Npower Business Rip-off

joeman_2

Just spent two hours arguing with npower about the stupid rolling contract. Our gas prices doubled and apparently there is no way to exit the contract...

However i did find a way. By changing the use of the property from Business to residential, the contract is broken and they move the account over to the domestic tarrifs with no tie ins. Of course they have no way of knowing if its domestic or business all they have is the address!

So im just about to send them an email and fax and letter all stating that the gas is not used by the business and only used by the residential part of the building... once im on residencial billing i can move away to British Gas with cheaper tarrifs!!

Good Ridence to NPower!!!

ex-energywatch_adviser

Two problems with joeman's method to get out of his contract:

The gas meter type can indicate whether it is business or domestic (supply number for elec.)
A VAT Declaration Form will have to be completed to confirm the change in usage from business to domestic which I believe is forwarded to HMRC as the VAT rate will change.

Does anyone with a tax background know what action would be taken against someone who knowingly claims incorrect VAT rates?

anniecave

The gas or electricity meter type should indeed indicate whether it is a business or residential supply.

There are quite a few of these supplies that are incorrectly listed anyway at any given point in time, mainly due to buildings being converted between residential and business use anyway without the relevant supplier being informed.

If someone really wanted to declare that either the existing information was incorrect, or that there had been a change of use, I doubt that any supplier would investigate too closely, and a VAT declaration wouldn't have to be filled in in these circumstances. Obviously this is fraudulent though, but each to their own!

If they are filing their business accounts at companies house and including payments for a domestic supply, I would hope their accountant asks questions! It would be quite obvious as the VAT rate would be incorrect for a business supply.

With electricity, prices for business have traditionally been better than prices for domestic customers, I don't know the gas industry well enough to know if this is the same there.

djmatticus

Joe has it the bullseye with the business to residential switch. I had a mad arguement with some cocky !!!! with regards to British Gas renewing my contract on the highest rate for two years (without at least telling me the contract was up for renewal!). My only other way was to give 90 days notice near the end of the two year contract. I rand back and told them that the property was residential (true) and that the company was dissolved a long time ago (true). No checks were made and in 40 days I will be on the residential rate (no contract) and then I will change to e.on.

This whole system is a blatant scam. We must fight it as it is killing small businesses.

Hiveoccupier

This is a great thread. Ed Milliband has just asked Labour Party members to input to the next Labour Party manifesto. The whole section of the draft manifesto about business currently says absolutely nothing about small businesses so I had a real go at him about this. One of the big issues I raised was the way that SME's are shafted by regulated industries and of course Banks without having anywhere near the same course of redress as consumers. This thread is packed with evidence to substantiate this point. Thanks all.

GAS_GEEZER

I've known lots of business friends get caught like this. How are we supposed to know about rollovers and closing contracts. It's not just Npower, every gas and electric company does it, as far as I can see. We've started with a broker, the best thing we did. He looks after all that stuff for us, and it doesn't cost us anything - that's the best advice I can give you..... Trust me keeping the date handy doesn't work. it cost me thousands last time I did that. By the time I noticed it wastoo late! AGAIN!....

bubble01_2

Sorry GAS GEEZER but I'm afraid brokers are not charities, they get paid! Maybe not directly by you (by the utility company that they place you with) but ultimately the utility company charges you a higher tariff to cover their costs. There are a number of companies that seek out the lowest possible tariff then charge a fee, this can often work out a better deal than a Free broker.