NPower gas 'sculpting'

meggsy

Taffyscott, my head is in a whirl too .... I've just copied this from the BBC Watchdog report ...

"Npower claims it will charge its gas customers for no more than 4,572 premium rate units per year. John Stanley contacted npower in January 2008 when he noticed he’d been charged for more than 4,572 units in the previous year. The company explained to John that it doesn't go by calendar years, but tariff years, which run from whenever it raises prices. Having raised the prices in April 2007 and again in January 2008, its last tariff year therefore, only ran for nine months. John complained that this system was unfair as he’d lost out, but has received no money back from npower.
Npower apologises for the problems and explains that last year it finished moving all its customers onto a new billing system, and says "this was a massive and complicated exercise and we are pleased that service levels are now improving". While it admits some customers might have been charged more high rate units than they should, it says it compensated for this by setting lower follow-on rates".

I mailed them more than a week ago now as my account is 2037 over the 4572 units, still awaiting a reply :rolleyes:

mute_posting

meggsy wrote: »

While it admits some customers might have been charged more high rate units than they should, it says it compensated for this by setting lower follow-on rates

That's a bit like saying "sorry we clubbed you around the head with a baseball bat but we took you to A&E - aren't we nice?"

Taffyscot

Legally when is a year not a year? Can we say we won't pay income tax from Sept to April as we have had a pay raise or price increases in food? I do not think so. How the hell can a year be when they decide? So all they have to do is say they are dropping their rates by 1 penny -" look at us cutting our rates"- and then start a new tariff!!!!!!!!!!!!!!! How the hell can the government let this go on. Legally how can they set a year whenever they like? I think the government is to blame for hiding it's head in the sand regarding these issues.
What can we do besides moaning on here? This is sickening, I am so angry at the complete set of lies I was told on accepting Npower as my utility supplier. I had no idea at all of such a practise going on but what is ironic is that I categorically asked if that is the high rate for one year is that divided in half for 6 months and by 4 for a quarter etc. I was assured that is how my account would be worked out. Grrrrrrrrrrrrr
Taffy

Anne3333

I have now supplied my evidence to Ofgem and included the following;
Please find attached my spreadsheet for Gas and Electric which clearly shows how I have been charged significantly over my contract level of Higher Rate kWh per year. Having contacted NPower I have been informed that when rates are changed, all previous Higher Rate kWh units paid, are put back to zero which I believe is grossly unfair and has led me to being overcharged. It is too complex for me to even be able to calculate how much!
I have also contacted them as when looking at my bills, I notice that they never gave me my Dual Fuel Discount in January either. I am still waiting for a reply to that!
I feel it is unfair that when clients are looking at Fuel Comparison Sites online, NPower are appearing to be cheaper, when in fact if the true amount of Higher Rate kWh's were shown (and their reluctance to give the Dual Fuel Discount promised) they would undoubtedly be far more expensive for many people. These false figures are giving them an unfair advantage in the market against others and are grossly unfair on people who are trying to budget.
I am happy to scan in all my bills if you feel it would be beneficial to your investigation, please just let me know.

Cardew

Taffyscot wrote: »

Please will someone explain to me what sculpting means in laymen terms.

Sculpting is simply a method of making you pay for the 4,572 higher priced units(called tier 1 or primary units) at an uneven rate throughout the year - you pay for more in winter and less in summer.

If you have just moved to Npower(2 months ago) you have not been affected by the scam last lear, that led to all their customers being overcharged. They found a way of making all their customers pay for more than 4,572 primary units.

Provided NPower keep to their word(which one might think unlikely!!) sculpting will not affect you.

meggsy

Just had a reply to my email of the 20th !
Apparently I have a unique number with Complaints who will get in touch shortly. Think I already know what the answer will be ! I'll supply my evidence to Ofgem now to get it in before the 30th deadline.

daveandeloise

Dear all,

I've joined this late but have also been overcharged over the last 14 months or so. I've contacted NPower on 2 previous occassions and again today. Today's conversation (being transferred 3 times) ended in some interesting comments from an operative at NPowers "Special Support Team":

- Yes, you've probably been charged more than 4572 higher rate units over the past year or so due to the way the flat rate and sculpting was applied
- But because NPower introduced a new tariff 1/1/2008, this resets the bill period, so they claim theyve done nothing wrong and it's all contractually legal

I challenged this latter part as if this is the case, they have introduced a new contract without the customer's consent. I said "so this means you can introduce a new tariff whenever you like and reset the sculpting profile to whatever you like" - reply "erm, yes"

I have asked for this persons comments in writing as I will seek legal advice. They have generated a "special reference" that I will receive (with above in writing?) with regards to this case.

I may have repeated earlier comments from other users, for which I apologise, but in my opinion NPower's actions are illegal and fraudulant. They are making the rules up as they go along and the problem is that the complex billing system means only a few people will notice this.

Dave

RM5_2

I'm still waiting for a reply to the following complaint I sent via the energywatch website on the 18th:

After complaining that I was being charged more than the contractual maximum of 4572 units over a year on the high rate tariff, I today received a letter from John Griffith, Head of Operations, offering only your leaflet "How to work out your gas bill" as an explanation. The first sentence states clearly "over the year we charge a maximum of 4572 kWhs on the high rate tariff."
Unfortunately, studying the rest of the document reveals that this is not case and that you are systematically overcharging all of your customers. This is because of the way nPower decided to change the sculpting system by which the units are distributed over the months twice within the last year in a way that was obviously carefully optimised to maximise this overcharging. Until 30/4/2007 you operated the old sculpting scheme. This gives a higher weighting to the winter compared to the summer months. For the following six summer months you switched to a flat sculpting with higher sculpting factors than the old and or the new sculpted scheme. On 1/11/2007 you switched to a new sculpting scheme with an even strong weighting towards the winter months. Taken on their own, both the old and new sculpting are legitimate as they ensure customers pay no more then 4572 units (100% sculpting) in any one year period. However any one year across the transition period has a total sculpting factor significantly in excess of 100%. For instance 149% (6820 kWh) from 1/3/2007 to 29/2/2008 or 139% (6357 kWh) from 1/5/2007 to 30/4/2008. This is in clear breach of you contractual obligation to charge no more than 4572 kWh at the higher rate over the year.
Various fatuous excuses for this incorrect charging have been offered by nPower to other customers. The main objective seems to be to delay and to obfuscate. I will list my answers below, so please do not waste your time offering the same excuses to me.
1) "It is standard practise for the industry to use a 'tariff year', and that when npower changes tariff rates a new 'tariff year' commences." No matter what nPower defines as tariff year, (and there is no definition in the published tariff) a year is a period of 365 days, so the tariff year that was started by the sculpting change on 1/5/2007 tuns till 30/4/2008 and over this period up to 6357 kWh are charged at the higher rate. You are not seriously going to argue that the six months between the 2 sculpting changes constitute a full tariff year, are you?
2) "The reason for turning on and off the gas sculpting procedure was to assist with the migration to a new billing system." Operational incompetence is no excuse for overcharging the customer. If your sculpting system is so complex that your IT staff cannot handle it in a system migration, maybe you should not be using a sculpted system in the first place, like all your major competitors, who allocate a maximum of 1143 kWh at the higher rate to each quarter. Fair, simple, transparent.
3) "We set the secondary rates lower to compensate for the additional higher rate units." Does this mean you admit charging additional higher rate units? The secondary rate charge is part of the published tariff (and used in advertising), the additional higher rate units are a hidden charge in breach of the published tariff.
4) "4572 units were charged from may06 to apr07, then 2286 primary units for the half year until oct07, and then again 4572 for the next full year" The total period covers 3 summers and only 2 winters. When adding 6 months on either end of this period, the overcharging becomes immediately apparent again. You can only assess the fairness of a seasonally adjusted pricing system over periods lasting an integer number of years.
I request to be reimbursed for any units in excess of 4572 kWh charged at the higher rate during the tariff year from 1/5/2007 to 30/4/2008. According to my records and the sculpting schedule you sent me, this amounts to 1617 kWh. Multiplied by the current difference between the primary and secondary rate of 4.93p incl VaT, the refund is £79.78. I expect a apology for the overcharging and a refund over this amount.

colonelhall

Excellent work! I have already made similar points in my own response to Npower and shall use your letter to help draft my next response, should they ever get round to replying.

Energywatch seem to be on the case. I have written to Ofgem and various newspapers. So far this is bearing no fruit, but I live in hope. They must not get away with it!

colonelhall

By the way, I notice today that Npower are withdrawing their cheapest online tariff. Does this mean that people on that tariff are transferred, or do they stay on it?