npower seasonal weighting

blueamigo

I have received a letter from npower today stating that it to start seasonally weighting gas prices to "acurately reflect the amount customers use during different times of the year."

Does anyone know how this works as I can't work out if this will cost me more or less than the previous pricing policy? I'm guessing it will be designed to be more favorable to npower than it is to its customers!

Also, how can they get away with sending the letter changing the terms and conditions of my contract a week after the changes apparently took effeft:mad:

Terrylw1

Hi,

RM have been on strike which means a lot of letters are still lost or delayed. So, do you mean the date on the letter or when you received it?

All they are doing is trying to make your bill more accurate. Other Suppliers do it. They will assess your usage to understand what they should increase it by for your winter period. They will then do the same by reducing it for your summer quarters.

You will find that Ofgem fully support the practice as it is attempting to make your bills more accurate to reflect a season. Energywatch have been quite critical of billing so it's most likely a response to that.

If you want to avoid overcharging there is only one way and it's the same as the current estimation problems that customers get without seasonal weighting.

Take readings and submit them as soon as you get your bill and ask them to amend it to your reading. This makes their estimation more accurate if you cannot provide one later.

Npower have been doing this for years on electricity so they are just bringing the gas side inline.

If you don't give quarterley readings you may be getting overcharged anyway.

Usually if a Supplier has a pattern of usage for you, they will compare your usage to previous years in similiar quarters and attempt to bill out an estimate based on that. Otherwise without previous history, it may be set more to an average for your tariff.

Why not ask them? The actual criteria may be complicated but they should be able to give you an idea.

Terrylw1

Have a look at this thread, seems like this person is having the same problem.

http://forums.moneysavingexpert.com/showthread.html?t=563638

Cardew

For many people it will have no effect on their annual total payment; although it will increase bills in the winter(when we spend the most anyway) and lower summer bills.

The people who lose out are those who use little or no gas in the summer months. They gained in that under the old system if, say, they used no gas in a summer quarter they would 'save' the higher price tier 1,143kWh allocation and only be charged for 3,429kWh(4572-1143) in the year.

Under the new system these people will pay much more at tier 1 rates.

Terrylw1

powerRIP wrote: »

I just phoned the number on the back of the letter to tell them I am switching providers and to ensure I am not affected (subject to the switch). The women I spoke didn't really have a clue about the change but keep "stating categorically" that it would not cost me any more. Eventually she told me that previously they took 8.3% percent of primary units per month but they are making it more during the winter and less during the summer. She was unable to grasp however that that means someone who does not use gas except in the winter will end up paying more. I have also spoken to Scottish Power who confirmed they do not do the weighting. They come to about £120 less a year regardless so I am in the process of switching.

That doesn't surprise me, they didnt used to train this out to their staff from what I've heard.

Other Suppliers are always changing so suggest you keep an eye on any current Supplier as they could all change to this. Ofgem are on a drive to make Suppliers be more customer friendly and when they give out bland statements like that, Suppliers twist it like any business. So, they are making things cheaper in summer and charging you most for when you would need the gas.

Not good in the customers opinion but I'll bet you Ofgem look at it and think "ah, thats nice that they are billing per the usage trend. Thats should help customers in the summer so they don't get all gas at tier 1 prices"