Advice please - Are Npower trying it on?

PsiDOC

Hi all.
Am I correct in thinking that the way these bills with DD are worked out is buy calculating your Annual useage then divide that by 12 then round up to the nearest £ and then that's the Direct debit for the year?

Here's the lowdown:
Just gone from Npower Signonline 17 to 20 done via DD.
Had my latest bill today and they say they are upping my DD from £59 to £72 a month.

In the "how we work out your bill" part here's where they predict my 6 monthly useage:

Estimated electricity units 365 at 15.980p £58.33
Estimated electricity units 1312 at 9.940p £130.41
VAT at 5.00% on £188.74 £9.43
Estimated gas units 2885 at 5.683p £163.95
Estimated gas units 3866 at 2.580p £99.74
VAT at 5.0% on £263.69 £13.18

That to my mind puts me at 2885 + 3866 x 2 (the "x 2" for 12 months useage) Which puts me at 13502 units which is about 3000 units over and 1000 units over for the period December - June.

Ironically further down on the bill in the "Your annual energy consumption statement for 12 months" they say:
We calculate you use 3,021 kWh of electricity and 10,523 kWh of gas over 12 months. Which is pretty much right and has been since we moved here 2 years ago.
Furthermore they also go on to break that down and explain it which I have quoted below:

Predicted electricity cost
Units (kWh) p/kWh (ex VAT) Amount
Sign Online 20 Standard / Monthly Direct Debit
24 Hour 1st 728 15.980 £116.33
24 Hour Next 2,293 9.940 £227.92
Annual discount / Alternative reward -£45.00
Total electricity charges £299.25
VAT at 5.00% £14.96
Total predicted electricity charges £314.21

Predicted gas cost
Units (kWh) p/kWh (ex VAT) Amount
Sign Online 20 Gas / Monthly Direct Debit
24 Hour 1st 4,572 5.683 £259.83
24 Hour Next 5,951 2.580 £153.54
Annual discount / Alternative reward -£55.00
Total gas charges £358.37
VAT at 5.00% £17.91
Total predicted gas charges £376.28

This calculates out at a DD of Approx £58 and not £72.
Now before I go wading in all guns blazing in the morning I need to be aware of the facts.
Are Npower now calculating on a 6 months basis or a 12 month basis?
Is Npower trying it on?

Sorry for the long winded post but I wanted to appraise you of all the facts I have at hand.

TIA All replies.
Psi

PsiDOC

Just called them and they immediately dropped the DD back to £59 after having a quick look at the account. Ironically they blamed "the computer". I love it when they do this. I point out computers don't make mistakes they follow the instructions programmed into them by a human being.
So yep I guess they were trying it on.
Psi

Airmike23

Yopu're first assumption was right the dd was just to cover you're cost Nov-May, all the big six deal with mdd payers same way, dd amount is reviewed April/May and then again Oct/Nov, and each time dd amended if necessary, but as you have found, if you know 12 payments of a certain amount will cover total cost, they have no reason to up the dd, but their systems are automatically configured to recalc dd amopunts at the above times of year, it's called payment adequecy and came in at end of 2008 after the 2nd price increase all power co's made that year.

JasX

PsiDOC wrote: »

Just called them and they immediately dropped the DD back to £59 after having a quick look at the account. Ironically they blamed "the computer". I love it when they do this. I point out computers don't make mistakes they follow the instructions programmed into them by a human being.
So yep I guess they were trying it on.
Psi

Yes Npower are regulars for 'trying it on'.... They hit me after 6 months with a 'we're going to assume you'll double your annual consumption next year for no particular reason and hike your DD accordingly. As per your experience they quickly collapsed with a single phone call.

davidgmmafan

There is a six monthly and a twelve monthly reassessment the figures will differ. Also on the 12 month forecast the DD discount is included, in the reassessment it isn't, madness I know.

It is frustrating if you are in credit most of the time. Equally there are customers who are in debit now and doggedly object to any increase in the DD amount.

PsiDOC

Thanks all for the replies.
So I was right in thinking that it was a 6 monthly thing. I am in full agreements with all of you. It's a silly thing to be doing and infact now I think about it when I switched to the SOL20 it quoted me at 59.
I wonder how many don't bother to look at their bills and don't realise they are getting stung?
The way they wanted me to pay I'd have been approx 150 in credit by the end of the year with them getting the interest on my money.
Get 500,000 households to do that and that's a heck of a lot of money in their pockets.

Psi

davidgmmafan

"I wonder how many don't bother to look at their bills and don't realise they are getting stung?"

I'm not sure why but most people simply don't look at the bills, then kick off when something is wrong. Its a two way thing. If you assume they are always trying to screw you, and therefore keep a close eye on things, you'll probably catch them out

"The way they wanted me to pay I'd have been approx 150 in credit by the end of the year with them getting the interest on my money."

The interest point I'm less convinced by, every company (I believe) gives discounts for paying by DD. Given the pitiful interest rates on offer by banks how much would you make?

meggsy

I had our twice yearly bill a week ago with a recalculation of the direct debit based on the next 6 months as well, it is on the bill. I was told that the Energy Regulator have advised that they must reassess all direct debit accounts on a 6 monthly basis rather than 12 monthly to stop customers building up debits on their accounts.

They can however if requested recalculate this over 12 months.
This year my DD for dual fuel has been £113 to £175 (one payment as they didn't recalculate when switching tariff) £120 and from Jan 1st £165 based on the next 6 months, I complained and they recalculated over 12 months so DD is now £128. They certainly try it on !

JasX

davidgmmafan wrote: »

The interest point I'm less convinced by, every company (I believe) gives discounts for paying by DD. Given the pitiful interest rates on offer by banks how much would you make?

30% pa on my stocks and shares ISA annual statement this month.... you think npower has all that extra money in a high street cash savings account?

davidgmmafan

Right and Joe Bloggs has one of those...

The point is people say all the time, I could be earning interest. Yes I'm sure the four pence you would get would more thancover the bill...

People don't have to pay by DD, there is a discount for doing so, the bill needs to be paid in any event.