Npower Direct Debit Increase

sheffieldsaddler

On the 25th February I received a letter from Npower stating they were increasing our direct debit from £70 a month to £151 a month!
The first payment would be due on the 28th February!

I obviously phoned Npower and stated that under the direct debit guarantee they had to give me 10 working days notice.

They said they had, as the letter was sent on the 10th February.

Can someone explain how I stand with this?
I received the letter on the 25th February, which according to Npower was sent on the 10th February!

I cannot believe a letter would take over 2 weeks to arrive when I have never had any previous letters from anyone taking this sort of time.

DirectDebacle

Could be that the letter is dated 10th Feb which was a Thursday and not posted until the following week. Why have they doubled your DD?

sheffieldsaddler

I have no idea. I just want to know how I stand in regards the direct debit guarantee. i.e time they "supposedly" sent the letter to when I received it, 1 working day before the new payment amount.

I fail to understand how they worked out my new payment as when explained in the letter I have tried various ways but never come up with the figure they suggest!

My main concern was how I stood with the DD Guarantee in this circumstance.

DirectDebacle

If you are sure that they have not complied with the DD scheme (insufficient notice of a change) then ask your bank to re-call it.

Airmike23

Payment adequecy caused this. Following is an eg. If cost for quarter you have just been billed for, based on accurate meter readings is £500, and dd payments made by you for that period only equate to £360, assuming at the bill previous to current was £0.00 then outstanding balance is £140, power co's billing system then projects ahead (based on the same period year before) cost for coming 6 months, assuming over next 6 months they believe cost will be £700, total that will need to be paid each month over the next 6 dd payments is £840 or £140 a month.

All power co's work on this basis. Bear in mind, unless you have a fixed unit rate tariff with npower, they increased unit rate costs from 4th Jan 2011, it would seem that based on usage £70pm, even if technically accurate as a twelth of total annual cost might be sufficient, only if no balance owing. It would seem bill you had Sept/Oct/Nov 2010 had an outstanding balance, or if in credit was minimal to cover elevated actual cost over winter period, so the bill you have just received is probably behind by a reasonable amount, it is a large increase but if you use the above format you will find that their figures work out. Power co's for mdd paying customers mantra is - no debt after winter - if there is then they will increase dd to clear debt and ensure over the ensuing lower cost months that the monthgly payment you are making will land your Autumn 2011 bill in approx £100/£150 credit, thus allowing a decrease in payment amount from that bill, but with sufficient credit should carry you through winter 2011/12. Alternatively you can pay off the outstanding balance, and eg annual cost based on meter reads and tariff is £1200, ask them to set dd to £100.

Burns most customers up but all the power co's work this way. BG do now have an energy smart version of most of their tariffs where you have the option of paying a fixed mdd or a variable based on the cust submitting reads online each month to be billed accurately month to month. N.B - Not available on Web Saver range of tariffs, BG's cheapest - that is still fixed mdd only.

DD guarantee states yopu should be given 7 working days notice to any changes to your dd before taking effect, Npower's get out clause will be the date of the letter, if the letter is dated 7 working days or more before actual change took effect, that you received it only 1 day before is not their problem as far as they will be concerned