NPower gas 'sculpting'

Cardew

utigers wrote: »

For me to understand 'sculpting' better. I am assuming that N.Power over a 12 month period cannot charge a high rate once you hit 4572kw and you should remain on the lower rate? This was there failings? Mistake:mad:

That is it in a nutshell.

Your tariff stated firmly that you would be charged for up to 4,572 tier 1 units in a year.

Sculpting( called seasonal weighting) is not the problem as such. All that means is that you are not charged the same number of tier 1 units each month. As long as they didn't charge for more than 4,572 in a year you have no grounds for complaint.

HOWEVER - npower suspended sculpting for a period and charged a flat monthly rate. This meant that virtually every customer was charge considerably in excess of 4,572 tier 1 units in a year.

When this scam was discovered npower decided(retrospectively) that their definition of a year was not 12 months or 52 weeks or 365 days but could be any length of time they wished.(e.g. 200 day 'year') This unique measurement they decided to call a 'tariff Year' and the new year would start from the day they made a price change.

1carminestocky

What's even more disgusting is that Ofgem seem to agree with npower's rather unique interpretation of how long a year can be.

Cardew

1carminestocky wrote: »

What's even more disgusting is that Ofgem seem to agree with npower's rather unique interpretation of how long a year can be.

Or perhaps more to the point, realising that npower's interpretation was indefensible, ofgem decided it would be easier not to address that central issue - which was the complaint made to them by Energywatch - and concentrated on a minor technical issue.

Or at least that is the assumption, because they refuse to release anything under the Freedom of Information act on the grounds it is [STRIKE]embarrassing[/STRIKE] confidential.

DirectDebacle

utigers wrote: »

For me to understand 'sculpting' better. I am assuming that N.Power over a 12 month period cannot charge a high rate once you hit 4572kw and you should remain on the lower rate? This was there failings? Mistake:mad:

The first 4572kWh is charged per annum or year. After a year a new one starts and so does a new block of 4572kwh high rate units. Usually with most suppliers this block of 4572 higher priced units is spread evenly over the year @381kWh per month or 1143 per qtr. This would be known as a flat rate.

npower introduced seasonally adjusted weighting or 'sculpted' method of charging for these units. Instead of charging an even rate for each month they allocated a lower amount for the summer months and higher amounts for the winter, though it should not have exceeded 4572 over a 12 month period. Go here where you can see how the rates are currently applied.

http://npower.com/web/At_home/customer_service/yourquestionsanswered/faq_understanding_my_prices

Every customer would have assumed that 4572kWh per annum meant precisely that. That is per annum or a year is a period of 12 months.

Problems arose when npower changed from the flat rate to a seasonally adjusted method of charging for the 4572. This occurred on 1/10/04, half way through the year of 1/4/04-31/3/05. They had charged 381*6 = 2286 for the first 6 months. Then from 1/10/04 for the next 6 months under the seasonally weighted profile they charged a total of 3196. Total for that year was 5482. This went virtually unnoticed.

They did the same for the year 1/4/07-31/3/08. April 07 was charged at a seasonally adjusted rate of 448.06kWh. They then switched to a flat rate (381 per month) for May-Oct 07 and then on 1/11/07 changed back to a seasonally adjusted charging rate. This was an aggressive rate and was charged as follows , Nov. Dec. 07 and Jan. & Feb 08 were charged at 882 for each month and March 08 was charged at 272. Total for that 12 month year, April 07-Mar. 08 = 6534.

All the relevant charging rates are shown on the link above.

As customers complained, npower sought to justify their overcharging by inventing a 'tariff year'. In effect they were saying that a year is of any length they decided it to be, so no-one was charged more than 4572 in a year. There were, according to npower, at least three 'tariff years' in the period 1/4/07-31/3/08. The concept of a 'tariff' year is discussed in great detail throughout this thread.

That in a nutshell is 'sculpting' and you have been well and truly sculpted.

It seems to me that you were on the usual two tier tariff that was subject to the normal 'sculpting'.

I suggest you use the ready reckoner on the 'how to' thread linked in my signature and work out your bills from 1/4/07-31/4/08. If you are going to make a claim then you will need to be able to provide reasonably accurate figure to support it.

Good luck.

Apologies for the apparent repetition. Carmine and Cardew posted while I was in the midst of typing mine.

Edit: The 'green' should read 1/4/07-31/3/08

utigers

'They did the same for the year 1/4/07-31/3/08. April 07 was charged at a seasonally adjusted rate of 448.06kWh. They then switched to a flat rate (381 per month) for May-Oct 07 and then on 1/11/07 changed back to a seasonally adjusted charging rate. This was an aggressive rate and was charged as follows , Nov. Dec. 07 and Jan. & Feb 08 were charged at 882 for each month and March 08 was charged at 272. Total for that 12 month year, April 07-Mar. 08 = 6534'

I see how you get to this final figure on the ready reckoner as it is applicable for the period I require.

Does this change anything for me,as I assumed when adding up April 07 to March 08 this would come to the 4572? Or is this another N.Power error?

1carminestocky

Cardew wrote: »

Or perhaps more to the point, realising that npower's interpretation was indefensible, ofgem decided it would be easier not to address that central issue - which was the complaint made to them by Energywatch - and concentrated on a minor technical issue.

Or at least that is the assumption, because they refuse to release anything under the Freedom of Information act on the grounds it is [STRIKE]embarrassing[/STRIKE] confidential.

I tend to agree with your summation. I said a while ago that ofgem know this issue is potentially huge and could involve hundreds of millions of pounds in compensation if they *really* looked into this so they consequently chickened out. npower's 'sculpting' scandal is like the energy industry's version of the drunken nutter on the bus.

DirectDebacle

utigers wrote: »

I see how you get to this final figure on the ready reckoner as it is applicable for the period I require.

Does this change anything for me,as I assumed when adding up April 07 to March 08 this would come to the 4572? Or is this another N.Power error?

If I am reading your bills correctly you have received two six monthly bills covering the period 1/3/07-3/3/08.

For the purposes of any claim you make then I would use these two bills as the basis for them and not work out 1/4/07-31/3/08. It considerably simplifies things for you. I would be interested to see how npower explain to you that their own two six monthly bills do not represent a years gas usage but several 'tariff'years worth and therefore you were not overcharged.

All of the different rates of charging used by npower and shown on their page I linked for you, would, if allowed to run for a full 12 months, add up to 4572. Their 'error' as you put it, is because when they change from one method of charging to another they claim that a new 'tariff year' and block of 4572 begins with this change. They may well tell you that from 1/3/07-30/4/07 was the end of one 'tariff' year. Then 30/4/07-31/10/07 was a whole 'tariff' year and from 1/11/07- 3/3/08 was part of the following 'tariff' year.

I would advise that you write to them and simply ask why they have sent you two bills covering a period of a year and 3 days showing charges totalling 6495kWh at the higher rate when they were only entitled to charge up to a maximum of 4572kWh. See what they say. Send all letters recorded delivery.

Sterling

DirectDebacle wrote: »

I would advise that you write to them and simply ask why they have sent you two bills covering a period of a year and 3 days showing charges totalling 6495kWh at the higher rate when they were only entitled to charge up to a maximum of 4572kWh. See what they say. Send all letters recorded delivery.

Actually, I think we may safely take it that npower will simply write back with the usual guff about tariff years and that it has already compensated its customers by virtue of a price cut on 1st May 2007, as it has done on every previous occasion that we know of.

So I would suggest that instead of just writing with a polite enquiry, you could save time by calculating how much npower has overcharged you, plus compensation for the amount of time you have spent on this matter thus far, at an hourly rate of at least £10 per hour. Let’s face it all your calculations and research on the internet takes a great deal of time, which but for npower’s breach of contract, would not have been necessary.

Having finalised a total figure, I would write a “letter before action” setting out your claim in full, and giving npower 30 days from the date of your letter to investigate and settle your claim, adding that failing which you will commence county court proceedings without further notice. As DD rightly advises, any such letter (especially warning of court proceedings) should be sent by recorded delivery.

If you need any help in drafting such a letter (and the calculations) then do feel free to ask.

DirectDebacle

I wouldn't recommend opening your claim with a LBA (Letter Before Action).

If you have a claim then it is usual practice to first write a letter setting out your claim and requesting it be met within a time period of your choosing, as suggested by Sterling, but not as part of a LBA.

There is no way of being able to predict npowers response with any certainty. They may reject your claim out of hand, offer you a derisory 'goodwill' payment or even offer to meet your claim in full plus expenses as part of a more generous 'goodwill' payment. Until they are given the opportunity to resolve the matter no-one knows what their response will be. When you receive that response then you will be in a position to decide what action to take next. This may well involve further negotiations.

Saving time should not be your priority. Acting in a reasonable manner should. Giving npower the opportunity to resolve the dispute before resorting to court action would be viewed as reasonable by a court. Court action is a last resort and should not be entered into until other means of resolution have been exhausted.

If you start your claim with an LBA you immediately limit your options. npowers response, if any, may well leave you the only option of carrying out your threat and issuing court proceedings or dropping the claim. Is this something you are prepared to do?

It is not likely this matter would ever come before a court but the approach should be that it will. It is important that your actions, when presented to the court, will be seen by it to be reasonable.

You can learn more about the LBA and the limited information it should contain, together with a template, here:

http://www.consumerdirect.gov.uk/after_you_buy/making-complaint/template-letters/letter_before_action/

meggsy

npower put us onto twice yearly billing which should be March and September, however as I am now in the habit of sending regular readings I gave an online reading in June. Hey presto, I had a June statement :rolleyes: