NPower gas 'sculpting'

DirectDebacle

Been away for a bit of sun. See I have some catching up to do. Good to see the thread still maintains its interest. I have some news too but give me a couple of days and I'll post in full. Welcome to all the new contributors. Too jet lagged to read it yet but looks to be some good stuff there. Lets keep at 'em. 'npower - the home of the gastronomical bill.'

alleycat`

Hi Sterling,

I did consider the fact it should be a maximum of 4,572 in any given theoretical year and that i might be better off (personally) from moving the starting period around to suit a better renumeration.

The reason i picked november to november was partly due to the first "sculpting" letter i received from npower (Nov 6th) and partly for ease as my quarterly bills run exactly to that period in time (so are less open to interpretation / averaging).

As you say though the year could be started and ended at any point for a given "year" so i will probably see if moving the start and end points about comes out as me having paid yet more.

Haven't heard anything back from them yet so monday might be the time to give them a nudge.

cheers for the advice.
--
Richard

DirectDebacle

alleycat` wrote: »

Hi Sterling,

I did consider the fact it should be a maximum of 4,572 in any given theoretical year and that i might be better off (personally) from moving the starting period around to suit a better renumeration.

The reason i picked november to november was partly due to the first "sculpting" letter i received from npower (Nov 6th) and partly for ease as my quarterly bills run exactly to that period in time (so are less open to interpretation / averaging).

As you say though the year could be started and ended at any point for a given "year" so i will probably see if moving the start and end points about comes out as me having paid yet more.

Haven't heard anything back from them yet so monday might be the time to give them a nudge.

cheers for the advice.
--
Richard

Hi,
Try not to go down this road. Keep it simple and logical, which is precisely the way npower don't want it.

This is more involved than a simple case of overcharging. npower are manipulating the wording of the terms and conditions and the meaning of a year to attempt to justify their actions. Do not assist them by trying to work dates to your advantage. I am using 1st April to March 31st as the basis of a Primary Block year. The reason is that the two tier system together with its 'seasonal weighting' was introduced on 1st April 2003. Logic dictates that every subsequent year will start and finish on those dates. Calculate your high units from the date you joined to 31st March. Then calculate from 1st April for the next (or part) year. This is eay to follow (it will make perfect sense to a court) and negates the ridiculous 'tariff'/ 'Cycle' year argument used by npower.

E.g. Joined 1/11/06

1/11/06 - 31/03/07 = 2862
1/04/07 - 31/03/08 = 6535
1/04/08 - 31/03/09 = 4572

1/11/06 - 30/10/07 = 5596
1/11/07 - 31/10/08 = 4572

This assumes sufficient usage and npower applying their weighting as stated. Purely theoretical and bills need to be checked.

The wording of 'any continuous period of twelve months' did not appear in the terms and conditions until around 1st July this year, after the complaints were flooding in. The previous terms and conditions apply which referred to the first 4572kWh in 'a year ' and 'per annum'. There was no further clarification of what these periods were defined as, by npower.

If the terms and conditions are taken verbatim then in November (or any period of a year or less) you use more than 4572 units then npower can charge up to 4572 high rate units for that period, but no more for the remainder of the year. In practice no gas company does this but it would be legal under the terms and conditions.

There should be two components to your claim.

1. The amount of units overcharged.
2. A breach of the terms and conditions by not notiying the change of how they charged for gas, which was to your significant disadvantage.

Re. point 2. Do your sums carefully to determine if this is to your advantage. The change to the way gas was charged for in May 2007 was accompanied by a price reduction to the Follow-On price (lower tier 2 units). npower were obliged to give 65 working days notice of the alteration to the 'weighting' but not required to give notification of the price reduction to the Follow-On rate.

You can claim that as you were not given the opportunity to object to the change then it should not have been applied and all gas (Primary Block and follow-On) should be charged at the price applicable as at 30/04/07. The same argument applies to the change to weighting on 1st November 07 for those who joined after 1st May 2007. It may or may not be in your favour to pursue this part of the claim. Doing the maths will tell you.

I have been offered, as a gesture of goodwill, with no admission of liability, a large 3 figure sum in full and final settlement of my claim. I have refused the offer.

DirectDebacle

alleycat` wrote: »

.

The reason i picked november to november was partly due to the first "sculpting" letter i received from npower (Nov 6th) and partly for ease as my quarterly bills run exactly to that period in time (so are less open to interpretation / averaging).


.
--
Richard

Alleycat,

I am not aware of this letter. When did you receive it (year) and what are the details. Is it possible for you to post it in full? Thanks.

alleycat`

Hi DD,

I received the letter on November the 6th 2006.
I don't recall the exact wording of the letter (i'll reproduce it when i get home) but it was something along the lines of altering the weighting of higher units based on the time of year and it also stated that i would never be charged over 4,572 "primary or higher" units in any given year

--
Richard

DirectDebacle

Sterling wrote: »

3. Who are these affected customers? I calculate anyone that is (or was) a gas customer of Npower for at least twelve months and that this duration included some or all of the six calendar months of May 2007 to October 2007 (this being when customers were deprived of their summer reduction in the number of gas units charged at a higher rate).
Sterling

Excellent post and thank you for all your hard work. Belive me I appreciate how much time and effort you spent on this.

I believe in order to make sense of this a firm starting date for the Primary Block year needs to be established and as mentioned I think 1st April to be the most appropriate.

Re your above paragraph.

Join npower 1st July 2007. Units charged (theoretical as per their info.) to 31st March 2008 = 5325.

In this case you need only to have been with npower for 9 months to have been overcharged the maximum allowed per annum. npower have quite deliberately refused to be drawn on giving a firm starting date for the Primary Block year. Attempting to retain fluidity over this suits their purposes of damage limitation or avoidance. Picking out any 12 month period is useful for determining if you have paid more than 4572 over the year you have been with them, but if at all possible, they will manipulate the start and end date of a Primary Block year in an individuals case to show that your year is in fact two parts of two separate Primary Block years and that therefore you were not overcharged in either year.

If all suppliers charged the 4572 at an even 381 per month then it would make no difference where you started your Primary Block year or when you chose to change suppliers as it would dovetail smoothly from one system/supplier to another. Seasonal weighting prevents this.

What npower are now doing is working their year back from 31st October 07 to 1st Nov 06 which gives them the least amount of liability in respect of claims.

Working forward from 1st November 08, as long as their is no change to the current weighting profile, then any 12 month period will give 4572.

Because of seasonal weighting there has to be a set date for the Primary Block year to start and finish. Using a customers' start date would mean that tens of thousand of customers would all be paying different amounts of Primary Block units over their year.

c0113tt3

The letter was posted out early to mid november 2007. Standard letter that everyone recieves from Kevin Peake, Head of customer marketing.

456/00218/0056420IK/031055/npm4894
Our letter code: PCL 004
November 2007

Dear Customer

(there are 4 sections to this letter)
1. Were making some improvements to the look of our energy bills
This just says about the new style of the billing letter.

2. Weve also introduced paperless billing
This just explains that you can get your bills on the internet and stored for 2 years.

3. Changes to our terms and conditions
This is just about the change with Ofgem and supply licences that allows Npower more time to inform customers about price changes.

4. Changes to the way gas rates are supplied (this is typed word for word)

We're also changing the way we apply our gas prices. From 1st November 2007 we'll be seasonally weighting the amount of primary block units that each customer is charged so it more accurately reflects the amount customers use during different times of the year +. The primary block size still remains the same at 4572 kwh a year but the number of units charged at the primary rate will vary from bill to bill according to the season and/or the period covered by the bill. So a typical customer will not see any change in the amount they pay over the year and their primary block size will not exceed 4572 kwh over that year.


The + explanation is on the reverse of the letter, and just explains if you are not happy, then give notice of leaving etc.. It also states "Further changes to the way we charge our gas prices may occur in order to more accurately reflect the amount customers use seasonally."

c0113tt3

Again that letter states 4572 kwh a YEAR, and NOT EXCEED 4572 kwh over that year.

As for picking November 1st to start a year period, it doesnt make sense to actually choose that date as they introduced gas sculpting prior to November 2007 anyway, as prior stated, November 2006 and December 2006 that I am aware it started from, and ended at the end of April 2007 (suspension of gas sculpt to assist billing migration / systems) which that resulted in over paying tier 1 anyway.

alleycat`

Yep thats the letter i received also - thanks c0113tt3
Saved me a typing job.

--
Richard

DirectDebacle

c0113tt3 wrote: »

Again that letter states 4572 kwh a YEAR, and NOT EXCEED 4572 kwh over that year.

As for picking November 1st to start a year period, it doesnt make sense to actually choose that date as they introduced gas sculpting prior to November 2007 anyway, as prior stated, November 2006 and December 2006 that I am aware it started from, and ended at the end of April 2007 (suspension of gas sculpt to assist billing migration / systems) which that resulted in over paying tier 1 anyway.

I received a leaflet with my March 08 bill with a virtually identical statement about seasonal weighting on the rear. It was entitled 'At your Service'. Is this what you are referring to or was it actually a typewritten letter. If so I never received one, only the leaflet together with two others, one explaining the new look bill and the other 'Your book of bright ideas'.

The letter you quote and the leaflet I received imply that this was the first time seasonal weighting was introduced. Of course we now know different. It was introduced on 1st April, 2003 and the first overcharge occured due to a change from a flat to a 'weighted' profile on 1st October, 2004.

Alleycat posted that the letter was received by him on 6th November 2006 so perhaps it was a typing error and meant 2007. In any event merely mentioning 'seasonal weighting' and not explaining the details can hardly be construed as correctly informing customers of a change.

Thanks very much for the info.