MSE News: Npower revamps energy bills – but low users could lose out

Former_MSE_Helen

"All Npower customers will soon have a single-rate tariff + a standing charge, but very low energy users could lose out..."

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Npower revamps energy bills – but low users could lose out



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VT82

I think this is a good thing.

• It simplifies bills.
• It means all people transaprently contribute the same amount to fixed costs of distribution and maintenance, rather than the sham of paying for it through the more expensive 'first xx units per quarter', that pretty much everyone gets through anyway.
• It ends the situation where energy seemingly becomes cheaper per unit the more you use, which sends out the wrong environmental message.

I hope this is in place for all providers by the next time I come to switch.

pencekeeper

I got my Npower letter 10 minutes ago, and I am one of those low users affected. I'll be paying more for Gas (+12% or so) if I don't change tariffs/suppliers. Thanks to Npower for simplifying things by charging more and introducing a new charge that I wasn't paying before.

Of course standing charges tend to have the effect of punishing those who seek to reduce their energy use which I was under the impression we were all supposed to be doing. I appreciate some say this is to ensure the distribution costs are covered by every household, but in practice the impetuous to reduce energy consumption below a certain level is now reduced due to this change in pricing.

I don’t use Gas at all for most of the year – and whereas before I submitted timely meter readings to ensure I wasn't charged the primary rate unit allocations for those months, now I’ll be paying for Gas in the warmer months despite zero use.

My letter ends with the ominous “You’ll hear from us again about further changes we’re making throughout the year. We’ve listened to our customers and this is the first step forward in making it easier and simpler for everyone.”. Charging me more might be simpler for Npower but it isn’t easier for me.....

zerog

According to npower's site, all suppliers will need to have a standing charge. Will Ebico be forced to do this too?

I hope comparison sites will show which suppliers have the lowest standing charge as I am more likely to choose them - since my usage is similar to pencekeeper and in the future I will be going abroad for several months a year.

Biscitt

Received my letter today. Not happy, I just changed to nPower to avoid standing charges from EON now it looks like I'll be changing again.

Is there a company out there that does not levy a standing charge? This is the standing charge will add hundreds to my bill.

Simple means simple way for nPower to hike prices.

Wywth

Customers on Npower's standard tariff will automatically receive a one-off payment towards the new fixed standing charge if it transpires they'll pay more on the new system. Npower's website has more details on how this will work.

This only applies to gas customers. There is no credit for electricity customers.

HappyMJ

zerog wrote: »

According to npower's site, all suppliers will need to have a standing charge. Will Ebico be forced to do this too?

I hope comparison sites will show which suppliers have the lowest standing charge as I am more likely to choose them - since my usage is similar to pencekeeper and in the future I will be going abroad for several months a year.

Ebico will not be forced to have a standing charge as they do not have primary and secondary rates.

Wywth

zerog wrote: »

According to npower's site, all suppliers will need to have a standing charge. Will Ebico be forced to do this too?

Ebico have said they have no plans to introduce a daily standing charge (and suggestions are if they are otherwise forced to it will be the grand sum of 0.00p per day )

This is key to their USP

zerog wrote: »

I hope comparison sites will show which suppliers have the lowest standing charge as I am more likely to choose them - since my usage is similar to pencekeeper and in the future I will be going abroad for several months a year.

I think the comparison sites will continue as today to indicate the cheapest annual cost tariffs first, irrespective of how the cost is come by.

If you are a very low user, then tariffs with daily standing charge will probably be at the bottom of the list.

Wywth

Just did a check using the West Midlands supply region as an example (for electricity only)

I note customers on nPower goSave, whilst paying £36.79 per year standing charge can get £42 per year discount for paying monthly by DD plus £5.25 per year for being on goSave.

So £47.25 a year rebate, less the standing charge of £36.79 per year, still leaves a customer making no usage £10.46 in profit every year :beer:

If you are worried about nPower charging high monthly DD amounts when you are not using any electricity, then pick the nPower Standard pay quarterly by DD tariff.

This is as above, but without the £5.25 goSave rebate, so still a customer with no usage will be £5.21 in profit at year end :beer:

Note that npower only pay their DD discounts annually, so no good if you are going to switch mid year.

Consumerist

Wywth wrote: »

Note that npower only pay their DD discounts annually, so no good if you are going to switch mid year.

This will be banned under proposals in Ofgem's Retail Market Review. Discounts will have to be distributed throughout the year

MillicentBystander

Have these new initiatives already found their way onto the switching sites? Reason I ask is in the Yorkshire region on 10,000 Gas and 1650 Electric (OFGEM low figures) npower's standard charge is quite a bit cheaper than their online tariff! Bizarre.