Npower CSR blamed Ofgem

pencekeeper

Hi

Just had a direct debit change from Npower which made my eyes water. This looks to be because they are now setting the DD based on the next 6 months usage rather that the 12 months they did before. And of course we're going into winter so it will be much higher, and then very low during summer.

I phoned them and they said it had to be over 6 months and not 12 so customers didn't get a large debit or credit buildup, and this was based on Ofgem rules implemented in the last few months.

Is this true?

I appreciate for some people this may be better, and after all if you drive your car lots more in one half of the year than the other you pay differing amounts for fuel over both 6 month periods. For me the peak and trough DD system annoying and I really didn't want a 50% increase in DD for Christmas. I'd rather my DD was a 12 month average.

Still, if it really is Ofgem then it isn't Npower's fault (for once).

Also, https://customerservices.npower.com/app/answers/detail/a_id/492 seems to imply it should be set over 12 months:

Winter debit and summer credits

Although you pay the same amount by Direct Debit every month, the amount of gas and electricity you actually use each month will vary. It's likely you'll use more energy in the winter so you may pay for less than the amount of energy you're using. Whereas in the summer we all tend to use less energy so you will pay for more than what you are using. At your Annual Review, it is our aim that you will have paid the right amount for the entire year.

If you've any concerns about your payments, our advisers will be happy to help you.

sniggings

sounds like it could be true, I'm with British Gas, they do the same thing, 6 months then they review it again.

As you say in winter the payments can be shocking, I'm going through this now and was told that they base the payments off your last month usage, good to know in summer my payments will be lower but wasn't the point to build up a credit in summer for the winter?

Bark01

Not true, DD should be based on 12 months. Possibly reviewed every 6 months but each review should be based on 12 months consumption.

sniggings

Bark01 wrote: »

Not true, DD should be based on 12 months. Possibly reviewed every 6 months but each review should be based on 12 months consumption.

I don't know how many times I've told them that and get told that, no it's based on your last month usage, I just tend to ring back until I get someone that isn't in a far off call center,as no harm to them but it's like talking to a robot, you can tell they are reading lines to you, the day before yesterday my DD HAD to be £55 a month, I explained my usage over the last 10 months has been around £30 a month, they said yes but as your usage this month was more we base it on that, he said no way could it be lower, so I just ended the call, rang back got a nice Scottish lady who said £40 a month was fine!

So you maybe right but it's not easy getting that through to some of them.

Homersimpson

I had exactly the same thing tonight, after over an hour trying to get through (although funnily enough I could call the number to move to Npower and speak to someone in under a minute....)


My estimated consumption over the next 12 months based on the last 12 months consumption and my current (fixed) energy cost is £870 P.A. apparently I therefore need to pay £99 per month.

The person I spoke to told me that they would review it in 6 months and it would drop dramatically for the spring and summer months.

Funny thing is that sixth months ago someone from Npower who tried to increase my payment from £80 to £93 told me that my payment needed to be more and it hasn't been the case.

NPower (and most if not all other energy suppliers) are so good at confusing people that they can charge people what they like.

Ba$t**rds

Consumerist

If the direct debit is unreasonable then should make a formal written complaint. This will let them know you mean business. If the complaint is not resolved to your satisfaction or you hear nothing for eight weeks you can refer the complaint to the Ombudsman Service for Energy.

The wording from your quote certainly refers to an Annual Review and to paying the correct amount over the full year. If they are going to charge you according to your varying usage in different periods during the year, one has to question why they use a Direct Debit arrangement at all.

pencekeeper

Thanks for all the replies.

It's interesting that no one has yet confirmed Npower's claims that Ofgem have introduced new rules in the last few months. Given that people are usually pretty clued up on here that gives me serious doubt about this claim and I couldn't find anything on a google search. I may just be looking in the wrong place.

I think I'll email Npower customer service and ask for it in writing, pointing out their own FAQ re DD over 12 months.

Blue264

I'd be very surprised if it's true.

I got my bill yesterday for electricity and it's based on 12 months useage, not 6 mths.Having said that, the bill I received by email yesterday was dated 12 October.

Please keep a very close eye on your direct debit leaving your account. This can mean checking your account every day when you know it's due.
Just saying because £139 was taken from my account when the agreed DD (which I have in writing) was £81.
Also, I was with friends at the weekend who have a large house and 3 young sons. Their DD was set at £145 p.m. but Npower took out £360. My friend didn't realise straight away because a lump sum had been transfered to her account the day before to pay for the family holiday. It's taken her 5 weeks to get the money refunded, in which time, a further £360 has been taken.

As you might guess, I spent a good hour writing a long, stinging reply to their customer service survey. Npower's service over the last 6mths has been the worst I've ever encountered with any utuility provider in the last 30yrs. And I thought BT and British Gas were bad!!!

Bluebirdman_of_Alcathays

DD's should, of course, be based on 12 months usage. Consumption (estimated if unknown) * tariff /12.

The CSR was telling porkies. This unfortunately happens - some of the abuse they take is abominable so it's easier to tell a porkie and clear the line. Telling the truth (and often having to read it verbatim from a script) also irks people, so I do have sympathy for the CSR.

Try and avoid calling these companies where possible - writing is more effective and often cheaper.

tomthered

Claim the money back under Direct Debit guarantee rules. They have to give you 10 working days notice to change a direct debit. If they dont you can ask the bank to reclaim the money. Its quicker than waiting 5 weeks!!

:beer::beer:

Consumerist

pencekeeper wrote: »

It's interesting that no one has yet confirmed Npower's claims that Ofgem have introduced new rules in the last few months. Given that people are usually pretty clued up on here that gives me serious doubt about this claim and I couldn't find anything on a google search. I may just be looking in the wrong place.

As with most believable lies, what you have been told is a half truth.

Ofgem has introduced many of the provisions in its Retail Market Review from 23 October. For example, you now get a 42 - 49 day switching window when a fixed-term tariff is ending. In this window, prices must be held and no early-termination fees are allowed.

Unfortunately, the matter of DDs is kind of skirted around in the Licence Conditions - referring only to the tariffs Ts&Cs, as far as I can see.