MSE News: Npower tops energy best-buy tables with new tariff

Premier_2

notbritishgas wrote: »

Tempted by this as I could apparently save £77 by switching from my SoL10 tariff (if allowed for existing customers).
But looking further I can see a catch. If I enter my current tariff as npower Standard into Energyhelpline it gives a current spend of £1088 and a new spend on SoL17 of £817 with a saving of £271. This is a saving of 25%.
The terms of SoL17 only Guarantee a saving over the standard tariff of 2% until March 2011. This means at any time between now and then they could increase the tariff as long as they do not go above the 2% saving. I guess this could happen as soon as they have snared enough people in.
Am I correct in my reasoning, but I am certain that npower at the kings of underhand tactics.

Theoretically, yes, but remember they can only alter prices if they give you notice and you are free to reject any increases if you don't accept them ... but you will then have to switch away as per their terms.

The inclusion of an early exit fee on what is a variable tariff is a worrying development.

Cardew

Premier wrote: »

The inclusion of an early exit fee on what is a variable tariff is a worrying development.

Most of the 'Big 6' have this on their cheap internet tarifs don't they? BG web Saver etc. Either that or you get a big discount only after you have been with them for 12 months.

I have always assumed it is to prevent serial switching for cashback by 'Tarts'

DirectDebacle

I would rather stick red hot needles in my eyes than go back to npower but out of curiosity thought I would see how their latest wheeze stacked up against my existing supplier.

I am with S.P. Fixed 2011 dual fuel monthly DD. I pay DD £91.00 and anticipate this will produce a slight credit balance by the August anniversary date.

On my usage npower reckon they can save me £52.00 p.a. with a monthly dual fuel DD of £92.35 which includes the £105 annual discount, which seems mathematically optimistic.

Of course as has been mentioned by others the terms are that they guarantee their prices to be 2% below their standard qtrly DD price. At the moment that price is £289 pa more than I am currently paying.

I wonder how long, if were to switch, it would be before I was paying the standard qtrly rate less 2%. That is £283.22 pa more than I am now paying.

I won't be tempted and the needles have cooled sufficiently to put them back in the 'stitch-up' box.

Time Ofgorm sorted these sham tariffs out.

notbritishgas

notbritishgas wrote: »

Tempted by this as I could apparently save £77 by switching from my SoL10 tariff (if allowed for existing customers).
But looking further I can see a catch. If I enter my current tariff as npower Standard into Energyhelpline it gives a current spend of £1088 and a new spend on SoL17 of £817 with a saving of £271. This is a saving of 25%.
The terms of SoL17 only Guarantee a saving over the standard tariff of 2% until March 2011. This means at any time between now and then they could increase the tariff as long as they do not go above the 2% saving. I guess this could happen as soon as they have snared enough people in.
Am I correct in my reasoning, but I am certain that npower at the kings of underhand tactics.

I am not tempted any more!:rotfl:

KimYeovil

I'm confused by old-hands comments on the 20,500/3,300 2% 'assurance'. This is bog-standard, surely? All headline savings are based on this notional use (averaged over a variety of regions). The actual savings and guarantees are always dependent on individual circumstances.

sandiep

Personally, for the last few years I have been with Atlantic. They are never no1 for cheapest supplier for me, usually 3 or 4. However they bill me the right amount based on usage not estimates. The direct debits don't randomly double. The pricing is straightforward and visible. And they answer the telephone within 3 rings with a person that speaks english and can completely resolve any query within minutes.

All in all, that saves me more than the extra couple of quid that i'd get with n-power. Been there once, would never go back.

Cardew

KimYeovil wrote: »

I'm confused by old-hands comments on the 20,500/3,300 2% 'assurance'. This is bog-standard, surely? All headline savings are based on this notional use (averaged over a variety of regions). The actual savings and guarantees are always dependent on individual circumstances.

Kim,
I don't think it is standard phrasing.

It is normal to use the average 20,500/3300 consumption to give a figure for overall charges. e.g. "Our prices have been reduced by £xx and at £yyy we are the cheapest supplier in UK(based on average 20,500/3300 consumption etc)"

Whilst I accept it might be acedemic, the terminology they have used is different.

"Customers on this tariff are guaranteed a 2% lower bill than npower’s Standard cash/cheque bills until 31st March 2011. The guarantee applies to customers with average gas consumption of 20,500 kWh and average electricity consumption of 3,300 kWh, and includes the monthly dual fuel direct debit discount."

At the moment the rate is more than 2% below the standard rate; however the T&Cs allow them to raise the prices so they are 2% below the standard rate at exactly 20500/3300 consumption.

This phrase could mean that a very high user, or low user could, in theory, be paying more than the standard rate, rather than 2% less than the standard rate. Easily achieved by, say, a larger increase in Tier 1 prices or a change in discount structure.
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