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I SUED Npower... and I WON.
31st July 2013, Npower's "back billing team" phoned me out of the blue to advise me they had wrongly read my meter since installing it four years earlier. They had been transposing day and night readings on my Economy7 meter, when THEY read it. I was told I owed an extra £3,200, but that they were immediately writing off £2,500 for the first three of these four years as "the rules" only allow them to go back 12 months where the mistake is theirs.
The "rules" referred to are Energy UK's "Code of Practice for Accurate Bills - Back Billing for Domestic Customers."
I told the caller I had paid what had been previously billed, at the price charged on those bills, and had used the same amount of electricity, no more. Npower could not now decide they were going to charge more retrospectively. This would be like a Tesco Manager phoning me to say the bag of sugar I had paid for a year ago should have been 45p more and I must pay the difference. Read your SIMPLE CONTRACT LAW Npower!
She offered me another £200 off the reduced extra charge if I'd like to settle up. I declined her kind offer. She didn't agree with my thinking and said the extra charge would stand.
I complained to Npower in writing (and to the EO, but they said it would take 6-8 weeks for them to grind into motion - forget that!) and at the same time discovered my electricity, if correctly charged going forward, was more expensive than other suppliers. I decided to switch the same day to eon, who told me Npower may block me if my account isn't paid up. Npower's complaints department confirmed I would be blocked.
Npower wrote to me confirming their back-billing rules allow the 12 month prior period to be charged where THEY make a mistake, but reduced the bill by the previously offered £200, so I still owed £500.
In order to escape their clutches, I sent a cheque for the £500 and told them if they cashed it I would issue county court proceedings on the day it was cashed. They did, so I sued that same day.
Npower put in a defence to my claim and so it went to court on 6th January. Npower submitted no evidence and did not show up at court so the judge heard the case in their absence (you still have to prove your case).
The judge agreed with me on my two points: 1/ Npower had submitted no grounds as to why they should be able to increase the charge retrospectively, and 2/ Npower's own T&Cs state. Part A, 6a, "If we increase our prices or make any other change to the terms of this agreement which significantly disadvantages you (for example we increase your prices...) we will tell you about the changes at least 30 days before they begin to apply." The judge agreed the effective date of the price change would be 30 days from the date Npower phoned me, so 30th August. He ruled in my favour and ordered Npower to pay me back what I had been forced to pay them in order to switch supplier, plus costs and travelling expenses. Npower have until... TODAY to pay me (they haven't).
Tomorrow I shall have the delight in applying for a Warrant of Execution (sounds GREAT!) so as to have a bailiff distrain on goods at Npower's head office in Worcester. I want to be there when they go in! Bet you do too!!
There is still a further outstanding charge for the period up to when I escaped Npower's clutches in September 2013. The judge ordered (at my request) that the money Npower owe me should not be credited against my account but repaid to me. Npower have refused to amend this further period in line with the judge's ruling and so I have invited them to sue me for the charge in full, adding that I would be pleased to pay a correctly amended bill as soon as they send it. They still refuse to abide by the judge's ruling. The case continues in respect of this further period charge. I look forward to the court hearing where they try to convince another judge to overrule his colleague's decision. Even better if we get the same judge!
My reasons for taking Npower to court were both to get my money back when it had been paid under duress so as to switch, AND also to try and influence the situation where Npower, and other suppliers I suspect, rely on their own "rules" to bully or cajole customers into paying extra for the supplier's own mistakes. I made the point to the judge that an elderly or disabled consumer may well be delighted to hear that their supplier has written off £2,700 and "only" has to pay £500. "Phew, what a relief" many may think.
Not me.
The "rules" referred to are Energy UK's "Code of Practice for Accurate Bills - Back Billing for Domestic Customers."
I told the caller I had paid what had been previously billed, at the price charged on those bills, and had used the same amount of electricity, no more. Npower could not now decide they were going to charge more retrospectively. This would be like a Tesco Manager phoning me to say the bag of sugar I had paid for a year ago should have been 45p more and I must pay the difference. Read your SIMPLE CONTRACT LAW Npower!
She offered me another £200 off the reduced extra charge if I'd like to settle up. I declined her kind offer. She didn't agree with my thinking and said the extra charge would stand.
I complained to Npower in writing (and to the EO, but they said it would take 6-8 weeks for them to grind into motion - forget that!) and at the same time discovered my electricity, if correctly charged going forward, was more expensive than other suppliers. I decided to switch the same day to eon, who told me Npower may block me if my account isn't paid up. Npower's complaints department confirmed I would be blocked.
Npower wrote to me confirming their back-billing rules allow the 12 month prior period to be charged where THEY make a mistake, but reduced the bill by the previously offered £200, so I still owed £500.
In order to escape their clutches, I sent a cheque for the £500 and told them if they cashed it I would issue county court proceedings on the day it was cashed. They did, so I sued that same day.
Npower put in a defence to my claim and so it went to court on 6th January. Npower submitted no evidence and did not show up at court so the judge heard the case in their absence (you still have to prove your case).
The judge agreed with me on my two points: 1/ Npower had submitted no grounds as to why they should be able to increase the charge retrospectively, and 2/ Npower's own T&Cs state. Part A, 6a, "If we increase our prices or make any other change to the terms of this agreement which significantly disadvantages you (for example we increase your prices...) we will tell you about the changes at least 30 days before they begin to apply." The judge agreed the effective date of the price change would be 30 days from the date Npower phoned me, so 30th August. He ruled in my favour and ordered Npower to pay me back what I had been forced to pay them in order to switch supplier, plus costs and travelling expenses. Npower have until... TODAY to pay me (they haven't).
Tomorrow I shall have the delight in applying for a Warrant of Execution (sounds GREAT!) so as to have a bailiff distrain on goods at Npower's head office in Worcester. I want to be there when they go in! Bet you do too!!
There is still a further outstanding charge for the period up to when I escaped Npower's clutches in September 2013. The judge ordered (at my request) that the money Npower owe me should not be credited against my account but repaid to me. Npower have refused to amend this further period in line with the judge's ruling and so I have invited them to sue me for the charge in full, adding that I would be pleased to pay a correctly amended bill as soon as they send it. They still refuse to abide by the judge's ruling. The case continues in respect of this further period charge. I look forward to the court hearing where they try to convince another judge to overrule his colleague's decision. Even better if we get the same judge!
My reasons for taking Npower to court were both to get my money back when it had been paid under duress so as to switch, AND also to try and influence the situation where Npower, and other suppliers I suspect, rely on their own "rules" to bully or cajole customers into paying extra for the supplier's own mistakes. I made the point to the judge that an elderly or disabled consumer may well be delighted to hear that their supplier has written off £2,700 and "only" has to pay £500. "Phew, what a relief" many may think.
Not me.
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Comments
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Thanks for sharing your story. I can't believe that NPower have been audacious enough to refuse to abide by the judges ruling. I'm sure that will not be looked upon favourably by the court.
Good luck and keep us posted.0 -
Thanks for sharing your story. I can't believe that NPower have been audacious enough to refuse to abide by the judges ruling. I'm sure that will not be looked upon favourably by the court.
Good luck and keep us posted.
Unfortunately, county court rulings are not regarded as "case law" but of course it will stand me in good stead if Npower pursue the further charge. I was rather disappointed they didn't show but I have a feeling they know they are in the wrong and to have turned up with counsel and lost would have been a far greater blow than losing by their absence.
The energy suppliers must be raking in tens of millions of pounds by having these "rules" in place, which are not law, go against simple contract law AND their OWN T&Cs.
When complaining initially, everyone I spoke to at Npower seemed to have been brainwashed into believing their trade rules were above the law.0 -
Good on you for standing your ground and not being bullied by their tactics!0
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Happy for you but npower are legally right here, like many suppliers its simply not worth the cost of working a complaint like this and the amount of people who take it this far are few and far between. So yes point 1 is correct npower didn't show up.
The back billing rules npower have stated are not their own rules they are industry rules set out buy the government.
2/ npower's own T&Cs state. Part A, 6a, "If we increase our prices or make any other change to the terms of this agreement which significantly disadvantages you (for example we increase your prices...)
Npower have not increased your prices or changed your T&C’s they have incorrectly applied your consumption so this statement does not bare any relevance. It doesn't take a lawyer to argue this interpretation is wrong, but as npower didn't send a representative it obviously would not be challenged.0 -
Happy for you but npower are legally right here, like many suppliers its simply not worth the cost of working a complaint like this and the amount of people who take it this far are few and far between. So yes point 1 is correct npower didn't show up.
The back billing rules npower have stated are not their own rules they are industry rules set out buy the government.
2/ npower's own T&Cs state. Part A, 6a, "If we increase our prices or make any other change to the terms of this agreement which significantly disadvantages you (for example we increase your prices...)
Npower have not increased your prices or changed your T&C’s they have incorrectly applied your consumption so this statement does not bare any relevance. It doesn't take a lawyer to argue this interpretation is wrong, but as npower didn't send a representative it obviously would not be challenged.
No, Energy UK's rules are a trade agreement set out by a trade association, nothing more. They are NOT part of the Government.
I have spoken with their Head of Operations, Julian Anderton, who has confirmed this.
Npower have asked me to pay more for the SAME amount of electricity as paid in full previously. The judge went to some lengths to establish I HAD paid for the originally priced units. In what way does having the price of my electricity increased NOT mean my electricity price has increased? The judge fully understood this and fully agreed Npower's 30 day rule applied. Use the Tesco analogy in my first post and you'll understand this is simple contract law too.
I guess you are an Npower mole here? please don't try to take their imaginary side when the law has already been applied by a real judge.0 -
As above.
The rules are not npowers. Unpaid debts can be chased for 6 years in this country, the trade association 12 month agreement is a voluntary one.
The energy was used according to npowers terms and conditions, however the invoice was wrong. They haven't altered your price per kwh whatsoever.
It is not the same as tesco contacting you because they want to charge more for a 45p bag of sugar - it is more like you agreeing to pay 45p for a bag of sugar, tesco mistakenly only taking 25p at the till, and then chasing you down the line for the other 20p.
Tesco would be entitled to chase you for that 20p. However, as in this case with npower, it's simply not worth their time - npowers in-house legal team have probably never seen a courtroom in their life, and the Magic Circle solicitors they use aren't going to turn up at some provincial courthouse for less than 5 figures.0 -
There is no "unpaid debt". Npower sent me bills at the transposed price. I paid those bills in full. The judge understood this and agreed absolutely. What is your legal qualification to disagree with a judge?Bluebirdman_of_Alcathays wrote: »As above.
The rules are not npowers. Unpaid debts can be chased for 6 years in this country, the trade association 12 month agreement is a voluntary one.
The energy was used according to npowers terms and conditions, however the invoice was wrong. They haven't altered your price per kwh whatsoever.
It is not the same as tesco contacting you because they want to charge more for a 45p bag of sugar - it is more like you agreeing to pay 45p for a bag of sugar, tesco mistakenly only taking 25p at the till, and then chasing you down the line for the other 20p.
Tesco would be entitled to chase you for that 20p. However, as in this case with npower, it's simply not worth their time - npowers in-house legal team have probably never seen a courtroom in their life, and the Magic Circle solicitors they use aren't going to turn up at some provincial courthouse for less than 5 figures.
Tesco would have no right to chase me as they would have decided to accept my offer of 25p at the till creating a binding contract. If they say at the till "hang on, it's the wrong price" they ARE entitled to vary the contract and I would need to agree to pay the extra 20p or not complete the contract.
Read up on your contract law. Google it.
Another mole?0 -
This is correct. The Judge may have ruled, but that doesn't mean he was correct. He simply didn't understand the situation.Bluebirdman_of_Alcathays wrote: »The energy was used according to npowers terms and conditions, however the invoice was wrong. They haven't altered your price per kwh whatsoever.
It is not the same as tesco contacting you because they want to charge more for a 45p bag of sugar - it is more like you agreeing to pay 45p for a bag of sugar, tesco mistakenly only taking 25p at the till, and then chasing you down the line for the other 20p.
I'm glad you got the ruling though. My opinion is, their mistake, their problem.0 -
Firstly, good on you for pursuing your case against nPower and the result being in your favour. We read so much negative information on here and in other places, that it's good to see a customer beating them.Npower have asked me to pay more for the SAME amount of electricity as paid in full previously. The judge went to some lengths to establish I HAD paid for the originally priced units. In what way does having the price of my electricity increased NOT mean my electricity price has increased? The judge fully understood this and fully agreed Npower's 30 day rule applied.
It does however sound like you won your case because it wasn't financially worth it for nPower to turn up, even if they could be confident of winning.
They have asked you to pay more for the same amount of electricity, but only because they undercharged you for it in the first place by consistently transposing readings. That does sound like it was totally their fault and you would think that for an isolated case they would just write off the loss and sort things out going forward. However, if you assume that it is by no means an isolated case, then they probably can salvage a bit of money out of the hapless customers by convincing them they've had something for nothing for a long time, but should expect to pay a small part of what they've had for free. No doubt many would pay up and still believe they've won something.
Simple business decision by the nPower we all know....I’m a Forum Ambassador and I support the Forum Team on the In My Home MoneySaving, Energy and Techie Stuff boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
All views are my own and not the official line of MoneySavingExpert.
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This is how it should be, yes, and IMHO how it should be with the suppliers. They are allowed to chase for the money however.No, Tesco would have no right to chase me as they would have decided to accept my offer of 25p at the till creating a binding contract. If they say at the till "hang on, it's the wrong price" they ARE entitled to vary the contract and I would need to agree to pay the extra 20p or not complete the contract.
Chill out. No need to start making accusations. People are just trying to tell you how it is.Another mole?0
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