We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Npower £70m giveaway - claim your share Monday 11/10/2010
Options
sirbrainy
Posts: 2,749 Forumite
Npower to pay £70m in refunds after huge billing blunder
Almost two million Npower gas customers will receive refunds that will total a whopping £70 million, over three years after they were overcharged by the energy giant.
The mammoth rebates relate to a billing blunder in spring 2007 which saw 1.8 million users given excessive payment demands (see the Cheap Gas & Electricity guide).
Npower will review the accounts of all affected gas customers at the time to determine how much each will receive. This includes ex-customers who have since switched.
Some 200,000 Npower gas customers were paid a combined £1.2 million in rebates early last year after Ofgem uncovered the blunder, but it has now emerged the energy regulator's intervention fell woefully short.
The new set of refunds will total up to £100 per person but will average £35 plus VAT and interest. Npower will contact all those due cash back over the next two months to offer the rebate so no action is necessary unless you are an ex-customer who has moved home since leaving Npower.
A help line will open on Monday to answer customer concerns on 0800 975 7938.
The climbdown follows a campaign by the Consumer Focus watchdog to ensure victims receive a fair payout. It says refunds will total £63 million, plus £3 million in VAT and £4 million in interest.
Gas customers on business tariffs, a gas pre-payment meter or anyone on the Gas guardian tariff, 2009 Price Fix tariff, Tracker Tariff, 1st steps (social tariff), or the Sign Online 8 tariff were not overcharged so won't get money back. The problem did not affect electricity customers.
Npower says sorry
Npower retail chief executive Kevin Miles says: "We’re sorry that the complexity of the changes we made caused confusion. We’re now doing all we can to improve our communication with customers.
"We have worked closely with Consumer Focus to find an answer to these concerns. We have decided to review every customer’s account for 2007.
"If any customer has paid too much we will make a payment to match the excess. We will add VAT and interest and ignore any benefits from other changes we made in 2007."
Mike O'Connor, Consumer Focus chief executive, says: "We are pleased with the final result. A huge amount of work has resulted in the right thing being done by Npower."
How did this happen?
The billing problems centre on the fact Npower has two tiers of charges, like most energy firms. You are charged more for the first set of units used in a period than when you reach the second tier, at which point the price per unit drops.
In this case, too much of many households' usage was deemed to be in the higher band. However, Npower stresses other changes it made in 2007 offset that loss, sometimes giving households an overall profit, though this won't stop rebates where a customer was charged for too many units in the pricier tier.
Almost two million Npower gas customers will receive refunds that will total a whopping £70 million, over three years after they were overcharged by the energy giant.
The mammoth rebates relate to a billing blunder in spring 2007 which saw 1.8 million users given excessive payment demands (see the Cheap Gas & Electricity guide).
Npower will review the accounts of all affected gas customers at the time to determine how much each will receive. This includes ex-customers who have since switched.
Some 200,000 Npower gas customers were paid a combined £1.2 million in rebates early last year after Ofgem uncovered the blunder, but it has now emerged the energy regulator's intervention fell woefully short.
The new set of refunds will total up to £100 per person but will average £35 plus VAT and interest. Npower will contact all those due cash back over the next two months to offer the rebate so no action is necessary unless you are an ex-customer who has moved home since leaving Npower.
A help line will open on Monday to answer customer concerns on 0800 975 7938.
The climbdown follows a campaign by the Consumer Focus watchdog to ensure victims receive a fair payout. It says refunds will total £63 million, plus £3 million in VAT and £4 million in interest.
Gas customers on business tariffs, a gas pre-payment meter or anyone on the Gas guardian tariff, 2009 Price Fix tariff, Tracker Tariff, 1st steps (social tariff), or the Sign Online 8 tariff were not overcharged so won't get money back. The problem did not affect electricity customers.
Npower says sorry
Npower retail chief executive Kevin Miles says: "We’re sorry that the complexity of the changes we made caused confusion. We’re now doing all we can to improve our communication with customers.
"We have worked closely with Consumer Focus to find an answer to these concerns. We have decided to review every customer’s account for 2007.
"If any customer has paid too much we will make a payment to match the excess. We will add VAT and interest and ignore any benefits from other changes we made in 2007."
Mike O'Connor, Consumer Focus chief executive, says: "We are pleased with the final result. A huge amount of work has resulted in the right thing being done by Npower."
How did this happen?
The billing problems centre on the fact Npower has two tiers of charges, like most energy firms. You are charged more for the first set of units used in a period than when you reach the second tier, at which point the price per unit drops.
In this case, too much of many households' usage was deemed to be in the higher band. However, Npower stresses other changes it made in 2007 offset that loss, sometimes giving households an overall profit, though this won't stop rebates where a customer was charged for too many units in the pricier tier.
0
Comments
-
We had an account with Npower back then and it looks like I will be £35 richer or thereabouts once they pay me back what I was cheated out of.
I feel we deserve a double the difference payout, anybody agree?0 -
As the article you copied stated there is no need to claim unless you have moved house.0
-
"Npower will contact all those due cash back over the next two months to offer the rebate so no action is necessary unless you are an ex-customer who has moved home since leaving Npower".As the article you copied stated there is no need to claim unless you have moved house.
Hiya
It says basically that you dont need to contact npower, unless you moved home. Then you will need to contact them xx0 -
We've moved home ;-)0
-
-
does anyone have a landline number for them other than the 0800 number. I was with npower this time and have moved house thank youHappy days
0 -
does it matter if you have moved but still stayed with them. will i need to claim for the old address please regards amanda0
-
Just a thought is there a way you can work out what they should owe you back as the bills and readings are hard to work out at the best of times. we were with them until this year but now changed and moved in 2006 so that should be fine so I guess we just have to wait to hear from them we will probs be last to get sorted as no longer a customer with them and I am sure they will deal with their current customers first0
-
toddles I'm on the phone withy them right now and the lady said they only have the 0800 number.
try
0191 350 5319
01793 877777
01668 682045
01668 682045
01661 812142
0191 350 5345
and ask to be connected to cs internally0 -
Just rang Npower as we have recently moved and were with them for a part of 2007 and we will be getting £34.xx plus vat plus interest. Should receive a letter with a barcode within 8 weeks to take to the Post Office for the refund.
It is worth ringing them just to check if you will be getting anything.Born and bred in Manchester (proud of it)
Now living on the other side of the Pennines0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards