Npower versus the vulnerable? Court Challenge

2456716

Comments

  • jauntyangle
    jauntyangle Posts: 52 Forumite
    First Post First Anniversary Combo Breaker
    Would you happen to be the 'vulnerable' customer in this case? ;)
  • undaunted
    undaunted Posts: 1,870 Forumite
    backfoot wrote: »
    Thank you for this report. I am interested to learn more.

    Is it possible to break down the issue a bit more please?

    What is the customer wanting to happen? Presumably in place of the prepayment meter that Npower have already fitted?

    Is the issue that NPower were the last supplier and are assuming the right to supply a new customer?

    What is the £240,000 counter claim in respect of? How is it made up?

    Could you summarise the overall case and what is at stake,implications etc. in layman's terms as much as possible please.

    Are there any other links?

    Thank you:).

    Unfortunately in the time it toook to type I was automatically logged out & the post lost because I logged back in (as asked). Perhaps I'll try again another day but haven't got time to do it again now I'm afraid

    Would you happen to be the 'vulnerable' customer in this case? ;)

    The customer is known to me but I did not say it was me, or that I would identify them nor indeed did I identify the Npower employees involved. What purpose would that serve?
  • backfoot
    backfoot Posts: 2,700 Forumite
    First Post First Anniversary Combo Breaker
    I am just trying to make sense of the issue.

    I must be missing the point hopelessly, as it sounds unfeasible for a counterclaim of a nearly a quater of a million pounds to have been made, given the circumstances of a meter/contract dispute

    You haven't given any detail of what that claim is and its make up?

    Also a claim and legal challenge of this size must have created some sort of press coverage, especially as there seems to be significant legal issues at stake.

    What Court is this case set down for. Who was the key witness who couldn't attend?

    Interested to find out more.:)
  • undaunted
    undaunted Posts: 1,870 Forumite
    edited 9 March 2012 at 3:18PM
    In brief the claim is made up of bills raised by Npower for electricity and sundry costs / charges. As I understand it so far the claim will predominently rely upon the electricty act.

    When the transfer was blocked the customer informed Npower that they would accept no liability for any charges beyond what the chosen supplier would have raised & would pay nothing more until the dispute was resolved in Court.

    Npower decided "you will have to pay us in the end" (said to be a direct quote from a telephone conversation with one Npower employee) and simply continued supplying for approximately 3 years with no payments & despite the customer remaining in contact reiterating their stance repeatedly & being unmoved by Npowers claims that they would disconnect supply much earlier.

    The customer advised they would have to disconnect but may not fit a PPM. Npower sought to ignore this (unsuccessfully)

    The Energy Ombudsman earlier suggested that if the balance was reduced to £200 the customer should be free to switch supply. The customer was not able to do so at that time and refused to accept Npower remaining as supplier. The usual timescale elapsed though Npower claimed they would honour this long after.

    When the consumer later offered and immediate payment of £800 and / or approximately £1442 (based on what chosen supplier might have billed, correspondence to Npower etc) in full and final settlement within 7 days (with third party assistance) against an (estimated) balance of £1559 Npower ignored it having by now declared "we will fit a pre payment meter"

    Fuel Direct was never offered

    Npower claimed to MP & Courts that they were planning to do so & take the lowest possible payments meaning they would have potentially taken at least 9 years to recover the claimed balance. The customer told them only a moron would consider that a better option for them & again refused to accept Npower remaining as supplier (under any kind of meter whatsoever) Correspondence from Npower to customer also suggests the above suggestion to be totally untrue.

    The defence cited a range of legislation, including "undue influence",
    Distance selling regulations 2000, Electricity Act 1989 & Utilities Act of 2000, Consumer Protection from Unfair Trading Regulations 2008 & the European Union Unfair Commercial Practices Directive, Unfair Terms in Consumer Contracts Regulations 1999 & 1994, The Cancellation of Contracts made in a Consumer’s Home or Place of Work etc. Regulations 2008, The Supply of Goods and Services Act 1982, The Competition Act 1998, The Human Rights Act, The Administration of Justice Act, Electricity suppliers Licence: Standard Conditions, Ofgem & Energy watch criticisisms of Npowers handling of such disputes

    The counter claim is based upon the customers instructions to remove all equipment from their property and Npowers refusal to do so. The customer advised Npower that whilst the meter remained on their property without consent they would be charged £25 per day for the first week, £50 per day the second, £75 the third and so on escalating each week until either the issuies was resolved, eg meter was removed as instructed, the supply switched elsewhere etc. Npower have at various points claimed that the customer must prove they own the meter, that they have not disconnected the supply but merely removed the fuse (their own terms & conditions state that a deemed contract may be terminated by disconnection of supply). Customer has claimed damges, a form of trespass, statutory & common law nuiscence

    Ofgem said there was nothing within the act that obliged a supplier to withdraw from a property if a customer instructed it. Reluctantly they also had to admit that nor is there anything that allows them to refuse to do so


    Npower claim that whilst they can deem a contract on consumers consumers cannot deem one upon them in this fashion.

    Their legal representative has made statements in Court hearings ranging from the defence having been well put together to claiming they were being polite & it being shambolic / nonsense

    The consumer is seeking legal help but with no access to legal aid, no solicitor so far being willing to look at the issues pro bono let alone take on a large trial on such a basis has so far been forced to fight the dispute alone.

    Npowers legal representative has suddenly suggested contacting Law works - because they don't really want to go to trial either? - who is apparently assisting another consumer of theirs about 70 miles away but they have refused the consumers suggestion of taking it to mediation throughout the dispute.

    The Daily Mail money page was at an earlier point (prior to any court claim or disconnection) contacted for possible help & whether by this reason or workload as they claim Npowers agents failed to turn up to fit a PPM / disconnect the supply for approximately 2 weeks afterwards but other than a presumably standard reply from the Mail suggesting they may take up the issue in future there was no serious response & the media have not been made aware of the disputes progression. There has therefore obviously been no press coverage of the dispute.

    The supposedly key witness was a (presumably) senior employee who was involved in contact with the consumers MP and states they have posession of the file but has had no direct contact with the customer whatsoever. Why that person was chosen as the nominated "witness" rather than one of the employees who dealt directly with the consumer is unclear to me.

    As to what is at stake, for the consumer to lose costs could quite possibly mean loss of their home / bankruptcy

    To win probably significant damages & the pleasure of having taught Npower some manners!

    For Npower to lose, A significant counter claim, extremely poor PR in threatening bankrupting a struggling consumer who made reasonable offers of settlement?, serious legal question marks over the entire deemed contract / transfer objection system?

    For Npower to win confirmation of their interpretation of their "rights" but possibly incurring costs they may be unable to recover

    Why this dispute has not been settled sensibly is utterly beyond me
  • undaunted
    undaunted Posts: 1,870 Forumite
    Unprecedented though it may be independant legal advice suggests there is indeed an argument to be won here.
  • chanz4
    chanz4 Posts: 10,890 Forumite
    First Anniversary Name Dropper First Post Xmas Saver!
    I will be fully honest a supplier wont remove the supply, its not as simple as removing a meter digging up the road etc. When you change suppliers the meters go with you, the mpan registration number also stays with the consumer no matter what supplier they goto. The supplier concerned also would of had to agree £25 a day prior to the contract, you cant just add your terms on later.

    A way around it would of been for your friend to apply for a new mpan/supply via the dno. If the bills were correct, I cant see the case getting very far and no compo.
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
    Some points to consider:

    - the meter is owned by the Meter Asset Provider referred to as the MAP, but is serviced by the Meter Operater (now known as the Meter Asset Maintainer or MAM) referred to as the MOP.
    - the MAP can be owned by a company with a different industry responsibility such as a supplier or more commonly by a distributor. However, industry parties are seperate legal entities that are considered seperate in terms of their compliance in the industry.
    - the supplier never owns the meter and if the MAP is not npower owned, the solicitor looking at this has not done their homework on the industry and who the correct party is.
    - if you change supplier, a MAP can remain the same or the asset can be traded if required so a new MAP is in place. The MAM however is whoever the supplier appoints to that region to perform meter services.

    So, this customer would retain that meter between suppliers and he/she is directing a bill at the wrong party since a supplier doesn't own it.

    Lets also remember that the service is the property of the distribution company who is currentky registered to it...which rarely changes.

    Now to address disconnection. Disconnection only occurs where the MPAN/MPRN is to be cancelled meaning it can never be used (subject to resurrection rules over disconnection errors), a common example being demolition or where properties are merged. Another is where an associated metet is removed that would not be used again e.g. standard meter + off peak changed to modern E7 hence only 1 MPAN required.

    In MPAN disconnection cases, they site registration has ended hence any Deemed contract can no longer applied...it may be rubble!

    Pulling a fuse is not the definition of disconnection. Pulling a fuse or removing a meter is classed as deenergisation and te supplier remains registered.

    So, what do the t&cs actually say? Fuses get pulled a lot on businesses but they do not become "shipperless", the same applies to meter removal which is a stronger action.

    If the site became "shipperless" and you went to a new supplier, the distributor could not charge the supplier vor energy until the registration took place. They would then allow legitimate use of the process to defraud.

    I suspect this may be a terminology issue, but does the solicitor understand the difference.
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • Terrylw1
    Terrylw1 Posts: 7,038 Forumite
    A domestic customer also has the right o own their own meter, which is how the half hourly business side works, but it would be frught with danger as the residential market just is not set up for it and there are no process protections in place to assure the extras required to manage this scenario.
    :rotfl: It's better to live 1 year as a tiger than a lifetime as a worm...but then, whoever heard of a wormskin rug!!!:rotfl:
  • spiro
    spiro Posts: 6,403 Forumite
    Name Dropper First Post First Anniversary
    In electricity you can not have a 'shippless' MPAN. Once an MPAN has been requested and a supplier registered no supplier can 'deregister'. Even MPANs that are de-energised and have no meter have to be checked every year by the meter reader to ensure no consumption is occuring.

    I dont see how having the meter removed will assist them, if they owe NPower money they will still owe money and will therefore be unable to change supplier until the money is repaid.
    IT Consultant in the utilities industry specialising in the retail electricity market.

    4 Credit Card and 1 Loan PPI claims settled for £26k, 1 rejected (Opus).
  • chanz4
    chanz4 Posts: 10,890 Forumite
    First Anniversary Name Dropper First Post Xmas Saver!
    spiro wrote: »
    In electricity you can not have a 'shippless' MPAN. Once an MPAN has been requested and a supplier registered no supplier can 'deregister'. Even MPANs that are de-energised and have no meter have to be checked every year by the meter reader to ensure no consumption is occuring.

    I dont see how having the meter removed will assist them, if they owe NPower money they will still owe money and will therefore be unable to change supplier until the money is repaid.


    Also so our little friends dont create their own supplys, like they do. Suppliers are however starting to buy meters rather than renting as they do now.
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.8K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards