Fleeced by NPower?

daveking66

NPower are currently charging me a larcenous standing charge for gas of 63 pence a day.

This makes my standing charge £20 per month compared with actual gas consumption charge of only £4!

As a low user it's clear that I need to switch to a far more favourable rate asap, but what I want to know is whether there are any grounds for making a case for unfair billing, and reimbursement of overpaid standing charges since I switched provider to Npower in April 2009.

I suspect that I'm probably on shaky ground with this though, and will probably need to put it down to experience, read the small print more carefully next time etc, but my less sanguine side is somewhat miffed about all this unnecessary expense so I'm wondering if it is worth challenging them?

This is a regular meter (not prepayment) and from what I have read it appears that standing charges are normally levied for prepayment meters.

If anyone has experienced similar I'd be interested to hear.

Thanks in advance for your help.

KimYeovil

There are two main types of tariffs - the two-tier tariff and the daily standing charge tariff. It is down to the user to choose the appropriate tariff where one is likely to be more suitable for you than others. As a low user, yes, a two-tier tariff may be better value. But not all suppliers offer a two-tier tariff and not all suppliers offer a two-tier version of each of their tariffs.

You have not overpaid a penny of standing charges. You chose the tariff. Many suppliers are restructuring and seeking to 'punish' low or poor users by expecting them to contribute a fairer amount to the bills. It does not matter whether you use 100kWh or 1,000kWh per month - it costs the same to provide the infrastructure.

Standing charges (and two-tier equivalent) vary and are restructured regularly. Whilst average users see 5% or 9% headline increases the lower users face 70% or 200% increases and even bigger gambles (with annual loyalty bonuses and significant leaving penalties.) It is rubbish but there is not a leg to stand on.

HalloweenJack

why not switch to a newer and better tarrif?

backfoot

I suspect you signed up to this tariff structure from the start,so I have to agree you are stuck with it.

There are cases, however,where these variable tariffs are so variable that I would question their validity. The Companies essentially,under the guise of a price change, also fundamentally alter the structure of the tariff.(re standing charges/first tier units). This can make it completely uneconomic for the customer on that basis alone outside of any price change.

I would like to see someone challenge that and invoke a change of supply without exit penalty, on the basis that there had been an effective change of Contract Terms by the Supplier.

For example, I am a high gas user, and OVO recently dramatically altered the high standing charge to very low and piled huge increases on the unit price. It was for me a totally different product except in name. I switched, but there were no exit penalties or I would have challenegd them.