nPower Uncapped vs Eon Capped - which one to choose?

JayMT

I’d appreciate some advice from you clever folks as it seems there’s something I may be missing here.

My calculations have all been done on the basis of an annual electricity usage of 7500kWh (I don’t use gas). They also include VAT and discounts where appropriate.

I was previously on Eon’s Standard Electricity rate. If I were to stay on this I would be paying £807 over the next year, plus an unknown amount caused by any increases they may announce soon.

I’ve just switched to Eon’s Energy Saver Electricity 4 tariff, which is capped until Oct 09. I calculate I will pay £893 pounds over the next year, an increase of 10.5% over the (current) Standard Electricity rate.

However, looking at a couple of the comparison websites they point me towards nPower’s Sign Online 12 Electricity (uncapped) tariff as being the cheapest at the moment. I calculate I would pay only £553 over the next year at today’s prices.

So nPower’s electricity prices would have to rise by 62% to match Eon’s capped £893 figure mentioned above.

Given the above figures, it seems a no brainer to switch to nPower immediately, even though I don’t know what their forthcoming price increase will be. I think it’s unlikely they’ll raise them by as much as 62%!

Can anyone see any compelling reason why nPower would be a bad choice? I don’t know what their customer service is like first hand, although some reviews I’ve read haven’t been the best.

Your thoughts very welcome!

JayMT

Just spoken to Eon to get a refund of some money in credit on my account, very good customer service with no problems at all.

My dilemma as detailed above still stands however, as they are still way more expensive than nPower.

Has anyone any comments on:
a) nPower's customer service
b) likelhood of an nPower increase of 62% over the next year...

Maggs14

Hi

Last week (1 Aug) I posted a similar question but although quite a few read it, I did not get any replies!

I am with E-on's standard rate and currently pay £1860 per year. (18595 kwh/year) To cap with E-on (as of last week) would cost approx an extra £200 per year. I can switch to Npower and pay £1120 per year, meaning that Npower would have to increase their price by at least 75% to equal E-on's capped rate.

After much deliberation - same as you - is this too good to be true, etc etc, I have decided to switch to Npower and have done so on-line. I fully expect Npower will increase their price but I think I should save money for a while yet. If not, I will have the opportunity according to Npowers T & C's, to switch to another supplier if you do so within a set timescale.

Had reservations because E-on seems to have better reviews but a current saving of £65 per month/£778 a year cannot be ignored, especially in light of the current economic climate.

If anyone out there thinks I am mad, please advise, as I now have a 7 day cooling off period with Npower!!

Thank you!

space_rider

Have you checked Npower pence per unit etc against Eon`s as there is quite a big difference.

JayMT

Hallo Maggs

Interesting story, and good luck with npower! I've just read some reviews about them on another site and they're pretty bad, lots of horror stories about messed up billing etc. They had a rating of 4/10.

However, I looked at Eon's reviews on the same site - guess what - same low rating and same kind of stories!

I personally have only ever had good customer service from Eon (and their predecessor Powergen), and it will be a shame to have to leave them if I decide to.

So it's difficult to know how to interpret online reviews. It’s possibly because with the sheer quantity of customers these larger companies have the number of bad stories about them are always going to be greater.

The good thing Maggs as you point out is if you do have a bad time with them you can always switch again. Hopefully you won’t need to though.

Spacerider: I compared the unit prices of npower and Eon very carefully, and it’s true that the npower primary units are about 50% more expensive than Eon’s. However, there are slightly fewer primary units, and their secondary units are just under half the price.

It depends how many units you use a year. For 1500 units or less, Eon are cheaper. But by the time you get to 7500 units per year npower are much cheaper, hence all this discussion about the pros and cons of switching!

Maggs14

Hi all

Thanks for your replies. It is comforting to know I am not the only one with these decisions!

Our annual usage is approx 18595 kwh which is huge I know. Unfortunately until we can afford central heating upstairs and a new boiler we have to use electric heaters to keep warm. Hopefully the savings will go into the fund for the above!

Maggs

Lyndz_3

Hi,

I know every company will have its horror stories, but speaking from personal experience I wouldn't touch NPower with a bargepole if I were you.
I had an account with them over a 14 month period, and without fail I had to get every single bill amended as they overcharged, I had to get refunds issued, all sorts of hassle that I had to dedicate time and energy to sorting out as they wouldn't help. I completely closed all accounts on 26th October last year, and am still battling with them almost a year on as they insist that I owe them almost £200 despite me having proof with statements and bills that I paid everything. They even have admitted that this has happened because some incompetent advisor wrongly changed my address details, yet I still have a debt collection agency coming after me?? I've a completely clear, good credit history and that has been ruined because of their mistakes.
Honestly, this is just the tip of the iceberg as far as my dealings with NPower have gone, one advisor I spoke to actually said to me that he was 'disheartened on a daily basis by the inconsistencies within NPower, and he was sick of having to deal with customers who had been lied to'.
As I say, every company probably has good and bad reviews, so really you should just make the best decision for yourself. But be VERY wary of NPower and if you do go with them, make sure you take note of your readings and check all of your bills!
Customer service-wise, if you just have a small query then they tend to be very pleasant and helpful, but if you have any kind of problem or issue then you'll notice a sharp change in the way they treat you!
I hope this is of some help!

Lyndsey

JayMT

Hi Lyndsey

Thanks for your warning, and sorry to hear your tales of woe with npower.

One of the things I intend to do regardless of who I end up with is to watch the meter readings like a hawk and not rely on estimated readings for any bills.

Reading many other stories with problems people have with utilities many of them seem to involve estimated readings building up over a long period, then a nasty surprise when the meter is finally read and an accurate bill issued.