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

yelowee

Been with npower for ages and with the winter fix tarif coming to an end this month I was checking comparisons a couple of weeks ago, checking again today the npower tarif that I was going to is now about £100 a year more expensive, on a £330 a year account that is outrageous! I only use 1800kwh of both gas and electricity a year. why should I be punished for watching my energy use?

I also have to ask how in anyone's book can charging a standing charge simplify the bill, a single price per unit would be simplifying it, but swapping a two tier price per unit for another two tier pricing scheme i.e. price per unit (tier 1) + standing charge (tier 2) is not simplifying it. Not happy at all.

bendipa

yelowee wrote: »

I also have to ask how in anyone's book can charging a standing charge simplify the bill, a single price per unit would be simplifying it, but swapping a two tier price per unit for another two tier pricing scheme i.e. price per unit (tier 1) + standing charge (tier 2) is not simplifying it. Not happy at all.

It's just a con and a useful way of extracting a lot more momey out of light users and those who are trying to keep their energy costs down. The real culprit is energy regulator OFGEM, who last year ordered all energy companies to impose standing charges on users if they weren't already doing so. It's not strictly Npower's fault.There are vulnerable elderly people who are low users and have no idea what's about to hit them in their next energy bill.

What I would do is seriously complain to your MP about OFGEM Make a fuss. This regulator is supposed to be protecting the interests of consumers, but in reality do completely the opposite They are an abomination and worse than useless like so many of the other quangos, eg FSA, OFWAT, OFCOM etc..

briskly_2

I'd add to that that I think the real reason Ofgem have the government's blessing for bringing in universal standing charges and scrapping the two-tier system - the complete opposite of a proper green policy, which would have no standing charge, charge a low rate for a reasonable amount of energy and then ramp up the charges for high users - is that the huge cost of wind farms etc can be saddled on every user with the standing charge. This will keep the price per energy unit looking reasonable and politicians will then be able to claim that UK prices are similar to European prices - for example gas might be 3.8p per kWH in the UK and France - even though UK standing charges might be £500 a year or five times those in other countries!

octygone

Not good......will now have to change suppliers...as the buildings my account is linked to only use 22kwh a year it would be quite a hike in prices...up to now they have been paying me to use their electric :-)

joncombe

I have done a calculation on my energy bill at the current prices and again after a standing charge. I've worked out it will be a 28% increase (on top of the existing increases this year). I'm furious about introducing a standing charge which means low energy users pay more and high energy users pay less. It will hit the poorest the worst (those with smaller houses to heat). I have written to NPower, my MP and Ofgem although I doubt it will make any difference. Indeed I think Ofgem just ignore correspondence from individuals. Hopefully the likes of Ebico will continue with no standing charge in whch case I'll switch to them but only after I've had my "one off credit" from Npower over this (which they tell me will be paid in May, so I'll switch right after they pay it).

Nada666

28% - that's low (still irritating, though). Some are facing more like 280% increases.

Inigo_Montoya

Has anybody had any success asking npower not to change them over to the standing charge tariff on 1st May ?

I tried phoning customer services and the person I spoke to 'thought' the change was not optional

Also when I tried to contact them by email they refused to provide a written answer saying I had to phone them

As well as npowers own website there is another article here
http://www.sourcewire.com/news/76864/npower-announces-simpler-tariffs-and-end-of-complex-two-tier-rate
stating that

" ... For the moment customers can stay on their existing, non-standard tariff. However the latest information suggests that new regulations will require all energy tariffs to comply with the new format during the first part of 2014.
..."

joncombe

Inigo_Montoya wrote: »

Has anybody had any success asking npower not to change them over to the standing charge tariff on 1st May ?

Nope, I was told it was their policy to introduce a standing charge on all tariffs from 1st May, hence I've started the switch to Scottish Power as they have no standing charge (for now at least) and for me worked out cheaper than Ebico. I'm on a 1 year fixed deal with promises no standing charge but time will tell if that turns out to be the case.

I have a Freedom of Information request with Ofgem about the requirement to introduce a standing charge. Ebico suggest they have agreement from Ofgem that the standing charge can be zero.

https://www.whatdotheyknow.com/request/requirement_to_introduce_a_stand

As an aside I find the NPower page horribly confusing : http://www.npower.com/tariff-simplification/how-does-this-affect-me/index.htm

For instance it suggests anyone who would be worse off under the new charging system will get a one off credit (how much?) on 1st May if still being supplied by Npower. However the smaller print right at the bottom of the page says:-

However, if you spend less than around £27 on gas and £12 on electricity per month, because you only use a small amount of energy (less than 4,572 kWh gas and 728 kWh electricity in a 12 month period) you will see an increase in your overall costs but you will not receive a credit to reflect this.

If I understand the page correctly it's saying that low users using less than the above amounts WON'T qualify for the one off credit, but I could be reading it wrongly.

Moving on to the graphs on their page it shows a user using £156 of gas over the course of a year on the old system with no standing charge where usage varies between £30 and £2 over the year. Then it shows under their new tariff the person would pay £13 per month throughout the year, still £156 per year. I've been quoted that the standing charge on my tariff will be 49.2p per day including VAT. That means the standing charge for gas will be £179.58 per year before you've even used any gas, so I can't see how they can get away with showing a graph like that and suggesting a user paying £156 before will still be paying £156.

Inigo_Montoya

My understanding of the 'one off refund' is as follows ( I understand it in my head but its not easy to put into words but I will try ) :

Basically it is most definately NOT a refund because you are going to be paying more as a low user

Any refund due is because of the way Npower currently uses 'sculpting' on their non standing charge tariffs i.e. they charge for more KwH units at the higher first tier rate in the winter months i.e. they build in payment for more of the 'hidden' standing charge during the winter months & much less in the summer months

When they switch everyone over to the equivalent standing charge tariff they start charging it evenly throughout the year & remove the 'sculpting'

What this means is that some people who are being forced to switch tariff will have already paid too much of the 'hidden' standing charge due to the very high loading (sculpting) in the winter months

How much of a rebate you get depends on when your 'gas charging year' started
i.e. if your gas charging year includes more months where the 'sculpting load' was higher you will get a bigger rebate & vice-versa

So all we are getting is a rebate to remove this excess payment of the 'hidden' standing charge

We are not getting a refund because we are going to be paying more

knicol46

Npower have decided to change my bill from two charging tiers to one charging rate to make my bill simpler and will charge myself an extra £170 a year for this benefit, even if I switched everything off.

I disagree its simpler system as they just vary the standing charge and kwh rate. If you ask for a smaller kwh rate they apply a higher standing charge. Just as complicated as ever.

They have apparently got a 'tariff simplification helpline'

The company only made £2.5 Billion profit last year.

I am leaving them.