NPower higher rate units loaded to winter months

beefturnmail

Hi there,

I've read all the articles on here regarding npower 'price sculpting' but can't find a specific answer to my query.

I moved house last November and automatically went on a deemed contract with Npower. I switched energy companies within about a week of moving, but due to the time this takes, I ended up paying NPower for gas for about 6 weeks. Anyway, the final gas bill came from Npower last week, and I needed a stiff drink after reading it, as it was much higher than I was expecting!

This is because of the way they have allocated the higher rate units throughout the year. The tariff says that 4572 KWhrs per year will be charged at the higher rate, but 882 units a month are charged during the winter (Nov-Feb), and only 46 units a month, rather than spreading it evenly by allocating 381 (i.e. 4572/12) per month. This means I have been really stung, as I was only a NPower customer during the winter months, meaning I reckon my bill is about 45% higher than it otherwise would have been.

I understand that as the higher rate units are lower in the summer months, it would work itself out if I stayed with Npower for a year, but I was only a customer for less than 2 months (about 15% of the year), but I have been charged 35% of the annaul KWhrs charged at the higher rate. This does not seem fair to me, but can NPower get away with this?

DirectDebacle

Yes. Of course you weren't to know but if you had stayed with them till around August this year then switched, you would have the benefit of the very low summer tier 1 units. Notwithstanding, that it is heartwarming to see customers switching from npower.

Just my opinion.

beefturnmail

The tariff says the first 4572KWhr per year will be charged at a higher rate, so surely if I'm only a customer for 15% of the year (i.e. 2months), then only a 15% of 4572KWhr, should be charged at the higher rate, not 40%!

Seems like a bit of a rip-off to me and I'm annoyed that I've been duped slightly. Do price comparison sights allow for this in NPower's prices. Do other energy companies do this, if so it is more advantageous to switch in the summer?

DirectDebacle

Look here to see how they apply the 4572kWh over the months of the year.

https://customerservices.npower.com/app/answers/detail/a_id/95/session/L3NpZC9ISW5QRS1uaw%3D%3D/kw/primary%20block%20units/r_id/166/sno/1

As far as I know comparison sites are not able to factor in these variables so will just calculate cost of tier 1 units over the annual maximum each company decides to charge. Not all charge 4572.

norapower

npower and ripoff go together like coffee and cream, if you can change suppliers, to quote the Moody Blues, Go Go Now. You will not, to quote Edif Piaff have any regrets.

beefturnmail

yes, I instigated the switch about a week after moving in. Sadly, I was forced to pay their rip-off prices throughout the coldest period in the UK for a lifetime. Now I discover they've ripped me off even further with their seasonal weighting on tier 1 prices. I'm trying to work out whether it's worth disputing this as the seasonal weighting should only fairly apply to customers of a year or longer. What does anyone think - if it's a non-starter I won't bother.

norapower

To save time and effort please write it off, they have phone line staff who will sound very nice, tell you they will look into it and do nothing. Then dear old Sally will get involved give you a contact site and they will do nothing. Its not worth the bother, But remember to tell your family and friends about npower, and never ever get involved with then again.

KimYeovil

beefturnmail wrote: »

I'm trying to work out whether it's worth disputing this as the seasonal weighting should only fairly apply to customers of a year or longer. What does anyone think - if it's a non-starter I won't bother.

There is an argument that a deemed tariff should not be permitted to have seasonal weighting.

There is no case for suggesting that only customers who stay a whole year should face this charge. There is nothing inherently wrong or unfair with seasonal weighting.

beefturnmail

I was on a deemed tariff as I moved in. What would my argument be? - unfair t & c and anti-competitive (as effectively I'm paying a penalty for switching early?). I don't really mind the time and effort as I hate being ripped-off, but I don't want to waste time on futile causes...

notbritishgas

In 2007 npower ripped off most of their customers to the tune of £70 million. It took until 2010 for them to grudgingly pay that back, without actually admitting they had done anything wrong.
In light of that I think you are in for a long slog, without much prospect of success.

undaunted

Did Npower make you aware of the terms & conditions of this so called "deemed contract"?

[FONT=Arial,Bold][FONT=Arial,Bold]EG Standard License conditions http://epr.ofgem.gov.uk/document_fetch.php?documentid=15254 state[/FONT][/FONT]
[FONT=Arial,Bold][FONT=Arial,Bold]

"Condition 23. Notification of Domestic Supply Contract terms

[/FONT][/FONT][FONT=Arial,Bold]

Notification of Principal Terms

[/FONT]

23.1 Before it enters into a Domestic Supply Contract with a Domestic Customer, the licensee must take all reasonable steps to bring the Principal Terms of that contract to the attention of that customer."

See also page 73 onwards

Though getting Ofgem off their backsides to address any failure to comply is another matter!

Npower may attempt to tell you that various Consumer Protection Legislation does not apply to the "Deemed Contract".

This is likely to shortly be tested in Court by another customer who disagrees. Don't expect a quick resolution but please do not just let them get away with it if you feel you have been wronged. Npower appear to rely upon you simply giving in but have already been defeated in Court by one customer who stood up to them :T http://www.which.co.uk/news/2010/10/npower-is-abominable-oppressive-unacceptable-233662/