Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • johnsp72
    • By johnsp72 11th Oct 17, 10:12 AM
    • 3Posts
    • 0Thanks
    johnsp72
    npower dd payments
    • #1
    • 11th Oct 17, 10:12 AM
    npower dd payments 11th Oct 17 at 10:12 AM
    I just wondered if anyone here could explain how npower calculate the monthly dd amounts that they ask for? This is my situation with amounts accurate to the nearest £10ish.
    In the last year I used about £1250 of gas and electric combined. I changed to a new cheaper tariff in early September and had a bill in early October.

    The new bill has the following information on it;
    I'm in credit, about £120.
    My estimated usage for the following year is £1310 (I think this high based on previous usage/cheaper tariff but lets use it for now).
    My monthly payment is to increase from £100 to £140.

    So over the next year I need to give them £1190 (£1310 -120), so roughly £100 so why has my payment changed? They also say they aim to spread payments equally over the year so its not due to the expensive winter months ahead.

    I called them regarding this and they could not justify the payment change and despite my explanation (as above) couldn't understand why I was questioning them and repeatedly refused to change the payment back to £100. However I'm stubborn and refused to accept the lack of explanation and after threatening them with the ombudsman and recalling the dd payment they did reset the payment amount as asked.

    So the point of my post is twofold really, does anyone understand how they work and as a warning to not let them away with their incompetence.
Page 1
    • Neil Jones
    • By Neil Jones 11th Oct 17, 10:46 AM
    • 821 Posts
    • 451 Thanks
    Neil Jones
    • #2
    • 11th Oct 17, 10:46 AM
    • #2
    • 11th Oct 17, 10:46 AM
    First of all forget usage in £ signs, they mean nothing, you need the figures in kWh to determine your actual usage and then your tariff prices.

    If you spent £1250 last year on bills you must either use somewhere around the norm (16,000kWh for gas and 3,100kWh for electricity) or you're on a expensive tariff.
    • Hengus
    • By Hengus 11th Oct 17, 11:03 AM
    • 4,386 Posts
    • 2,582 Thanks
    Hengus
    • #3
    • 11th Oct 17, 11:03 AM
    • #3
    • 11th Oct 17, 11:03 AM
    Let’s keep this simple. You estimate that you will use £960 worth of energy in the coming year. At the 6 month point, it looks like the cost will be closer to £1080. It follows that the difference of £120 has to be recovered over 6 months which equates to a new DD of £80 +£20 or £100 per month. This should give you a zero balance at the end of your contract.

    If only it was that simple. From various posts on this forum, it would seem that some suppliers have adopted a rolling 12 months projection. It follows that at the 6 month to end of contract point, a further 6 months on the supplier’s SVT is being added. This results in a much higher DD and a credit balance if you switch at the end of the fixed tariff term. This, to my mind, is a sly way of building up interest free cash flow for the business that most consumers will not argue about.

    PS. You are wasting your time going to The EO. I did and failed. The response was that Ofgem has placed an obligation on suppliers to manage consumer debt. How they do this is up to them? Ditch and switch if you are unhappy.
  • nPower
    • #4
    • 11th Oct 17, 11:04 AM
    • #4
    • 11th Oct 17, 11:04 AM
    I just wondered if anyone here could explain how npower calculate the monthly dd amounts that they ask for? This is my situation with amounts accurate to the nearest £10ish.
    In the last year I used about £1250 of gas and electric combined. I changed to a new cheaper tariff in early September and had a bill in early October.

    The new bill has the following information on it;
    I'm in credit, about £120.
    My estimated usage for the following year is £1310 (I think this high based on previous usage/cheaper tariff but lets use it for now).
    My monthly payment is to increase from £100 to £140.

    So over the next year I need to give them £1190 (£1310 -120), so roughly £100 so why has my payment changed? They also say they aim to spread payments equally over the year so its not due to the expensive winter months ahead.

    I called them regarding this and they could not justify the payment change and despite my explanation (as above) couldn't understand why I was questioning them and repeatedly refused to change the payment back to £100. However I'm stubborn and refused to accept the lack of explanation and after threatening them with the ombudsman and recalling the dd payment they did reset the payment amount as asked.

    So the point of my post is twofold really, does anyone understand how they work and as a warning to not let them away with their incompetence.
    Originally posted by johnsp72



    Hi johnsp72,

    Thanks for your message. Please contact us using the details on our profile page so we can help with your payment query.

    Thanks,

    Jen
    Official Company Representative"
    I am the official company representative of nPower. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE.
    If we ask you to contact us, please do so using helpandsupport@npower.com - MSE Forum has temporarily allowed the display of our contact details in our signature due to a technical issue with our profile
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

199Posts Today

1,493Users online

Martin's Twitter
  • RT @LordsEconCom: On Tuesday Martin Lewis, Hannah Morrish & Shakira Martin gave evidence to the Cttee. Read the full transcript here: https?

  • Ta ta for now. Half term's starting, so I'm exchanging my MoneySavingExpert hat for one that says Daddy in big letters. See you in a week.

  • RT @thismorning: Can @MartinSLewis' deals save YOU cash? ???? https://t.co/igbHCwzeiN

  • Follow Martin