MSE News: Npower sells gas and electricity customers to Utility Warehouse

in Energy
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"Hundreds of thousands of Npower customers will find themselves moved to a new energy supplier next year after it agreed to sell their accounts to Utility Warehouse..."
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Npower sells gas and electricity customers to Utility Warehouse

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  • I was getting worried that some were still in the dark. There really are not enough threads discussing this story.
  • edited 20 November 2013 at 3:33PM
    poochpooch Forumite
    828 Posts
    edited 20 November 2013 at 3:33PM
    MSE_Darryl wrote: »
    "Hundreds of thousands of Npower customers will find themselves moved to a new energy supplier next year after it agreed to sell their accounts to Utility Warehouse..."
    Read the full story:
    OfficialStamp.gif
    Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

    Weren't the 2 subsidiaries that nPower have sold originally owned by Telecom Plus and sold to nPower in 2006?

    If this is correct, then those customers were still being managed by Utility Warehouse/Telecom plus even when the companies were owned by nPower.

    Today, all that has happened is that it has been agreed to sell the two companies back to allow nPower to meet latest Ofgem regulations over the number of tariffs if can offer it customers.

    Perhaps your article title should also include the word 'some' as it could otherwise be alarmist to the many millions of nPower customers that have never had and never will have anything to do with Utility Warehouse / Telecom Plus. ;)
  • edited 20 November 2013 at 4:11PM
    MillicentBystanderMillicentBystander Forumite
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    edited 20 November 2013 at 4:11PM
    It's amazing how many journalists have got this wrong. It seems like the BBC news site is widely plagiarised by the rest of the media as they appear to have got this completely wrong first. The rest is history. It's pretty serious because the share price of Telecom Plus is currently up 16% today and i'm just hoping punters haven't piled in thinking that the comapny now have 770,000 additional customers to the ones they were already servicing making it 1.2 million total. They haven't. Unless I have read this very badly wrong, The Telegraph have got it spot on
    Utility Warehouse is to become the UK's biggest independent energy supplier in a £218m deal to buy its existing customers from npower.

    The company, a subsidiary of FTSE 250-listed Telecom Plus, currently has 770,000 customer accounts - but these are technically owned by 'Big Six' giant npower through subsidiary companies.

    The deal will see Utility Warehouse buy those subsidiaries and become an independent supplier in its own right.

    Utility Warehouse already sets its tariffs and manages its customer service independently under its own brand, so customers should not see a change as a result of the deal.

    npower already supplies wholesale electricity and gas to the Utility Warehouse customers and will continue to do so under a new 20-year supply deal that Telecom Plus said was on more favourable terms.

    http://www.telegraph.co.uk/finance/newsbysector/energy/10461986/Utility-Warehouse-buys-777000-customers-from-npower-in-218m-deal.html
  • poochpooch Forumite
    828 Posts
    Whilst the 770,000 customers will see no difference as they will still have customer services, billing and metering supplied by UW (as they always have done) I guess the rise in share price reflects the fact that UW have repurchased those companies and so can now pocket the profit they make, whereas since 2006 any profit presumably went back to the owner, nPower.

    Of course, the price paid for the companies could affect this, but as it was essentially a shot-gun sale by nPower, I guess the sale price was not as high as it might otherwise have been.

    Or perhaps the market thought UW were going to lose these 770,000 customers completely (which would be a large proportion of those they service) and had already allowed for that in the share price. With this news, that erroneous assumption is perhaps being corrected?

    Who knows how the markets really work? If I did, I'd be giving George Soros a run for his money instead of posting on MSE :D
  • MillicentBystanderMillicentBystander Forumite
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    I'm just hoping people haven't been suckered into buying the shares on the misleading articles put out by some of the less savvy media.

    I do note the Beeb have amended their article now, although it's still not as clear as it should be.
  • edited 20 November 2013 at 6:14PM
    chanz4chanz4 Forumite
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    edited 20 November 2013 at 6:14PM
    This story is flawed, utility warehouse used their license and were run separate. They are just now operating on their own, npower are not selling their customers. UW had their own, but used the npower license
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • MillicentBystanderMillicentBystander Forumite
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    npower technically are selling their customers, it's just that I guess 99.99999% recurring of UW energy customers will have always seen themselves as UW customers and the main point for people to comprehend is that these are not additional customers UW are acquiring, they are just taking over the 'ownership' of the customers they have always serviced for npower (and got commission on, which they will no longer pay hence the improved margins and talk of cheaper prices). This talk in the media of UW now having 1.2 million is frankly embarrassing.
  • chanz4chanz4 Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Xmas Saver!
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    npower technically are selling their customers, it's just that I guess 99.99999% recurring of UW energy customers will have always seen themselves as UW customers and the main point for people to comprehend is that these are not additional customers UW are acquiring, they are just taking over the 'ownership' of the customers they have always serviced for npower (and got commission on, which they will no longer pay hence the improved margins and talk of cheaper prices). This talk in the media of UW now having 1.2 million is frankly embarrassing.

    they would never of had contracts with them, only UW. Its like the other small ones..oh what will we all do was 6 now 7 main players with mse ban the talks
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • So much for transparency. I had no idea. Do we not have any contractual rights? Such cavalier and arrogance beggars belief.
  • All please note this on npower website today 2/12/13: (this is verbatim and a massive understatement)
    "We've had some problems with our computer system
    We've been installing a new computer system. As we’re responsible for managing the data relating to over 5.4 million customer accounts, that’s a huge piece of work for a business as big as ours.
    Unfortunately, despite our best efforts, the installation didn’t go as smoothly as planned. The transfer to our new system caused problems we weren’t expecting with some of the letters and bills we send out. We can’t be more open and honest than that.
    We apologise to everyone who has been inconvenienced by these problems.
    Our promise to you:We’re putting things right as quickly as we can.
    We know no one likes it when things go wrong, but we’ve started contacting everyone whose bill was delayed by 3 weeks or more, and we’ll keep you fully updated about the progress we’re making.
    If you are concerned about payment in the light of any delays or other issues relating to our systems, please contact us. Where a bill has been delayed, or where there is debt on an account due to an error in our billing system, we will offer longer repayment periods.
    We want you to have complete confidence in us as your energy provider. That’s why we’re being so transparent about what’s happened. We’re making two heartfelt promises now to every npower customer in the UK:
    First, we will extend the payment period where a bill has been delayed.
    Second, we're sorting out the problems as fast as we can.
    You’ll see us building a better business as a result. The truth is, we can’t fix everything overnight – but we’re working hard. We’ll keep customers up to date with the progress we’re making, and we value your feedback about the way we’re handling things."

    I have just switched in October and npower got my accounts wrong and the website currently shows my account but no tariff and also that my account is closed despite receiving posted Welcome packs!
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