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grace period

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onatalux
onatalux Posts: 7 Forumite
npower have just announced that they are introducing a standing charge for gas supply - they have done this to "simplify" billing, it's now going to cost me an extra £165 a year for the priviledge of buying gas from them. I have notified them that I have declined to accept the increase and have contacted a supplier that does not have a standing charge. Does anyone know how long a grace period I have in order to effect that change of supplier before npower can start billing me for a standing charge? Thanks.
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  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    The letter tells you. If you notify them before the end of April and start the switch on the same day you can stay on the old tariff until the switch is complete.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • onatalux
    onatalux Posts: 7 Forumite
    Thank you, but there are no details about notifying them before the end of April in the letter they sent. Nor could they answer my question when I rang them.
  • onatalux
    onatalux Posts: 7 Forumite
    .... I assume that there is a statutory length of time that a utility supplier must allow in order for customers to move before they can effect a price rise. I have a hunch it's 60 days but it's only a hunch.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    It's not going to cost you £165 extra, because the unit rates you pay on an SC tariff are lower. Unless you are a very low user it should make no difference.
    No free lunch, and no free laptop ;)
  • onatalux
    onatalux Posts: 7 Forumite
    I AM a very low gas user - I only use electricity! That's why it's going to cost an extra £165.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    OK. Then you are not actually 'buying gas from them'. But you are costing them money in metering, reading, billing and network maintenance.
    Why not have the supply capped off and the meter removed?
    No free lunch, and no free laptop ;)
  • dogshome
    dogshome Posts: 3,878 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It's my understanding, ( though I've searched Ofgems web site for confirmation without success ), that the Switch from NSC tariffs where the Service Charge was collected by way of a fixed number of annual units at a higher price, to all companies offering only a Daily Service charge tariff, is part of Ofgems drive for simpler billing where all suppliers are singing from the same hymn sheet.

    For customers stuck like you, have a look at EBICO who were good for low users as they never specifically made a Service Charge, but charged all units at a higher price and may be unaffected by Ofgems wishes
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    macman wrote: »
    OK. Then you are not actually 'buying gas from them'. But you are costing them money in metering, reading, billing and network maintenance.
    Why not have the supply capped off and the meter removed?
    Npower is a bit strange in that they pay you to have an unused gas supply so I've been getting £105 back every year for having both gas and electricity and now I'm being asked to pay £156 more each year. It's not worth capping it off. I'll be switching to Ebico and have no charge instead and lose the £60 or so dual fuel discount with Npower....but keep the electric with Npower if it's the cheapest at the end of April.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Nada666
    Nada666 Posts: 5,004 Forumite
    macman wrote: »
    It's not going to cost you £165 extra.

    Yes it can. Gas combi-boiler for hot water and insulated flat not requiring heat means massive inflation in price. Not everyone who loses out does not have a gas supply.
  • Nada666
    Nada666 Posts: 5,004 Forumite
    (And the trouble with Ebico is they are 50% more expensive for the not-targetted market. (And you can spin the calculations to show them to be 500% more expensive than npower's NSC tariffs.))
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