DirectDebacle wrote: »
Not easy to answer so I will try to explain.
The money you have received is for an overpayment you made back in 2007/8. At that time you were almost certainly charged for the correct amount of gas you used (units or kWh, same thing) but some of those units were charged at the incorrect price.
You are probably aware that your gas is charged at two prices. The higher price is for the first 4572kWh per year. Gas used over this amount is charged at the lower price.
Usually this 4572, known as the Primary Block, is spread evenly over the year. That would be 381kWh per month. So in the summer you use little gas say 200kWh in a month then all of these will be charged at the higher price. In the winter say you used 581kWh in a month then 381kWh would be charged at the higher price and the remaining 200kWh are charged at the lower price. Very few people are billed monthly so a quarterly bill usually will show a larger number of units at each price than in my example.
In May and November, 2007 npower changed the way they allocated the amount of Primary Block units to each month. This meant that over a 12 month period many (1.8m) customers were charged for more higher priced units than they should have been. After a long battle npower are finally refunding the overpayments.
Despite campaigning by The Times and a huge npower 'gas sculpting thread' on this forum it appears many customers were unaware of what happened and are finding this payment a surprise, as in your case.
Back to your question, 'how was it calculated'. The answer at the moment is we are not absolutely sure as npower have given no information for customers to be able to check.
What they have said is that they are calculating payments using a customers anniversary date (the date you joined them) and using 12 months from that date calculating if more than 4572 were charged at the higher rate. If so the refund is the amount of units overcharged * the difference between your 2 prices plus VAT plus interest.
I could do a close calculation of what you were due if I knew your start date with npower and a close estimate or better still billing details of your annual consumption of gas.
Everyones payment will be different. It depends on your start date, how long you were with npower and for what period of time and what the prevailing price differentials were. In short it is almost as convoluted as the method they used to cause it in the first place.
However it is important to be able to check because for some customers it could mean a big difference between what they are receiving and what they should be receiving.
metoyoubear wrote: »
Thank you,i've kept all my bills,my first Gas bill from Npower is dated December 04 and it shows it started November 04
I'm not sure about the annual consumption of gas though ?
kittykitty60 wrote: »
How do you know if you were overcharged? Will they just refund you automatically if you were? Or do you need to contact npower?
Use one-by-one to get lots of discounts
Shift existing card debt to 0% interest for up to 31 months
What this means for you