NPower gas 'sculpting'

Sterling

Thanks for the advice Agrajag and DD – however, I have spent the last two days in shear and utter exasperation. I found total confirmation of your respective advice after searching on the ‘techie stuff’ thread. I duly scanned in my table, converted it to a PNG file, put it on ‘Savefile.com’, and pasted in the URL box (http://savefile.com/files/2034392) when requested to do so (for downloading into the post); but all that appeared in ‘Print Preview’ was a small icon/box which would not open. After two days of repeated effort, I have decided enough is enough; I’ll manage without the fancy tables and try and type them in below instead. So here is my post – proper.

As we all know, seasonal weighting or gas sculpting (call it what you will) adds a considerable degree of extra complication to Npower’s gas bills. And when it comes to trying to check if Npower have stayed within the maximum of 4572 high tier units charged over a 12 month period…well, that seriously daunting task puts nearly every customer off; and maybe Npower liked it that way.

True, many people are now turning to spreadsheets in order to unravel their gas bills (past and present); and to see if they are entitled to a refund as regards to the sculpting changes Npower made in 2007. But it occurred to me that out of the estimated 2.2 million Npower gas customers affected by the said changes, there will probably be many who (for one reason of another) do not know how to use a spreadsheet; and who therefore might miss out. So, I wondered if it would be possible to devise a sort of ready reckoner that could take some of the drudge out of doing these checks with just a humble calculator. The two tables A & B below are what I came up with, followed by two examples of how they work.

…………………………………………TABLE A
……………….…………2006……………………2007……………….…….2008
……………..…..Month……..Day…….....Month………Day…………Month……..Day
January………..n/a…………n/a………….631………….20.35……….882……….28.45
February……….n/a…………n/a………….622……….…22.21……….882……….30.41
March……………n/a…………n/a…………..558…………18.00……….272………….8.77
April………………n/a…………n/a…………..448…………14.93…….….271…………9.03
May………………325……….10.48…………381…………12.29………….46…………1.48
June……………..192………..6.40…………381…………12.70…………..46…………1.53
July……………….110………..3.55…………381………….12.29………….46…………1.48
August………….110………..3.55…………381………….12.29………….46…………1.48
September……192………..6.40…………381………….12.70………….46………...1.53
October………..334………10.77…………381………….12.29…………271………..8.74
November……..471……..15.70…………882………….29.40……….882……….29.40
December……..581………18.74…………882………….28.45……….882……….28.45

……………………………………TABLE B
……………….…………2006……………………2007
……………..…..Month……..Day…….....Month………Day
January………..n/a…………n/a………….1736……….8.11
February……….n/a…………n/a…………1988……….8.99
March…………..n/a…………n/a………….2249………-9.23
April………………n/a…………n/a…………1962………-5.90
May………………….0………..1.81…………1785…….-10.81
June……………….56………..6.29…………1450….…-11.17
July………………245……….8.75………….1115…….-10.81
August…………516……….8.75…………...780.……-10.81
September….787……….6.29…………...445…….-11.17
October………..976……….1.52……………110……..-3.54
November……1023……..13.72………………0..…….……0
December……1435……….9.73………………0……….……0



Example 1 – I hope Agrajag won’t mind if I use his bill figures for this example, the high tier units being as follows

Bill 1….02/12/2006…28/02/2007…...1780
Bill 2….28/02/2007…21/04/2007...…..878
Bill 3….21/04/2007…11/06/2007….…..536
Bill 4….11/06/2007…23/08/2007…….…315
Bill 5….23/08/2007…30/09/2007……….220
Bill 6….30/09/2007…23/11/2007......1010
Bill 7….23/11/2007…04/01/2008…….1202
Bill 8….04/01/2008…22/02/2008…….1438 (as corrected from 1483)
Bill 9….22/02/2008…02/04/2008……….503

Now in drafting his claim letter for Agrajag, DirectDebacle selected the year 1st April 2007 to 31st March 2008, and needed to establish the number of high tier units actually included in Agrajag’s bills covering that year. The first thing to see is that none of the above bill dates coincide with the first or last date of the chosen year; and therefore apportionments have to be carried out at both the start and end of the said year. This is easily done using Table A thus.

(a)….The first 21 days of April 07 are contained in bill 2 (28/02/07 – 21/04/07). To find the number of high tier units for the first 21 days of April 07, simply look up the ‘Day’ figure for April 2007 in Table A (14.93) and multiply by 21 = 315.

(b)….The last day of the said year (31st March 2008) is contained in bill 9 (22/02/08 – 02/04/08). To find the number of high tier units from 22/02/08 – 31/03/08 once again from Table A (for the 7 days in Feb (29-22) and 31 in March) we

………find the ‘Day’ figure for Feb 08 (leap year) and multiply by 7 = 7*30.41=213

…....Add the whole of March 08 (see March 08 ‘Month’ figure)......................=272

(Or we could have just deducted the first 2 days in April 08 from bill 9 to give 485)

And from these simple workings the have the high tier units actually billed for the year 01/04/07 to 31/03/0 as follows
…………………………………………………………………………………………………………high tier units
…………………As apportioned above for 31/03/07 – 21/04/07……………...315
…………………Bill 3….21/04/07 – 11/06/07………………………………………….….536
…………………Bill 4….11/06/07 – 23/08/07………………………………………....…315
…………………Bill 5….23/08/07 – 30/09/07…………………………………………..…220
…………………Bill 6….30/09/07 – 23/11/07…………………………………………...1010
…………………Bill 7….23/11/07 – 04/01/08…………………………………………...1202
…………………Bill 8….04/01/08 – 22/02/08 (as corrected from 1483)….1438
…………………As apportioned above for 22/02/08 – 29/02/08…….………...213
…………………As apportioned above for 29/02/08 – 31/03/08…….………….272
…………………………………………………………………………………………………Total….5521
…………………………………………………………………………….………Less maximum…4572
………………………………………………………………………..Excess high tier units….949

By the way, Table A can be used in similar fashion to check the high tier units for current bills; because the 2008 ‘Month’ and ‘Day’ figures apply to 2009 and beyond (at least until Npower makes another change to its sculpting).

Example 2 – Question: Taking into account the two different sculpting changes in 2007, how many excess high tier units in total would have been billed by Npower in the years 14th July 2006 to 13th July 2007, and the following year, 14th July 2007 to 13th July 2008?

This is where Table B comes in handy.

……find the ‘Year’ figure in Table B for July 2006…..……………………………….245
……Ffind the ‘Day’ figure for July 2006 (8.75) and multiply by 13…………..114
………..…Total excess units the year 14th July 2006 to 13th July 2007….359

Repeat the procedure for the following year =1115 + 13*(-10.81)….…..974
…………………………………………………………Total excess for the two years…..1333

Please note – in Example 2 workings, despite obtaining the ‘year’ figure for the opening month, you multiply the adjoining ‘day’ figure by the number of days in the closing month; not in the opening month as you might expect. Here that is 13 not 14; i.e. the 13 days in the closing month of July of each year; not the 14 days in the opening month.

And there you have it.

Edit – Just a line to say readers of this post might find my post #1048 page 53 useful, as it takes this a step further – to the calculation of the amount overcharged. Good Luck.

DirectDebacle

Sterling wrote: »

And there you have it.

Certainly do Sterling.


Excellent ready reckoner. Every npowered gas home should have one. I admire your patience for laboriously typing it out. You should send a copy to Ofgem. I think they could do with one.

Agrajag

Good job Sterling

I prefer a spreadsheet (because I use them all the time)
But these tables make it much simpler, and certainly accessible to someone with a calculator.

System

Data

Bill Period Bill Type Unit Split
Date Days Start Finish High Low Total
2 May 08 91 14 Jan 14 Apr Estimated 1764 2951 4715 note 1
7 May 08 113 14 Jan 6 May Amended 1917 220 2137

1 Aug 08 69 6 May 14 Jun Estimated 103 775 878

31 Oct 08 44 14 Jul 27 Aug Estimated 66 61 127 note 2
“ 46 28 Aug 13 Oct Estimated 164 468 632

25 Nov 08 23 13 Oct 5 Nov Estimated 304 139 443

28 Nov 08 136 14 Jul 27 Nov Amended - - - note 3

24 Feb 09 69 27 Nov 4 Feb Estimated 1979 1196 3175
28 Feb 09 89 27 Nov 24 Feb Amended 2609 447 3056

Notes
1 Both Estimated and Actual Bills start on 14 Jan with an estimated reading of 134, so all Unit Split Totals are taken from the same datum point and are directly comparable.

2 Price Change effective from 28 Aug. High/Low/Total figures can be added for Unit Split analysis.

3 First “Dual Fuel” bill. Complaint made by telephone to npower over “unintelligible” bill - npower claim to have “no record of complaint”.

Analysis

Estimated Bills – Unit Split Amended Bills – Unit Split
High Tariff Low Tariff Total Units High Tariff Low Tariff Total Units
4380 5590 9970 4526 667 5193

In doing the analysis, I can now see DirectDebacle's point. Price Sculpting appears to be an end of charge year reconcilliation between High and Low Tarriffs, but there is no excuse for Npower's failure to make make this clear to it's customers before now - and still not yet to me.:mad:

One important thing that struck me though - if I paid by on the estimated bills by quarterly direct debit, and didn't correct the estimates, look at the difference between the two Totals Units - how much money is that?????:eek:

PS. Stlll got the OpenOffice spreadsheet I wrote for the analysis this afternoon - anyone want a copy please pm me.

DirectDebacle

RigPig683 wrote: »

Data


One important thing that struck me though - if I paid by on the estimated bills by quarterly direct debit, and didn't correct the estimates, look at the difference between the two Totals Units - how much money is that?????

I had a look at your bills. As far as the high rate units go they were not estimated at over 4572 nor were you charged more than that amount over a year. This example at least bears out the assumption that npower so far have not overcharged on the high rate units for those joining them on or after 1/11/07.

However you are quite right to keep checking their estimated bills as they are overestimating on the lower units quite considerably. Your usage suggests to me that it might be worth your while switching your gas account. Almost all of your gas (if the usage you show is a typical year for you) is charged at the higher rate.

If you do switch then, notwithstanding further industry price alterations, August is around the time to start the process. You will then have the advantage of the very low number of high rate units charged over the coming spring/summer months. The switch should complete September/October in time to avoid the murderous winter weighting. You have plenty of time to shop around.

Cardew

I find it very difficult to understand the ‘mindset’ of the NPower executives responsible for the introduction of sculpting(seasonal weighting); they seem to have taken careful aim and shot themselves in the foot!

The sole reason for the introduction of Sculpting is surely to ensure that those customers with very low consumption in the summer do not escape paying their full annual ‘standing charge’.

I suspect this is also a concern to other companies. BG went some way towards combating this problem by reducing their annual Tier1 allocation from 4,572kWh to 2,680kWh and raising the Tier 1 price to compensate.(they did the same with electricity from 900kWh to 500kWh)

The unfortunate effect of NPower’s action was that the already high cost winter bills are loaded with an additional element for the additional Tier1 units.

On the more serious issue, I would love to know if the overcharging caused by the suspension of Sculpting was fully appreciated when it was introduced – conspiracy or C***-Up!

IMO either reason merits an OFT investigation, and if the former, I wouldn’t like to be in the shoes of those responsible.

DirectDebacle

Cardew wrote: »

I find it very difficult to understand the ‘mindset’ of the NPower executives responsible for the introduction of sculpting(seasonal weighting); they seem to have taken careful aim and shot themselves in the foot!

The sole reason for the introduction of Sculpting is surely to ensure that those customers with very low consumption in the summer do not escape paying their full annual ‘standing charge’.

I suspect this is also a concern to other companies. BG went some way towards combating this problem by reducing their annual Tier1 allocation from 4,572kWh to 2,680kWh and raising the Tier 1 price to compensate.(they did the same with electricity from 900kWh to 500kWh)

The unfortunate effect of NPower’s action was that the already high cost winter bills are loaded with an additional element for the additional Tier1 units.

On the more serious issue, I would love to know if the overcharging caused by the suspension of Sculpting was fully appreciated when it was introduced – conspiracy or C***-Up!

IMO either reason merits an OFT investigation, and if the former, I wouldn’t like to be in the shoes of those responsible.

Points to Ponder

31/3/03 Standing Charge 10.89p per day = £39.75 per annum.
Remainder of Gas @ 1.33p pkWh

1/4/03. The Standing Charge is converted to 4572kWh per annum. There is a price increase.

1st 4572kWh @ 2.28p = £104.24 per annum (162.24% rise c/f Standing Charge)
Remainder of Gas @ 1.38p (3.6% rise)


When I left npower before the August price rise last year:

1st 4572 @ 6.323p (177.32% more than 1/4/03) 627% more than 31/3/03.
Remainder @ 1.99p (44.2% more than 1/4/03)

Is there anything in the above figures that could lead npower execs to think a two tier price structure is better than the old Standing Charge? The problem with the Standing Charge is that it was fair, transparent and easily understood by customers. They knew it was for 'fixed costs', everybody paid it and knew how much it would cost. They knew it was separate from the price of gas. Not a satisfactory arrangement for npower is it?:rolleyes: Makes it more difficult to manipulate your prices and in a 'free market', that would never do.

The first 'sculpt' occurs with the price rise on 1/10/04. I'll be extra understanding and call it an accident. Even so, if it was an accident they must have known they had had but failed to report it to customers and make any reparation.

As understanding and forgiving as I am, the second 'sculpt' gives me much more difficulty in seeing it as another accident.

If anyone can be persuaded to investigate this with the vim and vigour required, I too would be interested in the outcome.

Sterling

Cardew wrote: »

On the more serious issue, I would love to know if the overcharging caused by the suspension of Sculpting was fully appreciated when it was introduced – conspiracy or C***-Up!

DirectDebacle wrote: »

As understanding and forgiving as I am, the second 'sculpt' gives me much more difficulty in seeing it as another accident.

Well, the suspension of sculpting in May 07 in favour of a flat rate removed the summer 07 light-weight apportionments of high tier units that would otherwise have balanced out the previous winter’s higher percentages; and clearly that would make Npower extra profit out of many of its customers (who would have been charged for more than 4572 high tier units in 12 months) even without the November 07 change.

Was the November 07 change back to sculpting on the cards at the time of the first change? This question should be put to Npower by Ofgem; along with a request for a full explanation. If it was on the cards, why weren’t customers told at the time of the change in May 07?

As to two changes together, and bearing in mind that even a change of a fraction of a penny to a unit price can make a difference of £millions, I suppose there are two possible scenarios.

1. Npower has a team of accountants and dedicated mathematical experts (with powerful computers) whose job it is to perform the most detailed analysis of any kind of proposed change in prices or price structure, and to forecast the financial implications to the board of directors; or

2. There is no such team. Instead one morning at the directors’ board meeting, one of them says, “Guess what lads – those tweaks to the sculpting have made us an extra couple of hundred million. Who’d have thought it?”

Take your pick. Personally, I rather lean to option 1. I suspect the directors saw the large numbers that were forecast in extra profits, and took the gamble that no-one would notice. And bearing in mind that even Ofgem seems to be out of its depth, thus far, the directors’ gamble seems to be paying off. All they have to do is keep it bland with Ofgem, pay out £1.2million in Mickey Mouse refunds, and “goodwill payments” to anyone smart enough to make a claim. After all, “There won’t be many of those, will there, lads?” I wonder.

DirectDebacle

I am fairly certain when the retail pricing execs turned up for work on 31/10/07 they didn't decide to return to a very aggressive seasonal weighting profile the following day, whilst munching over their hobnobs during a coffee break.

My view is this was premeditated when they were planning the price assault on British Gas. Latest this would be is early Feb. 07.

Very clever what they did. Introduce a price cut in May which was in effect a price rise. Con British Gas customers and no doubt other suppliers customers in switching to them too. Give it till October to ensure the ad campaign has snared as many switchers as possible. Many of the switchers would be moving from suppliers charging an even rate per qtr for high rate units so the switchers would see no difference in the high rate charges to those they were used to. Existing customers would be flummoxed too. They can see the price cut on their bills, high rate units are as unfathomable as usual (since 1/10/04) and bills might be slightly lower. Anyway it's summer and gas bills at their lowest for the year, so who can be bothered?

1/11/07... all customers now delivered a deliberate kick in the groin. Most don't feel the pain until Jan 08. Bills through the roof. Major high rate charges plus a price increase. Nice one npower. I hope you spent your bonuses wisely.

Now it's our turn.

Check out The Times online a bit later today or tomorrow. I am fairly sure there is another article out.

meggsy

We received our first dual fuel bill today covering six months 30th August 08 to 8th March 09. Over the past year we have been charged for 4528 higher tier units however I have searched for the promised discount which appears to be missing :rolleyes:

A letter from npower in September 08 said they had increased the discount from £80 up to £100 from 1/09/08, in our case as existing customers the discount would be £95 March 08 to March 09.

It's not easy being an npower customer is it :mad:
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