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


  • Are NPower providing a detail breakdown of the over charging so we can check it?

    Also have they included interest on the amount they stole?
  • 1. No, that's what we are trying to find out.

    2. Interest is added @ 6.66% net (8% gross).
  • 1. No, that's what we are trying to find out.

    2. Interest is added @ 6.66% net (8% gross).

    Well how come I have a letter saying they will taken a decision to send me a one off payment of £29.42.

    So how was that arrived at?
  • edited 9 November 2010 at 2:13AM
    4K Posts
    edited 9 November 2010 at 2:13AM
    MSE_Martin wrote: »
    I find your later comment unfair. We did get involved in this - yet rather than doing it ourselves we worked with the official body set up for doing it - Consumer Focus and discussed, provided info, case studies on it - consumer focus has delivered.

    Yet I get increasingly frustrated by the "Martin & his team should've done this" we do not have an unlimited resource of time and team to deal with every issue.

    We are not a publically funded campaigns body. This was an important issue effecting a lot of people which was already being appropriately dealt with by a publically funded body.

    We were involved in discussions with CF who told us that it was being dealt with and would take time. What else you wanted us to do I don't know, but I'm certainly more than happy with what we did and don't believe that duplicating that work was the best focus of our campaigning resources.

    So the fact you get paid commision from the energy companies had no influence on your decision? :rotfl:

    Yes CF are publicly funded but so are OFGEM and we all know they are useless/criminals,
    CF are better but they don't seem to be good enough, partially criminal, perhaps, as opposed
    to OFGEMS blatant and blazen criminality, in my opinon obvious (to avoid any liable claims).
  • Kronkston wrote: »
    Well how come I have a letter saying they will taken a decision to send me a one off payment of £29.42.

    So how was that arrived at?

    Have a look at post #69 on the previous page which should be of help to you.

    We were involved in discussions with CF who told us that it was being dealt with and would take time. What else you wanted us to do I don't know, but I'm certainly more than happy with what we did and don't believe that duplicating that work was the best focus of our campaigning resources

    As far as I know in the 2.75 years the npower gas sculpting thread has been running it was mentioned in one weekly email. We are now in the situation of at least two other threads started by MSE'rs who were completeley unaware of this overcharging until npower notified them of it. Shows you how effective MSE were.

    Now it may be the case that the hard won refunds are not being paid correctly and not one comment from MSE about this either. But if we do expose welching on the refunds I am sure MSE will not be shy in coming forward in trying to take the credit for that.
  • i have also recieved a refund for £44 , after doing an alloborate spread sheet wasting my own time and in theory money i have calculated this in the fairest manner (i could have calculated it more) to be actually £ addition to this i spotted rounding up to the nearest penny,conversion of kwh from cu incorrect and no dual fuel discounts (£90 ) from 12 months ago.
    Aside from the different amount you have I found the same issues when I started looking at my case. When I pursued it I kept the missing DD issue separate, they settled this side (relatively) quickly & gave £75 on top as a 'goodwill' gesture. As for the sculpting... Like others before us they tried to play the game and it cost them.
    WAKE UP SMELL THE COFFEE no explanation from n power on how they calculated the payback because they are yet again trying to pull the wool and rip us off.

    i also assume they could then use the argument that you accepted the refund end of matter.
    Dont think they would get away with this because as you say they fail to inform the recipient of the method used to arrive at the figure.
    from my observations on how obstructive npower have been i can only descibe this multi million pound company as being run by cowboys

    well watch out npower the indians are on your case yet again.
    FWIWs worth, go for it(them). I doubt they would let this go to court & risk more publicity showing them to be dishonest(again).
  • meggsymeggsy Forumite
    741 Posts
    "Consumer Focus urges anyone who thinks they may be entitled to a refund but have not heard from npower by the end of November to call the npower helpline on 0800 975 7938. It particularly urges previous npower customers who have switched supplier and changed address to get in contact if they do not hear from the supplier (these customers may be harder for npower to track down).

    How much can I expect to receive?
    Payments will range from £1 to £100. The average payment will be £35 plus interest and VAT on top. This is a combined £63m of refunds plus 5% VAT and 6.7% interest.

    Is the level of payment accurate?
    Npower has worked closely with Consumer Focus to review its customer accounts and calculate fair payments for individuals. The watchdog said: "We think these payments offer fair recompense for overpayments customers made."
    However, if you still feel you have not been refunded adequately you should contact npower's helpline on 0800 975 7938 in the first instance, and Consumer Direct on 08454 040506 for further advice if you remain dissatisfied.
    Consumer Focus said that if you do dispute the payment, when you call npower you should provide your name, the address at which you were supplied with gas by npower in 2007, the period during which you were supplied, and where possible your npower account number from that period". © Guardian News and Media 2010
  • Since 2007 we have changed supplier, so i was very surprised and happy to receive a letter from N POWER yesterday saying i was owed just over £90, the form was simple to complete online and the payment should be with me within 28 days.
    Started Comping in August 2014

    Wins - A Year's family membership for National Trust / Pudsey the Dog Movie goodie bag / Jack Daniel's Harmonica.
  • npowers full explanation of refunds here:
    We recently announced that we’ll be making payments to some of our gas customers

    How did we calculate the payment amount?

    We’ve taken the maximum possible number of higher-priced units a customer could have been charged following the changes made in 2007. We’ve compared this with 4,572 units per year using 12 month periods around this time based on the anniversary of the date they first joined npower. The payment amount is based on any excess higher-priced units, multiplied by the difference between the rate for the higher and lower priced units applicable at the time. We’ve taken the additional step of including VAT and a sum in lieu of interest in this payment.

    Want to know more?
    Yes please.

    If you have any questions, or would like more details please complete the gas payment enquiry form.

    Did that on 5th October. My enquiry remains unanswered.

    More questions.

    Q. I joined npower on 20/10/2006 as a pre payment meter customer.
    On 1/3/2007 I became a standard tariff credit meter customer and was charged under the two tier pricing system. npower have told me my anniversary date is 20/10/2006. Can you explain why you have not used 1/3/2007? This is the anniversary date of joining the charging system that caused the problem and shows a much higher overcharge than you have calculated.

    Q. I joined npower in June 2006. You have calculated that from my anniversary date to June 2008 you owe me £35.00. This is about half of what I calculate to be due. It appears you have calculated the payment using 2007 prices. All of the excess units were charged by you after the Jan 08 price rise. Why haven't you used these prices to calculate my payment. Are you not willing to fully refund me?

    Q. I have been informed my date of joining was 6/2/2001 and that is the date used to calculate my payment. Two tier pricing wasn't introduced until 1/4/2003 and that is the date you commenced to charge my account under that system. Surely my anniversary date must be 1/4/2003?
    Would there not be around 500k other customers with this date of 1/4/2003?

    Q. Can you calculate this for me. If there were around 500k customers with a 1st April anniversary date and a maximum overcharge of around £70 per customer, how much would this come to. How much would be left of the £63m to compensate the remaining 1.3m customers?

    Q. I was told interest is added at 6.66%. Why is it that this interest appears to be have been added to only one of the 3 years you kept my money. Should not the interest be compound interest and not flat? Why hasn't it been added to all three years.

    Q. Why aren't you providing a precise breakdown of your calculations? I asked for one and was simply told I had been overcharged for 2010 units and that was reflected in my payment. No breakdown or calculations were provided. I calculate your payment is less than it should be but cannot check which method is correct.

    Q. Are npower being totally transparent and honest with their refund policy?
  • I too got the nPower refund letter and was unaware of this problem until then.

    After reading this thread I called nPower to ask for a breakdown of how my refund (£57.45) was calculated.

    I was told my anniversary period ran from 4th April 2007 to 3rd April 2008.

    My total useage was 6514 units which were all charged at the higher rate.

    I should have been charged 4572 at the higher rate so was overcharged 1942 units.

    This I was told equated to an overcharge of £51.28 plus VAT of £6.17.

    From this the average price per unit refunded would be 2.64p.

    It would also appear I have not been paid any interest!

    I told them I wanted to check the calculation before I would accept their payment.
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