NPower gas 'sculpting'

DirectDebacle

Sterling wrote: »

PART 2
(Continued from Part 1) Now – the next step is to get npower to pay it all back.

Oi! Hold your horses. You haven't finished this step yet.:D

You need to work out what the claims will come to not just the actual overcharge.

You have to take into account claims such as mine which took account of the 'sculpt' in 2004/2005 and a recalc of bills from 1/4/2003 or from the date you joined to the date you left up to and including 28/8/2008. Plus expenses. Plus VAT.

Put that in a ready reckoner.:rotfl:

Otherwise top notch, Sterling.:D

Upwind

Dare I say it - a Sterling effort................................I'll get my coat

Can I also add (in addition to Meggsy's message earlier today) that I also plan to send a letter to my MP on two counts. The first to get him to support EDM 1309 - see MPs call for energy price cuts thread started yesterday by MSE Guy and secondly to bring to his attention this debacle by NPower and highlight the possible plight of some of his constituency (especially the old and infirm) who may have also been duped by this scam and may not have the ability or facilities to progress a complaint themselves.


I shall also request QAVS's for DD and Sterling whilst at it - hey, if you don't ask.........!!!

Sterling

DirectDebacle wrote: »

Put that in a ready reckoner.:rotfl:

Thanks DD. Your post certainly made me laugh; but actually you may have something there. I’ll have a look at it – that is to say, I’ll try and knock one up - for the switch from flat rate to sculpting in October 2004 - as a ready reckoner to show the excess units for any 12 month period affected by that change. Thank you for the “footnote” post earlier by the way – much appreciated.

It is by no means too late for people to claim for 2004/5; and (as I think you mentioned in a post not so long ago). If they haven’t kept their bills, they can ask npower for copies; if necessary under the Data Protection Act (or as part of court proceedings – “discovery of documents”). Or best of all (as you suggested) give npower a calculated figure and let npower produce figures (and bills) to show it’s wrong.

Recent posts from long standing npower customers indicate to me that there are probably a substantial number of people who could (and indeed should) claim for any overcharging caused by the change in 2004 as well as the two changes in 2007 (if applicable).

I really wish I could also knock up something similar to assist with Stage 2 claims, but there are so many variables ….but you never know.

And you’re absolutely right - there is also people’s claims against npower for expenses and the like, which I didn’t add in. You know, my leaving stuff like that out probably makes me well qualified to work in an advisory capacity for npower.

Mick_Steel wrote: »

Dare I say it - a Sterling effort................................I'll get my coat

Excellent post, Mick – the more people who write to their MP’s and so forth the better. You are so right; Ofgem have failed the consumer (many being as you say, frail and infirm) – the so-called Ofgem investigation into this matter was a sham - the investigation that never was.

As for QAVS, please forgive my appalling ignorance, but I really have no idea what one is. I have googled the term without success. I hope you don’t mind my asking you to explain.

DirectDebacle

Mick_Steel wrote: »

Dare I say it - a Sterling effort................................I'll get my coat

Can I also add (in addition to Meggsy's message earlier today) that I also plan to send a letter to my MP on two counts. The first to get him to support EDM 1309 - see MPs call for energy price cuts thread started yesterday by MSE Guy and secondly to bring to his attention this debacle by NPower and highlight the possible plight of some of his constituency (especially the old and infirm) who may have also been duped by this scam and may not have the ability or facilities to progress a complaint themselves.


I shall also request QAVS's for DD and Sterling whilst at it - hey, if you don't ask.........!!!

You might like to mention this in your letter.

http://www.politics.co.uk/news/energy/mps-accused-of-ignoring-fuel-poverty-vote-$1283594.htm

Upwind

Nice one DD - I should be able to incorporate that into it somewhere.

Remind me, what do we pay these people for again...........!!?? If we are going to finance their second homes in London etc, surely the least they can do is to turn up for important votes occasionally. I'm guessing fuel poverty doesn't figure high on their agenda at the moment....

DirectDebacle

Mick_Steel wrote: »

If we are going to finance their second homes in London etc, surely the least they can do is to turn up for important votes occasionally. I'm guessing fuel poverty doesn't figure high on their agenda at the moment....

Not as high as bath plugs, apparently.

meggsy

Following on from Ofgems energy probe 2008 Calls for evidence to which some of us on this thread submitted re npower sculpting I see we now have
the 2009 version ..

http://www.ofgem.gov.uk/Markets/RetMkts/ensuppro/Documents1/Energy%20Supply%20Probe%20-%20proposed%20retail%20market%20remedies.pdf

phew more reading material

DirectDebacle

Sterling wrote: »

Thanks DD. Your post certainly made me laugh;

As for QAVS, please forgive my appalling ignorance, but I really have no idea what one is. I have googled the term without success. I hope you don’t mind my asking you to explain.

Queens Award for Voluntary Service. You can nominate me here:
http://www.queensawardvoluntary.gov.uk/

Sterling your calculations for the amount npower may have profited through the sculpting scam are interesting and save to say that they may be a tad high, I would not argue with your result.

However that is only part of what you need to incorporate in Ready Reckoner Mk 2.

We know there was a similar sculpt 2004/5 and this was a flat rate to weighted change as opposed to the May 2007 change (weighted to flat). The original sculpt was repeated Nov 2007, flat to weighted.

Who knows how many customers were affected in 2004/2005. It is something that npower have kept decidedly quiet about. Even in the early stages of my claim where I was threatening court proceedings they were saying that sculpting only started in 2006. It was only by back checking my bills that this sculpt came to light. I was then forced to apply to the court to amend my original summons which only took account of the 2007 sculpt. So npower supplied me with incomplete information that they knew would (and was) put before a court as a basis for a summons. They had every right to contest my application for amendment but chose not to. It was only when I received their statement of defence that they admitted that weighting was brought in on 1/10/2004. However they continued to put out the story that it only started in 2006. It is still little known by many that this was the case.

To estimate how many customers were a victim of the first sculpt is impossible. But add these to those that were victims of the second, May 2007, and we are into some numbers significantly larger than in Sterlings post.

Next we have what I would call npowers mis-selling of their contract. My claim, in addition to the 'sculpt' overcharge on the units, was that, in essence, the contract had not been properly explained to me and it was therefore unlawful and unenforceable. Because of this my claim was that all of my gas should be charged at the price applicable the day before they changed the contract without explaining the changes to me. That date was 31/3/2003. This situation did not change until 28/8/2008 when fuller details of the Primary Block rate and how it was charged were published.

I would contend that, like the mis-selling of PPI, anyone joining npower on or before 28/8/2008 was mis-sold their contract and if worthwhile to them to demand their gas be recalculated at the price it was upon joining and be refunded the difference.

How many would that apply to, customers past and present between 1/4/2003 and 28/8/2008.

It is worth noting that npower had every opportunity to test this matter before a court of law. They declined this opportunity.

If appropriate action were taken against npower on the issues as outlined above then the consequences, in financial terms alone, would be of the utmost prejudice to npower.

The enormity of the possible consequences to npower and the energy suppliers as a whole would not have gone unnoticed by npower and not by Ofgem.

My FOI request has produced little in terms of the investigative techniques employed by Ofgem. There are references to communications and meetings between Ofgem and npower but no record of what took place at those meetings. I wonder why. I would have thought that official meetings between a regulator and those that they were investigating would have had notes/minutes taken. That is normal practice when formal investigations are taking place.

Reticence and unnecessarily withholding information can only add fuel to the fire of suspicion, whether that suspicion is justified or not.

In light of the above I can only come to the conclusion that Ofgem, confronted with such a state of affairs, abandoned their primary and statutory duty to protect consumers. Instead they closed ranks and colluded with npower in a damage limitation exercise. This as much as to protect themselves as npower.

Of course I could be wrong. Ofgem may have played it shrewdly and agreed leniency with npower as long as npower and the remainder of the major suppliers accepted, without fuss, Ofgems long overdue reforms of the regulations to ensure consumers were more fairly treated.

That is the problem when those that are entrusted to look after the masses are not open, transparent and honest in how they do their work. It leads to rumour, speculation and guessing games.

But how Sterling is going to factor this into a Ready Reckoner will be fascinating. If he does it he will be a wealthy man and I would like to be a penny behind him.:D

Sterling

Inspired by DD’s research mentioned in an earlier post that revealed that any of us could file a formal complaint against Ofgem as regards its so-called investigation into npower’s gas sculpting changes etc, I decided to have a go.

If anyone is interested in reading it, I have put it on a holding thread (“npower, Ofgem & Consumer Focus) I used on a previous occasion. This is because it is rather a long document – and would take up too much space here. So long in fact, that it is spread over eight posts. Here is the link to it. It begins at #14

Sterling wrote: »

Here is a copy of my complaint to Ofgem

Here is the letter which went with it.

To:

Ofgem Complaints
Operations Division
Ofgem
9 Millbank
London SW1P 3GE

Sent by recorded “special delivery”

28th April 2009


Dear Sirs

Formal complaint against Ofgem - Concerning Ofgem’s investigation into the Energywatch complaint of 7th March 2008 regarding npower

As you know, the said Energywatch complaint to Ofgem centred upon two changes in 2007 by npower in its methodology for charging customers on its high tier of gas charges, which resulted in affected customers being overcharged. Additionally the said complaint included the lack of notice and transparency given by npower to its customers concerning the said changes to its methodology.

I wish to lodge a formal complaint as to the manner in which the above investigation by Ofgem was carried out.

The basis of my complaint and the grounds upon which it is made are included in the complaint document which accompanies this letter.

I trust you will agree with me that there has been a distinct lack of transparency for the public in the way Ofgem conducted its investigation. I believe such a lack of transparency is not in the public interest, and so I trust you will have no objection to my placing a copy of this letter and my complaint document on the internet where it will be available at the “npower gas sculpting” thread of the forum of moneysavingexpert’s website.

In addition, I will be sending a copy of this letter and complaint document to Peter Luff MP, in his capacity as Chairman of the House of Commons Business and Enterprise Committee, which committee of course may wish to scrutinise the handling of this entire matter by Ofgem at a later date, and to [edit deleted] of Consumer Focus.

Yours faithfully

[Sterling]

DirectDebacle

Excellent complaint Sterling. It won't take Ofgem Complaints Team 10 months to investigate either.

Complaints investigator reads your complaint. Picks up phone and internally dials the Investigation Team.

Complaints, 'Morning, I have received a complaint that you didn't investigate npower and the notification issue properly. Is that correct?

Investigation Team,' No we did an in depth investigation and left no stone unturned.'

Complaints,' Good. I'll let the complainant know'

I should think the letter stating the complaint has been thoroughly investigated and has concluded that the investigation team acted correctly is now in the mail room waiting to be posted to you.

Complaints will be investigated to the same amazing standard as the npower investigation. A quick phone call is more than enough.:rolleyes: