took the deal out in October,

I asked her can you tell me how much green levy tax is factored in my npower march 2017 deal compared to the price increase for those on standard, variable fixed deals who ARE getting the refund, if you follow that

to which she went quiet, sort of mumbled something to her collegue and then put me on hold for 5 mins, then came back with sorry I can answer that, I will have to email you it. so she just gave me complaint refrence number and told me they would email me it within 3-5 days

it should be intresting to see how much green tax I,m paying for my npower march 2017 deal than those on standard/variable fixed deals after the price increase who are actually getting/Entitled to the refund, and comparing the difference.

I just don't get how SSE plan to refund everyone including those on fixed deals get the refund and npower don't, theres just no logical excuse as far as I can see, unless I,m missing something here

chanz4 · 8 January 2014 at 6:21PM

NittyGritty wrote: »

well I just got off the phone to the complaints team,. rather than just ring customer services...

and this was their response to why they wont be passing on the green levy reductions (Energy Company Obligation) for those on fixed long term deals....

they basically told me because I wasn't affected with the dec price increase no reduction will be applied to me.

I then asked why this was when I told them the levy tax was already factored in when I took the deal out in October,

I asked her can you tell me how much green levy tax is factored in my npower march 2017 deal compared to the price increase for those on standard, variable fixed deals who ARE getting the refund, if you follow that

to which she went quiet, sort of mumbled something to her collegue and then put me on hold for 5 mins, then came back with sorry I can answer that, I will have to email you it. so she just gave me complaint refrence number and told me they would email me it within 3-5 days

it should be intresting to see how much green tax I,m paying for my npower march 2017 deal than those on standard/variable fixed deals after the price increase who are actually getting/Entitled to the refund, and comparing the difference.

I just don't get how SSE plan to refund everyone including those on fixed deals get the refund and npower don't, theres just no logical excuse as far as I can see, unless I,m missing something here

They dont have an obligation to disclose, as it would be classed as comercial

MSE News: Npower confirms energy bill cut – but prices are still up

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