NPower gas 'sculpting'

SwanJon

Cardew wrote: »

I gained the impression that BG were(are?) simply inefficient, especially with their new Computerised accounting system.

Well, the old one was computerised too...

Inefficiencies were part of the problem when the new system came in. See the second half of this for more light...

Cardew

A couple of posts on this thread demonstrate what NPower thoight they would get away with!!!!

http://forums.moneysavingexpert.com/showthread.html?p=10925535&posted=1#post10925535

Taffyscot

DirectDebacle wrote: »

Dunno.I never buy The Times so if Saturday Times has a Money section/supplement I guess it will be in there. 'Buys it for the crossy' clever clogs.

LOL DD
Signed up with Scottish Power today fixed price until Feb 2011 no standing charge online billing. Especially after Martin warning us of huge gas price hikes. Then the bank of Enland chairman predicting worse ahead with gas hikes. SP think it will take 6 to 8 weeks don't care as long as it is at today's prices. Wonder how long NPower will take to transfer it over. Also did it through quidco and hope to get money in quidco account. Darn it was £75.00 yesterday, the cash back and it went down today I think it was £62.00 cash back.
Looking forward to reading your article DD especially since it is the only once a week that we buy the newspaper.
Taffy

Anne3333

http://www.guardian.co.uk/money/2008/mar/15/householdbills.consumeraffairs

DirectDebacle

Wise move Taffy.Cheap gas has gone for good but at least you can budget for it for 3 years now. Good luck.

c0113tt3

Im always weary of these fixed price deals till what ever year. Whenever I have checked any out, you are paying more / premium price to be on them than the regular tariff at the time. Obviously if the price goes up more than expected on the regular tariff, you are onto a winner. But, all companies exist to make profit, and huge profits at that on gas/elec. So I cant see companies wanting to make less or be unprofitable for them to offer such fixed deals. Ive always believed its a marketing ploy, more than anything.

Also if the fixed price was such a good deal, ie. the regular tariff surpassed and was more than the fixed rate, then of course the company makes less or perhaps unprofitable for them. If that was the case, then they would have to pass the loss / cost onto regular tariffs, which would then add further cost to the rising prices. So, is this really a good system?

mute_posting

c0113tt3 wrote: »

Im always weary of these fixed price deals till what ever year. Whenever I have checked any out, you are paying more / premium price to be on them than the regular tariff at the time. Obviously if the price goes up more than expected on the regular tariff, you are onto a winner. But, all companies exist to make profit, and huge profits at that on gas/elec. So I cant see companies wanting to make less or be unprofitable for them to offer such fixed deals. Ive always believed its a marketing ploy, more than anything.

Also if the fixed price was such a good deal, ie. the regular tariff surpassed and was more than the fixed rate, then of course the company makes less or perhaps unprofitable for them. If that was the case, then they would have to pass the loss / cost onto regular tariffs, which would then add further cost to the rising prices. So, is this really a good system?

I think that energy companies buy the majority of their future needs months and maybe years in advance.

It is similar to the fixed rate mortgage market (or as it was) whereby lenders buy £x million at such a rate and then sell this onto people after a mortgage at a slight profit IYSWIM?

I don't think the energy companies EVER risk loosing money on the unit rates.

MP

DirectDebacle

c0113tt3 wrote: »

Also if the fixed price was such a good deal, ie. the regular tariff surpassed and was more than the fixed rate, then of course the company makes less or perhaps unprofitable for them. If that was the case, then they would have to pass the loss / cost onto regular tariffs, which would then add further cost to the rising prices. So, is this really a good system?

It is a good system if it suits you. I did my numbers. I have gas with npower standard quarterly and electric with EDF fixed until 2010,also quarterly. I compared with Atlantic and Scottish Power.

Works out for gas and electric per year as:

npower/EDF £1359
Atlantic £1384
Scottish Power (Fixed) £1412

If I switch to Scottish Power I get £30.00 cashback.

I agree with mute (except for IYSWIM, haven't deciphered it yet) they buy wholesale well in advance. I am on a low fixed income and as inflation is on the rise and set to continue for the next 2/3 years @ 3-4% price stability is an important factor for me. Won't suit everyone so its good there are several price plans with the suppliers to choose from. A fixed price deal won't add to price rises, it is more likely to be a 'loss leader' and could be withdrawn at any time once they feel they have enough. All the players are competing for our custom but basic gas/electricity prices are pretty close between them. Hence the frills, direct debit discount, loyalty bonus etc. Don't lose sleep over their profits cO I'm sure they'll make some !

Cardew

c0113tt3 wrote: »

Im always weary of these fixed price deals till what ever year. Whenever I have checked any out, you are paying more / premium price to be on them than the regular tariff at the time. Obviously if the price goes up more than expected on the regular tariff, you are onto a winner. But, all companies exist to make profit, and huge profits at that on gas/elec. So I cant see companies wanting to make less or be unprofitable for them to offer such fixed deals. Ive always believed its a marketing ploy, more than anything.

Also if the fixed price was such a good deal, ie. the regular tariff surpassed and was more than the fixed rate, then of course the company makes less or perhaps unprofitable for them. If that was the case, then they would have to pass the loss / cost onto regular tariffs, which would then add further cost to the rising prices. So, is this really a good system?

Whilst it is understandable that you should be sceptical, I am pretty sure(although I stand to be corrected) that every fixed/capped price tariff has turned out to be a good deal for those who took the gamble and went for the tariff. Not surprising in a time of ever increasing energy prices.

The big debate on this issue on MSE was in 2005 when the BG fixed to April 30 2010 tariff was being offered and views similar to yours were put forward, and that tariff is now cheaper than anything else available.

Your final point about any 'losses' being passed on to other customers is of course valid.

In fact this raises a wider issue, that Energy companies really cannot lose. They are allowed to raise a certain amount of revenue from their customers and if they have set one tariff too low or they are not billing xx thousand customers at all, or write off bills over 12 months, then they can raise the income from other tariffs to compensate.

DirectDebacle

Can't find anything in the Times re npower. The reporter who made contact has written an article about an investment company (page 14 of the money section) so dunno if or when it will appear.