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
11213141618

Replies

  • meggsymeggsy Forumite
    741 Posts
    Doshwaster wrote: »
    No idea how they calculated it but it's a nice little surprise considering I haven't been with them for two years.

    Worth the trek to the Post Office.

    Quite a few on here wonder how they are calculating it as well :(

    Luckily my refund was more or less spot on being a March anniversary date.
  • meggsy wrote: »
    Quite a few on here wonder how they are calculating it as well :(

    Luckily my refund was more or less spot on being a March anniversary date.
    One way this will be uncovered is if people ask npower to give them a breakdown of how many units the refund was based on. With the yearly total(s) from their bills (i.e. how many units they were over/'under' charged by in the year) & the tariff they were on at the time people should then be able to work it out & see if there is any discrepancy.

    For those that were on the standard tariff, if the anniversary date falls in May to Oct then both 06-07 & 07-08 should be looked at, for Jan-April just 07-08 & for Nov-Dec its just 06-07.

    As DD has pointed out before, they have no right in the contract to carry over an 'undercharge' to the following year (this should only apply to anniversary dates May to Oct).

    So far there have been a couple of anomalies that defy logic...

    Caveat:
    This is based on limited data. I do not claim to understand the workings of the npower corporate mind...:p
  • I got my £64 from the post office today, nice little bonus!! almost chucked the letter away, thought it was just a come back to us letter!!
  • Firstly apologies for delay in getting back to post this info.

    Have requested copy bills and have the following info for how they were originally charged.

    Bill dated 14/07/2008
    406 @ 5.096 = £20.69
    3003 @ 2.212 = £66.43
    VAT £4.35

    Bill dated 27/03/2008
    285 @ 4.412 = £12.57
    808 @ 1.915 = £15.47 to 04/01/2008
    1870 @ 5.096 = £95.30
    5065 @ 2.212 = £112.04 to 25/03/2008
    VAT £11.76

    Bill dated 14/01/2008
    64 @ 4.412 = £2.82
    31 @ 1.915 = £0.59 to 30/09/2007
    1975 @ 4.412 = £87.14
    2695 @ 1.915 = £51.61 to 25/12/2007
    VAT £7.10

    Bill dated 25/09/2007
    1169 @ 4.412p = £51.58
    153 @ 1.915 = £2.93
    Vat £2.73

    Bill dated 23/06/2007
    648 @ 4.265 = £27.64
    1277 @ 2.399 = £30.64 to 30/04/2007
    670 @ 4.412 = £29.56
    779 @ 1.915 = £14.92 to 23/06/2007
    VAT £5.14

    Bill dated 29/03/2007
    1533 @4.265 = £65.38
    2607 @ 2.399 = £62.54
    VAT £6.40

    I have been offered a refund of £51.28 plus £6.17 for "VAT & Payment in Lieu of Interest"

    I did ask for breakdown of this and all I received was the following:
    Anniversary year 4th April 2007 to 3rd April 2008
    Maximum possible units charged 6514
    Excess primary units 1942
    "Value" £51.28

    Hope this helps with the calcs.
  • edited 9 December 2010 at 12:44AM
    sofa-spudsofa-spud Forumite
    82 Posts
    edited 9 December 2010 at 12:44AM
    scoobysave wrote: »
    Bill dated 27/03/2008
    285 @ 4.412 = £12.57
    808 @ 1.915 = £15.47 to 04/01/2008
    1870 @ 5.096 = £95.30
    5065 @ 2.212 = £112.04 to 25/03/2008
    VAT £11.76

    Bill dated 14/01/2008
    64 @ 4.412 = £2.82
    31 @ 1.915 = £0.59 to 30/09/2007
    1975 @ 4.412 = £87.14
    2695 @ 1.915 = £51.61 to 25/12/2007
    VAT £7.10
    It seems that the bill cut of dates might overlap here as its not clear whether the dates given are the dates used in the bill or simply the date the bill was issued (which are often different). This could make a difference to figures I came up with...

    But based on the data you supply, I reckon you could have been overcharged for 1944 units, but were actually overcharged for approx 1600 units in the year.

    Using the figure of 1942 units your refund appears to be based on apportioning these to each month & thus determining the value. e.g. for Apr 07 you appear to have been overcharged for 60 units at the price difference in force at the time (4.265-2.399) for a cost of £1.12.
    Working this through the year i came out with a figure of £51.33, which is close enough due to certain approximations that have to be made in the spreadsheet...

    Still, you appear to have come out better than others here as it seems you have been 'refunded' the max possible number of units they could have overcharged you for, rather than the actual overcharge.

    This has not been the case in other examples I have seen. Even if you apply your unit OC figure of 1600 to the method of using the max price diff at the end of the year you still come out on top...
  • sofa-spud wrote: »
    It seems that the bill cut of dates might overlap here as its not clear whether the dates given are the dates used in the bill or simply the date the bill was issued (which are often different). This could make a difference to figures I came up with...

    But based on the data you supply, I reckon you could have been overcharged for 1944 units, but were actually overcharged for approx 1600 units in the year.

    Using the figure of 1942 units your refund appears to be based on apportioning these to each month & thus determining the value. e.g. for Apr 07 you appear to have been overcharged for 60 units at the price difference in force at the time (4.265-2.399) for a cost of £1.12.
    Working this through the year i came out with a figure of £51.33, which is close enough due to certain approximations that have to be made in the spreadsheet...

    Still, you appear to have come out better than others here as it seems you have been 'refunded' the max possible number of units they could have overcharged you for, rather than the actual overcharge.

    This has not been the case in other examples I have seen. Even if you apply your unit OC figure of 1600 to the method of using the max price diff at the end of the year you still come out on top...

    Thank you again for your help and advice, good news for me at least! :T

    The dates quoted were the bill dates but were all within a day or two of the reading dates, except on those couple where there was a charge for two periods due to estimated bills and I have added the dates to those i.e.

    Bill dated 27/03/2008
    285 @ 4.412 = £12.57
    808 @ 1.915 = £15.47 to 04/01/2008

    1870 @ 5.096 = £95.30
    5065 @ 2.212 = £112.04 to 25/03/2008


    Hope that is clearer.
  • mcculloch29mcculloch29 Forumite
    5K Posts
    Rampant Recycler
    ✭✭✭✭
    Because of the snow and ice I haven't got around to getting my rebate - £24. I received a letter from npower, reminding me about it and offering to send me another letter if my first one was mislaid.
    I'm just a little bit annoyed that I didn't get it when I could have really done with it, I'm a lot more financially stable now so it won't make much difference.
    Erma Bombeck, American writer: "If I had my life to live over again... I would have burned the pink candle, sculptured like a rose, that melted in storage." Don't keep things 'for best' - that day never comes. Use them and enjoy them now.
  • edited 9 December 2010 at 4:53PM
    sofa-spudsofa-spud Forumite
    82 Posts
    edited 9 December 2010 at 4:53PM
    scoobysave wrote: »
    Thank you again for your help and advice, good news for me at least! :T

    The dates quoted were the bill dates but were all within a day or two of the reading dates, except on those couple where there was a charge for two periods due to estimated bills and I have added the dates to those i.e.

    Bill dated 27/03/2008
    285 @ 4.412 = £12.57
    808 @ 1.915 = £15.47 to 04/01/2008
    1870 @ 5.096 = £95.30
    5065 @ 2.212 = £112.04 to 25/03/2008

    Hope that is clearer.
    It's really only the first & last bills in the period you gave that will make a significant difference as there were different weighting profiles in use. As long as the dates are within a day or so it shouldn't cause a signifcant change in the figures.
    As an aside, could you confirm what tariff you were on & whether this changed around the time please?
  • sofa-spud wrote: »
    As an aside, could you confirm what tariff you were on & whether this changed around the time please?

    I was on the Standard Gas Sign Online 4 tariff throughout the whole time.
  • I received a letter from npower, reminding me about it and offering to send me another letter if my first one was mislaid.
    Interesting, suggests they are tracking payments & are aware of any not cashed then...:think:
This discussion has been closed.
Latest MSE News and Guides

Reclaim payday loans

Get £100s or £1,000s back for being mis-sold

MSE Guides

25% off Dyson eBay outlet

Selected items, via code

MSE Deals