MSE News: Npower to pay £70m in refunds after billing blunder

edited 1 October 2010 at 1:48AM in Energy
174 replies 21.4K views
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  • They have to apply this 4572 block of units over a year. If a customer does not use that much then the difference is not carried forward to the next annual block of 4572. Neither can units in excess of 4572 be carried forward to the following year or if less than 4572 are used the 'spare' units deducted from the previous years overcharge.
    This was one of their arguments in both our claims for the years 04/05 & 05/06, and was refuted by us both on the basis you say here.

    The T&C's make no provision to allow them to do this.
    They did not risk testing their argument in court either...:cool:
  • Does the letter say it is in full and final settlement?

    I don't see it matters if it does, if the settlement figure itself is mis-calculated.

    There is also the argument that until the customer is in possession of the full facts, they cannot be expected to make such agreement. Any payment could thus be considered payment on account?
  • UpwindUpwind Forumite
    180 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Not been on MSE for a while but noticed this thread and thought I should also include my update for the record. I have also recently received a letter from No-Power and they have informed me that they intend to pay me an additional sum of around £49.

    This will be in addition to their previous generous 'settlement' from last year, which I managed to 'negotiate' with the help of my good friends Sterling and DirectDebacle - thanks guys.............
  • hgmhgm Forumite
    62 Posts
    Part of the Furniture
    I have just received another letter from nPower which is supposed to be an explanation of the calculation. It leaves me even more mystified. It states:
    6/9/2006 to 5/9/2007 932 excess units value £17.90
    6/9/2007 to 5/9/2008 389 excess units value -£5.34
    They are deducting £5.34 for an overcharge!!!

    I have telephoned again and waiting for them to call me back.

    (Copied from thread on Grabbitt forum)
  • edited 19 November 2010 at 1:52AM
    DirectDebacleDirectDebacle Forumite
    2K Posts
    edited 19 November 2010 at 1:52AM
    Thanks for posting on this thread.
    hgm wrote: »
    I have just received another letter from nPower which is supposed to be an explanation of the calculation. It leaves me even more mystified. It states:
    6/9/2006 to 5/9/2007 932 excess units value £17.90
    6/9/2007 to 5/9/2008 389 excess units value -£5.34
    They are deducting £5.34 for an overcharge!!!

    I have telephoned again and waiting for them to call me back.

    (Copied from thread on Grabbitt forum)

    I did in part explain this in post #110 but will give my opinion in full.

    npower are making the payments based upon how many units you would have been charged under the pre May 07 profile, had it continued, compared to the new profiles introduced on 1st May and 1st Nov. 07.

    By using this method the new profiles show an overcharge each month from May 07 - Feb. 08. From March 08 to Oct 08 the old profile would charge more units per month than the new one which commenced on 1st Nov. 07. This will produce a negative figure which is added to your costs and thus reduces them. In your case it has actually shown a theroretical underpayment. This can only occur if the perverse monthly calculation method is used.



    To emphasise the point previously made in #110 the 4572kWh are the maximum they can charge in a year.

    Your bills have been given an anniversary date of 6th Sept.

    On 1st October, 2006 they changed your profile from 381 or 1143 per month/qtr to a weighted profile. This caused you to be charged 932 units more at the higher rate than you should have been for that year of 6/9/06 - 5/9/07.

    Had they not changed that profile in May 2007 and again in November 2007 then your year 6/9/07 - 5/9/08 would not have exceeded 4572.

    Because of the changes the maximum possible number of units you could have been charged for that year is 4961. 389 more than the 4572 you would have paid for that year had they not made the changes.

    I am of the view that this calculation of monthly rates is a red herring by npower and designed to save them money. How they can tell you that you were charged for more than the 4572 maximum and this equated to you underpaying is something only npower would dream up. more concerning is they are likely to get away with it.

    You need to make this point to npower. The maximum they are allowed to charge in any year is 4572 and in both your years they exceeded that.

    Edit.

    For the year 6/9/07/ - 5/9/08 you would have reached the 4572 maximum on 9/4/08.

    Your P.B. year starts on 6/9/07 with a zero balance. P.B. units are accumulated on a daily basis and appear on your bills as and when they are issued. There comes the point where the 4572 is reached and this should be on 5/9/08.

    npowers method of allocation causes the 4572 to be reached on 9/4/08 therefore all units charged after this time until the end of your P.B. year are excess units. As they are over the 4572 annual maximum they cannot be compared to what you would have paid under the previous profile because that profile could not exceed 4572 and these excess units would not have occurred..
  • trinidadonetrinidadone Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
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    I am not a customer of theres, I switched after terrible service. No information with the letter on calculation. The letter tells me they "need to update there records before the can send me the money" I telephoned them today, i am told I will receive a letter 6 - 8 weeks time to produce at a post office. I then need to produce this letter with proof of name (driving licence or passport), and then I am issued the cash.

    Never will i be a customer with this company again
    Trinidad - The hottest place to go
  • 50Twuncle50Twuncle Forumite
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    I am waiting for the first report of con-artists requesting banking details so they can "pay compensation cheques directly in to your bank" - when all they want to do is help themselves.....

    You have been warned ....
  • meggsymeggsy Forumite
    741 Posts
    I am not a customer of theres, I switched after terrible service. No information with the letter on calculation. The letter tells me they "need to update there records before the can send me the money" I telephoned them today, i am told I will receive a letter 6 - 8 weeks time to produce at a post office. I then need to produce this letter with proof of name (driving licence or passport), and then I am issued the cash.

    Never will i be a customer with this company again

    npower are contacting past and present customers who were overcharged during 2007 - 2008. I am interested to know whether they specifically told you to take licence or passport to the PO because they are recording the numbers which shows up on the receipt, I've asked why they need to do this but waiting for a reply. Suggest you take utility bills and see if they will pay you ;)
  • 50Twuncle50Twuncle Forumite
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    meggsy wrote: »
    npower are contacting past and present customers who were overcharged during 2007 - 2008. I am interested to know whether they specifically told you to take licence or passport to the PO because they are recording the numbers which shows up on the receipt, I've asked why they need to do this but waiting for a reply. Suggest you take utility bills and see if they will pay you ;)

    I was just asked to take 2 forms of ID - They provided a list - including utility bills !!
    They know your name, age, place of birth, mothers maiden name & inside leg measurement anyway - so what are you implying ?
  • hgmhgm Forumite
    62 Posts
    Part of the Furniture
    I have just received a phone call back from nPower with an attempt at explanation. Details are going to be posted to me.
    What I think she said was that the calculation for a billing year is being done by working out how much it would have cost for PB units with the old method of equal months and comparing it with the cost for the year with weighted method. As there was a price increase 4/1/08 it means that fewer units are charged at the new increased price. The effect on the whole year is an undercharge. It didn't matter that more than 4572 were charged if the overall figure was cheaper. Her explanation for that was "It's complicated".
    Even more worrying was her statement that it was a final amount - take it or leave it - I could send a response within 10 days of receiving the breakdown explanation but they wouldn't issue a Deadlock letter to take the complaint further.
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