Ofgem's Retail Market Review - Have Your Say

kelloggs36

NPower confirmed that the reason they charge the majority of the higher tier price for gas in the winter was so that everybody actually paid the higher tier! This is because in the summer some people didn't use enough to use up all the high tier rate, 'to make it fairer on those who did' they did the sculpting. I argued that no other company does this and that they would just accept that the customers didn't pay all of them but not NPower, who want their pound of flesh!

Cardew

kelloggs36 wrote: »

NPower confirmed that the reason they charge the majority of the higher tier price for gas in the winter was so that everybody actually paid the higher tier! This is because in the summer some people didn't use enough to use up all the high tier rate, 'to make it fairer on those who did' they did the sculpting. I argued that no other company does this and that they would just accept that the customers didn't pay all of them but not NPower, who want their pound of flesh!

You can perhaps understand the reason why all companies want to ensure all customers pay more of the 'standing charge'(i.e. tier 1 units in this case).

However I can't think of a more stupid way of achieving this aim. Winter is the time when we all have higher gas bills anyhow and to further increase these bills by paying for more Tier 1 units just adds to the pain!

To achieve the same aim, BG reduced the number of Tier 1 units from 4,572 pa to 2670 and of course increased the price of those units to compensate.

I suspect with the new Ofgem initiative for simpler tariffs, we will move back to the era of a daily standing charge.

Red_sky

kelloggs36 wrote: »

NPower confirmed that the reason they charge the majority of the higher tier price for gas in the winter was so that everybody actually paid the higher tier! This is because in the summer some people didn't use enough to use up all the high tier rate, 'to make it fairer on those who did' they did the sculpting. I argued that no other company does this and that they would just accept that the customers didn't pay all of them but not NPower, who want their pound of flesh!

Yep, just so they can make more money from higher consumption in the winter. They almost sound like they're trying to do us a favour. Personally, I would never use Npower again.

Red_sky

It's a shame George Osbourne didn't cast a windfall tax on the 6 big energy companies. If anybody deserved it they did.

Red_sky

Why on earth should anybody be tied into a fixed term contract when they can move the unit price obviously upwards. And cancellation fees when switching should be made illegal as this is surely anti-competitve.

KimYeovil

Red_sky wrote: »

Yep, just so they can make more money from higher consumption in the winter. They almost sound like they're trying to do us a favour. Personally, I would never use Npower again.

You do have some valid points but take care - you are starting to just rattle off inconsistent contradictions.

One minute you are advocating Ebico - the next minute you are condemning nPower. That makes little sense - if your consumption is low enough to make it worth your while to shop with Ebico then nine times out of ten you will find nPower's seasonal weighting and flat rate £105 discount to be even more in your favour.

Seasonal weighting is cheaper than flat weighting for very low consumers. That is, say you only use one or two hundred kWh per month - with nPower's seasonal weighting you get some tier 2 gas in summer. With other suppliers every kWh you use will be tier 1!

KimYeovil

Cardew wrote: »

You can perhaps understand the reason why all companies want to ensure all customers pay more of the 'standing charge'(i.e. tier 1 units in this case).

However I can't think of a more stupid way of achieving this aim. Winter is the time when we all have higher gas bills anyhow and to further increase these bills by paying for more Tier 1 units just adds to the pain!

More customers, not all. See previous post #57.

And even for those who are not frugal (and not paying by direct debit) surely it is a relief to have a break from the effective standing charges over summer? Why not only pay over winter? These are customers who (by choosing to not have MDDs) are not wanting to spread the costs.

Red_sky

KimYeovil wrote: »

You do have some valid points but take care - you are starting to just rattle off inconsistent contradictions.

One minute you are advocating Ebico - the next minute you are condemning nPower. That makes little sense - if your consumption is low enough to make it worth your while to shop with Ebico then nine times out of ten you will find nPower's seasonal weighting and flat rate £105 discount to be even more in your favour.

Seasonal weighting is cheaper than flat weighting for very low consumers. That is, say you only use one or two hundred kWh per month - with nPower's seasonal weighting you get some tier 2 gas in summer. With other suppliers every kWh you use will be tier 1!

Hello Kim, yes you are right. Npower were cheaper than Ebico on the comparison site but you had to wait 12 months before you received their 105 pound discount by which time they would probably have increased their tariff and on principle I would never use Npower because of my previous experience of their very, very poor customer service. I always view the company's ethos and customer service as well as price.

Casanova

One issue I'm amazed hasn't been mentioned here yet is the amount of time it takes to switch energy companies.

Obviously, after making a switch you get the same electrons down the same wires, and the same gas down the same pipes. The switch is purely administrative. Yet it routinely takes 6-8 weeks for a transfer to be completed - how on earth can this be justified?

If the energy market is to foster successful competition, then switching must be easy. If switching is a hassle and takes months, then customers won't bother and the market ceases to become competitive, which is against the interests of the customer.

Ofgem could and should enforce standards of simplicity and speed for energy companies processing a customer transfer. The form need only be one page of details and readings, and it need take only 7 days to complete the transfer.

Cardew

Casanova wrote: »

The form need only be one page of details and readings, and it need take only 7 days to complete the transfer.

The serial switchers(tarts) on MSE who switch as often as they can for cashback, would support your suggestion;)

52 x £30 x 2(for dual fuel) - a £3,000+ pa income!