Npower discounts

bendipa

SnowMan wrote: »

Npower know that the comparison sites use a 12 month comparison. That 12 month comparison won't take into account that for the following 6 months the cost will be about £50 higher because of the loss of the accrued direct debit discount for half a year, for someone switching away at the end of the 18 month tarriff.

When a consumer chooses an npower tarriff from a comparison site there is no warning that 'this comparison cost is nonsense because it is not achievable' and so you are wrong to say it is explained quite clearly when you switch.

Npower are aware of this and how it distorts fair comparison. So it is quite clearly a scam. They rely on weak regulation to get away with it..

No it doesn't distort anything in that respect. The problem with comparison sites is where someone like Uswitch include annual comparisons between companies offering fixed tariffs against those offering variable ones The latter often look a bit cheaper if the rates don't change over a year, but of course that isn't usually the case, so it's a bit of a guessing game.

I didn't have to sign on for an extra part of a year nor was I locked in for over a year with Npower. Eg when I switched to them, I chose a tariff in 2011 called Sign-Online 20, which was much cheaper than anything else on offer at the time (after discounts). My contract started on 02/02/2011.. I was told at the outset that I had to stay at least a year or no discounts. I could have stayed longer with them, but NP told me that my plan was now discontinued and their cheapest tariff a year on wasn't quite so attractive compared to Scottish Power. So I just did my 12 months.with NP, got my discount at the end then switched to SP. on the 5th Feb. I have no complaints about NP and certainly don't feel I was "scammed".

SnowMan

bendipa wrote: »

No it doesn't distort anything in that respect. The problem with comparison sites is where someone like Uswitch include annual comparisons between companies offering fixed tariffs against those offering variable ones The latter often look a bit cheaper if the rates don't change over a year, but of course that isn't usually the case, so it's a bit of a guessing game.

I didn't have to sign on for an extra part of a year nor was I locked in for over a year with Npower. Eg when I switched to them, I chose a tariff in 2011 called Sign-Online 20, which was much cheaper than anything else on offer at the time (after discounts). My contract started on 02/02/2011.. I was told at the outset that I had to stay at least a year or no discounts. I could have stayed longer with them, but NP told me that my plan was now discontinued and their cheapest tariff a year on wasn't quite so attractive compared to Scottish Power. So I just did my 12 months.with NP, got my discount at the end then switched to SP. on the 5th Feb. I have no complaints about NP and certainly don't feel I was "scammed".

You are concentrating on your own personal position to make your argument, but I am concentrating on Npower's customers as a whole, many of whom are scammed.

For the fixed term tariffs I mentioned the scam is a real scam for the reason I stated.

The scam could also apply to a variable tariff where there are exit penalties for leaving before a certain date. In the event of a price rise before that end date the exit penalty has to be waived because of the supply rules to ensure fairness. However npower don't pay customers moving away because of a price increase their accrued direct debit discount. And so they are effectively applying an exit penalty and sadly allowed to get away with it. So they can put up prices and charge customers to move away, which is a scam.

Let's remember that the direct debit discount is to reward people who are paying by direct debit which is easier to run and administer. So why should someone staying 18 months get 12 months of discount and not 18? The real reason would seem to be they are using the loss of accrued discount to scam customers.

Other suppliers are more reasonable re their direct debit discounts schemes just using say a flat 6% reduction.

I would be interested in the npower's representative explanation for not giving 18 months direct debit discount for someone moving after 18 months.


Bendipa you make a good and separate point that the way that fixed and variable contracts are sometimes mixed up on comparison sites could lead to confusion.

zerog

Is npower's DD discount applied 1 year after the day you start with them, or 1 year after the date of your first DD payment?

SnowMan

zerog wrote: »

Is npower's DD discount applied 1 year after the day you start with them, or 1 year after the date of your first DD payment?

One year after your contract starts with them providing you pay by direct debit (so 1 year after start and not 1 year after first direct debit). If you switch your gas and electricty at the same time and they end up getting switched on slightly different dates say a week apart (as seems to happen sometimes in the switch process) it is the anniversary of the earlier switch date.

https://customerservices.npower.com/app/answers/detail/a_id/492/

As a new customer, your Direct Debit discount will be credited to your energy account on or before 12 months after the supply start date of your first fuel. This will be your Direct Debit anniversary date.

zerog

SnowMan wrote: »

One year after your contract starts with them providing you pay by direct debit (so 1 year after start and not 1 year after first direct debit). If you switch your gas and electricty at the same time and they end up getting switched on slightly different dates say a week apart (as seems to happen sometimes in the switch process) it is the anniversary of the earlier switch date.

https://customerservices.npower.com/app/answers/detail/a_id/492/

Thanks.. that seems to make it clear then. I've been told 3 different things by their "customer service".

First it was 12 months after the date of the first dual fuel DD payment, because they mucked up the gas switch and I only paid elec for a while.

Then it was "we're sorry we screwed up - as a gesture of good will I shall backdate your DD discount to the date of your first elec DD". :mad:

And after my latest complaint they said it was actually the date they started supplying me, which you have confirmed.

So in ref to my other thread - is the best time to switch away from them 2 weeks before the start date, or can I do it 5 weeks before?