NPower gas 'sculpting'

icefall

colonelhall wrote: »

I have finally received an e-mail from Npower. No apology, jus tthis:
"
Good Evening,

Thank you for your email.

The first 4572 kwhs used are charged at the higher rate during the year, this is then divide out over the months. If there is a price increase the 4572 will start again. The information below is how we calculate our gas bills.

Over the year we charge a maximum of 4572 KWhs on the high rate tariff. This is worked out in one of two ways.

If the whole bill period is prior to the 01/05/07 then it will be ‘sculpted’, meaning that the primary block will be charged at a percentage based on “Season Normal Consumption” data.

If the period of the whole bill is post 01/05/07 then it will be charged on a ‘flat rate’ profile. This means that 8.33% of the 4572 KWhs for every full month will be charged on the high rate tariff and the remaining KWhs would then be charged at the low rate tariff.

If the period of the bill overlaps 01/05/07 then prior to that date the bill will be charged at the ‘sculpted profile’, and after 01/05/07 it will be charged at the ‘flat profile’.

STEP 1 - Work out the KWH’s

Take number of units used and multiply by 2.83 (if an imperial meter which would have 4 dials), with a metric meter (this would have 5 dials) there is no need to do this. Then multiply by the Calorific Value and the Correction Factor and divide by 3.6 (round up to 1 decimal place) to give you the total KWhs charged on the bill.

(The values for Calorific Value and Correction Factor are found on your individual bills however if there are no figures available use 40.0 for the Calorific Value and 1.02264 for the Correction Factor)

STEP 2 - Work out the number of KWhs to be charged at the high and low Rate

SCULPTED PROFILE (Whole Bill Period before 01/05/07)

Prior to 01/05/07 the primary block should be charged at a percentage as shown in the table below. The remaining KWhs would then be charged on the low rate tariff.

Month Consumption Profile %
May 06 7.1
June 06 4.2
July 06 2.4
August 06 2.4
September 06 4.2
October 06 7.3
November 06 10.3
December 06 12.7
January 07 13.8
February 07 13.6
March 07 12.2
April 07 9.8
100%

1) To work out the 1st month % at the high rate, of the bill.

Take the number of days in the month minus start day of the bill and divide by the number of days in the month (round to 2 decimal places). Multiply by the percentage for that month and round to the nearest whole number. This equals the first months proportion of the annual threshold (4572).

2) To work out the middle months % at the high rate, of the bill.

Add the full percentage for each full month

3) To work out the last month % at the high rate, on the bill.

Take the last day of the bill and divide by the number of days in the last month (round to 2 decimal places). Multiply by the percentage for that month and round to the nearest whole number. This equals the last months proportion of the annual threshold (4572).

4) Calculating the total to be charged at the high rate

To get the total percentage to be charged at the high rate for the quarter, add the 3 or 4 months percentages together from steps 1-3.

Multiply the total percentage by 4572 (round up to a whole number) to get the KWhs charged at the high rate.

Example
Bill period = 15/01/07 to 14/04/07

Jan 15 - Jan 31 = 16/31 (bill day/days in month) x 13.8% = 7.1%
February = 13.6%
March = 12.2%
Apr 1 to Apr 14 = 14/30 (bill days/days in month) x 9.8% = 4.6%

Total charged at high rate for bill period = 37.5%
Therefore number of higher rate units = 37.5% x 4572 = 1714kWh


FLAT RATE PROFILE (Whole bill period after 01/05/07)

After 01/05/07 the primary block should be charged at the number of days in the bill period multiplied by 12.526 (=4572/365). The remaining KWhs would then be charged on the low rate tariff.
Example
Number of days in quarter = 91
Therefore number of high rate units = 91 x 12.526 = 1140kWh


COMBINATION OF SCULPTED AND FLAT RATE PROFILES (Bill period overlaps 01/05/07)

Prior to 01/05/07 the primary block is charged at a percentage as shown in the table below. After 01/05/07 we will charge 8.33% of the 4572 KWhs for every full month on the high rate tariff, and the remaining KWhs would be charged on the low rate tariff.

Month Consumption Profile % Month Consumption Profile %
May 06 7.1 May 07 8.33
June 06 4.2 June 07 8.33
July 06 2.4 July 07 8.33
August 06 2.4 August 07 8.33
September 06 4.2 September 07 8.33
October 06 7.3 October 07 8.33
November 06 10.3 November 07 19.33
December 06 12.7 December 07 19.33
January 07 13.8 January 08 19.33
February 07 13.6 February 08 19.33
March 07 12.2 March 08 5.94
April 07 9.8 April 08 5.93
May 08 1
June 08 1
July 08 1
August 08 1
September 08 1
October 08 5.93
November 08 19.3
December 08 19.3

1) To work out the 1st month % at the high rate, of the bill.

Take the number of days in the month minus start day of the bill and divide by the number of days in the month (round to 2 decimal places). Multiply by 8.33 (or by the percentage for that month if before 01/05/07(see table above)) and round to the nearest whole number. This equals the first months proportion of the annual threshold (4572).

2) To work out the middle months % at the high rate, of the bill.

Add the full percentage for each full month

3) To work out the last month % at the high rate, on the bill.

Take the last day of the bill and divide by the number of days in the last month (round to 2 decimal places). Multiply by 8.33 (or by the percentage for that month if before 01/05/07 (see table above)) and round to the nearest whole number. This equals the last months proportion of the annual threshold (4572).

4) Calculating the total to be charged at the high rate

To get the total percentage to be charged at the high rate for the quarter, add the 3 or 4 months percentages together from steps 1-3.

Multiply the total percentage by 4572 (round up to a whole number) to get the KWhs charged at the high rate.

Example
Bill period = 15/03/07 to 14/06/07

Mar 15 - Mar 31 = 16/31 (bill day/days in month) x 12.2% = 6.3%
April = 9.8%
March = 8.33%
Jun 1 to Jun 14 = 14/30 (bill days/days in month) x 8.33% = 3.9%

Total charged at high rate for bill period = 28.33%
Therefore number of high rate units = 28.33% x 4572 = 1294kWh


STEP 3 - Totalling the Bill

Take the total KWhs worked out in step 1 and subtract the KWhs charged at the high rate to get KWhs at the low rate.

Take KWhs on the high rate and multiply by the high pence per KWh, then divide by 100 to convert into pounds and pence.

Take KWhs on the low rate and multiply by the low pence per KWh, then divide by 100 to convert into pounds and pence.


Kind regards "

So that explains everything!

We need Einstein to explain the above :eek:

Not exactly clear and easy to work out is it?

Cardew

c0113tt3 wrote: »

I would also like to correct any earlier statements I made on when the tier 1 is reset, originally I was informed verbally by executive complaints that it was just the gas sculpt being on / off, it is also the price changes too that resets it as well, as stated by a few people now. I now have all this in writing.

I am trying to get my head around this - and it is late - but I can't see that resetting the sculpting year(after a price rise) will cause anyone to be charged for more primary units - providing:

They they didnt change the allocation of units to each month i.e. xx units in April, yy units in May, zz units in June etc.

If I haven't got that concept right, then please explain how restting will cause more than 4572 to be charged.

It seems to me that all of the overcharging has been caused by them 'suspending' the sculpting during the summer and charging 8.33% per month at a time when they would have been charging 1% or so if the sculpting was still in place.

The same effect could also be caused if they changed the percentages for each month when re-setting.

c0113tt3

I have an 8 page document from them, but a couple of excerpts state :

"The 4572 kwh is calculated across a tariff year, which begins at the change date of any change in gas price or change in application of pricing methodology"

"Importantly, when suspending seasonal block weighting in this way (referring to April 2007), we recognised that in the following months a high rate of units would be charged at the primary block rate than would have otherwise been the case and so this was taken into account when setting lower gas changes in April 2007 (tier 2). The secondary unit rates we set in April are much lower than they would have been in normal, seasonally weighted application of primary block units had continued throughout. This change was done to offset the higher charges from the added primary units"

Now the offset nonsense of secondary units, yes they lowered the rate of tier 2, at a time where you wouldnt use hardly any at all, in fact I only used 200 kwh tier 2 units throughout May 2007 to end of October 2007, meanwhile I was paying more tier 1 than I should, it worked out that they saved me just over £1 !! (the price difference from tier 2 kwh prior to April 2007 and after April 2007) over a 7 month period by giving cheaper tier 2 units, but charged me over £30 more in tier 1 than they should during that period !! So the statement from them is a load of crap. Then from November 2007 the sculpting came back in and it was all reset again.

Secondly, they did not necessarily use the price drop of tier 2 units in consideration with turning off the sculpting system and getting charged more tier 1, They used this price drop, as a marketing ploy against British Gas, mentioning that they were "cheaper still", they got wrapped though by the ASA the cheaper "still"

SwanJon

There's been a few mentions of deadlocked in this thread, but none of the ombudsman, who will only pick up a complain once the supplier claims it is deadlocked.
Unlike Energywatch, the ombudsman charge the supplier per complaint, so complaints to them would hurt the supplier more. I'm not sure how much, but I've heard that Oteleo (phone ombudsman) charge £500 per complaint.

RM5_2

I had similar problems 'understanding' my excessive gas bill, but my complaint has yet to be met by a reply. So this post was very helpful:

colonelhall wrote: »

I have finally received an e-mail from Npower. No apology, jus tthis:
.....
So that explains everything!

Now this really explains in black and white what how npower are trying to rip off their customers. Looking at their actual sculpting schedule, we can calculate the excess compared to just keeping the old sculpting schedule:

Month Actual Old Excess Running excess
May06 7.10% 7.10% 0.00% 0.00%
Jun06 4.20% 4.20% 0.00% 0.00%
Jul06 2.40% 2.40% 0.00% 0.00%
Aug06 2.40% 2.40% 0.00% 0.00%
Sep06 4.20% 4.20% 0.00% 0.00%
Oct06 7.30% 7.30% 0.00% 0.00%
Nov06 10.30% 10.30% 0.00% 0.00%
Dec06 12.70% 12.70% 0.00% 0.00%
Jan07 13.80% 13.80% 0.00% 0.00%
Feb07 13.60% 13.60% 0.00% 0.00%
Mar07 12.20% 12.20% 0.00% 0.00%
Apr07 9.80% 9.80% 0.00% 0.00%
May07 8.33% 7.10% 1.23% 1.23%
Jun07 8.33% 4.20% 4.13% 5.36%
Jul07 8.33% 2.40% 5.93% 11.29%
Aug07 8.33% 2.40% 5.93% 17.22%
Sep07 8.33% 4.20% 4.13% 21.35%
Oct07 8.33% 7.30% 1.03% 22.38%
Nov07 19.33% 10.30% 9.03% 31.41%
Dec07 19.33% 12.70% 6.63% 38.04%
Jan08 19.33% 13.80% 5.53% 43.57%
Feb08 19.33% 13.60% 5.73% 49.30%
Mar08 5.94% 12.20% -6.26% 43.04%
Apr08 5.93% 9.80% -3.87% 39.17%
May08 1.00% 7.10% -6.10% 33.07%
Jun08 1.00% 4.20% -3.20% 29.87%
Jul08 1.00% 2.40% -1.40% 28.47%
Aug08 1.00% 2.40% -1.40% 27.07%
Sep08 1.00% 4.20% -3.20% 23.87%
Oct08 5.93% 7.30% -1.37% 22.50%
Nov08 19.30% 10.30% 9.00% 31.50%
Dec08 19.30% 12.70% 6.60% 38.10%
Jan09 19.30% 13.80% 5.50% 43.60%
Feb09 19.30% 13.60% 5.70% 49.30%
Mar09 5.94% 12.20% -6.26% 43.04%
Apr09 5.93% 9.80% -3.87% 39.17%
May09 1.00% 7.10% -6.10% 33.07%

Thanks to the creative billing technique of applying flat sculping over the summer of 2007, npower ends up with a tidy sculpting excess from everyone. Depending on when your billing year starts (or when you quit npower ), you will have ended up paying between 1030 (Oct) and 2250 (Feb) excess kWh at the higher rate. The average over all months is 1560 excess units. Taking into account the price change on 4/1/08 we can also calculate how the changes in the sculping have affected us financially. Compared to keeping the old schedule, npower collects an extra one-off charge of between £48 and £106, or an average of £73 over all months from each customer consuming more than 4572 kWh/yr. It is clear the £73 per customer is a significant fraction of their profits.
Though they are trying to hide behind their complex billing system, I do not think they can get away with it if we protest enough. It is quite clear that this amounts to an illegal hidden charge.
If all protests are unsuccessful, the time to quit is october, as you might as well use the months with a very low sculpting factor.

Cardew

RM5 wrote: »

you will have ended up paying between 1030 (Oct) and 2250 (Feb) excess kWh at the higher rate. .

Well I made it 2,255 kWh in the example I gave in post #68 above.

Now if my arithmetic is correct that means they will charge 149.33% of 4,572 in a 12 month period i.e. for an extra 2,255 units at the primary rate

We won't quibble over 5kWh

RM5_2

Cardew wrote: »

We won't quibble over 5kWh

Certainly not. I must admit I overlooked your original post. One point needs emphasising:
It is true that some customers are better off under the new sculpting and some (surely more) were better off under the old sculpting, but the issue is that they structured the transition in a way that everyone pays a substantial one-off extra hidden charge. This includes the majority of customers who pay the full 4572 annual higher rate units under both the old and new scheme and who should not have been affected by the change at all.

I am sure they will loose this argument. Is there anything like punitive damages in the uk? At tesco's if by mistake a special offer has not been programmed into the tills and you get charged more than advertised you get the product for free. This is fair enough, because most people will not notice they were overcharged. Is there any legal guidline forcing them to do this or is this just goodwill?

Tinklerbell

Just read through the posts,

I've been with NPower for 8 months and already been charged over 4600 units at the Tier 1 rate. I was also told that all the energy companies did the same and "weighted" the split of the Tier 1 rate so that it was fairer to lower consumption energy users.

When I contacted them they said that they can't tell all their customers how they make up the billing charges because it would take too long to explain!! I'm also pretty sure that they don't explain the figures anywhere in their T&C's and would love to know whether they have an obligation to do so.

Would love to know if anyone hears anything or gets any offers of compensation.

notbritishgas

Tinklerbell wrote: »

Just read through the posts,

I've been with NPower for 8 months and already been charged over 4600 units at the Tier 1 rate. I was also told that all the energy companies did the same and "weighted" the split of the Tier 1 rate so that it was fairer to lower consumption energy users.

When I contacted them they said that they can't tell all their customers how they make up the billing charges because it would take too long to explain!! I'm also pretty sure that they don't explain the figures anywhere in their T&C's and would love to know whether they have an obligation to do so.

Would love to know if anyone hears anything or gets any offers of compensation.

It actually hurts the lower using customers more! Even if npower use sculpting the way they should, ie use more primary in winter and less in summer, it is their way of getting the lower users to use all of the expensive primary units.
I am pretty certain that npower are the only company to apply sculpting.

Been with them 8 months eh, you'll soon realise what a bunch of scammers they are.

DirectDebacle

'It actually hurts the lower using customers more!'... Spot on notbritishgas. The unfair manipulation ('sculpting' sounds so much nicer) is a cold blooded and calculated attack on those least able to defend themselves. That is the poor, elderly and vulnerable. These people will have had a nasty shock this winter at the size of their gas bills. Not only have they endured a price increase but on top a disproportionate amount at the high rate. Shame on npower. Squeeziing every last penny from these people.
Then they lie about it. Did anyone receive notification PRIOR to Nov 1st regarding the 'revised seasonal weighting'. First I knew was in March this year when a leaflet mentioning it was enclosed with my bill. Too late to switch then to avoid the increase. Must have been an oversight on npowers part. I'm sure they meant to tell us before it came into effect. April 2007 would have been about right. Or maybe charging the full flat rate from May to October 2007 and then increasing that in November was another oversight.
The time to switch is now. They may well decide to reinstate the flat rate next month as they did last year. Only thing this deceitful,descipable and heartless company will understand is losing money. Switch now and dispute every penny they say they owe you.